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KUALA LUMPUR — Integrated health supplement company, Bioalpha Holdings Berhad (Bioalpha) recorded sales of over RM1 million in September from its supply of health food ingredients to China’s Guizhou province.
It commenced delivery of the health food ingredients following a Partnership Agreement between wholly-owned subsidiary, Bioalpha (HK) Ltd and two China-based companies, Guizhou Yuhexin Trading Ltd (Guizhou YHX) and Hainan Shifengfu Co Ltd as well as a Supply Contract Agreement inked on July 22.
The supply contract is valued at approximately RM426.7 million annually for a duration of five years, subject to annual renewal.
“This translates to a potential contract value of up to RM2.1 billion over a five-year period,” said Bioalpha managing director William Hon in a statement.
He said the company was looking into opportunities to expand the supply of products to other provinces in China, boosted by prospects in the country.
“We are delighted to say that our plans are on track with operations running smoothly currently and (have) leased a factory in Hainan the size of approximately 1,000 square metres for warehousing purposes.
“Going forward, we intend to set up more functions in Hainan, including packing and manufacturing, as we progress further,” he said.
As part of its strategic move, Hon said Bioalpha HK had incorporated a new wholly-owned subsidiary in Hainan, Bioalpha (Hainan) Health Biotechnology Ltd (Bioalpha Hainan) on August 26, with authorised share capital and intended paid-up capital of RMB15 million (RM9.17 million) respectively.
“Additionally, Bioalpha Hainan has also established an office in the Yangpu Economic Development Zone, located in the Hainan province of China.
“The development zone is Hainan’s largest economic zone and enjoys preferential policies of free-trade zone as approved by the State Council of China in 1992,” he added. — Bernama, October 9, 2020
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