In April 2008, a wholly-owned subsidiary of C&O - Shenzhen Liancheng Medicine Company Limited - entered into an acquisition agreement with Nanjing Xinaokang Pharmaceutical Limited to acquire 100% equity interest in the latter for 40 million yuan in cash.

Nanjing Xinaokang Pharmaceutical Limited is currently working on more procurement contracts with hospitals in Nanjing and plans to extend to pharmacies and clinics in suburban and rural areas where the pharmaceutical market still needs to be improved.