ASX ANNOUNCEMENT

Jatenergy Limited (JAT) to participate in China’s 618 shopping festival. Special orders shipped to major platforms for 618 generating additional revenue of more than $2.7m. 

 JAT is pleased to announce that JAT and its subsidiaries have received special orders for goods to be shipped to China specifically for the 618 shopping festival amounting to more than $2.7m. The orders were received from various Chinese platforms including major maternal stores and pharmacies. 

What is the 618 shopping festival? 

‘Neurio’ in CITY DUTY FREE in Korean Airport

Founded on June 18th, 1998, China’s second most prominent e-commerce festival after Single’s Day, 618 celebrates the foundation of JD.com. The festival can be viewed as JD’s response to Alibaba’s own shopping extravaganza in November, with considerable deals throughout, and strong promotions leading up to the event. As with Singles’ Day, other retailers also host sales, though JD receives the most attention. 

In order to participate in the 618 festival, special orders for goods are made to suppliers, those orders need to be specifically shipped and be on hand in China normally 2 weeks before 18th June 2019. 

Although the current trade situation is very unstable, JAT continues to increase its sales and profits with innovative, healthy and diversified products. The sales channels of the Neurio and Golden Koala brands in the Chinese market are also increasing in each trading period. 

Wilton Yao

Managing Director 

ASX ANNOUNCEMENT

JAT subsidiary Sunnya appoints HealthOne as exclusive distributor in Australia, Vietnam, Indonesia and Singapore. 

JAT subsidiary Sunnya Pty Limited has appointed Health One Pty Limited as its exclusive distributor for its products in Australia, Vietnam, Indonesia and Singapore. 

Products included 

The products to be distributed under the agreement include Neurio Formulated milk powder with lactoferrin, Neurio Formulated goat milk powder with lactoferrin, Neurio Formulated middle-aged nutritional powder with lactoferrin, Neurio Algae DHA (Kids) Gel Candy, Neurio Mushroom Powder Gel Candy, Neurio Seaweed Calcium Gel Candy. 

Minimum order quantity 

The agreement provides for a minimum order quantity to be agreed within three months from the commencement of the agreement. Sunnya has the right to terminate the agreement in the event that the minimum order quantities are not met for three consecutive months. 

Projected sales 

JAT Managing Director Wilton Yao stated: “Based on the minimum order quantity which we expect to be sold through Health One, the increase in Sunnya’s net profit should be around $1.5 million per year as a result of the Health One deal.” 

About Health One 

Health One works with a range of healthcare suppliers in Australia and overseas in retail, GP and specialist channels to position their products within retailers, especially pharmacies. 

Material terms 

The material terms of the agreement are as follows: 

1. Health One is appointed as the exclusive distributor in Australia, Vietnam, Indonesia and Singapore for the specified Sunnya products. 

2. The term of the agreement is two years which automatically renews for a further two-year term unless terminated by the parties beforehand. 

3. The agreement has the normal commercial terms for an agreement of this type, including the payment by Health One for all products within 14 days of delivery. 

4. The agreement can be terminated for any breach or non-performance of obligations which are not remedied within 30 days of notice being given. 

5. There are no conditions precedent. 

Wilton Yao

Managing Director