RooLife banks $2.9m sales in under a month, showing China’s appetite for Aussie health products is Peking again

A second major order of $1.95m for new sales partner Shanghai No.1 Pharmaceuticals has been received
Orders to Shanghai No.1 Pharmaceuticals now total $2.9m in less than a month
Chinese consumers are back into the international market in force post-Covid

RooLife Group’s sales partnership with Shanghai No.1 Pharmaceuticals for its health and wellbeing products is going gangbusters, with a new order of $1.95m worth of products for a running total of $2.9m since a supply deal was struck less than a month ago.

RooLife (ASX:RLG) is sourcing and supplying its products to be sold in China both online and through physical pharmaceutical outlets and other stores owned by Shanghai No.1 Pharmaceuticals.

The goods range from food, health and well-being, through to broader nutrition and beauty products.

The sleeping dragon is awake

Chinese consumers are soaking up the international trade spotlight with Australia once again after stringent COVID measures and bilateral relations had for a few years put a dent in trade between both countries.

The global COVID pandemic was particularly harsh on the Middle Kingdom for a long, long time, and coming out of it is a populace with a sentiment and yearning to keep up their physical health.

RLG, with its sales and distribution network – is perfectly poised to service Chinese consumer demand.

Targeting China

RLG is definitely one ASX stock that’s getting a healthy-looking slice of the sentiment pie.

Last month, RLG inked a deal with AULife to jointly market and sell international products in China under its new platform and brand JV RLG Marketplace.

RLG Marketplace is 51% owned by RLG and 49% by AULife’s Asia Pacific Capital Holdings, with profit sharing of 80% to RLG and 20% to AULife on a net profit basis.

Not even two weeks after that, it signed a supply deal with Shanghai No.1 Pharmaceuticals for $950,000 worth of products, and, to-date has already penned $2.9m worth of product deals to Chinese business.

A growing partnership

A subsidiary of one of China’s leading commercial entities, Bailian Group, Shanghai No.1 Pharmaceuticals is engaged in pharmaceutical wholesaling and retailing, operating an extensive network of regular chain drug stores in China, as well as a popular online marketplace.

RLG says the partnership is a “strong and natural fit” with RLG’s business model for marketing and distributing international health, well-being, food and beverage products in China.

“Receiving these substantial orders within the first month of our arrangement to supply products to Shanghai No.1 Pharmacy confirms the value of this partnership.

“We have now received sales orders just short of $3m within the first month following the announcement of this distribution agreement, which is a fantastic start with a new sales channel,” RLG CEO Bryan Carr says.

“The co-operation and business development underway and with partner AULife to identify products in demand that we can jointly go to market with is very exciting.

“Expanding and delivering these new distribution channels provides additional opportunities for growth for our partner health, food and beverage clients in China.

“We look forward to providing further updates as we secure additional sales channels and supply contracts for our health, wellbeing and food and beverage product range.”

This article was developed in collaboration with Roolife Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.