Shenguan's main business is the manufacture and sale of edible collagen packaging products, pharmaceuticals, food, skin care products and health care products, and collagen medical devices. edible collagen sausage products In 2022 (“this period”), the Group will work on “stabilizing quality and expanding production capacity” in the collagen casings industry. The Group continues to make stabilizing the quality of collagen casings a top priority. From production to sales, we implement a responsibility system and supervision system to ensure the normal operation of facilities and equipment and correct production operation methods to ensure product quality. The Group has completed a number of R&D and technical improvement projects, and through these projects, the Group will increase production capacity and reduce production costs without increasing the number of sites. In terms of internal management, the Group continues to strengthen management awareness, clarify management responsibilities, and implement strengthened supervision and standardized behavior. collagen food The Group's products include collagen rice noodles, collagen drinks, beef tendon, and collagen oatmeal. In order to enrich the product range, the Group has obtained a production license for collagen oat lotion during this period, and is ready for large-scale production. collagen skincare The Group has further improved the quality of skincare products, continuously upgraded product formulations, and changed marketing methods according to market trends. It has adopted online marketing methods mainly and offline as a supplement to promote sales of products such as collagen masks, collagen extract, collagen extract, etc., and has gradually gained consumer recognition. collagen medical devices Guangdong Shengchi Biotechnology Co., Ltd. (“Guangdong Shengchi”) and Wuzhou Shengchi Biotechnology Co., Ltd. (“Wuzhou Shengchi”) have both obtained the EU ISO13485 and ISO22442 certifications. Medical collagen raw materials have been registered on corporate websites published by relevant national departments, which will help improve the regulatory viability of customers to select the Group's medical collagen raw materials. “Collagen bone filler material (artificial bone)” has been approved by the Clinical Trial Ethics Committee, and clinical trials are being carried out at seven hospitals. The Group's production equipment for Class 1 medical device “band-aid” has been installed and successfully tested. It is applying for “disposable sterile application” registration for Class II medical device products. The “hemostatic dressing that can be absorbed in the body” is undergoing animal testing and discussions on clinical trial plans, while “medical and aesthetic products (small cosmetic needles)” have completed product development and are entering index tests before animal testing.