AOM INT'L (00381) and its affiliated Qiaoxiong Fujian and Hunan Shilin have signed a strategic cooperation agreement on cooperation to launch herbal stew shops.

AOM INT'L(00381) announced that on January 16, 2025, its wholly-owned subsidiary Qiaoxiong (Fujian) Investment Co., Ltd. (Qiaoxiong Fujian) and Hunan Shilin Business Management Co., Ltd. (Hunan Shilin) signed a strategic cooperation agreement on cooperating to develop the business of medicinal stewed dishes stores (Cooperation Matters). According to the cooperation agreement, Qiaoxiong Fujian and Hunan Shilin will use over 200 products from the group's Hubei Jincaotang Pharmaceutical Co., Ltd. (Hubei Jincaotang) medicinal base to expand the business of medicinal stewed dishes stores nationwide with the core concept of medicinal and food homology. Qiaoxiong Fujian is responsible for ensuring the legal validity and stability of the brand trademark and the supply of raw materials, providing necessary technical support and training, and ensuring the product quality of franchise stores. Hunan Shilin is responsible for finding and selecting qualified franchisees, ensuring the healthy development of the franchise network, as well as being responsible for the uniform decoration standards, market promotion, and daily operational supervision of the stores. The goal of the cooperation is to open 5,000 medicinal stewed dishes stores within a year. The franchise fee for each franchisee is RMB 200,000, with an expected total revenue of RMB 1 billion. In recent years, with the improvement of people's living standards and the increase in health awareness, the demand for health food with health functions has been growing. The concept of medicinal and food homology meets this trend, using food to prevent diseases and enhance physical fitness. Medicinal stewed dishes stores, as a specific practice of the concept of medicinal and food homology, have huge market potential. Especially for the consumer groups pursuing a healthy lifestyle and focusing on dietary regulation, medicinal stewed dishes stores have unique appeal. Medicinal and food homology is an important part of traditional Chinese medicine culture, and through the form of medicinal stewed dishes stores, it can inherit and promote traditional Chinese medicine culture, while combining modern technology for product innovation to meet the diverse needs of consumers. By expanding the business of medicinal stewed dishes stores, the group can achieve brand expansion and diversified operations, reduce business risks, and enhance market competitiveness. The cooperation agreement represents a new step for the group in the traditional Chinese medicine business, and the group expects to further expand its influence.