Yongye sells the vast majority of its Shengmingsu crop nutrient product through provincial and regional distributors who then sell the products on to primarily county level distributors. The county level distributors sell the products primarily through independently owned and Yongye branded retailers. As of September 30, 2011, our products were sold in 30 provinces, autonomous regions and centrally-administered municipalities across China through 25 provincial-level distributors, 810 county-level distributors and 29,307 Branded Retailers. Our multi-tiered distribution model allows us to penetrate the vast and highly fragmented rural area of China by utilizing our internal sales team to manage and leverage thousands of sales personnel at our provincial-level distributors, county-level distributors and branded retailers. Our internal sales team actively manages our multi-tier distribution network by participating in major distributor sales activities and providing presentations and seminars.

The following chart illustrates our multi-tiered distribution model: