[Asia Economy Reporter Jang Hyowon] CKH announced on the 16th that its subsidiary CKH Health Industry is entering the cosmetics production business through the establishment of a joint venture in the Pu'er tea industrial complex in the Xishuangbanna region of China.
According to the company, the shareholders of the joint venture "Xishuangbanna Chaje Biological Technology Co., Ltd." are CKH Health Industry, Xishuangbanna Honghai Technology Group, and Fuzhou Dongdu Industrial Co., Ltd. The shareholding ratios are 25%, 50%, and 25%, respectively, and the establishment is expected to be completed soon.
The joint venture plans to complete factory construction in the first half of this year and begin operating production facilities in the second half. It aims for an annual production volume of 1 billion yuan (approximately 187.5 billion KRW) by 2025.
The largest shareholder of the joint venture, Xishuangbanna Honghai Technology Group, is a Pu'er tea cultivation, processing, and sales company. It operates over 430 stores nationwide across China. Another investor, Fuzhou Dongdu Industrial Co., Ltd., is a distributor with over 20 years of experience, selling products such as cosmetics, food, tobacco, and alcoholic beverages.
The joint venture plans to research and develop cosmetics, food, and health functional foods utilizing Xishuangbanna's abundant natural plant resources and Pu'er tea. CKH also plans to distribute Pu'er tea products in Korea through the joint venture.
A company representative stated, "CKH is continuously investing to secure new growth engines while focusing on expanding the business of its Korean corporation CKH Health Industry to demonstrate more reliable management performance to investors. We will strive to become a more advanced CKH according to the new management plan this year."
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