On December 25, 2012, Hebei Changshan Jiukang Biotechnology Co., Ltd., a wholly-owned subsidiary of Hebei Changshan Biochemical Pharmaceutical Co., Ltd., signed a joint venture agreement with ConjuChem LLC. Together both parties established a Sino-foreign joint venture, named “Changshan Conjuchem Biopharmaceutical Research and Development Co.,Ltd.”. It was established for the purpose of transferring the DAC technology platform and relevant property rights (owned by ConjuChem LLC) for the products under research, from the Asia-Pacific region to China. CJC-1134-PC and insulin modifiers are used as the leading candidate drugs under research and development. After the establishment of the technology platform, and support from the current research basis and scientific research team, the joint venture will be able to provide a more solid foundation on the research and development of bio-pharmaceutical drugs to the company through the screening and exploration of other bio-generic drugs. This means that the core competitiveness of the company will be enhanced.