Investor Relations

Message

A balanced R&D investment is the engine for our long-term growth.

I greatly appreciate your interest and/or investment into GNI Group, a company I devoted my life to from 2001. Since IPO on the MOTHERS Board of the Tokyo Stock Exchange in 2007, GNI Group has experienced success and sometimes, setbacks. We have also seen stock price volatility periodically. However, we have been patiently implementing our corporate strategy through continuously pursing new drug development. Many of you have witnessed our non-stop pursue of scientific excellence, corporate compliance, and budget control, the three key elements for our future success as a biotech company.

Most new drug developments takes more than a decade of effort and hundreds of millions of dollars. Adding to that long period of time, the chance of success to win regulatory approval is below 20%, after clinical trial. From the beginning, I believe the business model that GNI Group should conduct clinical development in China first before we move on to the rest of the world. This has proved to be a winning business model which allowed us to use our precious R&D dollars cost-efficiently so that we can develop several drug candidates instead of a single one, to increase the probably of success and to minimize the risks. Our drug pipeline is the foundation for our future growth and is our company's core value to my belief, although sometimes, the value of a new drug under development is not clearly visible to many people. But at each drug clinical development stage and inside each geographic territory, we carefully evaluate the choice of continuously self-development or license-out for financial return.

We have adopted a lean and mean corporate structure to ensure the highest efficiency of operation under multi-lingual environment. History has proved that our scientific team is up to the highest standard of the industry, with multiple high quality publications, international patents, and most importantly, regulatory approvals for our drug candidates. We are actively recruiting other talents in the fields of sales, manufacture, clinical trials, and business development to join our fully-integrated team to reflect our new focus in the coming years. Investment into people is always our top priority because people are the driving force in any Hi-Tech industry.

There is no ambiguity in compliance requirement in every subsidiary of GNI Group. We have implemented group-wide J-SOX control system. We are also starting to implement IFRS financial system in 2015. Our financial statements have been audited by firms with very high reputations in the industry. Material news have been timely disclosed to the public.

We continue implementing very strict budget control. History has proved that it was the single most important factor for our group company to have a safe passage through the financial storm of 2008-2009.

However, we must also invest into our future blockbuster drugs at the meantime. Otherwise, we will lose our competitive advantages sooner or later. We must balance our annual budget between financial performance and R&D spending to achieve long term financial health. A balanced spending is in the best interest of our shareholders.

Although our staffs speak three different kind of languages and come from Japan, China, and USA, we have all shared the same goal of achieving return for our shareholders. As both CEO and a shareholder of GNI Group, I believe our company still has the potential to continue to grow at the bigger stage of global pharmaceutical industry. Our resolve is un-waivering.

Ying Luo, PhD
Director, Representative Executive Officer, President and CEO