Please introduce LKK Health Products Group and its business portfolio.
LKK Health Products Group("Group"), a Hong Kong-based corporation, was established by the Lee Kum Kee Family in 1992. The Group operates diversified businesses in Chinese herbal health products, Chinese herbs plantation and trading, property investment, and venture capital for startups. The group employs approximately 5,000 people.
The Group's members include Infinitus (China) Company Ltd., Infinitus (Hong Kong) Company Ltd., Infinitus International Company Ltd., Infinitus International (Malaysia) Sdn Bhd., Infinitus Health Products (Singapore) Pte Ltd., Infinitus Innovations (Canada) Inc., Tianfangjian (China) Pharmacy Company Ltd., Happiness Capital Limited, and Infinitus Property Investment (Hong Kong) Limited.
What is LKK Health Products Group's corporate culture?
LKK Health Products Group boasts a unique corporate culture, which includes the core values of "Si Li Ji Ren (consider collective benefits before acting)", the "Autopilot Leadership Model" and the spirit of "Constant Entrepreneurship".
"Si Li Ji Ren", meaning "consider collective benefits before acting", is the cultural gene of Lee Kum Kee as well as the core values of LKK Health Products Group. "Si Li Ji Ren" includes three elements:
- Helicopter View: the mindset of "we" instead of "I".
- Think from Others' Perspectives: thinking from the angles of others and the whole picture instead of only focusing on "me".
- Care about Others' Feelings: making others feel respected and winning their recognition and engagement.
What is the "Autopilot Leadership Model"?
The "Autopilot Leadership Model" is a management model initiated by LKK Health Products Group with the reasons of "Happiness", Unleashing One’s Potential, Attracting Talent, and Business Sustainability.
The Model includes six elements, namely, Choosing the Right Talent, High Trust Environment, Highly Effective Team, Common Goal, Effective Empowerment, and Coaching and Developing Talent.
What is "Constant Entrepreneurship"?
"Constant Entrepreneurship" is the spirit of Lee Kum Kee Group. LKK Health Products Group has enriched it to include:
- Break Through and Innovate
- Never Set Limits
- Be Effectiveness-Oriented
Please introduce the Lee Kum Sheung Center for Health and Happiness.
On 22 April 2016, the Lee Kum Kee Family donated USD 21 million (more than HKD 162 million) to establish the Lee Kum Sheung Center for Health and Happiness (hereinafter referred to as the "Center") at the Harvard T.H. Chan School of Public Health. On 11 May 2016, the Centre was officially opened at the Harvard T.H. Chan School of Public Health, with two permanent positions of the Lee Kum Kee professor.
The Centre will bring an interdisciplinary approach to Happiness and Health, support the identification of psychological, social, and emotional strengths and assets that may protect against some diseases and to explore and understand the interplay between positive psychological well-being and physical health. Also the Centre will develop a measurement instrument -- a positive psychological well-being index, or "happiness index" -- that can assess psychological well-being in a systematic and scientifically sound manner.
The goal of the Centre is to bring about enlightened public policies and public health programmes that can affect the health of large numbers of people, as well as set new priorities in medical practice and personal behaviors that can help individuals live longer, healthier lives.
Please introduce the Si Li Ji Ren Foundation.
Approved by the Ministry of Civil Affairs of the People's Republic of China, the Si Li Ji Ren Foundation was officially launched on 10 December 2012. It is a non-public offering foundation established with a seed fund of RMB 20 million donated by Infinitus (China) Company Ltd., a member of LKK Health Products Group. It is committed to carrying forward the core values of "Si Li Ji Ren" by focusing on public health, maximising charitable resources and promoting the harmony and progress of society. The Foundation is active in the following areas:
- Public health – The Foundation supports health-related programmes and projects, in order to help people achieve a fulfilled and healthy life featuring "Three Balances" (Health, Family and Work), " Three Affluences " (Time, Wealth and Spiritual Life), and "Three Harmonies " (Individual, Community and Society).
- Poverty alleviation and education support – The Foundation supports teenagers' education and other related projects in poverty-stricken areas.
- Empowering vulnerable groups and disaster relief – The Foundation helps the vulnerable groups and engages in disaster relief.
Since 2013, championing the core values of "Si Li Ji Ren", the Foundation has successively launched several charity programmes including the "Si Li Ji Ren Education Dream Support Programme", "Infinitus Police Health Improvement Fund", "Infinitus Life Nurturing Walking Day" and so on. Since its inception, the Si Li Ji Ren Foundation has donated over RMB 65 million.
How much has LKK Health Products Group donated in cash and supplies?
