- Global technology company Zoono Group has signed an agreement with Guangzhou Sanchengyun Trade to sell its products online in China
- The agreement is for an initial five years
- The first product order of NZD$315,000 due to be supplied in early October
Global technology company Zoono Group has signed an agreement with Guangzhou Sanchengyun Trade to sell its products online in China.
Zoono develops, manufactures, and distributes a suite of antimicrobial solutions. According to the company, these solutions are scientifically-validated, long-lasting, and environmentally-friendly.
The company’s products come in sprays, wipes, and foams for skincare, surface sanitisers, and mould remediation treatments.
Its products are based on the “zoono molecule” and help fight bacteria, viruses, algae, fungi and mould.
The agreement with Guangzhou is for an initial five-year term.
Under the agreement, minimum annual performance volumes for the first 12 months from commencement will need to be NZ$900,000. For the second year, NZD$1.2 million is required, and a third year of volume sales will need to hit $1.6 million.
Thereafter, the minimum sales requirement will increase to 10 per cent each year.
Zoono can terminate the agreement if there is a change of control or if Guangzhou fails to meet the annual performance requirements.
China will represent a huge opportunity for Zoono as it is the second largest economy in the world. The company is targeting distributors by market segments, offering partners exclusivity for their particular sector.
“The online sales is the first of what Zoono expects to be several new sales and distribution agreements with Chinese counterparties over the next 12 months,” the company said in an announcement to the ASX today.
Zoono says it had several options for distributorship in this rising market but decided to sign with Guangzhou.
It has already received a payment of NZD$470,000 as a deposit from Guangzhou, with the first product order of NZD$315,000 due to be supplied in early October.
Guangzhou Sanchengyun is privately owned company and has annual sales in excess of RMB$250 million. It sells across all major online platforms.
Zoono has gained 15.49 per cent on the ASX today and is currently selling shares for 8.2¢ apiece at 12:38 pm AEST.