China Agritech is a holding company whose direct and indirect subsidiaries, primarily Beijing Agritech and Tailong, and Tailong's subsidiary, Pacific Dragon, manufacture and sell organic liquid compound fertilizers and related agricultural products. The main raw material used in our products is humic acid which is a complex mixture of organic acids, produced mostly by the decomposition of plant material, and lignin, which is a complex polymer that binds to cellulose fibers and strengthens the cell walls of plants. The humic acid we used is mainly mined from a soft, brownish-black coal called lignite. In addition, our products contain inorganic mineral materials such as nitrogen, phosphorus and potassium and other active and stimulative agents.

Our main products include "LvLingBao III," "LvLingBao IV," "Tailong I" and other customized, crop specific fertilizers that are tailored to our customers' specific requirements. Our products promote photosynthesis, root system growth and transmission of nutrients to seeds; equilibrate absorption of nutrients and speed a plant's maturity; eliminate the damage of harmful radicals to plants and increase protein and vitamin content levels; accelerate the accumulation of photosynthesis materials and cell concentration; increase reservation ability, resistance and the utilization rate of basic fertility; and foster the development of plant life along with neutral or acidic pesticides. Our products can be applied on a widespread basis via spraying by machine or aircraft.

China is the principal market for our products. Our products are primarily sold to farmers in 12 provinces in China: Heilongjiang, Hebei, Liaoning, Jilin, Shandong, Inner Mongolia, Henan, Sichuan, Guangdong, Xinjiang, Yunnan and Guizhou. In 2006, we had annual production capacity of approximately 9,000 metric tons of organic liquid compound fertilizers. Our revenues are derived primarily from the sale of our organic liquid compound fertilizers and related agricultural products to our customers.