Daphne Board of Directors Office               18th Issue of 2010               Jul. 2, 2010

      Accompanied by officials from the provincial FDA and prefectural government, Li Donghai, member of the Central Committee for Discipline Inspection and Discipline Inspection Group Leader at the State FDA, and Yao Xueliang, inspection commissioner, visited Daphne on the July 1, 2010 morning.
      At the showroom, Daphne's president Mr. Tang gave an introduction to Daphne's development since 1994 when the company was founded, From a small factory starting with business of purchase of raw materials and primary packaging, Daphne has seen fast growth to a modern pharmaceutical company with fixed assets of worthy nearly RMB 1 billion yuan, including well-equipped production premises. The proprietary panax notoginseng products, led by drugs, together with health food and common foodstuff, substantiate Daphne's position as a national leader in agricultural industrialization, and bring great benefits to the Company, socially and economically.
      But the bottleneck snagging fast development of the panax notoginseng industry is the fact that panax notoginseng cannot serve as food and drug simultaneously. It is nearly 500 years since the locals began to serve panax notoginseng as medicine. Panax notoginseng pot chicken, the most famous dish in Yunnan, is just the best example of use of panax notoginseng as foodstuff. 
      In the end, Mr. Li encouraged Daphne to grab the opportunity to build up the company and make more contribution to the local economy.