As of 31 December 2017, LKK Health Products Group had donated cash and supplies worth over RMB 200 million.
Please introduce Infinitus.
"Infinitus" is the core brand of LKK Health Products Group, and currently have six member companies affiliated to this brand:
- Infinitus (China) Company Ltd., founded in 1992 and headquartered in Guangzhou, focuses on R&D, production, sales and services of Chinese herbal health products.
- Infinitus (Hong Kong) Company Ltd., founded in 2010 and headquartered in Hong Kong, focuses on Chinese herbal health products.
- Infinitus International Company Ltd., founded in 2010 and headquartered in Taipei, focuses on Chinese herbal health products.
- Infinitus International (Malaysia) Sdn Bhd., founded in 2010 and headquartered in Selangor, Malaysia, focuses on Chinese herbal health products.
- Infinitus Health Products (Singapore) Pte Ltd., founded in 2016, focuses on Chinese herbal health products via a unique digital direct selling model for market development and service.
- Infinitus Innovations (Canada) Inc., founded in 2016, focuses on Chinese herbal health products via a unique digital direct selling model for market development and service.
What is Infinitus' mission?
Advocating the premium Chinese health regimen and nurturing healthier lives with balance, affluence and harmony.
What is the health philosophy of Infinitus?
Infinitus creates a unique health philosophy of "Nourish from Within, Get a Healthy Life". Such philosophy is derived from the premium Chinese health regimen that spans two thousand years. Detailed content of the philosophy is as below:
Nourish from Within
- Three Restorations: Strengthen the Qi, Balance Yin & Yang, Regulate Zang-Fu (Organs)
- Four Habits: Diet, Rest, Exercise, Emotion.
- Keep a rational diet – have balanced and regular diet with the right amount and temperature.
- Keep a rational rest –sleep properly, balance work and rest and live a regular life.
- Keep rational exercise – exercise regularly and persistently with a tailored plan.
- Keep rational emotions - maintain a peaceful mind, develop benign hobbies and adopt good habits.
- Three Balances: Health, Family and Work
- Three Affluences: Time, Wealth and Spiritual Life
- Three Harmonies:Individual, Community and Society
What is the brand value of Infinitus?
The brand value of Infinitus was rated at RMB 65.869 billion by the World Brand Lab, ranking 45th in "China's 500 Most Valuable Brands" in 2017.
Please introduce Infinitus Production Bases.
Infinitus currently has two production bases on the Chinese mainland.
- Xinhui Production Base: The Base is located in Jiangmen, Guangdong Province. Infinitus has invested over RMB 3 billion in setting up the Base of 300 mu (about 200,000 square metres), including a manufacturing complex, Infinitus Product Inspection Centre, Infinitus Health Maintenance Experience Centre, Infinitus Chinese Herbal Garden and Infinitus University.
- Yingkou Production Base: The Base is located in Yingkou, Liaoning Province, and covers an area of 500 mu (about 350,000 square metres) with a total investment of RMB 1.5 billion for the initial phase. It mainly includes a manufacturing complex, a technology centre, an exhibition hall for visitors and Infinitus University (Yingkou).
- The Features of the Two Production Bases:
- The two bases have been certified to ISO9001, ISO 22000, FSSC22000 and HACCP.
- The Infinitus Product Inspection Centre in Xinhui Production Base and the Technology Centre of Infinitus Yingkou Production Base are both certified and accredited by the China National Accreditation Service for Conformity Assessment (CNAS) as "Laboratory of National Accreditation ".
- By 2019, Infinitus' annual product supply capacity will exceed RMB 50 billion.
How many products does Infinitus have?
As of August 2017, on the Chinese mainland, Infinitus had 142 products (excluding related products accessories), produced in five categories and marketed under six brands, including Infinitus health food, Beautrio skin care products, Vitabelle skin care products, Phytocare personal care products, Homemate household products and BeneLife life-nurturing products.
As of August 2017, five series under five brands had been sold in overseas markets, including Infinitus health food, Beautrio skin care products, Phytocare personal care products, Homemate household products and BeneLife life-nurturing products.
What are the features of Infinitus' products?
The premium quality Infinitus Chinese herbal health products are developed with modern technologies, guided by both TCM and leading international scientific theories.
What are the features of the product quality management of Infinitus?
- The product quality management of Infinitus is guided by the Company’s corporate culture and based on the Outstanding Supply Chain Management Model. It aims to build a comprehensive quality safety management system covering the entire industry chain through internal optimization and external synergy. Infinitus strives to build a culture of shared responsibility for good quality and make premium products with sincerity so as to improve customer experience and create value for them. Such a quality management model can effectively drive the Company to grow in scale and scope, establishing itself as the benchmark of the industry for product quality.
