Evergreen and Yunnan Guzon Sign Memorandum of Understanding
(Hong Kong, 17 June 2019) – Evergreen Products Group Limited (“Evergreen” or the “Group”; HKEX stock code: 1962), a leading global manufacturer of hair goods, and Yunnan Guzon Biotech LTD (“Yunan Guzon”) have signed a Memorandum of Understanding (“MOU”), with the two parties agreeing to collaborate on developing new hair goods (including wigs) with industrial hemp and distributing industrial hemp derivatives globally.
Yunan Guzon and its affiliated companies have the relevant industrial hemp planting licence, operating qualifications and conditions. Pursuant to the MOU, Yunan Guzon will provide the related knowledge, know-how and raw materials of industrial hemp, and combine with the Group’s manufacturing and processing technology, to design and produce new types of wigs and hair goods.
Evergreen, with its strength of sales channels in Asia, Europe, North America and Africa as well as its global sales network and professional team, will be the sales agent of Yunan Guzon’s industrial hemp derivatives in those markets.
Evergreen and Yunan Guzon will collaborate for three years as a start.
Mr. Felix Chang, Chairman, Chief Executive Officer and Executive Director of Evergreen, said, “The market is well aware of the wide use of industrial hemp, and the World Health Organization has recommended to the UN Commission on Narcotic Drugs that cannabidiol be removed from The International Drug Control Conventions. The Group is committed to enhancing the quality of its products and developing new types of hair goods to expand its product mix and customer base. As industrial hemp is used in a wide range of textile products such as hemp clothing in recent years, partnering with Yunan Guzon will enable the Group to have a great opportunity to bring in hemp fibres as a raw material, as well as obtain related technologies. Hemp associated products are environmentally friendly and breathable, and are supremely comfortable to wear. What is more, they are durable, anti-bacteria and heat resistant. The Group believes that industrial hemp, as a raw material for hair goods, will provide a better option for the market; offering a high degree of comfort and quality. Through this partnership, Evergreen would become the world’s first manufacturer to produce and sell such hair products. In 2017, the sales of industrial hemp in the United States was estimated at US$820 million, and is forecasted to reach over US$1.8 billion in 2022, hence industrial hemp possess tremendous market potential. Since the Group has well-established global sales channels, the business of distributing industrial hemp derivatives will have a positive impact on its revenue, leading to greater value creation for shareholders.”
Industrial hemp is defined in the Agriculture Improvement Act of 2018 of the United States (commonly referred to as the “Federal Farm Bill”) as “the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis.” Industrial hemp has been a type of fibres and oilseeds used around the world for the production of a variety of industrial and consumer products, including textiles, fabrics, yarns, paper, carpeting, insulation, construction materials and even auto parts. Hemp seeds are crushed for their oil, producing hempseed oil, which is used in soap, shampoo and cosmetics.
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About Evergreen Products Group Limited
Evergreen is a leading global manufacturer of hair goods, including wigs, hairpieces, braids and high-end human hair extensions. Since 1962, when its founder commenced trading wig products, it has been observing a comprehensive business model that covers various aspects of the hair goods business, from initial design, research and development to final delivery. More than 90 percent of the Group’s production is conducted at its three production centres in Bangladesh, which enables the Group to benefit from low labour costs and a large labour pool, facilitating greater economies of scale. Evergreen also has two productions centres and one R&D centre in China. For more details about Evergreen, please visit the Group’s website.
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