Accelerates Farmmi’s diversification into the medical and health industry

Farmmi has announced that the company has agreed to purchase approximately 16 per cent of Shanghai Jiaoda Onlly, a Shanghai Stock Exchange-listed company under the ticker 600530.SH, from a major shareholder. Jiaoda Onlly operates elderly care institutions and engages in the research and development production and sale of health food.

Farmmi, through its subsidiary Zhejiang Yitang Medical Service, purchase the shares of Jiaoda Onlly from China Capital Investment Group (CCIG) and related companies for approximately RMB 509 million (approximately $79.8 million). Following the purchase, Yitang Medical will be the second-largest shareholder of Jiaoda Onlly, marking Farmmi’s entrance into China’s medical and health industry.

With revenue reaching approximately RMB 333 million (approximately $52.1 million) in the fiscal year 2020, Jiaoda Onlly is committed to becoming the largest medical care enterprise in Asia.

Farmmi is the first Chinese edible fungus company listed on NASDAQ that specialises in the research, production, processing, and sales of edible fungi. The company has more than 20 years of development history, based on consolidating and developing the original edible fungus industry and investing in innovations for the constantly evolving field. Farmmi’s recently announced its expanded business strategy targeting the broader healthcare industry, with the formation of several new subsidiaries, including Farmmi (Hangzhou) Health Development, Zhejiang Farmmi Health Medical Technology, Zhejiang Yiting Medical Technology and Yitang.