Wong Lo Kat Expands into the Middle East Market

On February 25, Guangzhou Wong Lo Kat Great Health Industries Co., Ltd. ("Wong Lo Kat") announced a cooperation agreement with Saudi Arabia's AIDUK International Holding Co., Ltd. to jointly promote the sales and brand promotion of Wong Lo Kat products in Saudi Arabia and the Middle East.

Wong Lo Kat also unveiled the "WALOVI" logo and Arabic packaging. It is reported that the first batch of Wong Lo Kat products will be shipped to Saudi Arabia within a month after the signing and will be sold in local supermarket chains, convenience stores, restaurants, and other channels.

Saudi Arabia is a significant economy in the Middle East with a population of over 36 million, including approximately 300,000 ethnic Chinese, and a per capita GDP of nearly USD 30,000 (CNY 217,641).

Wong Lo Kat stated that the company's previous sales in the Middle East market were relatively scattered and mostly limited to the ethnic Chinese. This time, it will fully explore Saudi Arabia and the Middle East. As one of the important markets in Wong Lo Kat's internationalization strategy, Saudi Arabia not only boasts a huge consumer base and strong purchasing power but also has geographical advantages and market influence, offering tremendous development potential and space.

As a leading enterprise in the domestic herbal tea market, Wong Lo Kat faces challenges of sluggish growth amid fierce competition in the domestic beverage market and shortened product life cycles. Wong Lo Kat is a wholly-owned subsidiary of listed company Baiyunshan Pharmaceutical Group Co., Ltd. (600331.SH). Within Baiyunshan's business, Wong Lo Kat belongs to the great health sector and is the main income source for this sector.

Baiyunshan's financial reports show fluctuations in the revenue growth of its great health sector in recent years. In 2023, the great health sector achieved revenue of CNY 11.117 billion, a year-on-year increase of 6.15%; however, in the first half of 2024, the sector's revenue was CNY 6.538 billion, a decrease of 7.24% compared to the same period the previous year.

In recent years, Wong Lo Kat has intensified its efforts to expand into international markets in search of new growth points. Currently, Wong Lo Kat has entered more than 100 countries and regions worldwide, going into mainstream overseas channels such as Costco and H Mart supermarket chains, as well as e-commerce platforms like Amazon, Yamibuy, and Wee.