Bioalpha eyes double-digit growth in China market


BIOALPHA Holdings Bhd has targeted a double-digit growth in its export sales to China following a partnership that it forged with Jinrui Fortune Holding Group.

Bioalpha MD Hon Tian Kok said the company is optimistic on increasing the export sales to the republic, which currently makes up some 20% of the group’s turnover last year.

“On top of our solid track record in China, our medicinal products such as Tongkat Ali and Kacip Fatimah are very similar to the traditional Chinese medicine (TCM),” he said at the memorandum of understanding (MoU) signing ceremony between Bioalpha and Jinrui in Kuala Lumpur yesterday.

Hon said the collaboration is expected to contribute to Bioalpha’s revenue beginning from the first quarter of 2019.

“Jinrui is a large business group in China, so funding is not an issue for them. On the other hand, we are looking at the possibility of Jinrui investing in Bioalpha instead, though it’s still too early to say,” he said.

Biolapha chairman Tan Sri Abdul Rahman Mamat said there is still so much potential to be realised from its trade relations with China.

“Under this MoU, we have identified three projects in which Bioalpha and Jinrui can jointly explore and collaborate on, to scale operations and achieve synergy,” he said.

He said the first project is the “Thousand Medical Hall”, a joint effort between the two parties that would distribute Bioalpha products upon completion.

“This presents as an opportunity for us as we can leverage on the platform to promote and market our house brand health supplement products to the Chinese market.

“With this additional distribution channel, it will further increase the exposure of the company’s supplement to a much wider consumer base,” he said.

The medical hall will be a TCM pharmacy, a platform that is expected to provide consultation given by top practitioners from China and prescribe the suitable products to patients.

He added that the second project involves Bioalpha in the Chinese group’s integrated TCM project.

“The project will entail the development of a herb farm, a factory with good manufacturing practice or good manufacturing practice-certified factory, as well as a product research and development facility, among others,” he said.

In the third project, Bioalpha is expected to play a part in developing eco-health tourism in ChenZhou City in Hunan Province, China.

“These three projects offer growth prospects for both the companies and also extend to the domestic agriculture sector,” Abdul Rahman said.

According to Jinrui, its plan for the eco-health tourism is to develop up to five acres (2.02ha) of land as a destination, with activities that are complementary to its herbal farm project.

Jinrui has a paid-up capital of four billion yuan (RM2.4 billion) and was established in 1983.

According to an Independent Market Research Report by Smith Zander International, the Chinese health supplement market is forecast to grow at a compound annual growth rate of 33.5% to US$221.6 billion (RM921.5 billion) by year-end.