- The Outstanding Supply Chain Management Model puts customers at its core and the pursuance of highest quality control and maximum profit as its main goal. Each link of the Model must coordinate with each other and play their respective roles to ensure the integrity, compatibility and effectiveness of the chain. Only in this way can the win-win outcome between the Company and the community be realised.
- Infinitus' concept of product quality: consumer-oriented, regulation abiding, precaution with control throughout the process and scoring 100% for quality.
Please introduce Infinitus' product quality inspection capability.
- Product quality inspection is an important method to monitor and evaluate product quality.
- Infinitus has spent over RMB 100 million on equipment, personnel training, standardization and information system.
- Infinitus boasts a professional team of analysts and inspectors, covering highly relevant and mutually-complementary academic areas, including Chinese Medicine, Analytical Chemistry, Food Engineering, Bioscience, Microorganism and Packing Materials.
- Infinitus Product Inspection Centre is accredited by CNAS, capable of inspecting 70 ingredients, testing for over 100 safety indexes, and identifying over 20 microorganism indicators, and more than 300 physical and chemical indicators. Therefore, its inspection results are acknowledged by 61 countries and regions around the world as being independent, reliable and authoritative. The Inspection Centre was certified by FAPAS for proficiency testing on heavy metals in 2012, approved by CNAS with extended approval list in 2013 and 2015, and designated as the Filing and Inspection Institutes for Non-Special Domestic Cosmetics in 2014.
- In 2015, Infinitus (China) Company Ltd. officially received the certificate of FSSC22000:2013 from United Kingdom Accreditation Service (UKAS) after being examined and recommended by SGS, a third-party quality certification organization.
- Since 2013, the Inspection Centre has participated in 26 capacity tests and 7 audit examinations, conducted by authoritative third parties like CNAS and FAPAS. All the 66 detecting parameters have passed tests with satisfactory results, covering the areas of food detection in terms of microorganism, nutrition facts, heavy metal, pesticide residue, effective component as well as physical and chemical indicators and cosmetic detection in terms of chemical analysis, heavy metal and so on. Such results demonstrate that the inspection competence of Infinitus in above fields has reached the advanced international level.
- In 2016, the Technology Centre of Infinitus Yingkou Production Base was accredited by CNAS as "Laboratory of National Accreditation ". The inspection scope of the accreditation covers Chinese herbal medicines, food, health food, and clean room testing with the number of recognised inspection items reaching 62.
Please introduce Infinitus' R&D strengths.
- Infinitus has a unique R&D system: combining one centre (Infinitus R&D Centre) and several scientific research platforms and many industry specialists.
- Infinitus has a strong R&D group working on Chinese herbal health products. The team comprises doctors, masters and professionals of various disciplines and sectors.
- Infinitus invests hundreds of millions of RMB every year in product research and development, as well as technical upgrading. It has joined forces with authoritative global research institutions and universities, including University of Cambridge, Stanford University, Cornell University, the French National Center for Scientific Research-Paris Diderot University, Hong Kong University of Science and Technology, Institute of Chinese Materia Medica of China Academy of Chinese Medical Sciences, Shanghai Institute of Materia Medica of Chinese Academy of Sciences, and Oilcrops Research Institute of Chinese Academy of Agricultural Sciences. Currently, Infinitus owns a number of core independent intellectual property rights and leads in the research of compound polysaccharides technology.
What scientific research platforms does Infinitus have?
As of 31 December 2017, Infinitus has a number of scientific research platforms which include:
- Hong Kong Traditional Chinese Medicine Research Centre (HKTCMRC) – jointly established with Hong Kong University of Science and Technology in 1996. The Centre is committed to the modern research on active components in tonic Traditional Chinese Medicine.
- Infinitus Chinese Herbal Immunity Research Centre (ICHIRC) – jointly established with Guangzhou University of Chinese Medicine in 2007. It carries out studies on immune efficacy of Traditional Chinese Medicine products.
- Infinitus Scientific Advisory Board – established in 2007, consisting of many senior professors from renowned colleges home and abroad. The Board provides support for the development of new products and marketing activities.
- Joint Laboratory for the Research of Chinese Herbal Polysaccharides - Chinese Academy of Sciences Shanghai Institute of Materia Medica and Infinitus: jointly established with Chinese Academy of Sciences Shanghai Institute of Materia Medica in 2009. It provides a wide range of support for high-tech Chinese herbal polysaccharides products.
