Acorn International, Inc.’s direct-sales business involves marketing and selling products directly to consumers in China through our outbound marketing platform and Internet sales platform. In addition, we maintain a distribution network through which we distribute a select number of our products promoted by our direct-sales platforms, including our various proprietary-branded product lines.

Acorn International, Inc. has developed several leading proprietary-branded product lines, including Babaka posture-correction products, Rose knife kitchen and household products, and Youngleda oxygen-generating products.