News

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.”