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Domestic Distribution Network


Our customer base is composed of a wide range of clients including regional franchisee-owned stores and sales agents. No single customer represents more than 5% of our revenues.

We distribute the majority of our nutritional food and dietary supplement products through franchisee-owned retail outlets. The franchisee-owned retail outlets allow us to maintain a national footprint, targeting consumers at the township, municipal and provincial level. As of the end of the third quarter, we have close to 1,500 franchisee-owned retail outlets throughout China, a 50% increase from the number of franchisees at year-end 2007. We distribute our soy milk products through large metropolitan supermarkets located throughout China. In addition, through the acquisition of the Chichi Network Companies, we have obtained access to both an efficient online sales channel and a network of 21 Guangzhou supermarkets, which we plan to expand further during 2009.

Shanghai Jinao’s Soy Milk Products in Carrefour Supermarket
China Yingxia’s Franchisees Operate on Provincial, Municipal and Township Levels