China Harmony Group (01539.HK) announced the signing of a memorandum of understanding with Nestle Malaysia and its authorized representative GoBiz in Malaysia. According to the memorandum of understanding, China Harmony and its subsidiary VEGGiTY will cooperate with Nestle Malaysia to establish the VEGGiTY concept verification model ("VPM model"). China Harmony Group and GoBiz will be responsible for the delivery, installation, operation, optimization, and management of the VPM model in Malaysia, and ensure that the product meets Nestlé's strict internal standards, with stable chili supply expected to be achieved by December 2024.

China Harmony Group Chairman Huang Wen Hui said the cooperation is in line with the mission of strengthening food security of the local government. The primary task is to increase the local production of chili and reduce import dependence.

China Harmony Group will provide a VPM model with a 40-foot container size and all its functions, which can greatly reduce energy usage and water consumption while achieving 200 times more yield sustainably, and increase output by 10 times compared to indoor farms. Nestlé Malaysia will be responsible for providing chili seeds during the trial process. After the trial is completed, Nestle has the right to purchase chili from GoBiz and China Harmony Group as needed.