- Beautrio International Skincare Research Centre – jointly established with Beijing Technology and Business University and I&D Company (former Derma Development) in 2010. It is committed to the development of techniques and products with TCM beauty concept and the world's latest skin care technology.
- Infinitus Bioactive Peptides Research Centre established in 2013- comprised Joint Laboratory of Infinitus and South China University of Technology and Joint Laboratory of Infinitus and Guangdong Pharmaceutical University. The Centre is committed to the research on the bioactive peptides, one of the hot topics in health field.
- Cambridge Infinitus Research Centre - jointly established with the University of Cambridge in 2015. It’s the first international technical cooperation platform of Infinitus, which helps transform the latest scientific achievements in biological health into high-quality Traditional Chinese Medicine products.
- Joint Laboratory for the Research of Functional Lipids – Oil Crops Research Institute of the Chinese Academy of Agricultural Sciences and Infinitus - jointly established with the Oil Crops Research Institute of the Chinese Academy of Agricultural Sciences in 2016. It carries out studies on functional lipids existing in the medicinal and edible Chinese herbal medicine to develop functional lipids products for resolving chronic disease and metabolic disease.
- Joint Laboratory for the Research of Chinese Herbal Quality- China Academy of Chinese Medical Science’s National Resource Center for Chinese Materia and Medica and Infinitus - jointly established with the China Academy of Chinese Medical Sciences in 2016. It devotes to the research on authenticity, component, resources distribution and safety evaluation of Chinese herbal medicine.
- Joint Laboratory for the Research of Modern Preparation Technology – Huazhong University of Science and Technology and Infinitus - jointly established with Huazhong University of Science and Technology in 2016. It aims to acquire a range of modern preparation technologies for Chinese herbal medicine.
- GDUT – Infinitus Cosmetics Sensory Evaluation Center - jointly established with Guangdong University of Technology (GDUT), and Rutgers, The State University of New Jersey in 2016. It will be mainly engaged in the research for cosmetics sensory testing and evaluation to enhance users’ experience.
- CNRS – Paris Diderot University – Beautrio International Collaboration Skincare Research Center - jointly established with the French National Center for Scientific Research (CNRS) and Paris Diderot University in 2017.
What proprietary technologies does Infinitus have?
Infinitus has proprietary technologies on Chinese herbal polysaccharides, schizandrin B, compound whitening factor, active peptides, functional lipids, plant glycoside, epidermal growth factor, sapindus saponins, BeneLife 7-Filter Water Purifier and BeneLife Air Purifier.
Please introduce Infinitus’ current patents.
As of August 2017, Infinitus had applied for 707 patents, including 69 foreign patents and 273 proprietary patents.
What are Infinitus' CSR Commitments?
Infinitus strives to satisfy the needs of its stakeholders. With its unique health philosophy, it is dedicated to providing high-quality Chinese herbal health products and services through focusing on the following six aspects: health, quality, employees, partners, environment and community. Infinitus’ ultimate goal is to help all stakeholders live a balanced, affluent and harmonious life.
Please introduce Tianfangjian (China).
In early 2015, Tianfangjian (China) Pharmacy Company Ltd., a member of LKK Health Products Group, was officially founded. It specialises in plantation management and sales of raw Chinese medicinal materials and is dedicated to providing high-quality, effective and authentic raw Chinese medicinal materials and Chinese medicinal slices to create high value for customers.
What is Tianfangjian (China)'s mission?
Advocating the premium Chinese health regimen and ensuring premium raw medicinal materials from the very outset to advance the development of raw Chinese medicinal material industry.
Please introduce Tianfangjian's TCM Plantation Management Model.
Tianfangjian (China) has established quite a few of plantation bases of Traditional Chinese Medicine across the Chinese mainland. It is able to control the plantation process and trace every segment through modern, normalised and standardised TCM Plantation Management. Naturale'
s TCM Plantation Management Model is defined as "5+4+3".
- "5" refers to "Five Unifications", consisting of "Plant Variety Unification", "Production Material Unification", "Field Management Unification", "Technological Service Unification", "Repurchase and Processing Unification".
- "4" refers to "Four Innovations", consisting of "Scientific Innovation", "Procedure Innovation", "Organizational Innovation" and "System Innovation". Wherein "Scientific Innovation" could help reduce production cost and make products more competitive and the Model more vibrant.
- "3" refers to "Trinity of Three Systems", meaning the synergies of "Standard Integrated System", "Quality Control System" and "Production Operation System".
Meanwhile, Tianfangjian (China) has created a tracking system named "Tian Yan" (literally means "Eye from the Sky"), enabling partners and consumers to trace the whole process of TCM plantation and understand every detail of the operation of this Model simply by scanning a QR code.
