Huasen Health International Group (HHI) and Milestone Capital (Milestone) officially entered into a financing agreement on Oct.16, according to which Milestone pumped RMB130M in cash into HHI to jointly grow the brand of Huangguoshu drinking water. As Tang Chenguang, chairman of HHI, noted that Huangguoshu Water Plant Phase II will have a capacity of 800,000 tons of mineral water and become the largest mineral water production base in Asia.
"HHI is the first fast moving consumer goods enterprise invested by Milestone. What we value is their brand and advantage in natural water source." said Lou Yunli, managing director of Milestone. China has vast potential for healthcare products, and Huangguoshu natural spring water is sourced from state-level 5A environmental protection zone which has natural and virgin environment and is free from pollution. "Huangguoshu mineral water is rich in minerals, while its price is much lower than Evian imported from France, so it has a tremendous market potential." Lou Yunli revealed that as Huangguoshu drinking water market develops, Milestone plans to make further investment. “As the second largest shareholder of HHI, Milestone is not expecting immediate return and its goal is getting HHI listed in about 3-5 years.”
According to Tang Chenguang, "Investment from Milestone accelerates the expansion of the Group. Huangguoshu Water Plant Phase II is expected to have a capacity of 800,000 tons of mineral water, eight times that of Phase I. Once the expansion project is completed, Huangguoshu will become the largest mineral water producer in Asia in terms of capacity which uniformly bottles mineral water in the base."
