Following on from recent positive developments regarding Jatenergy’s takeover target Golden Koala, business-to-business facilitator Jatenergy (ASX: JAT) has said that it has entered into a distribution agreement with Jiangsu Jbingo International Co (Jbingo).
Jatenergy has confirmed that its intended takeover of Koala will go ahead after its shareholders ratified the decision at the company’s general meeting, held yesterday (27th March), and is expected to complete within the next 7 days taking into consideration the Easter holiday vacation period in Australia.
Under the agreement announced today, Jbingo has agreed to distribute all of Jatenergy’s products, including the Golden Koala range of milk powders, through the Jbingo distribution platforms in territories in China selected by Jatenergy for both online and offline sales.
Jbingo distributes products via its multiple business-to-business (B2B) and business-to-customer (B2C) platforms.
The agreement with Jbingo allows Jatenergy to sell a broad range of products to the China market through a number of different platforms which focus on specific products and markets through a single distributor. However, Jatenergy retains the right to continue selling products through other distributors.
The collaboration means that Jatenergy will effectively expand its overall distribution and marketing capabilities which it offers to both Australian and Chinese brands, seeking to do business in overseas markets.
According to Jatenergy, it offers a unique capacity to both Australian companies seeking brand representation in China, and to Chinese platforms and distributors seeking Australian products.
Under the terms of its latest agreement, Jbingo will pay Jatenergy for all products prior to the release of the products to Jbingo while Jbingo will be responsible for all logistics costs. The agreement is for an initial period of 2 years although Jbingo has the right to extend the term by giving two months written notice.
JAT and Jbingo have said the two companies plan to commence negotiations in good faith to “determine the terms and conditions of the agreement for the extended term”.
Most importantly, the agreement announced today does not give Jbingo exclusive access in China to any Jatenergy products which helps to protect Jatenergy’s commercial interests on the Chinese mainland.
More about Jbingo
Jbingo is a major product distributor in China with bonded warehouses in Hangzhou Xiasha close to Shanghai and Chongqing Xiyong (in central China) which allows the company to provide wide geographical coverage across China.
Jbingo sells to leading Chinese business-to-business maternal and baby platforms such as Hipac, Seatent, Yuouhui, Qianfeng, Mainsweb and DDH, as well as some business-to-consumer platforms such as JD, VIP, Xiaohongshu and Taobao.