The Toorak-based Jatenergy Limited (ASX: JAT) is a fast-moving consumer goods company in Australia and a has a broad export base in China. The company has announced that its subsidiary, Sunnya Pty Ltd has signed two one-year agreements with Beijing, China-based Baozi Technology Co (BON BON) and its subsidiary, WANWUSTORE. The deal concerns expanding the promotion, distribution and sale of Sunnya’s full range of NEURIO branded products, including the well-known NEURIO Lactoferrin, across China.
BON BON was established as an online platform specialising in premium imported products such as children’s wear, accessories, food, toys and home products while WANWUSTORE is a social retailing platform for parents to interact and purchase the full range of high-quality product for their children.
In the upcoming weeks, both the companies will develop a NEURIO store on their respective websites and receive orders that can be provided by Sunnya’s inventory in China.
On March 20th, 2019, Jatenergy successfully completed the company’s Melbourne meeting with Orient International Co, a large trading group affiliated to China’s special commission, Assets Supervision and Administration Committee.
The first ever trade talk between the parties transpired in Shanghai Dragon Corporation, a subsidiary of Orient International, placing a significant order for the Australian products including goats milk soap, food and wine and golden koala full cream high calcium milk powder. Further negotiations to buy fresh off-the-farm fruits as well as household products are currently underway.
Earlier in the same month, Jatenergy released its financial results for the six months to December 31st, 2018, posting the revenue from ordinary activities at $ 30.47 million, reflecting a rise in trading activities and an improvement of 1834% from $ 1.57 million the previous corresponding period (PCP) ended December 31st, 2017. The revenue was further supplemented by the successful acquisition of two subsidiaries during the period.
On July 18th, 2018, the Group acquired 50% of Green Forest International Pty Ltd, a Sydney-based wholesaler, distributor and exporter selling to over 50 shops and pharmacies in Hong Kong and over 200 stores and warehouses in Australia. Subsequently, on October 10th, 2018, Jatenergy further acted on its s plan to transition to higher-margin sales by purchasing 51% of Sunnya Pty Ltd.
During the half-year, the Group incurred a net loss after tax from ordinary operating activities of $ 21.22 million, down 7662% from $ 273.3k in the PCP, which includes the impaired goodwill of $ 22,712,572 relating to Golden Koala Group Pty Ltd. At the end of the period, the net cash and cash equivalents amounted to ~ $ 5.28 million. While operating and investing activities led to net cash outflows of $ 4.61 million and $ 4.60 million respectively, the financing activities provided net cash inflows of ~ $ 10.27 million through the proceeds from the issue of shares, proceeds from borrowings as well as the amount received in advance of shares issued.
On March 22ND, 2019, JAT stock closed the day’s session at AUD 0.058, edged up 1.754% by AUD 0.001.
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