ECMOHO Limited (NASDAQ:MOHO) Stock Attempts To Bounce Back: Will it Sustain?
Leading integrated solutions provider in health and wellness, ECMOHO Limited (NASDAQ:MOHO), announced strategic cooperation agreement with reputed South Korean pharmaceutical company, ChongKunDang Group, which is providing health products in China.
Cutting-edge technology and advance equipment will lead CKD to provide Chinese consumers with diversified healthcare products, including probiotics through ECMOHO’s established domestic distribution channels.
Until this time, ECHOMO has cooperated with healthcare brands like ONLLY, Jiangzhong Pharmaceutical, Harbin Pharmaceutical, Bayer, and Puritan’s Pride, among others. The company has expanded on various social media platforms such as TikTok and Kuaishou for promoting professional content.
Founded in 1941, CKD is a reputed pharmaceutical company in South Korea. Its probiotic brand LACTO-FIT maintains leadership position in the country. In fact, it also won accolades from Chinese consumers witnessing sales of RMB 100 million.
Ms. Zoe Wang, Chairman and CEO of ECMOHO said that China’s growing domestic health food industry makes ECMOHO a valuable entity for various brands through channels such as Tmall, JD, Koala, TikTok, and Kuaishou amongst others. Wang added that the rise in living standards is enabling consumers demand better health products.
Mr. Li Xin CFO of ECMOHO said that the acceleration in work and life has increased pressures making consumers turn to probiotics for improving immunity and digestion. He added that the market in China is surging by10-15% per year; in 2015 it was RMB 48.6 billion, in 2020 it reached RMB 84.9 billion.
Market Reaction:
On Friday, MOHO stock jumped 4.93% at $1.49 with more than 2.34 million shares, compared to its average volume of 94k shares. The stock has moved within a range of $ 1.4200 – 1.9400 after opening the trade at $1.45. Over the past 52-week, the stock has been trading within a range of $1.2900 – 3.9800.
