On June 21, Gelunhui announced that Grace Life-tech (02112.HK) signed a strategic cooperation framework agreement with Tianjin Bingcaogangmu Biotechnology Co., Ltd. (referred to as 'Bingcaogangmu' below) on the same day through its wholly-owned subsidiary Shenzhen Endean Times Life Science and Technology Co., Ltd. (referred to as 'Shenzhen Endean' below). The agreement aims to strengthen cooperation between the two parties in the field of the big health industry (plant-derived layer stem cell platform technology project), promote the development of various businesses in both parties, achieve equal benefits, shared resources, complementary advantages, and win-win development.
Bingcaogangmu is a holding group dedicated to hospital management, health management, traditional Chinese medicine health preservation, and big health chain, and owns the 'Baicaoyuan' brand series intellectual property rights. Bingcaogangmu uses its independently developed big health intelligent management system and innovative business model to create an online and offline integrated 'Baicaoyuan' big health management platform. The 'Baicaoyuan' brand has a sound chain franchise and operation management system, and plans to open more than 1,000 'Baicaoyuan' health management centers nationwide within two years. Bingcaogangmu expects that the sales of Baicaoyuan products will exceed RMB 1 billion in 2024. Through the innovative exploration of both parties in multiple dimensions, sustainable and strategic partnership relationship, both parties will actively invest in expanding new big health businesses and jointly create a win-win cooperation situation.
In the future, Bingcaogangmu will fully leverage its extensive sales network advantages to actively help Grace Life-tech promote plant-derived layer stem cell series products and technical projects. Both parties will rely on their core competitiveness in brand, capital, resources, technology, and products, innovate cooperative development models, and jointly promote industrial development and maximize benefits.
Through strategic cooperation with Bingcaogangmu, starting from 2024, Grace Life-tech's plant-derived layer stem cell series products will be sold through the 1,000 new stores planned by Bingcaogangmu. With the increase of sales channels, Grace Life-tech's market share in plant stem cell products will gradually expand, which is beneficial to sales revenue and profit. It is expected that this strategic cooperation will bring the company new sales revenue in 2024.
This strategic cooperation will not only enhance the brand influence of Grace Life-tech in the Chinese market, but also promote the overall development of plant stem cell industry. Both parties will work together to promote continuous innovation and application of plant stem cell technology, and bring consumers more healthy and eco-friendly product choices.