In March 2008, Chang Ao Investment Limited (BVI), a wholly-owned subsidiary of C&O, entered into a joint venture agreement with XenoBiotic Labs (“XBL”), a leading U.S. contract research services provider, to establish a research laboratory in Nanjing that meets U.S. good practices for pharmaceutical laboratories research and a contract research organization (“CRO”) in Nanjing and Shanghai specializing in a variety of preclinical and clinical support pharmaceutical and biotechnology research services, with operations expected to begin in 2009. Chang Ao Investment Limited has a 37.5% share in the joint venture.