Pujian Miaosheng Group (PMG), a Chinese biotechnology company, has received a financial investment of 500 million Yuan from Chinese Pharma giant Tasly Holdings Group Co., Ltd. The strategic deal is expected to boost PMG’s Maye Biotechnology Co., Ltd industrial hemp unit.
PMG’s Yunnan Maye Biotech, a farming and processing license holder, is involved in extensive hemp R&D operations in Yunnan, including breeding, extraction, processing, parenting, marketing, and sales. The Chinese hemp company recently announced that it was developing a hemp variety codenamed Yunna#7.
Meanwhile, Tasly Holdings produces traditional Chinese medicine and pharmaceutical products. The company is also a biological, medical research center with extensive domestic and international resources distribution channels.
The pharma giant company was among the most powerful 500 private corporations in China, with Tasly’s Pharmaceutical Group Unit ranking high as one of China’s top 100 pharma enterprises in 2019.
The $75 million investment deal aims to advance Yunnan Maye’s hemp operations, including developments in farming, food and beverages, pet food, new tobacco products, and biochemical Products.
The two companies confirmed the agreement during a recent event at Kunming International Hemp Industrial Park in Yunnan.
Sha Suojie, chairman of Sichuan Puyuan Miaosheng Group, said the partnership would allow the two companies to work together to cement each other’s strengths and jointly contribute to the promotion of industrial development hemp through pioneering and innovating the hemp industry in Yunnan and the rest of the country.
The joint venture is expected to roll out its first production producing 3 tons of CBD and 7 tons of full-spectrum oil by 2022. The hemp company targets an annual output of 3 tons of CBD and 20 tons of full-spectrum oil valued at nearly 500 million Yuan (€64 million/ $75 million) per year.
Industrial hemp is centered mostly in Yunnan, a Chinese province currently a major player in large-scale hemp production.