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?
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.
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.
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.
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.
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.
JAT subsidiary Golden Koala’s first container loads of the newly formulated (and freshly packaged) milk powders are fresh from the production line and ready to ship.
The production run includes infant, follow-on and toddler formula and adult milk powder.
These English language packaged products are destined for sale in Australia and, via daigou and cross-border channels, to Chinese families.
JAT’s Green Forest International today exhibited at Alibaba’s Sydney E-commerce Expo, meeting new buyers, integrating Sunnya products and demonstrating the synergies between JAT and its recently (and soon-to-be) acquired subsidiaries.
“This has been a valuable exercise for the JAT group of companies,” Executive Director Wilton Yao said. “Not only because we have secured more buyers, but also as a small scale preparation for the huge China International Import Expo coming up in Shanghai in November.
- One of the world’s biggest pharmaceutical companies with over 5,000 stores across China.
- Green Forest to supply vitamins, cosmetics, dairy products and a range of other health related consumer goods.
- Consumers scan a QR code in-store to receive home delivery from a cross-border bonded warehouse (or direct from Australia).
50% owned JAT subsidiary Green Forest International Pty Ltd has entered into an agreement with China National Pharmaceutical Group Corporation (Sinopharm) to supply vitamins, cosmetics, dairy products and a range of other health related consumer goods for sale through Sinopharm stores.
Sinopharm is the largest Chinese medical and healthcare group directly managed by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). It ranks 194th in Fortune’s 2018 Global 500 and is the sixth biggest pharmaceutical company on the list with annual revenue in 2017 of USD 51.8 billion.
Sinopharm is establishing a new O2O sales channel for 5,000 plus retail stores across China, including its GuoDa Phramacies. Sinopharm Holding Guoda Drugstore Co., Ltd. (GuoDa) is a national pharmacy chain operating more than 3,800 retail pharmacies in over 70 Chinese cities.
GouDa’s strong growth was recognized internationally when Walgreens Boots Alliance, Inc. (Nasdaq: WBA) recently acquired a 40 percent minority stake through a capital increase worth RMB2.767 billion (around $416 million).
Online-to-offline shopping is increasingly popular in China, allowing consumers to familiarise themselves with products in their local retail store, which are not available through domestic distribution channels, then scan the product’s QR code to make the purchase and order home delivery.
Sinopharm’s head office manages the orders through a proprietary cross-border business-to-business ordering system. Under the agreement, Green Forest will supply Australian consumer goods to Sinopharm for this new sales channel, including both in-house brands and client products.
“O2O is a large and growing part of China’s retail landscape and we are delighted to be part of Sinopharm’s national O2O rollout,” Executive Director Wilton Yao said. “This is a great opportunity for JAT and for the brands we represent.”