FMCG sales start to impact JAT’s bottom line

December quarter revenue at $186,000

Shareholders will be pleased to note that, as anticipated, Jatenergy Limited’s (Jat) December quarter 4C shows revenue of $186,000, substantially increased from the September quarter (the first quarter of export trading revenues) of $18,000.

This increase reflects the company’s growing Fast Moving Commodity Consumer Goods sales, specifically the exporting of Australian milk and health products to China.

MOU Signed with Ausline providing access to Alibaba platform to promote Australian products

Fast Moving Commodity Goods (FMCG) Update

Jatenergy signs an MOU with “Ausline Shipping Consultant Pty Ltd” and “Shenzhen Aoniu Investment Co.” to assist in the growing FMCG in China using our conduit to Alibaba and source supply from Australian manufactures.

Continued strong trade results for October and November 2015 for Jatenergy Development Pty Ltd.

Strengthening Trade through Collaboration

Mr Wilton Yao
Mr Wilton Yao

The directors of Jatenergy Limited (“Jatenergy”, “the Company”) are pleased to announce that the Company has entered into an MOU with “Ausline Shipping Consultant Pty Ltd” and its sister Chinese company “Shenzhen Aoniu Investment Co.” (collectively known as “Ausline”) to distribute and market product sourced by Jatenergy and Ausline for sale into China. Ausline brings 10 years of experience in selling products into China, with the knowledge of what is required to bring product to successful sale in China. Ausline adds both the logistics and warehousing ability to Jatenergy’s FMCG value chain. “We can now source Australian and New Zealand product, warehouse in Australia, ship or airfreight to China cheaply, again warehouse in China and sell both on the on-line and off-line markets”, said Wilton Yao director of Jatenergy. “This means we, Jatenergy, can establish a direct line from Australian supplier to Chinese consumer.”

Relationship with Alibaba

The relationship with Ausline have given Jatenergy assess to Alibaba and its on-line trading platform in China. Recent meeting with Alibaba in Sydney confirms that the Chinese market is long term and huge. Jatenergy offers its source suppliers a holistic structure to export and still maintain its domestic market. Through its marketing collaboration with HealthOne and Ausline/Jatenergy can now provide a strategy for Australian manufacturers wanting to maintain their Australian customers whilst trying out the huge Chinese market. Alibaba is the world largest on line platform form B2C and B2B and its growth is continuing at a phenomenal rate as more and more Chinese join the on-line market for product purchase. For example Alibaba recently held a promotion sale called Singles Day on the 11/11/15 sale China Tmall (owned by Alibaba) reached 10b RMB (approx. $AUD2 billion sales within 12 minutes and 28 seconds.

Leung Ling from Alibaba mentioned that “Australian products sell on Alibaba like hot cakes”, also that “Alibaba is better for the smaller niche company that don’t have representation in China. They have the flexibility to sell and promote their product without in-china interference”.

Continued Growth in October November Sales

Mr Tony Crimmins
Mr Tony Crimmins

To keep the market informed Jatenergy has seen a credible growth in October/November 2015 overseas sales to China and will report in January its cash flow position. “The strategy for the company is trading Australian products in China and building collaboration amongst liked minded business” Tony Crimmins CEO Jatenergy, “we continue to find partners that can add real value to the company and the results will be forthcoming showing that we have moved toward a solid business.”

About Ausline

Ausline has been operating since 2011 with the CEO Cindy Wang having over 15 years’ experience in the trading, marketing and logistics of product from Australia and New Zealand to many global destinations. The company has built a high standard in service to Australian manufacturers that are wanting to export product without having to be concerned about marketing, logistic and repatriation of cash. Ausline has an agreement to endorse Alibaba as an internet platform to promote Australian products to gain the attention of the Chinese consumer.

Cash returns from the sale of soft commodities to China

Jatenergy Limited shows cash returns on the sale of soft commodities to China.

Chinese demand for Australian health products is increasing.

Commentary on Jatenergy 4C

Shareholders will be pleased to note that Jatenergy Limited’s (Jatenergy) 4C shows revenue of $18,000 from trading activities and expected to grow significantly in the coming quarters. The increase reflects the company’s drive to bring positive cash flows to the company through Fast Moving Commodity Consumer Goods sales (FMCGs). The focus is on exporting Australian health products to China with demand for our products outstripping supply.

Recently the Australian health business Swisse had been acquired by a Chinese company for a record $1.67 billion. Blackmores (ASX: BLK) has also risen on continued increase in sales, mostly for Chinese importers. Jatenergy is actively working in this market to take advantage of the ever increasing Chinese demand.

Jatenergy continues to expand its current offering of health supplements to include toiletries, baby milk formulae and cosmetic lotions. “Using our Chinese marketing and sales set‐up coupled with our Australian sourcing network we should continue to build more sales of Australian product, which will be reflective in our future cash flow releases”, said Wilton Yao, Director, Jatenergy.

In order to provide great Australian products to China, Jatenergy recently signed a number of supply and/or distribution agreements with some major Australian manufacturers and suppliers and will continue to seek direct support from more Australian major brands and export quality Australian health products, milk powders and food products to China as well as other Asian countries. The Australian Government has been proactive in bringing Australian product to China having recently signed the Chinese free trade agreement. They recognise that China is Australia’s biggest export trade partner having accounted for over 33% of export trade. This builds from trade deals already concluded with Korea and Japan. The most recent is the TPP (Trans Pacific Pact) bring 13 countries together under one agreement including Australia.

ChAFTA enters into force

chafta-infographic-201509As of 20 December 2015, a total of 7,289 individual Chinese tariffs were cut.

1,710 tariffs were completely eliminated, and a further 5,579 had their first of several cuts.

A second tariff cut will take place on 1 January 2016.

