Huadong Pharmaceutical (000963.SZ) intends to jointly invest in the establishment of a joint venture with Angel Group to open up a new blue ocean of industrial microbial industry

Huadong Pharmaceutical (000963.SZ) announced that the company's wholly-owned subsidiary Sino-American Huadong and Sino-US Huadong Holding Subsidiary Hunda Bio and Angel Group signed a "Joint Venture Agreement" on November 11 to jointly invest in the establishment of Hubei Meiqi Health Technology Co., Ltd. (hereinafter referred to as "Meiqi Health") to jointly promote the research and development, production and sales of nutritious and healthy food raw materials and personal care function raw materials. The registered capital of Majestic Health is 250 million yuan, of which 100 million yuan is invested in cash, accounting for 40% of the capital contribution; Angel Group invested 100 million yuan in cash, accounting for 40% of the capital contribution; Hunda Biologics invested 500 million yuan in the form of technology, accounting for 20% of the capital.

Angel Group is the controlling shareholder of Angel Yeast (600298.SH), a national key high-tech enterprise specializing in yeast, yeast derivatives and related biological products, the first yeast company in Asia and the third largest yeast company in the world, as well as the world's largest yeast extract supplier and the second largest dry yeast supplier. This cooperation will further explore and release the advantages of Sino-US Huadong and Angel Group in product research and development, technological innovation, raw material procurement, manufacturing, quality certification, marketing channels, policy affairs and other aspects. The company will fully assist Majestic Health to establish an independent R&D system and accelerate the layout and development of Majestic Health in the big health industry. Through cooperation with Angel Group, with full use of its domestic and international product registration, production layout and business promotion system in the field of food and health, we will accelerate the development process of The Majestic Health market and control costs from the whole chain of the supply chain, which is expected to bring greater competitive advantages and achieve the sustained growth of the company's big health business.

At the same time, Majestic Health is the company's first industrialization platform in the field of industrial microbiology in addition to the pharmaceutical field, and this cooperation is a breakthrough result of the company's R&D innovation and transformation. In the future, the company will continue to uphold the development vision of building an industrial microbial industry cluster of "industrialization, scale and internationalization" in the field of industrial microbiology, continue to pay attention to the high value-added field upstream of the industrial chain from a global perspective, horizontally broaden the application scenarios of the company's existing microbial technology, vertically expand the development height and scale production capacity of industrial microbial technology, and open up a new blue ocean of the company's industrial microbial industry.