WAI CHUN BIOTEC (00660) has announced a strategic partnership with Henan Province Mine Crane Co., Ltd., granting it exclusive global overseas distribution rights for its crane and mining equipment products.
On August 5, 2026, after market hours, the company signed an "Authorized Overseas General Agency Agreement" with the licensor, appointing WAI CHUN BIOTEC as the sole overseas general agent for these products worldwide, excluding mainland China.
The authorization covers crane products, including but not limited to the "Kuangyuan" brand bridge cranes, gantry cranes, electric hoists, and mining equipment related components.
The group has been actively seeking high-quality business opportunities with significant growth potential to broaden its revenue streams and maximize shareholder value. This exclusive overseas agency agreement marks a historic milestone in the group's business diversification breakthrough.
The board believes this strategic cooperation has clear commercial logic and significant strategic benefits:
1. Strong Alliance Leveraging Hong Kong's International Hub for Cross-Industry Breakthrough: This partnership perfectly combines the manufacturing strength of the licensor with the group's international business expansion capabilities. The company will leverage Hong Kong's strategic position as an international trade center to convert its existing overseas channel resources and cross-border compliance experience into an efficient global sales network for China's top heavy machinery. The precise alignment between the "industrial side" and "channel side" enables true complementary advantages.
2. Capturing Global Infrastructure Opportunities and the Belt and Road Initiative: With the global recovery in infrastructure construction and the deepening of China's Belt and Road Initiative, demand for high-quality cranes and heavy mining equipment in overseas markets is surging. By securing exclusive agency rights outside mainland China, the company gains access to this vast market, offering significant explosive growth potential.
3. Asset-Light, High-Margin Model Creating a Strong Diversified Growth Curve: Under the agreement, the company enjoys favorable terms, including "base price procurement, independent pricing, and retaining all premiums." This means the company avoids heavy capital expenditure in manufacturing, instead operating through an asset-light channel model to capture substantial profit margins. This will generate strong cash flow, driving a "diversified growth curve" for the group's future performance.