Healthcare Products Business Overview

In December 2003, the Company established a presence in the healthcare product market of the PRC through acquiring 75% equity interest of Shanghai GoldPartner Biotech Co., Ltd .

The market potential of healthcare products in China is very enormous. According to a report by China Industrial Information Issuing Center in early 2007: healthcare products accounted for 25% of total expenditure of European / US families. Meanwhile, it accounted for 0.07% in Chinese families, with average spending of RMB31, which is also equivalent to 1/17 and 1/12 of the expenditure of US and Japanese families respectively. Currently, the healthcare products market gradually formalize and policy from the government begins to roll out. The market will become stable with sustainable development.

Trend of development of China’s healthcare product market in 2007:

• A brand era in the healthcare product market has begun. The future health product market will be dominated by a few leading products
• An increasing number of traditional medicine enterprises have entered the healthcare product industry
• The threshold of the healthcare product industry will be gradually enhanced. More and more consumers will act rationally, and not blindly, in purchasing healthcare products.

Shanghai GoldPartner Biotech Co., Ltd. owns household brand names, such as “Naobaijin?and “GoldPartner? It is a leader in the health products market with solid resources.

The Company’s advantages are:

1．Excellent comprehensive marketing capability
The Company’s core competitiveness lies in its extensive experience in China’s healthcare product market and its comprehensive ability to promote a product from strategic planning to implementation.

	No. One	No. Two	No. Three	No. Four
2002	Naobaijin	Kangfulai	Tai Tai	Ang Li No. 1
2003	Naobaijin	Wanji	Kangfulai	GoldPartner
2004	GoldPartner	Naobaijin	Kangfulai	Wanji
2005	Naobaijin	Tai Tai	GoldPartner	Wanji
2006	Naobaijin	Wanji	Tai Tai	GoldPartner

2．China’s largest healthcare product distribution network
The company has set up 35 subsidiaries, 128 branch offices and 1700 representative offices, which are all under the direct management of the headquarter. The company has also set up resident establishments in 1,694 counties and different workstations, such as Jiangsu, Zhejiang and Fujian. These establishments are managed by the relevant subsidiaries or offices. The service institutions, which are directly under the company, have penetrated all areas in China except Hong Kong, Macau, Taiwan and Tibet.

For our nationwide marketing network, we have 547 first - level contracted distributors, together with 3,000 distributors and products available over 300,000 major retail outlets in China. The speed of delivery is very fast, it can deliver to 50,000 terminals within two weeks and to 300,000 terminals within four weeks.

Map of Sales Distribution

3．High efficient sales management system The Company has developed a unique and effective channel management mode and a sale management methodology based on a strict management system, good cooperative relationship, and abundant management experience.