HONG KONG: On September 27, 2024, China Wantian Holdings Limited (1854.HK) (“Wantian”) announced that it has signed a strategic cooperation agreement with Hin Sang Group (6893. HK) (“Hin Sang”). The partnership aims to jointly venture into the rapidly growing functional food and health market, leveraging resource integration and technological innovation to provide high-quality health products and services to consumers worldwide, while jointly exploring new market opportunities.
Strong Alliance to Create a New Landscape in Health
With the rising global awareness of health, the health industry is experiencing unprecedented development opportunities. According to market forecasts from the China Consumers Association’s “Health Industry Consumption Trend Development Report”, by 2025, the market size of China’s health industry is expected to reach 17.4 trillion RMB, and it is projected to climb to 29.1 trillion RMB by 2030. The functional food industry, as a vital component of the health market, is attracting increasing capital and policy support.
As a listed company on the main board of the Hong Kong Stock Exchange, Wantian’s collaboration with Hin Sang will further strengthen its presence in the health sector, paving the way for its vision to become a global leader in the full industry chain of green food services.
Focusing on Three Strategic Cooperation Areas
The cooperation will focus on three major strategic areas to expand and innovate within the functional food market:
- Jointly Establishing Health Soup Chain Stores: Both parties plan to open 100 “Wantian Pengzu Hin Sang Centers” within three years, focusing on premium health soups to provide consumers with a natural and healthy wellness experience, meeting the market demand for high-quality health products.
- Co-developing Premium Health Gift Series: Both parties will launch the “Wantian Gift x Hin Sang” premium health gift series, combining Hin Sang’s herbal health products with Wantian’s green ingredient resources to create high-end health gifts that cater to modern consumers’ pursuit of quality living and health products.
- Establishing the Functional Food and Herbal Life Science Research Institute: Both parties will jointly establish the “Wantian x Hin Sang Functional Food and Herbal Life Science Research Institute,” focusing on the cultivation, research, and application of functional food and herbal medicine. The institute aims to transform scientific research achievements into commercial products, driving the innovative development of the functional food and herbal medicine industry.
Synergies to Create Long-Term Value
This strategic partnership represents more than just a merging of resources and technology; it brings forth substantial synergies. Wantian’s extensive experience in the green food supply chain will open up broader sales channels for Hin Sang’s products, while Hin Sang’s strong brand influence in the health sector will support Wantian’s swift entry into the functional food market. Together, their collaboration is poised to drive product innovation, optimize operational efficiency, and accelerate market expansion, leading to strong long-term returns.
As China’s “Healthy China 2030” blueprint, the health industry holds tremendous growth potential. This partnership between Wantian and Hin Sang is perfectly aligned with market trends and leverages policy incentives, setting the stage for a prosperous future in the health sector. Both companies foresee significant business outcomes from this collaboration, positioning it as a model for industry partnerships.
Wantian’s foray into the health industry underscores its keen market insights and strategic foresight. This initiative not only supports its efforts to diversify its business but also establishes a robust foundation for sustained growth. As Wantian continues to expand and innovate, it is well-positioned to become a leading player in the health market, generating lasting value and returns.
