1333878--8/29/2008--CHINA_HEALTH_CARE

related topics

{acquisition, growth, future}

{stock, price, share}

{regulation, change, law}

{customer, product, revenue}

{operation, international, foreign}

{interest, director, officer}

{personnel, key, retain}

{control, financial, internal}

{regulation, government, change}

{condition, economic, financial}

Risks Related to our Business We have a limited operating history, and it is difficult to evaluate our financial performance and prospects. There is no assurance that we will achieve profitability or that we will not discover problems with our business model. We have limited funds available for operating expenses. If we do not obtain funds when needed, we will have to cease our operations. We depend on attracting and retaining qualified employees, the failure of which could result in a material decline in our revenues. We derive most of our revenue from treatment facilities rested with our host hospitals that are located in the People s Republic of China, which makes us particularly sensitive to regulatory and economic conditions in those cities where our facilities are, or will be located. We may have difficulty opening new medical facilities and operating them profitably. We have limited experience in opening new treatment facilities. If we are unable to execute our strategy, our growth may be restrained and our operating results could be adversely affected. If we fail to cultivate new or maintain established relationships with patient referral sources, our revenue may decline. If we fail to implement our business strategy, our business, financial condition and results of operations could be materially and adversely affected. If we fail to use the brand of Johns Hopkins International, our financial condition and results of operations could be materially and adversely affected. Our success depends on our ability to manage growth effectively. If we do not manage growth effectively, we may not be able to maintain profitability. If the PRC government finds that the agreements that establish the structure for operating our business operations within the PRC do not comply with PRC governmental regulations on foreign investment in the medical industry, we could be subject to penalties. Such penalties may impact our ability to maintain profitability. We rely on contractual arrangements with PRC obstetric and gynecologic hospitals, which may not be as effective in providing operational control as direct ownership. If we cannot maintain these arrangements, we may have to cease operations. Risks Relating to the People s Republic of China The PRC s economic, political and social conditions, as well as governmental policies, could affect the financial markets in the PRC, our liquidity and access to capital, and our ability to operate our business. The PRC legal system embodies uncertainties which could limit the legal protections available to us. U.S. investors may experience difficulties in attempting to enforce judgments based upon U.S. federal securities laws against us and our non-U.S. resident directors. Risks Relating to Our Common Shares Trading on the OTC Bulletin Board may be volatile and sporadic, which could depress the market price of our common shares and make it difficult for our shareholders to resell their shares. Our share is a penny stock. Trading of our share may be restricted by the SEC s penny stock regulations which may limit a shareholder s ability to buy and sell our shares. FINRA sales practice requirements may also limit a shareholder's ability to buy and sell our share.

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1333878--8/29/2008--CHINA_HEALTH_CARE_CORP