Representatives from JD.com International Limited (JD.com) and Eternal Asia Supply Chain Management Limited (Eternal Asia) visited Jatenergy (JAT) and Golden Koala (GK) in Australia recently to commence negotiations regarding key terms for a draft agreement covering the sale of GK milk products online and offline in China. JD.com is one of China’s two largest online B2C retailers and offers access to over 260 million active customers. Eternal Asia is the leading nationwide integrated supply chain management service provider in China with distribution centres in all major cities.
As previously announced, JAT has entered into a share purchase agreement to acquire 51% of GK subject to shareholder approval, and GK has subsequently entered into a production agreement with Nutritional Choice Australia Pty Ltd (NCA) – one of only 15 Australian manufacturers currently accredited by the CNCA (Certifcation and Accreditation Administration of the People’s Republic of China) to export infant formula into China. As each manufacturer is licenced for a maximum of three formulations GK’s powder will be one of only 45 (currently) which can be sold offline: securing a valuable “brand slot” in Chinese shops and supermarkets.
JAT and GK will continue to develop Chinese (and Australian) distribution channels and brand awareness simultaneous with applying for China Food and Drug Administration (CFDA) approval for GK’s premium “OPO” infant milk powder.