Founded in 2005 and headquartered in Jining City of Shandong Province, Spring Pharmaceutical Group,Inc. is a vertically integrated focusing on developing, manufacturing, marketing and selling modernized traditional Chinese medicines and distributing health care products. Spring Pharmaceutical Group,Inc. is engaged in the business of.
· developing, manufacturing and selling Huoliyuan capsules, a medicine made primarily from panax ginseng leaves extract,
· developing, manufacturing and selling seed oil products from acer truncatum bunge trees, a maple tree native to China, and
· distributing healthcare supplement products manufactured by another company in the PRC.
We distribute our acer truncatum bunge seed oil products and the healthcare supplement products through a licensed multi-level direct sales program. Our Huoliyuan capsules, which are a prescription medicine, are sold through third party distributors. We operate in the multi-level direct selling channel that the government of China licensed in May 2015, primarily utilizing person-to-person marketing to promote and sell our acer truncatum bunge seed oil products and products purchased from a third-party supplier. We believe that we are the largest producer of acer truncatum bunge seed oil in China, accounting for 47.7% of the market in China in 2017. Our products are distributed under the brand name “Bao Feng San Yi”. We believe that being the dominant producer will provide us with advantages in pricing and distribution of our products and that the brand recognition will spur further growth. We are also the largest producer of Huoliyuan capsules and tablets in China and our Huoliyuan capsule is the only herbal medicine of its type made in the form of a capsule. Other peer products are produced in the form of tablets. The capsule permits the herbs to be formulated for slow release.