INS Bioscience signs MoU with Dalian firm

By Kathy Fong, Star Business - November 15, 2007

DALIAN: Banking on the rising popularity of herbal health supplements, Mesdaq-listed INS Bioscience Bhd is confident of sustaining strong earnings growth in the next five years.

To tap the global bio-herb market for better earnings growth, the company’s wholly-owned subsidiary, Easy Pha-max Marketing Sdn Bhd, recently signed a memorandum of understanding (MoU) with Dalian-based INS Xue Ao Pte Ltd, the biggest cordyceps-based products manufacturer in Asia. Under the MoU, Easy Pha-max would be the sole global distributor of INS Xue Ao’s healthcare supplements. Meanwhile, INS Xue Ao would also market and distribute INS Bioscience’s products in China.

The signing was witnessed by Deputy Youth and Sports Minister Datuk Liow Tiong Lai and government officials, including the mayor, from the Dalian local authorities. INS Bioscience chief executive officer Datuk Yeat Sew Chuong said the partnership would enable the group’s healthcare products to penetrate the Chinese market, which is projected to be one of the biggest in the world given its population size and its expanding aging group.

Datuk Yeat Sew Chuong (centre) and INS Bioscience executive director Ben S.T Wong (right) together with INS Xue Ao Pte Ltd general manager Phang Mei Hwa at the opening ceremony of the latter's manufacturing plant in Dalian.

He added that its product portfolio would be enhanced by INS Xue Ao’s steady supply of a variety of cordyceps-based health supplements. “It is a synergistic partnership. It is a win-win deal,” he told the media after the signing ceremony.

INS Xue Ao’s newly-completed plant in Dalian has the capacity of producing 350 tonnes of cordyceps-based products annually. Its chief executive Lei Ming said he expected the plant to double its size by end-2008 on anticipated rising demand for cordyceps.

Yeat said cordyceps-based health supplements would be one of INS Bioscience’s core products, besides the wheatgrass supplements. He expects cordyceps-based products to account for 10% of the company’s revenue. He said the World Bank forecast the global market for herbal products would reach US$5tril by 2050, with Asia constituting 17% of sales.

On the company’s earnings, Yeat said shareholders could expect to see “encouraging” earnings growth for the financial year ending Dec 31, and years after. “Shareholders would see revenue growth at a higher rate and an increase in earnings per share,” he added.

Last year, INS Bioscience incurred a net loss of RM12.65mil on revenue of RM23mil. It posted a net profit of RM418,000 on revenue of RM28.7mil for the six months ended June 30. Yeat noted that the company had plans to transfer its listing status to the main board. However, it had yet to meet the listing requirements.

INS Bioscience owns a plant in Puchong, Selangor. “The plant is currently running at 40% capacity. There isn’t any plan for us to expand. There is still room to raise production volume,” said Yeat. He said China or the US would possibly be the destination should the company intend to set up a new plant abroad.

News Straits Times

As published in News Straits Times, 2 August 2007.

Herbal supplement manufacturer, INS Bioscience plans to capture 8% of the Malaysian herbal market. Currently, its marketing arm Easy Pha-max Sdn Bhd holds about 1% of the market, valued at about RM5.5 billion.

Wow! that’s the direction as an Easy Pha-max Business Partner is steering. So far, there are 3,500 business partners, each of whom has individual e-store website where customers are able to purchase the products online namely http://kelly.easypha-max.com/ Doing business online is similar to doing business offline. Transactions are made when the seller can provide a value to the buyer. Easy Pha-max provides an uncontested marketplace where competition is irrelevant.

First Attempt Business Presentation

Recently, I attended a full 2-days internet marketing coaching seminar conducted by E1net. It was a very useful seminar for me whom are very fresh and new to this industry. The information and tips provided during the daily 9:00 am to 9:00 pm had leaded me to a steering start.

On the first day, we had a group contest. There are four members in a group and we are required to apply what have been taught for the day. We are given one hour to work out a business plan for presentation. So, we had to think fast and came out with different business ideas like selling jewelry, gift, ebook or health supplements.

Gosh, I was being chosen as the group leader to do the 5 minutes presentation. Being my first time, I was nervous and quite pressure to be the first one to present. On the other hand to think positively, I will be more terrified if other groups did a good one.

So our group decided to present the unique business plan of Easy Pha-max Center. I started with the title as The Largest eHerb Center and the business description as the forefront of biotechnology industries offering healthcare supplements. As I was presenting half way through, suddenly the bell ring and I only left one minute. It was like freak, what I should do now. Anyhow, I managed to complete the whole presentation.

On the second day, the contest result was announced. Hooray, our group was nominated First. It was real cash reward.