China Medicine Corporation is a distributor of pharmaceutical and medical products in the People's Republic of China (PRC), including prescription and over-the-counter drugs, Chinese herbs, traditional Chinese medicines made from Chinese herbs, nutritional supplements, dietary supplements, and medical instruments. The Company is also engaged in research and development with the aim of creating new pharmaceutical products and intellectual property that it may sell in the future. During the year ended December 31, 2008, 97.5% of its total revenues came from product sales and 2.5% came from sales of intellectual property. Through Guangzhou Konzern Medicine Co., Ltd. (Konzern), the Company’s wholly owned subsidiary, it deals in approximately 2,400 pharmaceutical products in China. The Company also sells improved drug formulas after purchasing the rights to drug formulas at an early stage of development and improving those formulas through its own research.