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The Joint venture with Chengdu-based Sichuan Neautus Traditional Chinese Medicine Co Ltd aims to upgrade Eu Yan Sang’s supply chain and improve the group’s margins. The JV plans to set up a TCM decoction pieces (processed herbs) plant in China with an online traceability feature and responsibility in sourcing of herbs. The collaboration is expected to provide better sourcing capability for high-grade raw materials to further improve public trust and confidence in TCM herbs.
Singapore, May 16, 2013 – SGX mainboard-listed Eu Yan Sang International Ltd, a trusted global integrative healthcare and wellness company with a strong foundation in Traditional Chinese Medicine (TCM), will form a joint venture to set up a high quality TCM decoction pieces (processed herbs) plant in China. The partnership enables EYS to be one of the largest exporters of TCM herbs from China and reinforces the group’s commitment to reliability, trust and integrity of its products.
On May 11, 2013, the group’s wholly-owned subsidiary, Eu Yan Sang (Hong Kong) Limited, inked an agreement with Chengdu-based Sichuan Neautus Traditional Chinese Medicine to co-establish EYS Neautus (Sichuan) Company Limited. The joint-venture (JV) company will be based in the Chengdu Hi-Tech Zone and establish a TCM decoction pieces (processed herbs) plant.
The JV agreement also entails the subsequent setting up of a sales office in Hong Kong, EYS Neautus (Hong Kong) Limited, a trading company that will manage overseas sales.
The 50/50 joint venture is expected to improve the group’s margins through lower costs of raw materials and strengthen the upward integration of the group’s supply chain. The group will also stand to benefit in ensuring a timely, trusted source of herbs and ingredients for its renowned products.
Sichuan Neautus, which has an existing, reliable computerized system to trace herbs from their source, will bring intangible value to the JV by improving the sustainability and responsibility of sourcing for high-grade raw materials.
The JV will incur 40 million yuan (approximately $8.0 million) for Phase One, in which a Good Manufacturing Practice TCM decoction pieces (processed herbs) plant will be set up in the Chengdu Hi-Tech Zone, Sichuan province.
Commenting on the JV, Clifford Eu, group managing director, international, EYS, said: “We are delighted to be working with Sichuan Neautus, an established company in the decoction pieces industry in China. This agreement is fully aligned with EYS’s current practice of providing high quality and safe TCM herbs to the global market by leveraging Sichuan Neautus’s strengths. This JV will open new sales channels and be an authority and trailblazer as a trusted brand in the TCM international market."
About Eu Yan Sang International Limited (SGX: EYSI)
Listed on the Singapore Exchange, Eu Yan Sang International Ltd (Eu Yan Sang) is a trusted, global leading integrative healthcare and wellness company with a strong foundation in Traditional Chinese Medicine (TCM). Eu Yan Sang is an industry leader and one of the largest TCM groups in Southeast Asia. It is at the forefront of adopting a modern and scientific approach in the production and retail of both TCM and wellness products.
The group has come a long way from its humble beginnings offering TCM remedies to tin mine coolies in Gopeng, Perak, Malaysia 133 years ago. Today, Eu Yan Sang is a household name in Asia with an unrivalled reputation as the leader in the TCM industry.
Eu Yan Sang’s ability to control the total supply chain – from the sourcing of its raw materials to the production and distribution of its products and the provision of treatments gives the group an excellent competitive edge in the industry.
Manufacturing activities are carried out in two of its GMP-certified (Good Manufacturing Practices) factories located in Hong Kong and Malaysia. Every production process demonstrates full GMP accreditation for unmatched quality assurance.
Apart from retailing fine quality Chinese herbs and Chinese proprietary medicines, Eu Yan Sang also retails health foods and supplements. Currently, the group offers more than 300 products under the Eu Yan Sang brand name and over 1,000 different types of Chinese herbs and other medicinal products.
Eu Yan Sang’s wholly-owned Australian subsidiary, Healthy Life Group, operates a chain of 79 HealthyLife stores and a distribution business that is one of the largest health food distributors in Australia. The business has over 25 years of experience in Australia, supplying in excess of 5 million products from 170 suppliers to more than 5,000 retailers in the health food, pharmacy and grocery retail segments.
As of March 31, 2013, Eu Yan Sang’s extensive distribution network comprised 298 retail outlets in China, Hong Kong, Macau, Malaysia, Singapore and Australia. Its products are available in drugstores, pharmacies, medical halls, supermarkets, convenience stores, hospitals, health clubs and spas worldwide. The group also operates a chain of 27 TCM clinics in Singapore and Malaysia, and two Integrative Medical Centres in Hong Kong.
About Sichuan Neautus Traditional Chinese Medicine Co Ltd
(Source: http://en.xinhehua.com/about.asp)
Founded in 2001, Sichuan Neautus Traditional Chinese Medicine Co Ltd is the first GMP-certified pharmaceutical producer of herbal slices in China, a national high-tech enterprise and a State-level key enterprise of agricultural industrialization. In November 2009, it became the first National Engineering and Research Center for TCM Material Processing approved by the National Development and Reform Commission (“NDRC”). The company’s chairman, Jiang Yun, serves as the chairman of the Herbal Slice Chapter of the China Association of Traditional Chinese Medicine (CATCM).
Contact Information:
Financial PR Pte Ltd
El Lee/Karen Yap
Investor/Public Relations Consultants
Tel: 65-6438 2990 / Fax: 65-6438 0064
Email: staff@financialpr.com.sg
Eu Yan Sang International Ltd
Joanna Wong
General Manager
Brand Management & Corporate Communications
Eu Yan Sang International Ltd
DID: 65-64213213 Fax: 65-6221 1861
Email: joanna.wong@euyansang.com
Eu Yan Sang International Ltd
269A South Bridge Road, Singapore 058818
Tel: (65) 6225 3211 Fax: (65) 6225 8276
