On July 12, the groundbreaking ceremony for the project of Morimatsu (Suzhou) Life Technology Co., Ltd. was held in Changshu Economic Development Zone, Suzhou. People present at the event included Zhou Qindi, Secretary of the Changshu Municipal Party Committee, Wu Xiaohong, Member of the Standing Committee of the Municipal Party Committee and Executive Deputy Mayor, Chen Guodong, Member of the Standing Committee of the Municipal Party Committee, leaders of the Economic Development Zone and heads of relevant departments. Hideyoshi Nishimatsu, Chief Executive Officer and Executive Director of Morimatsu International, Tang Weihua, Executive Director of Morimatsu International and General Manager of Morimatsu (Suzhou) Life Technology Co., Ltd.as well as other relevant leaders of Morimatsu Group, representatives of design and construction units, and friends from all walks of life. All of them witnessed such an important moment.

The city of Changshu is located in the Yangtze River Delta region, which is rich in resources and talents, underpinned by superior geographical location and convenient transportation. Greater efforts are being made to build a “Medicine Valley in China” out of this region within a decade that will be focusing on the development and production of new drugs, high-end medical devices and cutting-edge biological technology. Located in this region, Morimatsu (Suzhou) Life Technology Co., Ltd. is committed to building a modern new factory that integrates a high degree of automation, intelligence, and green operation. The project is invested by Morimatsu International and planned to cover two phases. The first phase, with an total investment of about ＄180 million, is intended for the R&D, manufacturing and sales of high-end intelligent complete equipment systems for biopharmaceuticals, cosmetics, daily chemicals, electronic chemicals and other industries.

The ceremony marked the commencement of the first-phase project. With an area of more than 130,000 square meters, the first phase of construction includes the building of 7 workshops for manufacturing containers, equipment systems and modular plants, as well as office buildings, comprehensive buildings and dormitories, complete with basketball courts and indoor badminton halls, providing a comfortable working and recreation environment. The first-phase project is scheduled to be finished around the end of 2023 and will greatly increase the annual production capacity after put into operation.

The whole building of the new factory will adopt solar panels, intelligent lighting systems, and rainwater recycling systems for the purpose of implementing the energy-saving and eco-friendly concept. High-automation production lines will be put in place in each workshop in a well-arranged way. Besides, MES systems will be applied to realize the professional information management of production in factories and workshops so as to significantly improve production efficiency. By the time this new modern and intelligent factory is in full operation, it will facilitate distributed collaboration with cities like Shanghai, Wuhan and Nantong, and enhance its anti-risk capability to cope with the ever-changing global market.

After completion, the factory will continue to meet the booming global demand for manufacturing equipment from industries such as biopharmaceuticals, cosmetics, daily chemicals, electronic chemicals and so on. What’s more, it will help accelerate the full coverage of domestic core and high-end equipment so as to continuously boost the development of relevant industries. Meanwhile, our products will be exported overseas China’s representative high-end manufacturing commodities in an effort to further advance Morimatsu’s business expansion strategy towards globalization and make its due contribution to the progress of pharmaceutical and other related industries worldwide.

Forge ahead and keep going. In the future, Morimatsu will continue to uphold innovative spirit, pursue innovation and progress, keep pace with downstream industries in innovation so as to grow together with our customers and advance with our employees, and continue to repay the society with good business performance and healthy development achievements.

About Shanghai Morimatsu Pharmaceutical Equipment Engineering Co., Ltd.

Shanghai Morimatsu Pharmaceutical Equipment Engineering Co., Ltd (Stock Code: 2155.HK) is a wholly-owned subsidiary of Morimatsu International Holdings Company Limited. Morimatsu, founded in Japan and taken root in China, has developed into a multi-national company that embraces globalization, masters core technology, and gains rich experience from project implementation in diverse fields including core equipment, process systems, and engineering solutions. The company has built advanced manufacturing base in China, established affiliates in Sweden, the United States, India, and Italy, built an efficient professional globalization team, and delivered a variety of products and services to more than 40 countries and regions.

Forward-Looking Statements

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