Linkwell Corporation operates under a holding company structure and currently owns 100% of Shanghai LiKang International Trade Co., Ltd. ("LiKang Trade") and 90% of Linkwell Tech Group Inc. ("Linkwell Tech") a Florida Corporation. Ecolab Inc. (NYSE: ECL) owns the other 10%. Linkwell Tech owns 100% of Shanghai LiKang Disinfectant High-Tech Company, Limited (“LiKang Disinfectant”) and Shanghai LiKang Biological High-Tech Company, Ltd. (“LiKang Biological”). We regard LiKang Disinfectant as our primary business. Linkwell Corporation, through our subsidiary, LiKang Disinfectant, is engaged in the development, manufacture, sale and distribution of disinfectant health care products. We have the only known national marketing and sales presence throughout all 22 provinces as well as four autonomous regions and five municipalities in China. LiKang Disinfectant has 56 marketed products, all of which are certified by one or more government authorities; the Chinese Ministry of Health, State Food and Drug Administration, or Ministry of Agriculture. The Disinfectant Market - China has accelerated in growth as a result of an improved economy highly publicized health crises, such as the outbreak of SARS Enterovirus 71 (EV71), earthquakes and avian flu. These crises demonstrated the need for increased health standards in China and beginning in 2002, the Chinese government began various initiatives to improve public health and living standards, including public education for proper sanitation procedures and the establishment of production standards for the disinfectant industry. Conditions for market consolidation and barriers to entry also began as a result of a new licensing and permit system, requiring all disinfectant manufacturers to comply with "qualified disinfection product manufacturing enterprise requirements” established by the Ministry of Public Health. These requirements include standards for hardware (e.g. facilities and machinery), software, for automated monitoring of facilities and evaluation of production staff and quality control procedures. The MOH has granted LiKang Disinfectant 31 hygiene licenses since 2002. Barriers to Entry - We believe that barriers to entry have increased in China’s disinfectant industry since government standards were implemented in July 2002. These higher standards include license requirements, which make it particularly difficult for most Chinese manufacturers to pass without relatively large expenditures to upgrade their training, procedures and facilities. In addition, we believe the marketplace is becoming focused on product quality, which can enable us to increase our commercial customer base and revenues. Our Customers Our core customer market is the medical industry in China, including hospitals, medical suppliers and distribution companies. We plan to diversify and expand our reach into the mass consumer retail market. We intend to repackage select commercial disinfectant products for sale to pharmacies, hotels, schools, supermarkets. Due to the Chinese government&＃039;s continuing focus on educating the Chinese population about the benefits of proper sanitation procedures, we believe that one key to increasing our revenues is the continued expansion of the retail distribution of our products. Our Products Currently, we offer a variety of disinfectant products for the following applications: » Skin and mucous membrane disinfectants; » Hand disinfectants (external); » Environment and surface disinfectants; » Medical devices and equipment disinfectants; » Machine disinfectants; » Animal disinfectants. Manufacturing Our present manufacturing facilities and production capacities are sufficient for the foreseeable future, and we believe that we have the necessary assets and capital available to us to enable us to increase our revenues in future periods as the overall market for disinfectant products in China continues to increase. We will continue to focus our efforts on developing a retail market for our products, as well as expanding our traditional base of commercial customers. Research and Development We are the first hi-tech disinfectant company in China to develop, market and sell proprietary products. Our subsidiary, LiKang Disinfectant, was created as a research and development organization by the Second Military Medical University (SMMU) in 1988 and most of Linkwell’s research and development is conducted using the facilities of that university. The research team consists of more than 20 professors, doctors and masters and has attained many achievements in the past 20 years. We have infused our business character with the inspiration of science and technology innovation. LiKang International Trade Co. In addition, Linkwell Corporation owns a 100% interest in LiKang International Trade, the primary business of which is the import and export of a variety of products and services ranging from small medical equipment and chemical products to computers.