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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 the Besunyen Detox Tea  and Besunyen Slimming Tea  (collectively, the Two Teas”) in 2000, and for the last 15 years, has been dedicated to the marketing and sales of the Two Teas. The Two Teas recorded an accumulated sales volume of over 3.9 billion bags, with an accumulated sales amount of over RMB5.1 billion as of the end of 2015. The Group cooperated with Zhejiang Hisun Pharmaceutical Co., Ltd. (“Hisun Pharmaceutical”) to sell LARLLY Orlistat slimming medicine in April 2015, so the Group has expanded from the market of slimming therapeutic teas to that of slimming medicines and comprehensively covered the slimming market. Since its launch, LARLLY Orlistat slimming medicine has been highly praised among consumers and has witnessed a stable sales growth.

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. Within the reporting period, 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 21.81%; and that of Besunyen Slimming Tea accounted for 42.26%, with the Two Teas  taking the first place in the market. Since the launch of LARLLY Orlistat slimming medicine in the spring in 2015, it was also 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 for 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 passed the certification of ISO9001, ISO22000 and HACCP. The packing equipment is C24 tea bag high-speed machine introduced from IMA, an Italian company. The machine is equipped with the specifically designed “cotton thread nautical knot for tea bag and tag fixing” so that the inter and outer bag can be modeled at one time and produced automatically. Closed management is conducted in the production workshop, and the pelleting workshop and inter packing workshop 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 reach the world’s advanced level.

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

As at 31 December 2015, the sales teams of the Group spanned across 31 provinces, autonomous regions and municipals across the country. The Group had a total of 104 distributors and 390 sub-distributors. The sales teams, distributors and sub-distributors served about 128,000 over-the- counter (“OTC”) pharmacies and 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, and 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 Group's leading position in the industry.

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