Exhibit 10.3


                                 PROMISSORY NOTE



TO:      Haier Group Company
         Haier Industrial Park
         Qingdao High Tech Zone
         China

For value received, in respect of our purchase of 64.25% of the total issued and
outstanding  shares  Qingdao  Haier  Pharmaceutical  Co.,  Ltd. from you and the
subsequent  legal  transfer  of these  shares to us, as per our Share  Ownership
Purchase and Transfer Agreement dated May 30, 2001, we hereby promise to pay you
the amount of USD $8,260,700 (U.S.  Dollars Eight Million two hundered and sixty
thousand and seven hundred only), on or before November 30, 2001.

Issued this 30th day of May, 2001.


 /s/ Mahmoud S. Aziz
- ------------------------------------
For and on behalf of
SINO PHARMACEUTICALS CORPORATION