Shandong Weigao Group Medical Polymer Company Limited (the "Company") and its subsidiaries (together the "Group") is principally engaged in the research and development, production and sale of single-use medical devices. The Group has a wide range of products, which includes: I) consumables (infusion sets, syringes, medical needles, blood bags, pre-filled syringes, blood sampling products, and other consumables); II) orthopedic materials and III) blood purification consumables and equipment. The Company is recognised as an industrialization base to commercialise products developed by the State High-tech Research and Development (863) Program, the State High-tech Enterprise and the State Technology Center. The Group's main production facilities are situated in Weihai, Shandong Province.

The Group is incorporated in the People's Republic of China. The Group has an extensive sales network comprising 25 sales offices, 38 customer liaison centers and 170 municipal representative offices. As at the date of this report, the Group has an total customer base of 5, 159 (including 3, 090 hospitals, 414 blood stations, 611 other medical units and 1, 044 distributors).

The Group produces a wide range of products in following major categories, namely:

I. Single use medical consumables and materials (including infusion (transfusion) sets, syringes, blood bags and blood component segregators consumable, blood sampling products, prefilled syringes for pre-pack medication and medical needles which mainly include intravenous needles, syringe needles, intravenous catheter needles, blood sampling needles and irregular needles;

II. Orthopedic materials and instruments, including trauma products of steel plates and screws, spinal implants and artificial joints;

III. Blood purification consumables and equipment, including puncture needles, extracorporeal blood circuit for blood purification sets, dialyzers and related consumables.

The Group holds the long-term development of its brands in high regard and places strong emphasis on the quality of its products. The Group's quality control systems for the production and service of disposable sterile infusion sets, disposable sterile transfusion sets and single-use sterile syringes have been accredited with ISO9001: 2000 and by China Quality Certification Centre for Medical Devices since November 2001. The Group's product categories of infusion sets, transfusion sets and disposable syringes have obtained EC Certification issued by Tü V Product Service GmbH since December 1999 and were renewed in November 2003 with the additional inclusion of disposable plastic blood bags. Such certification was subsequently renewed in November 2004 and January 2005.

Currently, the Group's products which meet the international standard mentioned above include disposable infusion sets, disposable transfusion sets, disposable syringes, disposable plastic blood bags, disposal underpad, venous blood collection sets, disposalbe automatic vacuum blood-collection equipment, disposable sterile disposable syringe to deliver contrast agent on CT power injector, self-destructive safety syringes and single-use nasal oxygen cannula. On 5th December, 2003, the Group's product quality inspection center received accreditation from China National Accreditation Board for Laboratories as being in compliance with national testing requirements and standards.

At present, the Group's sales are mainly conducted in the PRC market. The Group is actively exploring opportunities in international markets, and its products have been exported to 30 countries and regions, including the United States, Germany, Romania, Australia and the United Kingdom.