EZZ signs sales agreement with Hong-Kong based Pinehills Limited, expanding distribution in key Southeast Asian markets
Pinehills commits to purchasing $15 million worth of EZZ-branded products in first 12-months.
Annual purchase volumes to increase by a minimum of 10% annually over five-year agreement
Special Report: Genomic life science company EZZ has inked a deal with Hong Kong-based Pinehills for the supply of EZZ-branded products.
EZZ Life Science (ASX: EZZ) says Pinehills will purchase EZZ-branded products with a total value of at least $15 million in the first 12-months of the five-year agreement.
Pinehills annual purchase amount must increase by at least 10% each subsequent year, following the first year, until completion of the milestone agreement.
EZZ has a focus on genomic research and development to address four key human health challenges including genetic longevity, human papillomavirus (HPV), children’s care, and weight management.
Expanded distribution in key markets
Established in 2022 and headquartered in Hong Kong, Pinehills specialises in the distribution of maternal and infant health, skincare and cosmetics products.
EZZ says management of Pinehills has extensive cross-border international trade experience and a comprehensive sales distribution network across China, Vietnam and several markets within Southeast Asia.
The company’s strong presence on major online marketplaces and various online-to-offline (O2O) distribution channels positions the company as an important partner for EZZ in expanding its customer base.
Chairman Glenn Cross says the agreement is significant for EZZ as it continues to work to expand its presence in China and Southeast Asia.
“Pinehills has established a strong distribution platform into key markets where we see growing demand for EZZ’s expanding range of products,” Cross says.
“This agreement is a testament to our commitment to growth and innovation, and we are confident that it will enhance our market reach and customer base as we collaborate further with Pinehills over coming years.”
Strong growth trajectory
EZZ has been on a strong growth trajectory, expanding its product range and distribution channel.
The company recently reported receipts from customers of $23.6m for Q3 FY24, up 111% on the prior corresponding period.
Operating cash flows remained positive at $2.04m, representing a 372% increase from Q2 FY24, while the company also recorded a 15% increase in cash balance over the previous quarter to $14.5m at March 31, 2024, with no debt.
Last quarter EZZ also started trading in new duty-free channels, including DHS Duty Free and Lotte Duty Free.
An advertising partnership with the Asia Pacific Aviator Club and participation in key trade shows further strengthened the company’s market presence and brand visibility.
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.
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