What are the major products of Tianfangjian (China)?
In line with its value proposition of "high-quality, effective and authentic" as well as customer demand and market condition, Tianfangjian (China) has implemented its TCM Plantation Management Model by setting up standard plantation bases, enhancing source management and operating the quality management system of the whole industry chain to ensure product quality, safety, efficacy and supply. Tianfangjian (China) mainly provides raw Chinese medicinal materials and Chinese medicinal slices, including Ganoderma lucidum, Fuling, Morinda officinalis, Tremella, Polygonum multiflorum, Dangshen, Astragalus, etc.
Please introduce Happiness Capital.
Happiness Capital Limited (Happiness Capital), a member of LKK Health Products Group, is a global venture capital firm based in Hong Kong.
What is Happiness Capital’s mission?
Its mission is to empower entrepreneurs to co-create a happier world with it by investing in start-ups which provide products and services that are aligned with our Super Happiness framework.
Please introduce the Super Happiness framework.
Happiness Capital believes in a simple path to happiness that it has labeled 5+1+Others.
“5” refers to health, family, work, friend and leisure, and “1” means mindset.
Please introduce Infinitus Property Investment (Hong Kong) Limited.
Inheriting the spirit of Constant Entrepreneurship, LKK Health Products Group established Infinitus Property Investment (Hong Kong) Limited to expand its business scope into property investment. The Property Investment division, prioritising customer experience, pursues premium opportunities of property investment and provides professional asset management services for the Group. So far, in China, it has successively acquired Infinitus Centre in Guangzhou, Infinitus Plaza in Hong Kong and Infinitus Tower in Shanghai. In the United Kingdom, it has aquired 20 Fenchurch Street in London. And it is building Guangzhou Infinitus Plaza in Baiyun New Town, Guangzhou.
Please introduce the existing properties.
In 2009, LKKHPG purchased the 13th to 19th floors and the naming right of Infinitus Centre at the cost of about RMB 300 million. In October 2010, the opening ceremony of the Centre was held. The Centre is located at the axis of Zhujiang New Town in the CBD of Guangzhou with total floor area approximately 12,000 square metress. It has an excellent property management under a 5A-Intelligent System and is equipped with convenient transportation, full-fledged facilities and perfect surroundings.
In August 2010, LKKHPG bought the Vicwood Plaza with over HKD 4 billion and changed its name into Infinitus Plaza in December 2010. Infinitus Plaza lies on the MTR station of Sheung Wan, covering an area of 36,896 square metres. It is a Grade A office building and shopping mall with a full sea view in the Central and Sheung Wan of Hong Kong Island.
In December 2015, LKKHPG acquired the Tower Building of Shanghai Corporate Avenue 3(officially named Infinitus Tower on 17 December 2016) with RMB 5.7 billion through Bayline Global Limited. The building will be used for commercial lease. Bayline Global Limited is a joint venture between the respective subsidiaries of LKKHPG and Vanke Property (Hong Kong) Company Limited, in which LKKHPG owns 90% of the shares. Situated on Hubin Road, Huangpu District, Shanghai, the Property is located at the centre of the Xintiandi estate development project and intended to be built into a new landmark of Shanghai. The Property has a gross floor area (including the basement) of approximately 87,295 square metres and comprises a 24-floor Grade A office tower with 23 leasable office floors and five floors of retail space.
In May 2016, LKKHPG acquired a land parcel (AB2910019) in Baiyun New Town, Guangzhou, with RMB 2.01 billion. The parcel is acquired by open tender through its wholly-owned subsidiary Guangdong Infinitus Property Development Company Ltd., for the construction of Guangzhou Infinitus Plaza. The land parcel covers approximately 45,280 square metres and boasts a total gross floor area of approximately 160,000 square metres. Located in Baiyun New Town, the modern ecological commercial and cultural centre of Guangzhou, the land parcel is adjacent to Baiyun Wanda Plaza, Baiyun International Conference Centre and Baiyun Greenland Centre, with mature commercial facilities and convenient transportation. On 15 November 2016, a groundbreaking ceremony for Guangzhou Infinitus Plaza constructed on this land parcel was held.
In July 2017, LKKHPG entered into a sale and purchase agreement with Land Securities Group plc and Canary Wharf Group plc through Infinitus Property Investment (Hong Kong) Limited, its wholly-owned subsidiary, to acquire the 100% interest in the landmark commercial building at 20 Fenchurch Street, London, for a total consideration of GBP 1.2825 billion.