Audeara strengthens Asian presence with Clinico healthy hearing earbuds contract
Advanced hearing technology provider Audeara (ASX: AUA) has received a $570,000 mass production purchase order for its healthy hearing earbuds from Taiwan’s largest hearing aid retailer, Clinico.
The products will be sold exclusively in China and Taiwan under Clinico’s branding ahead of an official product launch scheduled for the second quarter of the 2025 financial year.
The order is believed to signify the next phase of Audeara’s partnership agreement with Clinico, originally secured in February 2023 and based on the development of new hearing solutions incorporating Audeara’s sound personalisation technology.
Operational momentum
The partnership agreement was followed by a $180,000 cash deposit from Clinico in August, which enhanced Audeara’s cash flow and provided immediate funding for hearing aid production components.
The financial injection was reported to be critical in helping Audeara maintain operational momentum in preparation for anticipated market demand.
The Clinico partnership is part of Audeara’s strategic focus on expanding its international footprint and aligning with market-leading audiology brands.
It is believed to validate Audeara’s technology and market potential, positioning the company as a leading player in the hearing health sector.
Product confidence
Audeara chief executive officer Dr James Fielding said the Clinico purchase order demonstrated confidence in the company’s product line.
“This sale marks a crucial step towards the launch of our new earbuds, and we look forward to expanding our footprint in major Asian markets with world-class distribution partners such as Clinico,” he said.
“It establishes product-market fit for Audeara products through wholesale channels, which has the potential to drive margin growth as additional orders are realised.”
Co-operative agreement
Audeara signed a co-operative agreement with Clinico in February 2023 to develop hearing products to meet the needs of Clinico’s audiology and health distribution network.
Under the agreement, Audeara will develop a series of healthy hearing earbuds for exclusive distribution in China and Taiwan through Clinico.
The exclusivity means Clinico will prioritise Audeara-branded products for sale and promotion through its distribution channels.
Huge market
China’s market represents a large opportunity for Audeara, with research showing an estimated 426 million people suffered from hearing loss in 2019.
Of this, 331 million people experienced mild hearing loss, while more than 95 million people had moderate-to-complete loss.
Based on current projections, it is estimated that 561 million people — or 40.1% of the Chinese population — will experience some level of hearing loss by 2034.
Dr Fielding said the ongoing partnership with Clinico – Taiwan’s largest hearing aid retailer, with over 33% market share and a strong presence in China – would expand the company’s regional market presence and pave the way for a robust pipeline of future opportunities.