News

Golden Koala flagship store planned for leading Chinese cross-border sales platform, Kaola.com

Golden Koala has received a formal offer from NetEase Kaola to establish a flagship presence on Kaola.com, providing a pivotal opportunity to showcase and sell Golden Koala’s Australian dairy products.

Part of internet giant NetEase, Kaola is one of China’s largest and fastest growing cross-border e-commerce platforms.

“Kaola has become China’s leading platform for baby products,” Jatenergy Executive Director, Wilton Yao said, “They carefully select producers so that they can provide quality assurance to their customers, and participation is on an invitation only basis so we were delighted to receive their offer. We intend to accept and look forward to working closely with Netease Kaola to deliver Golden Koala products to Chinese consumers as soon as possible.”

Kaola.com was launched in 2015 by Chinese internet giant NetEase, which operates some of China’s most popular PC and mobile games, advertising services, e-mail services and e-commerce platforms. Sourcing products directly from selected overseas producers and investing in large scale regional warehousing, Kaola assures quality, reduces costs and dramatically cuts delivery times. Kaola.com quickly became one of the world’s fastest growing ecommerce platforms, and according to data from iiMedia Research attained a 24% market share in the first half of 2017 (exceeding Alibaba Tmall Global’s 20%).

NetEase Kaola CEO Lily Lei Zhang has said that “As Chinese consumers become increasingly sophisticated, their focus has shifted from pricing concerns to a search for high-quality and reliable brands,” and describes Kaola.com customers as “largely well-educated young women living in China’s major cities,” seeking health and quality of life. NetEase Kaola’s CEO has said that the company expects to buy about US$11 billion of inventory from around the world over the next three years.

National Rollout of Multiple Sclerosis Employment Support

MSthanksMultiple Sclerosis Limited CEO Robyn Hunter visited JAT this week to accept our Directors’ donation of $524,717.28 from Executive Chairman Tony Crimmins and HR/Projects Manager Kylie Gray who lives and works with multiple sclerosis.

When Kylie was diagnosed with MS, the support provided by Multiple Sclerosis Limited was ‘a godsend’. Their assistance and equipment allowed her to continue to work and support her family. Multiple Sclerosis Limited delivers Australia’s only multiple sclerosis-specific employment support service in Australia. The program began in Victoria, extending into Sydney just a few years ago.

Multiple Sclerosis Limited is currently working hard to expand the service further into New South Wales, the Australian Capital Territory, Tasmania, Queensland and Western Australia… and JAT is helping.

JAT Directors’ donation will be directed to this program, and JAT’s Kylie Gray will be keeping a keen and very interested eye on the national rollout of this vital service.

 

Jatenergy Directors Donate Over $500,000 to Help Care for People Afflicted with Multiple Sclerosis

Vertigo, muscle spasms, memory loss, speech difficulties and partial blindness are just some of the debilitating impacts of multiple sclerosis  —  the most common disabling neurologic disease of young people, afflicting millions of sufferers worldwide.

ms-logoJAT takes its corporate citizenship seriously and cares for its employees, which includes Kylie Gray, a valued young lady with multiple sclerosis. Inspired by her determination to persevere and contribute to society, JAT Directors have committed to make personal donations, between them totalling $524,717.28 to Multiple Sclerosis Ltd.

Screen Shot 2018-03-01 at 9.07.01 am.pngThe money will be spent making sure that somebody will be there for multiple sclerosis sufferers from the day they’re diagnosed, linking them into vital services like employment support, social inclusion activities, home modifications and equipment, and allied health.

JAT brings healthy, nutritious dairy and other food products to families in Australia and China, and the Directors are delighted to do their bit to help people living with multiple sclerosis face their challenges and retain their dreams.

Infant Milk Formula Update: discussions with JD.com and Eternal Asia regarding online and offline distribution

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.

 

 

December 2017 Sales and Business Development Update

Revenues from customers over the quarter to 31 December 2017 were consistent with the previous quarter ($800,000 compared to $799,000) and profit margins remained similar. Manufacturing and operating costs rose from $729,000 to $934,000 as a result of timing differences and a significant down payment on milk powder production, the revenues from which are expected to be booked in the March 2018 quarter. Administration and corporate costs rose (from $159,000 to $257,000) as the company developed the infrastructure to support business growth.

