Sanai Health Group (01889) announced that on March 1, 2024, the company's wholly-owned subsidiary Keibafro Technology Co., Ltd...
According to Zhitong Finance App, Sanai Health Group (01889) announced that on March 1, 2024, the company's wholly-owned subsidiary Jingbavro Technology Co., Ltd. plans to acquire 51% of Beijing Hangyang Health Technology Co., Ltd.'s shares from Xie Haijing at a cost of RMB 33.15 million.
The main products of the target company based in North China include ODM/OEM propolis health products and home-branded propolis products and lycopene products. Compared with the group's original products, the target company's main products (such as propolis products and lycopene products) have a wider target customer base. Furthermore, the raw materials for propolis products and lycopene products (including honey and tomatoes) are different from the supply chain of traditional Chinese herbal medicines, and the company believes that it can be used to some extent as a risk hedging for the Group's production costs. Therefore, the Board believes that the acquisition will help the Group diversify its product portfolio, expand product geographical coverage, and reduce the risk of concentrated procurement of raw materials for the pharmaceutical and health products business.
Furthermore, the board believes that the target company is a pioneer in the Chinese softgel industry. The target company is a pilot base for R&D and production of the first automatic roll-mode softgel machine in China, a participant in preparing the national benchmark for soft-gel capsules in China, and the developer of China's first propolis softgels and the first liquid calcium capsules. Since softgels are also becoming increasingly popular in pharmaceuticals and health products, the target company's advanced technology and perfect production base to produce softgels will help the Group develop more pharmaceutical and health products in the future.