On May 19, 2009, Ms. Yan Li sold 250,000 shares of common stock of China-Biotics, Inc. ("China-Biotics") in a private sale transaction pursuant to a purchase agreement among Ms. Yan, China-Biotics and certain purchasers. Under the terms of the purchase agreement, China-Biotics agreed to use its reasonable best efforts to prepare and file with the Securities and Exchange Commission a registration statement (or to include in an existing registration statement through the use of an amendment to such registration statement), including the prospectus, for an offering to be made on a continuous basis pursuant to Rule 415 of the Securities Act by the 30th day following the closing date covering the resale by the purchasers of the shares and naming the purchasers as selling stockholders. Ms. Yan is the spouse of Mr. Song Jinan, a director and the President and Chief Executive Officer of China-Biotics.

(d) Exhibits.

                 Exhibit
                 Number  Exhibit Description

                 10.1    Purchase Agreement dated May 19, 2009.