A successful capital raising brought $2.719 million into the company, net of costs, from new shares issued. The cash at bank accordingly increased from $108,000 to $2.438 million ensuring that the company is well funded for its working capital requirements. Since the end of the quarter the company has raised over $1 million in additional capital following an Extraordinary General Meeting.

As announced during the quarter, wholly owned subsidiary Cobbitty Country has entered into an agreement to purchase 51% of Golden Koala Group Pty Ltd (“GK”), subject to shareholder approval at a general meeting to be held in February. GK is an Australian milk powder brand, its primary product being “Golden Koala Infant Formula”. This transaction represents a key development in JAT’s strategy to transition from low margin trading of third party products to selling JAT owned products at substantially higher margins.

GK has an established track record of selling milk products in China and previous CFDA approval. GK has secured an agreement with Nutritional Choice Australia Pty Ltd (“NCA”) to manufacture premium infant milk formula for export to China. NCA is one of only 15 Australian manufacturers currently accredited by the CNCA (Certification and Accreditation Administration of the People’s Republic of China) to export infant formula into China, and from 1st January 2018, each manufacturer is licenced for a maximum of three formulations. This means GK’s formulation will be one of only 45 (currently) which can be sold ‘offline’ – in Chinese shops and supermarkets.

With this licensed manufacturing capacity now in place, GK will next apply to renew its China FDA approval, with JAT’s assistance. Given JAT’s extensive working relationship with Chinese regulators, the Board is confident of GK achieving approval in 2018.

AGM Investor Update

The Chairman is please to make available a copy of the presentation made to shareholders made at the Annual General Meeting on Tuesday 28th November, 2017.

Screen Shot 2017-11-29 at 6.00.53 pm

Please note that the information contained in this presentation is for information purposes only and was prepared for use in conjunction with a verbal presentation and should be read in that context.

June Update

2017 was a transformative year for Jatenergy, with total sales for the year ending 30 June 2017 of $10 million. This success has largely been driven by;

  • JAT’s extensive Chinese business network.
  • Precise attention to the regulatory environment.
  • A portfolio approach to products and market segments.

The board expects this approach will continue to assist JAT to exploit the massive potential of the Chinese market and avoid the pitfalls experienced by some other Australian exporters over the last year. The board plans to continue to develop the soft commodity trading business in the coming year with a gradual change in focus from expansion to profitability as the business consolidates.

 

Record Sales in March Quarter

The Board is please to announce another record quarter with sales for the quarter ending 31 March 2017 exceeding $3.8 million. This result reflects continued development of Jat’s supply of quality Australian products and a strong working relationship with Daigou groups.

JAT’s Fast Moving Consumer Goods strategy takes advantage of several powerful, long term trends affecting trade between Australia and China.

CHINA / AUSTRALIA TRADE MEGATRENDS

  1. A massive and growing Chinese middle class. Estimated to be between 109 and 145 million people and growing, this group is following a pattern regarded as standard for developing economies: as disposable income increases, private consumption increases, not only in absolute terms, but also proportionally.
  2. An ageing population. China’s demography is undergoing significant change, becoming one of the world’s fastest ageing nations, creating massive demand for healthcare and for pharmaceutical and personal care products and services.
  3. A cultural shift. Chinese dietary and consumer goods consumption patterns are becoming more international and more westernized.
  4. Australian products: healthy and safe. Australia is perceived as a natural source of safe and healthy products benefiting from strict and consumer protection laws.
  5. ChAFTA entered into force in December 2015 with some tarrifs falling immediately and many more scheduled between then and January 2029. This will provide a continuing source of opportunities over coming decades.

Quarterly sales top $2.5 million

The board is delighted to announce another significant increase in revenue for the December quarter over those of September, June and March. Sales for the quarter were just above $2.5 million due to increased activity in our DAIGOU sector. We expect this strength to continue, assisted by more significant Chinese ‘consumer days’ to come, including Lunar New Year.

We note that a number of Australian exporters offer single products, such as milk powder, or target single markets, such as personnel care products. Clearly this narrow approach exposes those companies to fragility in earnings.

JAT has adopted a broader portfolio approach, exporting a wide range of products in different markets. This provides a measure of protection from fluctuations in consumer likes and dislikes. We seek exclusive markets and products that we believe offer long term potential.