The Company is based in Beijing, People’s Republic of China and is a development stage enterprise, and its activities have been limited to its formation and the raising of equity capital and filings with the Securities and Exchange Commission. In its current development stage, management expects to continue to incur losses while the Company implements its business plan. Prior to December 31, 2001, the Company had plans to become a direct sales marketing company that markets, distributes and sells its own brand of natural health products via the internet. Subsequently, a variety of acquisition agreements and business opportunities were explored, none of which were successful. See Note 6 for additional information.

Accordingly, the Company will continue to be in the development stage until such time as it acquires or starts an ongoing business enterprise