COMPANY BACKGROUND

Cited from http://en.hai-o.com.my/new/about_company.asp

Established in 1975, Hai-O has since become an established household name offering a wide range of Chinese medicines, medicated tonic, wellness, beauty and healthcare products. Providing superior quality healthcare products at reasonable prices is our business policy. Hai-O was listed on the Second Board of Bursa Malaysia Securities Berhad (“Bursa Securities”) in 1996, being the first traditional healthcare company listed on the Bursa Securities. The Company had then been successfully transferred to the Main Board of Bursa Securities on 8 October 2007. The principal business of the Company involves wholesale and retail, multi-level marketing, pharmaceutical manufacturing and Chinese medicinal clinics. For over three decades, Hai-O had honed its expertise by building extensive and efficient distribution network and strong marketing strategies in Malaysia. In recent years, it has established a growing range of high quality healthcare products under its own house brands. Peking Tongrentang (M) Sdn Bhd, a joint venture company between the world-renowned Beijing Tongrentang and Hai-O started its business in Kuala Lumpur since 2002 and has achieved remarkable performance in offering Traditional Chinese Medicine (TCM) Consultation services and high quality herbal medicines to the public. Facts & Figures • Hai-O was ranked No. 9 under KPMG Shareholder Value Awards 2011 – The Top 100. • Hai-O was awarded the CIO 100 Honouree 2011 of CIO Asia’s Annual Index of Asia’s Top Performing Enterprise Users of IT by CIO Asia. • Hai-O Marketing was awarded the Certificate of Excellence for Promising Company Award 2010/2011 by Malaysia 1000. • Hai-O Marketing was awarded the "Malaysian Business Ethics Excellence 2010/2011 by the Ministry of Domestic Trade & Consumer Affairs. • Hai-O Marketing received the Certificate of Approval in Quality Management System Standards ISO 9001:2008 by Lloyd's Register Quality Assurance in 2010. • Hai-O was awarded for 4 consecutive years under the Forbes Asia “Best Under A Billion List” with sales under US$1 billion in year 2007, 2008, 2009 & 2010. • Hai-O Marketing was awarded the CIO 100 Honouree 2010 of CIO Asia’s Annual Index of Asia’s Top Performing Enterprise Users of IT by CIO Asia. • Hai-O was ranked No. 10 under KPMG Shareholder Value Awards 2010 – The Top 100. • Hai-O Marketing was awarded the Honourable Mention for Outstanding Work in Empowerment of Women by Anugerah CSR Perdana Menteri 2009. • Hai-O was listed as 1 of Best Small - Capitalisation Company - Malaysian Corporate Governance Index 2009 by MSWG. • Hai-O was awarded 1st Runner-Up for “Best Return to Shareholder Category” by Malaysian Business - CIMA Enterprise Governance Awards 2009. • Hai-O was list under the Top Malaysian Small Cap Companies - 50 Jewels by OSK in 2009. • Hai-O was ranked No. 6 under KPMG/ The Edge Shareholder Value Awards 2008 – The Top 100 in 2009. • Hai-O Raya was awarded The BrandLaureate Award 2008-2009 under the Product Branding for Traditional Chinese Medicine category. • Hai-O Raya was awarded the "Malaysian Business Ethics Excellence 2008" award by the Ministry of Domestic Trade & Consumer Affairs. • Hai-O Marketing was awarded the "Malaysian Business Ethics Excellence 2008" award by the Ministry of Domestic Trade & Consumer Affairs. • Hai-O was list under the Top Malaysian Small Cap Companies - 100 Jewels by OSK in 2007 & 2008. • Hai-O was ranked No. 55 under KPMG/ The Edge Shareholder Value Awards 2007 – The Top 100 in 2008. • SG Global Biotech Sdn Bhd was awarded the GMP (Good Manufacturing Practice) status with the ISO:9001 certification in 1999 and U.S. FDA Facility Registration Certificate 2008-2009 and also its subsidiary QIS Laboratory Sdn Bhd was awarded with GLP (Good Laboratory Practice) in 2007. • Hai-O Marketing Sdn Bhd was awarded the Outstanding Contribution towards Developing Bumiputra Entrepreneurs Recognition Certificate by MECD in 2007. • Hai-O was awarded the "Superbrand" status by the Malaysia Superbrand Council for the year 2003/2004. • Hai-O Raya won the "Golden Bull Award" as one of the Malaysia's Top 100 Outstanding SMEs in 2003. • Hai-O Raya is also one of the winners of "Enterprise 50" award organized by SMIDEC and Deloitte in 2003. • Hai-O Raya was awarded by Malaysia Book of Records for having the greatest number of traditional healthcare chain stores in the country in 2001. • Hai-O is the first traditional herbal health care company to adopt a truly home grown franchise programme. • Hai-O Raya has 60 outlets, including 9 franchise shops located throughout Malaysia. • Hai-O Raya Bhd Loyalty program has over 170,000 members. • Hai-O wholesale division has over 100 wholesalers, 2000 retailers including Chinese Medical Halls nationwide. • Multi-level marketing division has over 60,000 distributors and 40 stockists & branches.