MAJOR CUSTOMER AND VENDOR

9 Months Ended

Dec. 31, 2011

MAJOR CUSTOMER AND VENDOR

NOTE 8 - MAJOR CUSTOMER AND VENDOR

The Company currently sells two types of products: non-medical and medical products. Under the current sales model, the Company markets and sells non-medical products through distribution agents, and sells medical products through a certified medicine sales agent. According to the contracts with the agents, the Company does not make any credit sales; therefore, does not carry any accounts receivable balance.

For the three months ended December 31, 2011, the purchases from the two major vendors were $4,189,376, representing 86% of the Company’s total purchases for the quarter.

For the nine months ended December 31, 2011, the purchases from the two major vendors was $9,743,034, representing 81% of the Company’s total purchased for the period. For the nine months ended December 31, 2010, the purchase from the one major vendor, Shandong YCT was $6,272,395, representing 62% of the Company’s total purchases in the nine months.

	For the nine months ended
	December 31, 2011
Name of vendor	Amount		%
Shandong Kangyuan	$	5,506,197		46	%
Shandong YCT		4,236,837		35	%
Purchase from two largest suppliers	$	9,743,034		81	%