SHANGHAI: Jatenergy Limited has signed a distribution agreement with Kigobaby, a distributor of consumer products throughout China. The agreement was signed at the second China International Import Expo in Shanghai.
The distribution agreement provides for Kigobaby to be the exclusive distributor in China of a single NEURIO product line, being NEUIRO Formulated Milk Powder with Lactoferrin + Sialic Acid.
The NEURIO product range consists of 12 separate products. The NEURIO Sialic Acid Formula which Kigobaby will distribute is a brand-new product which has recently been developed, it has not previously been distributed. Kigobaby has no rights in relation to the other 11 NEURIO products.
Jatenergy CEO, Wilton Yao, stated “Kigobaby is a trusted distributor and we believe will achieve very significant sales with our new NEURIO Sialic Acid Formula. We are delighted to enter into this important agreement which has very significant minimum monthly sales requirements. The NEURIO Sialic Acid Formula to be shipped to Kigobaby will be manufactured in-house at our new ANMA facility using the new production equipment which is to be installed and operational in February 2020. Being able to manufacture in-house ensures that we are in control of production, we can meet the very significant minimum sales requirements and can capture the manufacturer’s margin.”
The agreement is for two years, commencing immediately, which is automatically extended for an additional two years provided there are no breaches. Kigobaby will pay an initial deposit of A$100,000 within three days of signing the agreement. From the fourth month of the agreement (March 2020), Kigobaby will purchase product of an amount of CNY 4.65 million per month.
At current exchange rates, the minimum purchase requirement is approximately A$960,000 per month. If the minimum purchase requirement is not met for three consecutive months, the exclusive distribution rights can be terminated and Kigobaby can continue as a non-exclusive distributor.