Ping An Signs Agreement with Shionogi to Launch Joint Ventures

HONG KONG and SHANGHAI, July 27, 2020 /PRNewswire/ -- Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An" or the "Group", HKEx:2318; SSE:601318) is pleased to announce that agreements have been signed with Shionogi (Hong Kong) Company Ltd. ("Shionogi (Hong Kong)"), a wholly owned subsidiary of Shionogi & Co., Ltd. ("Shionogi") to launch joint ventures in Shanghai and Hong Kong, namely Ping An-Shionogi Co., Ltd.^[1] and Ping An-Shionogi (Hong Kong) Limited^[2]. The establishment of the joint ventures will enhance the level of health and medical care service in China, in line with Ping An's healthcare ecosystem strategy.

Ping An-Shionogi Co., Ltd. is registered in Shanghai, with a total investment of RMB2.94 billion. Ping An Life Insurance Company of China, Ltd. intends to invest RMB1.44 billion, with equity accounting for 49%; Shionogi (Hong Kong) intends to invest RMB1.5 billion, with equity accounting for 51%. The joint venture agreement will be reported to the China Banking and Insurance Regulatory Commission (CBIRC).

Ping An-Shionogi (Hong Kong) Limited is registered in Hong Kong, with a total investment of HKD360 million. Tutum Japan Healthcare Limited, an indirect subsidiary of Ping An intends to invest HKD176 million, with equity accounting for 49%; Shionogi (Hong Kong) intends to invest HKD184 million, with equity accounting for 51%.

Both transactions will be coordinated by China Ping An Insurance Overseas (Holdings) Limited.

Build a data-driven drug discovery/development platform

The joint ventures will become development centers for drugs that Shionogi is developing globally. With a focus on infectious disease and central nervous system (CNS) disorders, Shionogi has amassed a wealth of knowledge about disease and strong drug-discovery capabilities. Combining these competencies with Ping An's big data and artificial intelligence (AI) analytical technology, the joint ventures will establish a research and development platform to efficiently create high-value-added, innovative medicines and healthcare services and deliver customized solutions for customers.

Build a manufacturing and quality control system using AI technology

To enhance pharmaceutical manufacturing and quality control, Shionogi will fuse its manufacturing and quality control technology and knowhow with Ping An's AI technology to create a new manufacturing and quality control system. The joint ventures will use AI to monitor the manufacturing and analysis in real time, and to deploy an innovative pharmaceutical manufacturing and quality control system that offers high quality and low costs.

Build a sales and distribution platform utilizing online-to-offline marketing to improve customer satisfaction

The joint ventures will be able to supply new, generic and over-the-counter drugs to customers in China via Ping An Health Cloud, an affiliate of the Group. Ping An Good Doctor is today the largest mobile medical application in China in terms of user scale, with 315.2 million registered users, 729,000 average daily consultations, and a professional network of more than 3,000 hospitals and 94,000 pharmacies by the end of 2019. It leverages Ping An Health Cloud Company Limited's in-house full-time medical team and its proprietary AI-based medical system to cover end-to-end services including 24/7 online consultation, prescription, referral, appointment, second medical opinion and drug delivery.

John Keller, Ph.D., Senior Executive Officer, Senior Vice President, Global Business Division, Shionogi said, "We are excited to have completed the joint venture agreement and to now be prepared to make a full-scale start. Ping An Group has a world-leading platform and AI technology in the healthcare field, in addition to their strength in the insurance & financial field. By fusing Ping An's strengths with Shionogi's strengths as a drug discovery-oriented pharmaceutical company in this joint venture, we will work together to provide total healthcare solutions for the benefit of patients, families, healthcare professionals and society as early as possible. We believe this alliance represents a very significant step toward our goal of creating new platforms to shape the future of healthcare."

As a world-leading technology-powered retail financial services group, Ping An is guided by its strategies of "finance + technology" and "finance + ecosystem" to provide customers and internet users with innovative and simple products and services using technology, focusing on "pan financial assets" and "pan health care". Since the global outbreak of COVID-19 earlier this year, Ping An has taken on the challenge of meeting changing customer needs. The establishment of the joint ventures will leverage both parties' strengths and advantages to raise the level of health and medical care service in China, empower the healthcare industry with advanced technology, and offer customers more diversified health care services.

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About Ping An Group

Ping An Insurance (Group) Company of China, Ltd. ("Ping An") is a world-leading technology-powered retail financial services group. With over 204 million retail customers and 534 million Internet users, Ping An is one of the largest financial services companies in the world.

Ping An has two over-arching strategies, "pan financial assets" and "pan health care", which focus on the provision of financial and healthcare services through our integrated financial services platform and our five ecosystems of financial services, health care, auto services, real estate services and smart city services. Our "finance + technology" and "finance + ecosystem" strategies aim to provide customers and internet users with innovative and simple products and services using technology. As China's first joint stock insurance company, Ping An Group is committed to upholding the highest standards of corporate reporting and corporate governance. The Company is listed on the stock exchanges in Hong Kong and Shanghai.

In 2020, Ping An ranked 7^th in the Forbes Global 2000 list. In 2019, Ping An ranked 29^th on the Fortune Global 500 list. Ping An also ranked 38^th in the 2020 WPP Kantar Millward Brown BrandZ^TM Top 100 Most Valuable Global Brands list. For more information, please visit www.pingan.cn.

About Shionogi & Co., Ltd.

Shionogi & Co., Ltd. is a 142-year-old global, research driven pharmaceutical company headquartered in Osaka, Japan, that is dedicated to bringing benefits to patients based on its corporate philosophy of "supplying the best possible medicine to protect the health and wellbeing of the patients we serve." Shionogi has its vision "Building Innovation Platforms to Shape the Future of Healthcare" in the new medium-term business plan "Shionogi Transformation Strategy 2030 (STS2030)." Shionogi will build new platforms in the healthcare area, and provide new values to society by leveraging our strengths as a drug discovery-oriented pharmaceutical company and partnering with other companies and industries for its unique strengths. We will contribute to the realization of a sustainable society through our business so that we can be a company needed by all of our stakeholders in the future. For details, please visit https://www.shionogi.com/global/en/