This document provides an overview and disclaimer for an investor presentation about China Health Labs & Diagnostics Ltd. It notes that the presentation should not be distributed without consent and that investing involves risks outlined in other documentation. The presentation is not an advertisement or public offering. It has been prepared to assist investors and contains forward-looking statements involving risks and uncertainties. Market and industry data comes from third parties and management estimates.

1. September 2011

2. Disclaimer
Neither this presentation nor any of its contents are to be distributed to third parties without the prior written consent of China Health Labs & Diagnostics Ltd.
(“China Health Labs”). This presentation supersedes and replaces any and all material s which may have been provided to potential investors. There are certain
risks inherent in an investment in the securities of China Health Labs, which prospective investors should carefully consider before investing in the securities of
China Health Labs. Reference is made to the section entitled “Risk Factors” in the draft Filing Statement of China Health Labs dated May 30, 2010, which section
is incorporated by reference into this investor presentation, for a discussion of the risks inherent in an investment in the securities of China Health Labs. The draft
Filing Statement is available on SEDAR at www.sedar.com under China Health Labs’s profile.
This presentation is not, and under no circumstances is it to be construed as, an advertisement or a public offering of these securities. This presentation is
personal to each offeree and does not constitute an offer to any other person or to the public generally to subscribe for or otherwise acquire any of the securities
referred to herein. No securities regulatory authority or similar authority has reviewed or in any way passed upon the presentation or the merits of these
securities and any representation to the contrary is an offence. This presentation has been prepared for information purposes only in order to assist prospective
investors in evaluating an investment in China Health Labs.
Except for the statements of historical fact, the information contained herein may be of a forward-looking nature. Such forward-looking information involves
known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of China Health Labs to be materially
different from any future results, performance or achievements expressed or implied by statements containing forward-looking information. Although China
Health Labs has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance that statements containing forward looking information will prove to be accurate as actual
results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on statements
containing forward looking information.
The information contained herein includes market and industry data that has been obtained from third party sources, including industry publications, as well as
industry data prepared by China Health Labs management on the basis of its knowledge of and experience in the industry in which China Health Labs operates.
Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to
the accuracy or completeness of included data. China Health Labs believes that its industry data is accurate and that its estimates and assumptions are
reasonable, but there is no assurance as to the accuracy or completeness of this included data. Although the data is believed to be reliable, China Health Labs has
not independently verified any of the information from third party sources referred to in this presentation or ascertained the underlying economic assumptions
relied upon by such sources.
2

3. Company Overview
Leading provider of total lab solutions for medical
diagnostic and food safety in China
• We develop and sell proprietary total lab solutions to targeted sectors
and sell diagnostic equipment & reagents to large urban hospitals
• We generate revenues from the sale of solutions and equipment, and
recurring revenues from reagents and service
• We manufacture our own propriety equipment and reagents in our
Beijing facility
• 2010 revenue and net income growth of 41%
• YTD June 30, 2011 revenue growth of 60%
• YTD June 30, 2011 net income growth of 80%
3

4. China: Growing Healthcare Demand
China’s GDP per Capita (in US$)
• Rapid economic growth
• Large population
• Increasing Chinese wealth
• Growing middle class
• Decreasing birth rates
• Increasing older population
Source: The World Bank
4

5. Transitioning into Universal Healthcare
Market Oriented Healthcare China’s Healthcare Expenditure
per Capita (in US$)
• High cost of medical services
• Low government funding
• Large investment gap between urban
and rural areas
• Insufficient healthcare services in rural
areas
Out of Pocket Expenditure
(% of private health spending)
• Proactive government policies
• Government spending support
• Diversified medical insurance system
• Development of local clinics in urban
and rural areas
Universal Healthcare Source: The World Bank
5

6. Large and Growing Healthcare Market
Chinese Medical Equipment Chinese Healthcare China’s healthcare investment
Expenditure (in US$ Billions) Expenditure (in US$ Billions) over next 3 years
$125B
6

7. Competitive Advantage
• First mover in providing total lab solutions instead of individual
products
• Patented hardware and software: lab management system (LMS)
• Extensive experience in managing labs
• Strong relations with Chinese government and customers
7

8. Chinese government policy support
Chinese government budget support
Target
Areas
Large market potential
Limited competition
8

9. Business Units
Traditional
New Business Units
Business Unit
Military &
Rural Hospitals Large Urban
Emergency Food Safety
& Clinics Hospitals & Labs
Services
• Established in 2007 • Established in 2008 • Established in 2008 • Established in 1993
• Strong revenue • Strong revenue • Strong revenue • Steady revenue
stream potential potential stream
• High margins • High margins • High margins • Low margins
• No competition • No competition • Low competition • High competition
• Dominant market • Dominant market • Strong market • Strong market
position position position position
9

10. Rural Hospitals & Labs
• Proprietary total diagnostic lab solution
•
•
Initial revenue from testing
equipment, hardware, lab management
system (LMS), installation and training
Recurring revenue from
800 million
China’s rural population
reagents, service and maintenance
• 797 installations to date
• Presence in Henan, Guizhou, Liaoning
and Jilin provinces
• Only solution provider to have Chinese
central government approval
10

