Transcription of Finance News Network Interview with Eagle Health Holdings Limited (ASX:EHH) Non-Executive Director, Rodney Hannington and CEO, Mingwang Zhang.
David Chau: Hello I’m David Chau for the Finance News Network. Joining me from soon-to-be listed nutritional products company, Eagle Health Holdings Limited (ASX:EHH) is its Non-Executive Director, Rod Hannington and CEO Mingwang Zhang. Gentlemen, thanks for joining us.
Rod Hannington: Thanks.
David Chau: Firstly Rod, could you give us an introduction to Eagle Health Holdings?
Rod Hannington: Eagle Health Holdings is based in Xiamen in China. We have a really nice range of supplements with traditional Chinese medicine and Western medicine ingredients, targeting consumers for self-medication. We have a very strong Board and a very clear vision for growth for the future.
David Chau: Can you tell us more about your products and your strategy?
Rod Hannington: Our portfolio consists of a range of traditional Chinese medicine ingredient products, as well as Western medicine ingredient products. And a range of supplements targeting consumers for health improvement, strengthen immunity. The current portfolio is sold in pharmacy and supermarket in 23 provinces in China. And 99 per cent of our business is through those distribution networks. We have a strong online presence, but online sales only represent one per cent of our portfolio.
We’ve got a really nice range of new ingredients coming through in the traditional Chinese medicine space. One product is the Maca series of supplements and another is Dendrobium, which is also another ingredient that’s gaining a lot of momentum in China, and showing us great growth in sales and profit generation. We have a really healthy new product development strategy for this business. We will continue to further develop our traditional Chinese medicine and Western medicine supplements and products, in the portfolio.
But in addition to that, we’ve got a very strong program in linkages with Australian IP in this space. And we are able to provide IP owners, or owners of special ingredients for this category, or owners in Australia of finished product in this category. Almost what I would call a super highway to China through our distribution network, so we’ve got a very very strong portfolio. We’ve also got a very strong new product development program.
David Chau: When are you expected to list and where can investors find more information?
Rod Hannington: We’re expecting to list by the end of June around the 29th of June. Investors can find more information at our Eagle Health website, eaglehealthltd.com. They can contact their lead manager, Beer & Co Pty Limited, or they can contact their broker.
David Chau: Turning now to financials. Can you give us a snapshot of your company’s current position?
Rod Hannington: 2016 sales was $84 million, net profit after tax is $16 million. Currently we have $5 million cash in the bank and of course, we’ll have $30 million after our raise.
David Chau: Final question Rod. What’s your focus for the next 12 months and your long-term ambition for the company?
Rod Hannington: Over the next 12 months post-listing, we’ve got some very nice new products to launch. We’re targeting some very specific disease therapeutic areas in China, one around Type II Diabetes supplementation, another around women’s health. We’ve got a lot of work to do to get those new products to market, but we’ve already found some very nice IP here in Australia that we want to further develop and launch. For the long-term, Eagle Health is doing very very well in its 23 provinces. We’d like to be a national brand and one of the preferred brands in China, for health supplementation.
David Chau: Rod Hannington, Mingwang Zhang, thanks for your time and good luck with your IPO.
Rod Hannington: Thanks very much.