A Chinese medicine composition for lowering lipid levels and protecting the liver comprises 60 to 120 parts by weight of Gynura divaricata, 50 to 110 parts by weight of Radix Puerariae, and 20 to 60 parts by weight of Radix Paeoniae Alba. The Gynura divaricata is preferably the whole herb of Gynura divaricata, the Radix Puerariae is preferably the dried root of Pueraria lobata and the Radix Paeoniae is preferably the dried root of Paeonia lactiflora. A method of preparing the composition involving decoction of each of Gynura divaricata, Radix Puerariae, and Radix Paeoniae Alba is described. The composition is useful in the treatment and prevention of hyperlipidemia, obesity, viral hepatitis, chemical liver injury and alcoholic liver injury.