11. Military & Emergency Rescue
• Point of Care Technology (POCT)
• Dry chemistry diagnostic system for use
in military and rescue operations
• No electricity or clean water required
• Developed in cooperation with Chinese
Military
• Only supplier to Chinese military and
Chinese National Emergency Rescue Team
(NERT)
•
•
Sold 17 units in 2009, 34 orders in
2010, 13 orders from NERT in Q1 2011
Signed 3 year R&D agreement with
>50%
Gross margin
Chinese military in Dec 2010
11

12. Food Safety Labs
• Total food safety lab solutions
• Tests chemical or biochemical index of
food items
• Developed with Beijing municipal
government
• 17 large labs, 250 mini-labs and17 mobile
labs installed to date in Beijing
•
•
New lab management system (LMS) and
mobile POCT products under development
Use “Beijing Model” as reference site to
sell to additional cities in China
$1 billion
Chinese market
opportunity in
top 50 cities
12

13. Large Urban Hospitals
•
•
Medical diagnostic equipment
Diagnosis of various blood, liver and
kidney related diseases and conditions
50%
Percent of 1000
largest Chinese
hospitals served
• Competitive imported and locally made
product range
• Initial revenue from testing
equipment, hardware, lab management
system (LMS), installation and training
• Recurring revenue from
reagents, maintenance and services
13

14. Growth Strategy
Focus on total Target growth New & improved Acquisitions &
lab solutions areas solutions partnerships
• Provide premium • Rural areas / Military & • Continue developing • Acquisition or
value compared with Emergency / Food safety solutions in collaboration partnership with
individual products with customers complementary
• Limited competition and businesses
• Build customer loyalty high margins • Joint R&D with Chinese
military • Target established
• Multiple recurring • Chinese government brands
revenue streams support and budget • Collaboration with
provincial and central • Businesses that
government deliver high quality
services
14

15. Financials
YTD YTD
2010 2009 Growth June 30 June 30 Growth
2010 Revenue by Sector 2011 2010
15% Revenue $33.7m $23.8m 41% $14.9m $9.3m 60%
17% Gross
$13.2m $8.3m 60% $7.2m $3.9m 84%
Profit
59%
9%
EPS $0.10 $0.07 43% $0.04 $0.03 33%
large Urban Hospitals & Labs
Rural Hospitals & Clinics
Military & Emergency Services Net
$5.5m $3.9m 41% $2.6 m $1.5m 80%
Food Safety Income
Total
$37.1m $21.4m 74% $39.8m $27.4m 45%
Assets
15

16. Location & Distribution
Beijing
HQ & Production Facility
Guangdong Sales & Distribution Hub
Shanghai Sales Office
16

17. Management
Shiping (Wilson) Yao
President, CEO, Chairman and Director
Founded Biochem Group in 1993. Over 20 years experience in the medical equipment industry. Member of China’s National Standardization
Technical Committee. Member of the Board of Renmin University of China
Judyanna Chen
CFO
Chartered Accountant and Certified Public Accountant. Articled and worked at an international accounting firm, and prior to joining the
Company, was a senior manager at Manning Elliott LLP.
Yuqiang Tang
COO, Director
Over 15 years of managerial, sales and marketing experience
Bill Tunbrant
VP of Marketing, Director
Wide range of experience in the medical equipment industry, as well as in international manufacturing. Former director of Nibe Industrier AB
(OMX: NIBE’B)
Chao Zhang
VP of Finance
10 years financial management experience in the medical equipment and private health care industries
Stephen D. Wortley
Secretary
Currently a partner at the law firm McMillan LLP
17

18. Non-Executive (Independent) Directors
Yumin Zhuang
Deputy Dean of the School of Finance of Renmin University. Independent supervisor with china CITI Bank.
Hong Chang
Physician with the University Health Network in Toronto
Paul Haber
Director of Migao Corporation (TSX: MGO). Former Vice President, Chief Financial Officer and Corporate Secretary of QuStream Corporation
(TSXV:QVC)
Kim Oishi
Director of Zongshen PEM Power Systems (TSX: ZPP). Former President and Director of Hanfeng Evergreen (TSX: HF), Former Senior Vice
President of Hanwei Energy (TSX: HE), Former Director of Cantronic Systems (TSX-V: CTS), and Grand Power Logistics (TSX-V: GPW)
18

19. Investment Highlights
• Diversified revenue model
• Substantial recurring revenue base
• High margin business streams
• Limited market competition
• Chinese government expenditure and policy support
• Sufficient funding to continue growth in 2011
19

20. Corporate Information
TSX.V Symbol: CHO
52 Week Range: $0.55 - $1.56
Shares Outstanding: 65.6 Million
Market Capitalization (September 2, 2011): $45 Million
Employees: 233
20

21. Operating as:
September 2011