SDAI Limited Signs Strategic MoU with Hubei Qiai to Enter Global Mugwort Market

Key Expansion into High-Growth Traditional Chinese Medicine (TCM) Sector

SDAI Limited (SGX: SDAI), a Singapore-listed company undergoing a strategic transformation into a biotechnology player, has announced the signing of a non-binding Memorandum of Understanding (MoU) with Hubei Qiai Group Co., Ltd. (“Hubei Qiai”). This partnership aims to jointly establish a platform to bring China’s mugwort (艾草) products to international markets, marking a significant entry into a rapidly expanding sector within the global wellness and Traditional Chinese Medicine (TCM) industry.

Key Highlights of the Announcement

• Strategic Partnership: SDAI and Hubei Qiai will collaborate to introduce high-quality mugwort-based products globally, leveraging Hubei Qiai’s established leadership and extensive retail network in China.
• Global Market Focus: The collaboration targets the increasing international demand for mugwort, positioning SDAI to diversify and broaden its revenue streams.
• Industry Leadership: Hubei Qiai, founded in 2021, has rapidly become a leading player in China’s TCM wellness sector with a robust presence across most counties and cities, supported by over 13,000 retail outlets.
• Product Innovation: Hubei Qiai’s portfolio covers food, medicine, daily essentials, skincare, and home textiles, including advanced, technology-integrated moxibustion therapy products.
• Market Growth: The global mugwort market is forecast to grow from US\$531.90 million in 2025 to US\$798.75 million by 2032, with a CAGR of 5.94%, highlighting strong industry momentum and expansion potential.
• Singapore Market Opportunity: TCM is gaining traction in Singapore, with mugwort-based products seeing increased usage and market potential.

Details for Investors

• Potential Revenue Diversification: This collaboration marks a significant move as SDAI seeks to diversify its revenue streams in the high-growth mugwort market, which has applications across food, wellness, beauty, and healthcare sectors.
• Strategic Transformation: The partnership is a key step in SDAI’s ongoing transformation into a biotechnology company, following its recent launch of the Bluecode Biotech B-III skincare series based on plant stem cell technology.
• Global Expansion: By leveraging Hubei Qiai’s supply chain, research and development, and extensive retail network, SDAI positions itself as a gateway for Chinese mugwort products to global markets, potentially unlocking substantial new growth opportunities.
• Innovation Edge: The integration of advanced technology into traditional wellness practices (e.g., intelligent moxibustion) could offer SDAI and its partners a first-mover advantage in international markets.
• Price Sensitivity: News of this MoU could be price sensitive. If the collaboration successfully materializes into commercial agreements and cross-border sales, it could significantly impact SDAI’s future revenue streams and valuation due to exposure to a rapidly growing global market.
• Risk Note: The MoU is non-binding at this stage, meaning final terms and successful execution are subject to further negotiation and due diligence.

Management Commentary

Madam Hao Dongting, Executive Chairperson of SDAI, commented: “We are truly thrilled to partner with the leading name in the mugwort industry. This collaboration marks an exciting milestone as we expand into the fast-growing mugwort sector, a field that is gaining strong global recognition and offers immense growth potential. With the opportunity to extend Hubei Qiai’s presence beyond China, we look forward to introducing high-quality mugwort-based products to new markets and diversifying the Group’s revenue streams.”

About SDAI Limited

SDAI Limited, listed on the Catalist Board of the Singapore Exchange since July 2011, is pivoting toward a biotechnology-driven business model, with expansion plans spanning medical, skincare, and health products. The company aims to emerge as a leading force in the biotechnology space, leveraging both internal innovation and strategic partnerships.

Shareholder Considerations

• This announcement is likely to be of high interest to shareholders due to its potential to drive future growth and diversification.
• Given the global mugwort market’s projected growth and SDAI’s first-mover approach, investors should monitor further developments and potential binding agreements resulting from this MoU.
• The non-binding nature of the MoU introduces uncertainty, so execution risks remain until concrete agreements are finalized.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult their financial advisors before making any investment decisions. Please note that the MoU described is non-binding, and there is no certainty that it will result in definitive agreements or successful commercialization. The information herein is based on company announcements and public sources as of the date of publication.

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