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Besunyen Holdings Company Limited (the “Company”) together with its subsidiaries (collectively, the “Group”) is a leading provider of therapeutic teas in the People’s Republic of China (the “PRC”), mainly engaging in the research and development, production, sale and promotion of therapeutic teas as well as the sale and promotion of medicines. By tagging along with the concept of “herbal, healthy, quality functional tea”, the Group started to produce Besunyen Detox Tea and Besunyen Slimming Tea (previously known as “ 碧生源牌减肥茶”) (collectively, the “Two Teas”) in 2000, and for the last 17 years, has dedicated itself to the marketing and sales of the Two Teas. The approval for the change of product name from “ 碧生源牌减肥茶” to “ 碧生源牌常菁茶” was obtained from China Food and Drug Administration of the People’s Republic of China (the “CFDA”) in November 2016. As at 30 June 2017, the Two Teas recorded an accumulated sales volume of over 4.35 billion bags, with an accumulated sales amount of over RMB5.7 billion. Since April 2015, the Group commenced cooperation with Zhejiang Hisun Pharmaceutical Co., Ltd. (“Hisun Pharmaceutical”) to sell LARLLY Orlistat slimming medicine, so the Group has expanded from the market of slimming therapeutic teas to that of slimming medicines and comprehensively covered the slimming market segment. Since its launch, LARLLY Orlistat slimming medicine has been highly praised among consumers.

According to the latest report issued by China Southern Medicine Economy Research Institute (“SMERI”), the market share of the Group’s core products, the Two Teas, maintained a leading position for several consecutive years. In 2016, in national retail pharmacies, based on the retail price of the laxative and slimming products respectively, the market share of the Group’s Besunyen Detox Tea represented 17.42%; and that of Besunyen Slimming Tea (previously known as “ 碧生源牌减肥茶”) accounted for 32.33%, with the Two Teas taking the first place in the market. Since the launch of LARLLY Orlistat slimming medicine in the spring of 2015, it has been gradually unveiled in several major markets including Shanghai, Guangdong and Beijing. In accordance with the data released by SMERI, LARLLY Orlistat has topped the list of the slimming medicines segment.

The production base of the Group is located in Fangshan District, Beijing. The production plant and the production process are in compliance with the requirements of the national GMP standards. And the Two Teas have passed the certifications of ISO9001, ISO22000 and HACCP. Introduced from IMA of Italy, the packing equipment is C24 tea bag high-speed machine. The machine is equipped with the specifically designed “cotton thread nautical knot for tea bag and tag fixing” so that the inner and outer bags can be shaped up at the same time and the bag can be produced automatically. Closed-ended management is conducted in the production facilities, and the pelleting facilities and inter packing facilities are 100,000 grade clean areas furnished with temperature and humidity monitoring. In the garden-like plant featured by a beautiful environment, hygiene, process, technology, procedure and management have reached the world’s advanced level.

The Group uses natural Chinese herbal-based medicine and tea leaves as raw materials, researches and develops, formulates and produces the Two Teas, providing safe, effective, convenient-to-use and affordable healthcare products for those with mild or recurring health problems in the laxative and weight management.

As at 30 June 2017, the sales teams of the Group spanned across 31 provinces, autonomous regions and municipals across the country. The Group had a total of 72 distributors and 366 sub-distributors for the Two Teas and LARLLY Orlistat. The whole sales team served about 128,000 over-the-counter (the “OTC”) pharmacies and the retail terminals in shopping malls and supermarkets. The Group constantly improved the sales network nationwide, and by means of the dynamics of brand attraction and channels’ promotion, had a coverage of about 400,000 OTC pharmacies across the country. Meanwhile, new products were enabled to break into the market more quickly and effectively through the existing channels, thereby maintaining the leading position of the Group's products in the industry.

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