Is Kangmei Pharmaceutical a pyramid scheme?

Kangmei Pharmaceutical is not a pyramid scheme.

Kangmei Pharmaceutical Co., Ltd. (SSE: 6005 18). 1997, Ma Xingtian, a private entrepreneur, founded "Guangdong Kangmei Pharmaceutical Co., Ltd." in Puning City, Guangdong Province. In 2000, the share reform began. It is one of the large-scale private pharmaceutical enterprises integrating pharmaceutical supply and marketing, Chinese herbal pieces, Chinese herbal medicines and medical devices.

Kangmei Pharmaceutical Co., Ltd. has two modern production bases: Chinese herbal pieces and chemicals. At present, it produces four kinds of national new drugs and 1000 kinds of Chinese herbal pieces. The commercial field involves the operation of four categories of products and the distribution of terminal networks. It has wholly-owned subsidiaries such as Kangmei (Chengdu) Pharmaceutical Co., Ltd., Kangmei (Beijing) Pharmaceutical Co., Ltd. and Kangmei (Ji 'an Xinkaihe) Pharmaceutical Co., Ltd., with secondary branches in Guangzhou, Beijing, Shanghai and Shenzhen and offices in more than 20 provinces and cities across the country, forming a relatively complete marketing network in North China, East China, South China, Southwest China and Northeast China.