Biostar Pharmaceuticals, Inc. established an office in Gansu Province, PRC, on January 6, 2014 with the focus on the sales of Hepatitis B products in three provinces, including Gansu, Qinghai and Tibet. These three provinces are located in the western region of China where pharmaceutical products historically have shown a consistently good sales track record primarily due to the relatively poor medical condition and corresponding high incidence of Hepatitis B among the residents of these provinces. The company expects that in 2014, this newly opened sales office will contribute USD 4 million additional revenue of the company.