American Dairy, Inc. (American Dairy) is a producer and distributor of milk powder, soybean milk powder, and related dairy products in the People’s Republic of China. Using processing techniques, the Company makes products that are formulated for particular ages, dietary needs and health concerns. It has over 200 company owned milk collection stations, six production facilities with an aggregate milk powder production capacity of approximately 1,220 tons per day and an extensive distribution network that reaches over 50,000 retail outlets throughout China. The Company’s products fall into four main product categories: milk powder, soybean powder, rice cereal and walnut products.