Strategic Partnership Agreement between Jatenergy and HIT Crown Co., Ltd opens the door to one million Chinese pharmaceutical companies, hospitals and clinics.

Thursday 4 April 2019: Jatenergy has signed a Memorandum of Understanding for a Strategic Partnership Agreement (“MOU”) with HIT Crown Co., Ltd, (“HIT Crown”). This represents another significant step today to expand our business into health-focused retail outlets across China.

HIT Crown is a large Chinese technology company that provides online data and retail platforms to Chinese companies. HIT Crown’s online platform, China Golden Medicine E-business, serves more than one million Chinese pharmaceutical companies, hospitals and clinics with a wide array of medicines and other products. The MOU opens the door for Jatenergy products to retail through those pharmacies, hospitals and clinics.

“This significant agreement provides a framework to work together to jointly develop new nutritional and health foods and household products to meet the Chinese consumers’ needs,” says Jatenergy Managing Director, Wilton Yao. “We are very comfortable about the future sales of our in-house brands as more and more Chinese and overseas distributors express their wish to work together with Jatenergy to promote our products through strategic partnerships.”

Roles under the MOU

JAT and HIT Crown have agreed the roles under the MOU are:

HIT will distribute Golden Koala, Neurio and other Jatenergy in- house branded products to Chinese pharmacies, hospitals, clinics and other retailers through their business networks.

HIT will focus primarily on distributing Jatenergy’s product range into pharmacies and hospitals, where they are ideally suited.

As HIT specialises in online platform development, the parties will jointly develop new online trading platforms and related financial services, such as payment systems development.

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The parties will cooperate in developing new products for the health sector.

Jatenergy’s recently incorporated Australian joint venture, Jatpharm, will play an essential role in research, development and manufacturing of jointly developed products. Jatpharm intends to apply to become a TGA-approved manufacturer.

Material terms of the MOU

The MOU is a framework agreement. It is the guiding document for the long-term cooperation between both parties, and it is also the basis for the parties to sign related contracts.

The MOU is for a term of three years, commencing immediately, and can be extended by mutual agreement between the parties.

There is no specific termination clause.

There are no conditions precedent.

About HIT Crown

HIT Crown Co., Ltd is a technology company based in Heilongjiang Province (north-east China). It has deployed almost one thousand servers on the cloud and specialises in collecting real-time data intelligence across the public network. It provided the online hub for the China-Russia Expo for five years and operates more than 50 e-commerce platforms, and in 2017, won the 'National E-commerce Top Companies'.

Its “Green Agriculture E-commerce” platform sells green and organic products and links 100,000 rural cooperatives with tens of thousands of agribusinesses. HITCrown's leading capability is technology and channel development, with the resources in e-commerce, logistics, medicine distribution channels, domestic and cross-border online platforms, customer service and sales.

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