Welcome Notes

On behalf of the board of directors of Extrawell Pharmaceutical Holdings Limited (the "Company"), together with its subsidiaries (the "Group"), I am pleased to present the annual report of the Group for the year ended 31 March 2009.

This fi nancial year was a challenging but rewarding year for the Group. It was challenging in the sense that following the financial tsunami global economy was facing a long and deep recession, which would adversely affect the market demands. Nonetheless, it was a rewarding year as there was satisfactory growth in turnover of our manufacturing and trading sectors as a result of relentless and dedicated efforts of our management and marketing teams. Even though keen competition eroded profi t of our trading sector, our manufacturing sector saw a successful turnaround.

Despite the global slowdown in economy, the pharmaceutical industry is still undergoing rapid growth as the central government announced its plan in January 2009 by investing RMB850 billion to establish universal health care for every Chinese citizen beginning the year 2010. The plan will further spur expansion in market demand and the prospect is bright. With our quality products, we will further strengthen and array our marketing efforts in order to tap such favorable market opportunities.

The development of oral insulin product has remained the Group's key focus and driver of earnings of the Group in the future. We are optimistic as to the progress of further clinical trial and are committed to deploying the requisite resources to ensure its completion as planned.

Looking forward, the Group will continue to maintain the stable development of its existing businesses by formulating effective business and pricing strategies to secure its market share. At the same time the Group will be actively seeking for investment opportunities in order to broaden its income base and profitability.

The Group will strive to maintain sustainable growth in profitability and a healthy financial position under these unique and challenging circumstances. Besides, the Group will continue to make every effort to improve its corporate governance in order to enhance investors' confidence.

Lastly, on behalf of the Board, I would like to thank all our business partners, customers and shareholders for their continued support, and our employees for their diligent work.