Jatenergy Limited (ASX: JAT) operates as a consumer goods trading company. The company offers milk powder, cosmetics, wines, cleaning materials, organic oils, and food products. Jatenergy serves customers in Australia and China.
The company, today on 4th April 2019, updated that it has signed a Memorandum of Understanding for a Strategic Partnership Agreement with HIT Crown Co., Ltd, (“HIT Crown”). This represents another significant step today to expand the company’s business into health-focused retail outlets across China. The MOU is for a term of three years, commencing immediately and can be extended by mutual agreement between the parties. Also, there is no specific termination clause.
HIT Crown is a sizeable Chinese technology company that provides online data and retail platforms to Chinese companies. HIT Crown’s online platform, China Golden Medicine E-business, serves more than 1 million Chinese pharmaceutical companies, hospitals and clinics with a wide range of medicines and other products. The MOU opens the door for the JAT’s products to retail through those pharmacies, hospitals and clinics.
Jatenergy Managing Director, Wilton Yao, said that this significant agreement provides a framework to work together in order to jointly develop new nutritional and health foods and household products to meet the Chinese consumers’ needs. He emphasised that the management is assured and comfortable about the future sales of the company’s in-house brands as more and more Chinese and overseas distributors express their wish to work together with the company to promote its products through strategic partnerships.
JAT and HIT Crown have agreed for specific roles under the MOU, which states that HIT will distribute Golden Koala, Neurio and other Jatenergy in-house branded products to Chinese pharmacies, hospitals, clinics and other retailers through their business networks. HIT will focus primarily on distributing the company’s product range into pharmacies and hospitals, where they are ideally suited. As HIT specialises in online platform development, the parties will jointly develop new online trading platforms and related financial services, such as payment systems development. The parties will also cooperate in developing new products for the health sector.
The company’s recently incorporated Australian joint venture, Jatpharm, will play an essential role in research, development and manufacturing of jointly developed products. Jatpharm intends to apply to become a TGA-approved manufacturer.
Recently JAT’s subsidiary baged contracts with BON BON and WANWUSTORE. More on this could be read here.
On the stock-performance front, the stock has posted the YTD return of -16.18%. The company also has posted returns of 42.50% and -13.64% over the past six months and three months, respectively. At the time of writing, i.e. on 4th April 2019, the shares of the company closed the trade at a price of A$0.059, up 3.509% with a market capitalisation of ~A$45.51 million. The stock opened the trading day at A$0.059, reached an intraday high of A$0.060, and touched the intraday low of A$0.058 with a daily volume of ~2,119,388. It had a 52-week high price of A$0.247 and a 52-week low price of A$0.035, with an average volume of 5,871,023 approximately.
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