VCDY to Enter Korean Market
The decision of DongUi to become DAR Industrial's sole agent for the sale of DAR products in the Korean market was based heavily on DAR Industrial's recent award of a certified 20 year DAR GAP license.
08/03/07 Suining Yinfa DAR Industrial Co., Ltd., a subsidiary of Voice Diary Inc., one of the leading industrialized agricultural corporations in China, signed an agreement for the sale of Dahurian Angelica Root (DAR) products in Korea. The contract is signed between DAR Industrial and DongUi Cosmetics Co., a corporation organized and existing under the laws of Republic of Korea (South Korea), on March 5, 2007, as an exclusive agency agreement. The deal is a milestone for DAR Industrial's first endeavor into the hot Korean market.
Since 2002, DAR products have had a ready market in Korea as a result of the Korean government lifting import restrictions on DAR products. The demand for DAR has increased steadily. In an effort to take advantage of the recent trend and to boost the Korean DAR market, DAR Industrial began to seek potential partners in the Korean market. In accordance with DAR Industrial's market strategy, and after lengthy negotiations, DAR Industrial and DongUi reached an agreement to closely and exclusively cooperate in selling DAR products in Korea.
DongUi is a well-known Korean manufacturer in Medicine, Environmental, and Health Care Products. Their corporate office locates in Seoul, Korea, with current annual revenue of above USD 2,000,000. DongUi is a staunch supporter of DAR GAP (Good Agricultural Practice). The decision of DongUi to become DAR Industrial's sole agent for the sale of DAR products in the Korean market was based heavily on DAR Industrial's recent award of a certified 20 year DAR GAP license. The cooperation with DongUi should enable DAR Industrial to directly increase their sales, increase their market share in Korea, and pave the way of the further growth of the company.
Pursuant to the terms of the sole agency agreement, DAR Industrial will export their DAR products directly to Korea. The DAR products exported will be Chinese medical grade DAR that is planted, produced and processed in Suining, China, by DAR Industrial. DAR products provided by DAR Industrial to DongUi will include DAR raw materials, DAR slices, DAR powder, and processed products with DAR as the main raw material (i.e. Bailing capsule raw material, Yishen capsule raw material). According to the agreement, DongUi is the exclusive sales agent for DAR Industrial in the Korean market of DAR that is planted, produced and processed in Suining, China, by DAR Industrial. The effective term of the agreement is ten (10) years, beginning on March 5, 2007 and ending on March 4, 2017, thereafter the agreement will be automatically extended for three years if both parties have no dissenting opinions on the terms of this agreement. In 2007, DongUi will commit to an order of 300 tons of DAR raw materials valued at roughly USD1,125,000. Under the terms of the agreement and beginning in 2008, DongUi will be also obliged to increase the size of their annual DAR order/imports year on year at a rate of 10%.
