EZZ enters new distribution partnership to extend foothold in China projected to boost revenue by $16 million annually
Health & Biotech
Health & Biotech
EZZ has signed a deal to boost sales of two of its products into China including a supplement featuring the popular anti-aging nicotinamide mononucleotide (NMN) ingredient.
Genomic life science company EZZ Life Science Holdings (ASX:EZZ) has inked a major deal with Aubay Pty Ltd trading as HIC, for the exclusive distribution rights of two EZZ-branded products.
The deal between EZZ and HIC is the culmination of several months of negotiations.
The two products EZZ products are:
HIC has the exclusive international distribution rights for the two products, excluding Tmall, Douyin and Pinduoduo and all channels in the Australia and New Zealand regions.
Agreed minimum order quantities for both products from the two-year deal forecasts additional annual revenues of at least $16 million to EZZ starting from FY24.
Market access for EZZ’s high-quality, anti-aging supplement products in China was boosted in February when the State Administration for Market Regulation approved NMN as a food additive.
EZZ is a leading supplier of NMN, a form of vitamin B3 which is increasingly popular for its health and anti-aging benefits including improved mental clarity, energy, and sleep.
NMN has been endorsed by world-renowned scientific leader in the field of aging and longevity, Dr David Sinclair, and celebrities including Kourtney Kardashian.
China is the biggest consumer of the NMN supplements in the world, accounting for 67% of global consumption.
With an increasingly health conscious population, China tops the global NMN market which was valued at US$253 million in 2020 by Nature Media, and is projected to reach US$386 million by the end of 2027.
The approval is set to launch EZZ further into the Chinese supplements market.
HIC’s membership-based, cross-border, social e-commerce platform has served over three million consumers over the past three years.
The company has a proven track record of working with over 30 reputable international brands to provide premium international products to its members, predominantly based in mainland China but spanning across 27 countries including the UK, Malaysia, USA, and Japan.
EZZ said HIC’s social e-commerce model provides a unique opportunity for its products to reach consumers outside of the company’s existing distribution channels, offering significant potential for growth.
EZZ chairman Glenn Cross said the company was thrilled to have established a new partnership agreement with HIC.
“HIC’s established distribution channels in China and surrounding countries in Asia through its membership-based platform will enable EZZ to expand its reach and market presence,” Cross said.
“The company looks forward to a successful partnership with HIC and anticipates the potential for further growth in the coming months.”
EZZ is continuing to set the stage for future growth with its financial and operational results in Q3 FY23, building on the momentum of the previous quarter.
Among its Q3 FY23 results were cash receipts from customers totalling $11.2 million, a 30% increase from the previous quarter and a 182% increase on the same period last year.
Operating cash flows increased significantly by 371% from the previous quarter to $2.8 million.
This article was developed in collaboration with EZZ Life Sciences, 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.