KUALA LUMPUR (Oct 18): Integrated health supplements group Bioalpha Holdings Bhd aims to increase its export sales to China by partnering with Jinrui Fortune Holding Group.  

Its subsidiary Bioalpha International Sdn Bhd today inked a memorandum of understanding with Jinrui to explore areas of collaboration. 

Jinrui is a China-based conglomerate involved in traditional Chinese medicine. It operates several medical halls across China, with a target to open 1000 halls by 2025. 

"The plan is for Jinrui to import health supplement products from Bioalpha to be sold at their medical halls,” said Bioalpha chairman Tan Sri Abdul Rahman Mamat.” Bioalpha will also be able to market its products on Jinrui's online portal." 

Speaking at the MoU signing ceremony, Abdul Rahman added that the group can further tap into a whole new client base through the partnership, and access Jinrui's patients. 

"Over the years, we have built a solid track record in China, as we have actively participated in trade and marketing activities there. Notwithstanding this, we feel there is still a lot of potential to be realised with our trade relations in China," he said. 

Currently, 40% of the group’s revenue is contributed by exports to China and Indonesia, and the other 60% by sales within Malaysia. 

The group expects revenue contribution from collaboration with Jinrui to start in the second quarter of 2019. 

According to an independent market research report by Smith Zander International, the Chinese health supplement market is forecast to grow at a compounded annual growth rate of 33.5% to US$221.6 billion by end of 2018. 

Shares of Bioalpha were unchanged at 25.5 sen as at 3.25pm, with a market value of RM206.55 million.