BP8 Sources Bird’s Nest Products from Chinese State-Owned Conglomerate China National Pharmaceutical Group Corporation (Commonly Known as Sinopharm)
The Board ofBPH Global Ltd (ASX: BP8) (Company) is pleased to announce that its wholly- owned, China-based subsidiary Foshan Gedishi Biotechnology Co Ltd (Foshan Gedishi) has entered into a framework supply agreement with China-based company Guangzhou Xiaoliwu Biotechnology Co Ltd (Guangzhou Xiaoliwu) for the supply of bird’s nest products to Foshan Gedishi for on-sale into the Chinese market (Guangzhou Xiaoliwu Supply Agreement).
Framework bird’s nest supply agreement signed with China-based supplier
Bird’s nest products are sourced from Malaysian-based subsidiary of Chinese State-owned conglomerate China National Pharmaceutical Group Corporation (commonly known as Sinopharm).
Key component of the Company’s 120-day business plan achieved.
Supply agreement to underpin further expansion of sales & distribution channels for Bird’s Nest products in China.
Framework supply agreement
The Guangzhou Xiaoliwu Supply Agreement is a single-supplier framework agreement, pursuant to which Foshan Gedishi may place orders for a variety of bird’s nest products as and when Foshan Gedishi requires on terms set out in the supply agreement and as otherwise varied by the agreed terms of a purchase order. Obligations of Guangzhou Xiaoliwu under the Guangzhou Xiaoliwu Supply Agreement and or rights granted by Guangzhou Xiaoliwu to Foshan Gedishi include:
The bird’s nest products supplied are fit for purpose and compliant with all Chinese laws and regulations.
On delivery of each shipment of bird’s nest products, Guangzhou Xiaoliwu must provide Foshan Gedishi with a copy of the:
inspection and quarantine certificate relating to that shipment issued by the China Entry-Exit Inspection and Quarantine Department; and
customs declaration, a copy of certificate of origin and veterinary (health) certificate issued by Chinese Customs Department.
Delivery of the bird’s nest products is to be made to Foshan Gedishi in China. Subject to exclusions for damaged or lost goods and late delivery, Foshan Gedishi will pay Guangzhou Xiaoliwu for the cost of transportation.
The risk of damage or loss of the bird’s nest products transfers from Guangzhou Xiaoliwu to Foshan Gedishi from the date of delivery.
Foshan Gedishi has the right to reject goods that do not comply with the Guangzhou Xiaoliwu Supply Agreement and/or a purchase order condition regarding the packaging, quantity and specifications of the products.
Foshan Gedishi has certain rights including compensation from Guangzhou Xiaoliwu and the right to terminate the Guangzhou Xiaoliwu Supply Agreement for breaches of the agreement including for late delivery of stock or damaged or lost goods.
About Guangzhou Xiaoliwu Biotechnology Co Ltd
Guangzhou Xiaoliwu is a China-based company that focuses on the import of bird’s nest products from Malaysia to China. Guangzhou Xiaoliwu operates as both a wholesaler to China-based re-seller and a retailer of bird’s nest products in China.
Guangzhou Xiaoliwu has a distribution agreement with Malaysia-based company Tian Ma Bird Nest Sdn Bhd (Tian Ma) for the sale and distribution of Tian Ma-sourced bird’s nest products in China. On previous visits to Malaysia, including the visit in March this year, the Company’s management team met numerous times with Tian Ma to secure the right to purchase Tian Ma’s bird’s nest products and to sell them In China. Tian Ma suggested that the Company could obtain its bird’s nest products by entering into an agreement with Guangzhou Xiaoliwu one of the principal suppliers of Tian Ma’s bird’s nest products in the Chinese market.
Tian Ma is a subsidiary of another Malaysia-based company Zhonghua Southern Pharma Sdn Bhd (Zhonghua Southern Pharma). Zhonghua Southern Pharma holds a 70% interest in Tian Ma. Zhonghua Southern Pharma is a wholly owned subsidiary of the group of companies owned by the Chinese State-owned enterprise corporation Sinopharm, and Tian Ma is the bird’s nest product arm of the group of companies and corporations that form the Sinopharm group.
About Sinopharm and the Sinopharm group
China National Pharmaceutical Group Corporation (CNPGC), commonly referred to as Sinopharm, is a Chinese state-owned enterprise. The corporation was the indirect major shareholder of publicly traded companies Sinopharm Group (SEHK: 1099), China Traditional Chinese Medicine (SEHK: 570), Shanghai Shyndec Pharmaceutical (SSE: 600420) and Beijing Tiantan Biological Products (SSE: 600420).
Sinopharm was founded on November 26, 1998, as a holding company for China National Pharmaceutical Corporation, China National Pharmaceutical Industry Corporation, China National Pharmaceutical Foreign Trade Corp. and China National Medical Device. In 2009 it was merged with China National Biotec Group.
Sinopharm was ranked 113th in the 2023 Fortune Global 500 list.
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