By LAALITHA HUNT
PETALING JAYA: Hai-O Enterprise Bhd is identifying suitable locations to set up a trading company in China where it intends to export its own local brand products.
According to chief financial officer Hew Von Kin, Hai-O intends to set up a wholly-owned trading company operating in at least two provinces in China.
“We are looking to market local products such as bird’s nest and our Tongkat Ali coffee to this huge market,” he told StarBiz.
The second board-listed company started as an importer of China-made goods such as medicines, medicated wines and healthcare products. It started developing its own products 12 years ago.
Hai-O plans to enter China with a vitamin supplement for which it has been granted exclusive sales and distribution rights by Golden Hope Plantations Bhd unit Golden Hope Bioganic Sdn Bhd, the registered user for the product in Malaysia.
“We have a minimum sales volume target of three million capsules over three years from the date of registration (of the supplement in China),” Hew said.
The distributorship was sealed yesterday at a signing ceremony between Hai-O executive director Tan Keng Song and Golden Hope research and development director Khairudin Hashim.
The agreement was not expected to have any material impact on Hai-O’s earnings for the current financial year, as approval to market this product in China was expected to take some time.
“We have not worked out the profit margin for the product as we are awaiting approval which could take six months to over a year,” Hew said.
As per the agreement, Hai-O has been given 24 months to obtain approval for this food supplement from the relevant health authorities in China.
Golden Hope Bioganic will assist Hai-O in conducting product training, and furnishing necessary documentation and information to Hai-O to register and launch the product in China.