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Traditional Chinese Medicines(TCM)

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In addition to Acanthopanax medical and Shark Power Healthcare products, Renhuang produces traditional medicine products, such as medicine for cold, flu, headache, etc. Revenue from traditional medical products accounted for 30% of the total revenue of Renhuang in the fiscal year of 2005, and 36% in the first half of fiscal year of 2006. Renhuang owns 40 medical products with GMP certificates, of which some "Star" products reach top sales among the same products and most of the others generate a stable stream of revenue.

Three “Star” Products

"Tianma pills" and "Tornado pills" are the "Star" Chinese traditional medicines for treating headache in China. Although western headaches medicines have larger market share in China, they have also been showing to have larger side effects. Research reveals that most other Chinese traditional medicines have fewer side effects, but cannot reach the same curative effects as western medicines. Renhuang's “Tianma” and “Tornado” are not only superior with strong visible curative effects, but with little or no side effects.

In the fiscal year of 2005, with more than 100% growth rate from the fiscal year of 2004, revenue from sale of “Tianma pills” reached more than US $2.1 million, and that of “Tornado pills” reached US $2 million; and in the first half of fiscal year of 2006, revenue from sale of “Tianma pills” reached more than US $2.45 million, and that of “Tornado pills” reached US $2.07 million.

Another "Star" medicine is "Shengmai" granulate, with sales of US $1.04 million dollars in 2004 and US $1.16 million dollars in 2005, which was higher than any of its competitors for the same period; in the first half of fiscal year of 2006, the revenue has reached US $1.65 million.

Renhuang produces several additional traditional medical products that each accounts for lesser amounts. These products, through brand recognition, generate stable and risk free revenue for the company. When Renhuang expands its product offerings, it is anticipated that these additional products will be replaced by higher margin products.

Shengmai Granules
	Description	Light brown granules, pleasing smell, and sweet taste
	Applications	Strengthen “Qi” (vital energy), maintain inner balance. Use for balancing “Yin” (female) weakness, treating palpitation, shortness of breath, and sweating
	Specification	10g×10 bags/box
	License Number	SFDA Z23020514

In our last quarter of 2009, we introduced Banlangen Granules and Compound Honeysuckle Granules to the market. As these two products have been widely recognized for their effects in prevention and treatment of common cold and flu, we anticipate that their sales will increase significantly during the influenza epidemic.

Banlangen Granules
	Description	Brown granules, acrid and bitter taste
	Applications	Reduce fever. Use for treating influenza virus, dry and swelling throat.  Alleviate throat soreness and pain
	Specification	10g×20bags/bag
	License Number	SFDA Z23020499

Compound Honeysuckle Granules
	Components	Honeysuckle, forsythia, scutellaria baicalensis georgi.Minor ingredient: Sucrose powder.
	Description	Light yellow granules, sweet and a little bitter taste.
	Functions	Remove pathogenic heat and toxic material. Remove heat from the blood and disperse swelling. For wind-heat cold, pharyngitis, chronic tonsillitis, eye pain, toothache, swollen sore furuncle carbuncle.
	Direction and dosage	Mixing in boiled water for oral taking. 1~2bags/time, 2~3time/day.

Other Over-the-Counter Medicines
Renhuang also produces many other traditional medicines such as,Children’s Cough Relief Syrup, Fufang Baitouweng Gel Capsules, Wuweizi Syrup, Qingrejiedu Oral Solution, Bone Strengthening Liquor, just to name a few. Each of these products generates less significant revenues, yet provides stable cash flow and low-risk revenue for the Company.
Children’s Cough Relief Syrup	Fufang Baitouweng Gel Capsules	Wuseizi Syrup	Qingrejiedu OralSolution
Bone Strengthening Liquor

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