- Jatenergy, an Australian manufacturer and consumer goods exporter, signed a two-year distribution agreement with Kigobaby
- The deal was secured today at the China International Import Expo in Shanghai
- Kigobaby will be the exclusive distributor of the company’s Neurio Sialic Acid Formula
- From March next year, the distributor will be obligated to make agreed-upon purchases of product every month
- The formula will be made in-house at the new ANMA facility, giving Jatenergy optimal control of production and sales
- Company shares are up 4.08 per cent, with shares trading for 5.1 cents
Jatenergy, an Australian manufacturer and consumer goods exporter, signed a two-year distribution agreement with Kigobaby.
The deal was signed at the second China International Import Expo in Shanghai today. Annually, the expo attracts 3893 enterprises and over 170 countries, regions and international organisations.
The distribution agreement will see Kigobaby be the exclusive distributor in China of one out of 12 Neurio product lines.
This line is the Neurio Formulated Milk Powder with Lactoferrin and Sialic Acid (NEURIO Sialic Acid Formula).
“Kigobaby is a trusted distributor and we believe will achieve very significant sales with our new Neurio Sialic Acid Formula. We are delighted to enter into this important agreement which has very significant minimum monthly sales requirements,” Jatenergy CEO Wilton Yao said.
Under the agreement, Kigobaby must pay an initial deposit of $100,000 within three days of signing.
From March 2020, it must purchase product of at least A$960,000 per month. Based on current exchange rates, this translates to CNY4,650,000 a month.
The Neurio Sialic Acid Formula will be manufactured at Jatenergy’s new ANMA facility.
In-house production will ensure the company remains in control of production, can meet the minimum sales requirements and can capture the manufacturer’s margin.
Jatenergy shares are up 4.08 per cent, with shares trading for 5.1 cents at 3:54 pm AEDT.