Biohit to Establish Joint Venture in China - Biohit Biotech(Hefei)
Mr. Liu Feng, the owner of Anhui Wisdom-Win Investment Co., Ltd. who is also General Manager of Hefei Medicine Co. Ltd. China, invests 20 million RMB (2.5 MEUR) in Biohit Biotech (Hefei) Co., Ltd. Immaterial investments made by Biohit is worth of 13 MRMB and includes know-how expertise as well as production technologies and related patents to Joint Venture.
Anhui Wisdom-Win Investment Co., Ltd. will own 60 % of Biohit Biotech (Hefei) Co., Ltd. Biohit will own 40 % of Biohit Biotech (Hefei) Co., Ltd. Mr. Liu Zhen has been appointed CEO of Biohit Biotech (Hefei) Co., Ltd.
The regulatory approvals are pending and are expected to be finalized during 2014. Biohit Biotech (Hefei) Co., Ltd shall aspire to meet recognized international quality standards by the end of 2014. During the approval process, ramp-up costs will be covered from 20 MRMB investment.
The joint venture is consolidated to the Biohit Group using the equity method. Biohit‘s 40% share of the joint venture shareholders’ equity and profit or loss is respectively recognized in the consolidated balance sheet and income.
Foundation of the Joint Venture will create a deferred income worth around one million euros, thus the recognition of revenue is postponed until the new company has been authorized so start operations in the Chinese market. The deferred income is recognized to cover the license application process and the start-up phase. This method is based to conservatism principle, because the company does not yet have an official license.
CEO Semi Korpela, Biohit Oyj: “We are pleased to announce this Joint Venture agreement. Our local partners will provide excellent conditions for Biohit Biotech (Hefei) Co., Ltd.”
General Manager Liu Feng, Hefei Medicine Co. Ltd. China: “We are glad to partner with Biohit. China has a massive market for the GastroPanel and its yet untapped potential. We anticipate a collaborative and successful team approach with Biohit.”
Contact
Semi Korpela, Biohit Oyj
+358 9 773 86 333
Send Email
www.biohithealthcare.com
This news is a press release provided by Biohit Oyj.
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2013년 6월 27일 09:22
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2013년 6월 23일 16:24