ASX Supply Chain Play Taps US$10 Trillion China Import Market

JAT was featured in an in-depth article on on 9th July.

“This nimble company is a China-Australia cross-border specialist in Fast Moving Consumer Goods (FMCG) exports. It develops in-house brands for Australian products for sale offline and online, with a strategic focus on milk products….

View the article here.

Presentation to Investors and Brokers

The following Investor Presentation was made to brokers on 2nd July and posted to the ASAX.

(Please note this is a 5MB file and may take a few minutes to download. The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. )

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Golden Koala Sales and CFDA approval update

English label infant formula and milk powders

Preparations for the new English language label Golden Koala milk products have been completed and the following orders placed with manufacturers;

  • one container of Golden KOALA Premium Infant Formula (Stage I for newborns to six months), Premium Follow-On Formula (Stage II for six to twelve months), and Premium Toddler Milk Drink (Stage III for one to three years).
  • one container of high calcium GOLDEN KOALA Full Cream Instant Milk Powder.

Golden KOALA Premium Infant, Follow-On and Toddler formula will be sold through the network of cross-border distributors that JAT has been developing over recent months.

GOLDEN KOALA Full Cream Instant Milk Powder will be sold through cross-border distributors and in addition, wholesaled to domestic distributors for sale in Chinese shops and supermarkets.

Chinese label formulation confirmed, key milestone in CFDA approval process

Additionally, the Chinese label formulation for Golden KOALA Premium Infant products has now been finalised. This is a key milestone in the CFDA approval process for domestic Chinese distribution, as samples can now be prepared for laboratory testing, which is a major preparatory step before the CFDA application is finalised.

Distribution agreement with Cyclone E-Commerce Brings Over $7.5 million in single product revenue

The Directors are pleased to announce that JAT has entered into a distribution agreement with Cyclone E-Commerce Co., Ltd (Cyclone) under which Cyclone has agreed to purchase over $7.5 million of milk powder from JAT over the next 12 months.

Cyclone is a distributor based in Hangzhou City, Zhejiang which utilizes proprietary cross-border e-commerce platforms and bonded warehouses to deliver global products to Chinese consumers.

Cyclone also supplies global maternity and baby brands, health products, snacks, and skin care products through Hipac, Momtime and other maternal and baby platforms and to O2O experience stores and micro-marts. O2O refers to the business strategy of “online-to-offline”, which draws potential customers from online channels to make purchases in physical stores.

Cyclone has committed to purchase 300,000 tins of NEURIO – Lactoferrin Milk Powder from JAT over a 12-month period.

“This transaction brings in more than $7.5 million in revenue over the 12 months. That’s quite pleasing for a single product with a single customer. Just as important, it’s confirmation of our strategy of combining Sunnya’s products with JAT’s distribution capacity. NEURIO – Lactoferrin Milk Powder is an attractive product in China and the orders are starting to reflect that.”

For more information, references to Jat’s ASX announcement: Distribution agreement with Cyclone E-Commerce.

Huibao International Group Distribution Agreement and First Order

The Directors are pleased to announce that JAT has entered into a distribution agreement with Australian Huibao International Group Limited (Huibao).

Huibao is an Australian owned company which operates a ‘Community O2O’ business in five regions of China: Shiyan, Beijing, Xi’an, Tianjin, and Changsha. Huibao’s Community O2O business has been utilising mobile apps to promote, sell (via a mobile payment gateway) and deliver products to consumers since 2013.

O2O refers to the sales strategy of “online-to-offline”, which draws potential customers from online channels to make purchases from physical stores. HuiBao will distribute JAT products in China via its online platform and app.

Huibao has moved quickly, placing its first order for 960 tins of NEURIO– Lactoferrin Milk Powder.

“NEURIO is an outstanding product and we are delighted with the reception it is receiving from our distribution network,” Executive Director Wilton Yao said. “I have no doubt this will be the first of many orders of NEURIO and of other products from Huibao.”

JAT Directors inspect the site for the first ‘Jat Maternity and Infant Boutique’, and secure first Sheng Run order

JAT directors inspected the site of the first JAT Maternity and Children’s Shop in the Hui Yue Shopping Mall in Zhengzhou last week to discuss details such as shop size, design, fit out and product range.  Arrangements also progressed for securing the logistics of delivering JAT products to the Hui Yue Shopping Mall and other locations where JAT Maternity and Children’s Shops are to be established in other Sheng Run Group shopping malls.


At the same time, they succeeded in leveraging JAT’s relationship with the Sheng Run Group by securing an initial order for NEURIO – Lactoferrin Milk Powder, one of Sunnya’s key products.

The first order is for 960 tins.

“This order illustrates the value of combining Sunnya’s product range with JAT’s distribution capacity,” Executive Director Wilton Yao said. “The potential benefits of combining the two businesses are hard to overstate. NEURIO – Lactoferrin Milk Powder is a very impressive product and we expect it to be just the first of Sunnya’s product range that we sell.”

Shanghai Dragon Corporation – 4,000 Stores, and Orders Commence

In April JAT announced an agreement with Shanghai Dragon Corporation (SDC) to bring Australian products to Chinese consumers, and to co-develop own-brands for the Chinese market.

