Wholly-Owned Subsidiary of China Health Industries Holdings, Inc. Signed an OEM Contract
Harbin, China--(Newsfile Corp. - April 19, 2016) - Harbin Humankind Biology Technology Co., Limited ("Humankind"), the wholly-owned subsidiary of China Health Industries Holdings, Inc. (OTCQB: CHHE) ("China Health Industries" or "company"), signed a long-term OEM contract with Yantai Baobei Biotech Limited ("Baobei") in April, 2016. According to the OEM contract, Humankind is pointed as the original equipment manufacturer of health food for Baobei. The contract will be valid since April, 2016, and the estimated cumulative processing fee is 500,000 US dollars within one year, accounting for about 5% of fiscal 2015 revenue.
CEO of China Health Industries, Xin Sun explains:" Providing OEM service to Baobei is not only effectively utilization of our productivity, but also demonstration of our excellent equipment quality. The most important thing is it brings new growth point of profit. Our company is negotiating with other companies in Chinese pharmaceuticals industry about OEM agreements. We estimate it brings 500,000 to 1,000,000 US dollars as OEM processing fee within one year, accounting for about 5%-10% of fiscal 2015 revenue. "
Mr. Sun further explains:" Health food and drug products are the main source of our sales revenue. Our next step is to increase investment in development of anti-cancer drugs, genetic testing and stem-cell therapy. Our goal is to provide a closed loop ecosystem in health-care industry, which is built up with high-quality health products, drug development, health management and medical treatment for our customers."
China Health Industries Holdings, Inc. (www.chinahealth.tech) produces, markets and distributes high-quality medicines, health products, health devices and cosmetics. The Company routinely posts important information on its website.
CHHE owns GMP-certified plant and facilities and manufactures 21 CFDA-approved medicines and 14 CFDA-approved health supplement products in soft capsule, hard capsule, tablet, granule and oral liquid forms. These products address key major markets, including women's products, geriatric products, children's products and other vital market sectors.
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Mr. Xin Sun
Chairman & CEO
China Health Industries Holdings, Inc.