Remaining (further) tariff cuts will take place on 1 January every subsequent year.

Further Soft Commodity Sales to China

Jatenergy Development Pty Ltd facilitate further shipments of milk powder, baby formula, wine and health care FMCG (Fast Moving Consumer Goods) to China.

Signed trade agreement with MMG Fortune Pty Ltd for sales of Chinese base chemicals into Australia.

Further FMCG Trading

Chinese demand for Australia branded and produced health and baby products is now reaching capacity for Australian manufactures to provide. The company Jatenergy Development Pty Ltd (subsidiary of Jatenergy Limited) is continuing to facilitate the export not only baby milk powder but wine, health care products and supplements. The revenue from these activities will be important as ready cash flow for the company.

Jatenergy has a growing network of Chinese distributors and buyers wanting to secure Australian product. The appeal for Australian products remains strong due to our strict manufacturing protocols, procedures and acceptance only of high quality and original ingredients. Most Chinese consumers are aware of the influx of counterfeit product and will only purchase product that is sold in Australia itself.

MMG Fortune Agreement

The board of Jatenergy are also pleased to announce that it has entered into agreement with MMG Fortune for the exclusive rights to promote and sell chemical product including Ammonium Nitrate, Melamine, Soda Ash and Sodium Hydrosulphite. MMG Fortune deals direct with the chemical producer and are able to provide this chemical material at substantial saving and of high quality. They already distribute globally and look at Australia and Jatenergy to bring and promote their products.

Fast Moving Commodity Goods (FMCG) MOU Signed with “Shanghai Mallsion Industrial Co. Ltd”

Jatenergy signs an MOU with “Shanghai Mallsion Industrial Co. Ltd” to distribute Jatenergy’s Australian FMCG product and seek Chinese product for distribution in Australia.

The directors of Jatenergy Limited (“Jatenergy”, “the Company”) are pleased to announce that the Company has entered into an MOU with “Shanghai Mallsion Industrial Co. Ltd” to distribute and market product sourced by Jatenergy for sale into China and for Chinese product into Australia. The agreement allows for both parties to assist in developing marketing and product strategies in light of the recent Free Trade Agreement between Australia and China. This agreement provides Jatenergy with direct distribution representation in China, an advantage that will assist in gaining market share through Shanghai Mallsion’s expertise and distribution network.

Shanghai Mallsion is a Shanghai based trading company group that manufactures and distributes product. Manufacturing includes metal fabrication, aluminium die‐casting, plastic injection and MDF painting. It also imports and distributes farm and food products. Shanghai Mallsion has strong business connections with the Chinese Government and relevant import/export authorities. It has an extensive local and international distribution network and provides trading companies with one‐stop turnkey solutions. The company has been operating for over 15 years with experienced management that have a deep understanding of Chinese and international import and export compliance requirements. Shanghai Mallsion is focused on bringing Jatenergy’s Australian product for China and vice versa, Chinese product to the Australian market. Under the recent China Free Trade Agreement, Shanghai Mallsion have decided that there is real opportunity working with Jatenergy.

JAT commences exports to China

Jatenergy Development Pty Ltd’s first shipment of milk powder and other soft commodities to China.

Cash flow project taking advantage of China Free trade.

Jatenergy maintains current energy assets using Soft Commodity trading to add cash flow and profit while waiting for Energy sector to rebound.

Soft Commodity Trading and the Free Trade Agreement China

Jatenergy Development Pty Ltd (JD) (subsidiary of Jatenergy Limited) has successfully exported milk powder from Australia to China. This export represents the start of Jatenergy’s foray into soft commodity trading. By utilising Jatenergy’s strong Chinese business network the company is able to source buyers. This is further enhanced with the recently signed China Australia Free Trade Agreement (ChAFTA) and China’s growing demand for fresh clean produce that Australia is now globally recognised.

Mr Wilton Yao

“China is excited about Australian produce. Its freshness and quality is considered to be the best and is becoming most sought after. Jatenergy has been preparing for the China Free Trade Agreement and has positioned itself as the soft commodity conduit between Australia and China,” says Mr Wilton Yao, Director Jatenergy Development Pty Ltd.

The ChAFTA was signed on 17 November 2014 after nearly 10 years of negotiations. China is Australia’s biggest export trade partner accounting for over 33% of export trade. The ChAFTA will ultimately mean that 95% percent of Australian exports to China will be tariff free. At the moment some exports attract a hefty 40% tariff tax. Products from Australia’s agriculture sector include beef and dairy. Building on trade deals already concluded with Korea and Japan, ChAFTA forms part of a powerful trifecta of agreements with Australia’s three largest export markets that account for more than 61% of our exports of goods.  Most important is that the agreement allows for further liberalisation and the expansion of market access over time.  This places Australia and Jatenergy in a strong position to secure additional gains as China undergoes further economic reform into the future.

Landmark China-Australia Free Trade Agreement

imgresThe Prime Minister and the Minister for Trade and Investment announce a landmark China-Australia Free Trade Agreement (ChAFTA) saying it will unlock substantial new benefits for Australians for years to come.

“ChAFTA will add billions to the economy, create jobs and drive higher living standards for Australians.

Australian businesses will have unprecedented access to the world’s second largest economy. It greatly enhances our competitive position in key areas such as agriculture, resources and energy, manufacturing exports, services and investment.

Building on trade deals already concluded with Korea and Japan, ChAFTA forms part of a powerful trifecta of agreements with Australia’s three largest export markets that account for more than 61 per cent of our exports of goods.

More than 85 per cent of Australian goods exports will be tariff free upon entry into force, rising to 93 per cent in four years. Some of these goods are currently subject to tariffs of up to 40 per cent.

On full implementation of ChAFTA, 95 per cent of Australian goods exports to China will be tariff free.”