JAT Directors met with SDC management again last week in Shanghai to take the first tangible steps in implementing this strategy and wish to update the market accordingly.

  1. SDC has made it first order – a shipping container of Australian oats for sale in its network of retail stores across China.
  2. Space will be set aside within approximately 4,000 of SDC’s retail stores for JAT speciality shops. These shops will be managed by SDC staff and sell a range of imported goods supplied by JAT.
  3. JAT and SDC will jointly develop JAT’s Cobbitty Country brand in Australia and China for the planned range of in-house products, which will include milk products, biscuits, toothpaste, soap, and other high volume FMCGs.

“This order represents the tangible commencement of Chinese retail sales for JAT,” Executive Chairman Tony Crimmins said. “JAT products will soon be sitting on the shelves of thousands of shops across China. A strong Chinese retail presence is the fourth pillar in our FMCG strategy, setting us apart from other Australian trading companies selling to Chinese consumers.”

“We are particularly fortunate to be working with Shanghai Dragon in this regard”, Mr Crimmins said. “They are a large, publicly listed Chinese company with strong state support, a rich 40-year history of international trading, sales in excess of AUD 1 billion per annum and extensive logistics and warehousing infrastructure.”

Acquisition of 51% of Sunnya to boost JAT’s portfolio of in-house products

JAT has agreed (subject to shareholder approval) to purchase a controlling 51% interest in Sunnya Pty. Ltd (Sunnya), an Australian exporter with a portfolio of milk powders and health products currently selling in China.

“The acquisition of Sunnya will broaden our in-house product range substantially,” JAT Executive Director Wilton Yao said. “We see great potential, combining Sunnya products and JAT distribution capacity. These products are already selling into China and we will boost their sales through our online platforms and offline distribution channels.”

Sunnya has developed branded product ranges for health, maternal and baby markets in China.

Key product ranges include:

NEURIO – Lactoferrin Milk Powder, DHA Algae Oil Softgel, and Probiotics Liquid, primarily selling in maternal and baby stores and local supermarkets.

RAICARE Goat Premium Infant Formula – An application for CFDA approval to continue sales under the new regulatory regime has been lodged.

“The directors of Sunnya also bring extensive expertise in the research and development of new dairy products, infant formulas, and other health products,” Mr. Yao said. “We are looking forward to working closely with Sunnya to develop more products to offer the market in the near future.”

The Directors of JAT and Sunnya are confident that, working together the businesses will achieve significantly higher growth rates and profitability than the businesses would separately.

For more information: refer to JAT’s ASX announcement: Acquisition of Sunnya Pty Limited.

Cornerstone retail outlet: ‘Jat Maternity & Children’ to open in Hui Yue Kid’s City

JAT is delighted to announce the plan to open a cornerstone retail outlet, ‘JAT Maternity and Children’ within ‘Hui Yue Kid’s City’, a dedicated ‘one stop shopping’ destination for expectant mothers and the families of newborns through to children aged twelve.

Hui Yue Kid’s City is part of the 80,000 square meter Hui Yue Shopping Mall opening in the next few months. The Kid’s City will be the largest indoor children’s themed shopping centre in Zhengzhou spanning 18,000 square meters over three levels.

“This is an unsurpassed opportunity for JAT to build its China presence and generate revenue,” JAT Director Mr. Wilton Yao said. “Hui Yue is a landmark shopping development in Zhengzhou, the capital city of Henan province which is home to around 100 million people.”

JAT plans to offer its own-brand products in the new shop, together with those of other Australian and international producers, offering exceptional Chinese retail exposure to clients of JAT, and of soon-to-be-acquired Green Forest International Pty Ltd.

Acquisition of Green Forest International

The board is pleased to announce that JAT has agreed, subject to shareholder approval, to purchase a controlling interest in Green Forest International Pty Ltd (Green Forest), a significant Sydney based wholesaler, distributor and exporter to Hong Kong and mainland China.

Mr Wilton Yao

“This acquisition provides an immediate boost to JAT’s turnover and profitability,” Executive Director Wilton Yao said. “More importantly our businesses are highly complementary. We have very strong relationships with the major sales platforms in mainland China, like TMall and JD, and directly with major retailers like Shanghai Dragon, and of course we are developing our own product ranges. Green Forest is very strong in Hong Kong and in Australian Daigou and Duty Free stores, and they bring a large portfolio of Australian and international brands to the group.

“This is the next step in our strategy to develop FMCG distribution and sales channels for our own brands as well as third party products,” Mr.Yao said.

Green Forest sells to more than 50 shops and pharmacies in Hong Kong and over 200 gift shops, duty free stores and Daigou warehouses in Australia. They are major suppliers to Chinese TaoBao and Wechat channels and other online platforms.

The agreement delivers control of Green Forest with 50% of shares on issue (and Board Chairmanship with the casting vote). JAT and Green Forest shareholders have also agreed to inject $4 million into Green Forest as working capital to fund business expansion, taking advantage of merger synergies.

The Directors of JAT and Green Forest are confident that, working together the expanded businesses will achieve greater stability of cashflows and income.