MAJOR CUSTOMER/VENDOR AND CONCENTRATION

9 Months Ended

Sep. 30, 2013

14.

MAJOR CUSTOMER/VENDOR AND CONCENTRATION

(a)

Sale breakdown

For the nine-month period ended September 30, 2013, 100% of the Company’s assets were located in the PRC and 100% of the Company’s revenues were derived from customers located in the PRC.

All customers are all non-related parties, mostly located in Sichuan province or southern China. The sole business relationship with Yinfa is to purchase raw DAR, other TCM, or Yishen Capsule. For the nine-month period ended September 30, 2013, 88% of the total revenue is contributed by DAR, 12% of the total revenue is contributed by other TCM, and none of total revenue is contributed by Yishen Capsule.

(b)

Credit risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company performs ongoing credit evaluations of its customers' financial condition, but does not require collateral to support such receivables.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References+ Details

CHINA HEALTH RESOURCE, INC. 10-Q