Signs China Distribution Agreement
Auckland, Sep 25, 2019 AEST (ABN Newswire) - Global technology company Zoono Group Limited (ASX:ZNO) is pleased to announce that it has signed a new sales and distribution agreement in China. The agreement is with Guangzhou Sanchengyun Trade Co., Ltd for the sale of Zoono branded products online in China. The agreement is exclusive only in the online market.
Zoono had several options for distributorship into this vertical market and only after thorough due diligence on all prospects decided to sign with Guangzhou Sanchengyun.
China continues to represents a huge opportunity for Zoono. It is the second largest economy in the world. Given the market size, Zoono is targeting distributors by market segment in China, offering partners exclusivity in their particular sectors. The online sales is the first of what Zoono expects to be several new sales and distribution agreements with Chinese counterparties over the next 12 months.
On-line retail sales in China have been growing at a faster pace in recent years than in other developed Zoono expect sales in this market to generate significant revenues for the Company.
Major Terms of the Guangzhou Sanchengyun Trade Co., Ltd Distribution Agreement:
- An initial five-year term.
- Minimum annual performance volumes of:
o First 12 months from commencement: NZD$900,000;
o Second 12-month period: NZD$1.2m;
o Third 12-month period NZD$1.6m; and
o Thereafter, the minimum sales requirement will increase by 10% each year.
Zoono has a right to terminate the agreement for breach, if there is a change of control or if the relevant contracting party fails to achieve its minimum annual performance requirements.
Zoono has already received payment of NZD$470,000 as deposit against the first-year purchases from Guangzhou Sanchengyun, with the first product order of NZD$315,000 due to be supplied to it in early October.
About Guangzhou Sanchengyun
The Company is privately owned and has annual sales in excess of RMB250million, sells products across all major online platforms, has been established 7 years and is headquartered in Guangdong Province. The company has employed a dedicated Zoono online sales team and now has in excess of 40 employees.
About Zoono Group Ltd
Zoono Group Limited (ASX:ZNO) is a global biotech company that develops, manufactures and distributes a suite of scientifically-validated, long-lasting and environmentally-friendly antimicrobial solutions. Zoono's mission is to improve health and well-being through innovative, safe, non-toxic and durable germ protection.
Zoono produces sprays, wipes and foams suited for skin care, surface sanitisers, and mould remediation treatments. The products are based on the 'zoono molecule', a unique antimicrobial molecule that bonds to any surface and kills pathogens including bacteria, viruses, algae, fungi and mould.
Zoono's products have received numerous regulatory approvals and the company's technology claims are supported by independent testing conducted in laboratories worldwide. Zoono is headquartered in New Zealand and its products are available globally.
To learn more, please visit: www.zoono.com