We have a variety of products which can cost-effectively address significant needs in a manner that is safe and effective for our customers. We have a total of approximately 920 products in our product portfolio covering all Class I, II, and III disposable medical devices, including approximately 800 products for domestic sales and 120 products for overseas sales. Through sales of different products to our customers via our one-stop shopping service, we are able to cost-effectively address our client’s needs.

We have developed a massive network of clients, distributors, and suppliers. Through both direct sales and our massive distribution network, our products are sold to hospitals, pharmacies and medical institutions both domestically and internationally. We have approximately 82 employees in our sales department and 5,000 independent sales agents, 1800 distributors for domestic sales and 291 exporting distributors for overseas sales. We not only have accumulated a substantial domestic customer base and forged strong relationships with these customers, but also established good long-term cooperative relationships with well-known foreign medical equipment brand companies, which extends our reach world-wide. We believe that these customers will continue to be a source of business as well as a good referral source to new customers.

We provide one-stop shopping service to our customers due to our geographical advantage. Hospitals and other medical institutions normally have lists of over a hundred or even a thousand individual disposable medical devices which they must procure on a regular basis. Our PRC operating subsidiaries and primary operations are located in Touqiao Town, Yangzhou City, Jiangsu Province, one of the four medical device centers in PRC. Dubbed the “Hometown of Medical Devices & Consumables in China,” Touqiao Town hosts hundreds of disposable medical device manufacturers manufacturing all different kind of products. We are qualified to distribute products sourced from other manufacturers when it comes to the products not in our product portfolio and provide our customers with one-stop shopping service - our client is able to receive all products so ordered by placing one single order with us. When we receive an order from our hospital clients or distributors, we are able to quickly fulfill the order by including our own brand products and qualified products sourced from other manufacturers in Touqiao Town, providing one-stop shopping service to our customers.

Geographical advantage provides cost savings in our business operations. We are the leading medical device manufacturer in Touqiao Town, Yangzhou. Located in Touqiao Town, where hundreds of medical device manufacturers operates their facilities, we are able to procure high quality raw materials and products of other brands for our one-stop shopping customers at a comparatively low price within a short period of time. Lots of medical device professionals, including R&D and technology professionals and thousands of independent sales agents are also based in Touqiao Town, thus providing sufficient labor to local medical device companies.

Economies of scale and automation provide significant cost advantages. The scale of our production is regional-leading within Yangtze River Delta region of China. The disposable medical devices we manufacture and sell are mainly low value-added products, which, however, are largely consumed and in huge demand every day in hospitals and other health related industry. Through scale production, we are able to increase our profits margin. In the procurement process, the production scale reduces our procurement costs and mitigate the impact of raw material price fluctuations. In the manufacturing process, we retrofitted equipment and introduced automation to improve production efficiency. At present, we have 12 purification plants covering a total area of approximately 110,352 square feet (10,252 square meters).

High quality standards help maintain our competitive position. Quality and safety are always our core value. Applying information acquired during our long-term business transactions with major medical institutions across China, we have developed a sophisticated quality management system, as well as a strict and effective internal control standard system. All of our products, either self-manufactured or sourced, fall within our quality control system subject to our quality inspection before delivery.

Market-driven research and development allow for continual improvement and long-term client loyalty. We have a “R&D team of 77 people, accounting for 11.83% of our total employees, with a significant amount of investment in products and technologies R&D. We adhere to a market-oriented R&D approach and actively cooperate with universities, hospitals, medical institutions, distributors and independent sales agents in sorting out our R&D orientation based on the real market demand. We continuously upgrade and improve our products and technologies to better suit our customers.

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