Huankang Group Co., Ltd. (Environmental Health) was founded by Dr. Jiang Lili in 1999. It is committed to researching and developing a number of practical and economical environment-related products and services to improve the growing problem of environmental pollution. Huankang successfully listed on the GEM of the Stock Exchange of Hong Kong Limited through placement. The shares officially began trading on the GEM on December 5, 2001, with the stock code 8169. In July 2001, Huankang received the “Silver Award for Newly Established Small and Medium Enterprises” from Hong Kong Productivity Promotion and the Hong Kong General Chamber of Commerce, praising it as an outstanding new small and medium-sized enterprise in Hong Kong. Huankang aims to become a major supplier of environmentally friendly products and services in Hong Kong and other overseas markets. Its products target all kinds of pollution, including air, sound, oil, water quality and waste. In addition to having a professional R&D team, we are also cooperating with the Hong Kong Polytechnic University, Hong Kong, Japan and European academic research institutes to work together to protect the environment and launch low-cost, high-tech environmentally friendly products. In addition, products already on the market include environmental protection, platinum air purifiers, ionic air purifiers, ionic water purifiers, suction filters, and line filters (two of the three hydraulic filters developed or being developed by the Group). In December 2005, the Group began to engage in tap water business in Tianjin. After 18 months of comprehensive construction, the Group has completed the construction of a tap water plant with a daily purification capacity of 50,000 tons. In the second half of 2007, the plant began supplying tap water to the region. In 2007, the Group concentrated its marketing efforts on promoting its industrial environment-related products and expanding its customer base to the shipbuilding and construction industries. In 2008, management will continue to expand into other industries such as casting and forging and porcelain pressing. As far as the joint venture in Jiangsu Province is concerned, after the first year of comprehensive marketing work, this joint venture began providing environmental consulting services and solutions to the region. The Group's management is very optimistic about the Group's prospects for the coming year, in view of the continued increase in revenue generated by industrial environment-related products and additional revenue generated by water plants.
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