China Milk Products Group Limited, through its subsidiary, Daqing Yinluo Dairy Co, is engaged in the production and sale of pedigree bull semen, pedigree dairy cow embryos and raw milk. The Company primarily operates in China and The British Virgin Islands. The Company's pedigree bull semen and pedigree dairy cow embryos are mainly sold to various government livestock bureaus and government entities in different areas of the People's Republic of China and are either used for their own internal consumption or resold to local farmers. The raw milk is sold mainly to domestic dairy product manufacturers who process the raw milk to produce various dairy products such as fresh and pasteurized milk, yoghurt and ice cream. The Company owns 13 farms in the cities of Daqing and Harbin and herd of 20,000 pedigree bull sires, dairy cows and calves consisting Holsteins of Canadian, Australian and Chinese origins and Simmentals.