China Shenghuo Pharmaceutical Holdings, Inc. (Shenghuo) is primarily engaged in the research, development, manufacture, and marketing of pharmaceutical, nutritional supplement and cosmetic products. Almost all of its products are derived from the medicinal herb Panax notoginseng, also known as Sanqi, Sanchi or Tienchi. Shenghuo focused primarily on the development of products to serve three major markets: cardiovascular and cerebrovascular disease, peptic ulcer disease and health products. The Company鈥檚 three major suppliers of Sanchi plant are Wenshan Jian Yuan Traditional Chinese Medicine Materials Trade Co., Ltd., the Wenshan County Yatai Agricultural and Sideline Products Trade Co., Ltd. and the Wenshan Innovation Centre of Sanchi Science and Technology Co. Ltd. As of December 31, 2009, Shenghuo has opened approximately 618 retail specialty counters in more than 30 cities throughout China.

Founded in 1995, China Shenghuo Pharmaceutical Holdings, Inc. (“the Company,”“China Shenghuo”) is a leading specialty pharmaceutical company that focuses on the research, development, production and marketing of Sanchi-based medicinal products. Through its subsidiary, Kunming Shenghuo Pharmaceutical (Group) Co., Ltd (“Kunming Shenghuo”), it owns thirty-one SFDA (State Food and Drug Association)-approved medicines, including the flagship product Xuesaitong Soft Capsules, which has been placed into the category of “Higher Price for Better Quality” by the National Development and Reform Commission (The “NDRC”) of the PRC. At present, Shenghuo incorporates a sales network of agencies and representatives throughout China, which markets Sanchi-based traditional Chinese medicine into hospitals and drug stores throughout the provinces as prescription and OTC drugs primarily for the treatment of cardiovascular, cerebrovascular and peptic ulcer disease. The Company also exports medicinal products to Asian countries such as Indonesia, Thailand and Kyrgyzstan.

The company has received much acclaim in the last 10 years, including the support of the State Science and Technology Ministry, State Commerce Ministry, State Traditional Chinese Medicine Administration and the government of Yunnan province and Kunming, and we are among the largest producers of soft capsules in Asia. Our Xue Sai Tong Soft Capsules have earned honors within Yunnan Province, and the product’s market share is the largest among the non-generic competitors.

Headquartered in Kunming, China, the Group has four subsidiaries. They are Kunming Shenghuo Medicine Co., Ltd., Kunming Shenghuo Cosmetics Co., Ltd., Kunming Shenghuo Pharmaceutical Importation & Exportation Co., Ltd. and Shilin Shenghuo Co., Ltd. Its sales network reaches across the country. Our products have been approved for sale in Hong Kong, Indonesia, Kyrgyzstan, Malaysia, Russia and Singapore. We currently export to Central Asia, Europe, Hong Kong, Macao and Southeast Asia.

China Shenghuo has always focused on creating a world-famous brand and serving individuals’ healthcare needs. We insist on a spirit that pursues progress, builds the business with the help of science and technology and aims toward better performance in order to serve the lofty cause of health preservation.