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The company is developing the Nexus, a new energy-powered aircraft for on-demand aerial transport as a future air taxi.

The company is also looking to better expand its presence in the Chinese market, home to about 1 million new energy cars by the end of 2016.

The company was discovered by China's top drug regulator to have seriously violated law in the production of rabies vaccines over the past four years, resulting in possibly substandard vaccines being sold.

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The company, which many analysts predict will need to raise funds for its expansion, said it ended its first quarter with .2 billion in cash after paying off a 0 million convertible bond obligation in March.

The company said it will inject a 100 million yuan (.1 million) seed fund targeting startups in China, fostering innovation in realms across healthcare, life sciences and performance materials, all of which are closely related to Merck's core and relevant businesses.

The company's practices deprived the downstream dealers of pricing autonomy, excluded and restricted the competition within the brand and in effect weakened the competition among brands, the statement said.

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The company said it hopes the move will considerably increase its supply chain capacity. It also demonstrates its corporate social responsibility commitments.

The competition was launched by the Ministry of Education of China in 2014 and, this year, attracted more than 6,400 participants from China and the United States, nearly 400 of whom successfully worked their way into the finals, which were held in Beijing earlier this month.

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The compound annual growth rate of the industry will be around 20 to 25 percent, among the fastest rates around the world, it said.

The competition, which was held for the first time this year, saw 10 innovation projects covering artificial intelligence, robotics and the internet of things entering the final round held on Tuesday. Beijing LuxCreo Technology Co Ltd, a 3D printing specialist, won the first prize.