02/06/2006
Title: Chief Executive of HKSAR Visits PuraPharm Facility in Nanning
Chief Executive of HKSAR Visits PuraPharm Facility in Nanning
Asia's most advanced Chinese medicine manufacturing facility
seen as role-model for Hong Kong businesses

Hong Kong, June 2, 2006 - PuraPharm International (HK) Ltd. was today honored by a visit to its modernized Chinese medicine factory in Nanning by the Chief Executive of the Hong Kong Special Administrative Region, Mr. Donald Tsang, accompanied by local business leaders. The factory was shortlisted for a stop on the Chief Executive's tour, as a prime example of Hong Kong capital investment in western China.

Mr. Fred Lam, Executive Director of Hong Kong Trade Development Council, which organized the tour, said, "Hong Kong needs to further diversify its manufacturing industry and to escalate up the value chain to develop innovative and high value-added products. Leveraging Guangxi's resources, PuraPharm finds a unique way of doing so."

The factory, with a capacity of 1,500 tons of concentrated Chinese medicine extracts per year, is one of the most sophisticated of its kind within the region and is regarded among the best pharmaceutical production facilities in Asia. It was built in 2004 with a total investment of HK$200 million, incorporating the efforts of leading architects, engineers and pharmaceutical plant design specialists from Canada, Australia and Japan. The company selected Guangxi as its production base for two key reasons: firstly, the availability and wide variety of natural/wild Chinese medicines; and secondly, the full support of the Guangxi government in encouraging investment from Hong Kong businesses, including provision of policy and tax allowances.

Mr. Tsang visited all areas of the facility, from research laboratories to raw herbs processing, quality control and advanced production lines. In addition to capital investment, PuraPharm has developed a variety of pioneering proprietary technologies, such as DNA fingerprinting for Lingzhi products, produced in collaboration with Hong Kong Baptist University and also viewed by the visitors.

"Our vision is to produce modernized Chinese medicine, true to the traditional philosophy but with all the benefits of convenience, standardization and efficiency consumers expect from modernized medicines," said PuraPharm founder and Chairman, Mr. Abraham Chan. "As one of only six approved corporations in China to produce and market Chinese medicine granules, and the only one headquartered in Hong Kong, we feel it is our responsibility to continuously invest our time and resources in the people, technologies and products that will ultimately benefit consumers as well as helping to ensure a vibrant economy here in Guangxi province."

PuraPharm's modernized concentrated Chinese herbal extract and health products are sold in Hong Kong, Mainland China, Taiwan, Singapore, Philippines, Thailand, United States and Canada. Well-known PuraPharm brands include Puralin, Haveron and NONG'S concentrated Chinese Medicine Granules.

China launched the western development program in 2000 to narrow the economic gap between the region and the country's east. Ministry of Commerce statistics showed that in the first two months of 2006, the western region approved the establishment of more than 200 overseas-funded enterprises, and used US$276 million of overseas capital, up 51% year-on-year.

About PuraPharm International (HK) Ltd
Established in 1998, PuraPharm is the fastest growing Chinese medicine manufacturer in Hong Kong. The company's vision is to help people live healthy and long lives, through the modernization of Chinese medicine and continual scientific research, promoting the wisdom of traditional Chinese medicine and providing more convenient and effective Chinese medicine products. Headquartered in Hong Kong, the company has branches in China, Taiwan, Singapore, Thailand, Philippines, United States and Canada.


Photo Captions



Photo 1
Chief Executive Donald Tsang(second left) and Abraham Chan(first left), Chairman of PuraPharm Group sampled the Chinese medicine Luo Hang Guo instant drinks.


Photo 2
Abraham Chan(left), Chairman of PuraPharm Group introduced the artificial cultivated cordyceps sinensis to Chief Executive Donald Tsang. It is a collaborative research effort of PuraPharm and Hong Kong University of Science and Technology.


Photo 3
Abraham Chan(left), Chairman of PuraPharm Group presented a Lingzhi souvenir to Chief Executive Donald Tsang as a token of thanks for visiting PuraPharm's manufacturing plant. The factory was shortlisted for a stop on the Chief Executive's tour, as a prime example of Hong Kong capital investment in Guangxi, leveraging Guangxi's resources and optimizing Hong Kong's competitive edge.