MARCH 2019

QUARTERLY REPORT

Highlights: Strong sales growth across China

Gross revenue for nine months to 31 March 2019 was $53.9 million.

Gross revenue for the March 2019 quarter was $20.53 million.

Gross revenue for March 2019 was $8.07 million.

Sales increase is expected to continue as a result of numerous sales and distribution agreements signed during the March quarter.

JAT is continuing to establish a manufacturing plant in Australia.

JAT subsidiaries release new products, extending into new markets.

Quarterly Review

The directors of JAT believe the results to the end of March 2019 show that the strategy to become an innovative nutritional and household product producer and China/Australia cross-border trade specialist is being achieved.

There has been a significant increase in sales in the March 2019 quarter, despite the quarter including the traditionally quiet Chinese New Year holiday season.

The Neurio range of products, produced by JAT subsidiary Sunnya Pty Ltd, is now selling through all the major Chinese cross-border channels, maternal stores, pharmacies, gift stores and other retail stores. JAT expects future Sunnya sales to be driven by the premium milk forumula, Neurio Lactoferrin, as it becomes an increasingly popular nutritional product in Australia, China and other Asian countries.

Growth Outlook

Sunnya Pty Ltd

Sunnya’s growth in sales is expected to continue with the signing of two new sales and distribution agreements during the March 2019 quarter, as follows:

Five-year agreement with Guangzhou Niurui Trading Co Ltd that will see Sunnya’s products distributed into 150 BABEMAX maternal retail outlets. Under the agreement, Guangzhou Niurui agreed to purchase 1.5 million tins of Sunnya’s Neurio Lactoferrin milk powder, commencing with 100,000 tins in the first year.

One-year agreement to sell through the popular online store, BON BON and its fast-growing subsidiary, WANWUSTORE.

These new agreements will extend the reach of Sunnya’s popular premium health products into a range of new retail outlets.

Jatpharm joint venture

Jatenergy became the major sharholder in a joint venture, Jatpharm Pty Ltd, a new company preparing to establish an Australian manufacturing operation to produce health products, including vitamins and supplements, diary product and other over-the-counter products.

Jatpharm intends to seek registration with the Therapeutic Goods Administration in Australia and the relevant regulatory authorities in China. Jatpharm directors are continuing to search for a suitable site in Australia.

New products

The JAT subsidiaries are in the process of developing new products to be released in the near future.

Sunnya developed a premium milk product for adults, called Neurio Middle-Aged Formulated Nutritional Powder with Lactoferrin. Sales of this product are expected to commence in mid-May 2019.

Green Forest has created a new canola oil product from oil sourced in NSW. A trademark has been registered, the packaging has been designed and the product is expected to be released in May 2019.

The development of the new product range is a continuation of the JAT strategy to grow by being an innovative nutritional and household product producer in the China/Australia cross-border trade market.

Wilton Yao

Managing Director

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Consolidated statement of cash flows

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows

4.Net increase / (decrease) in cash and cash equivalents for the period

4.1Cash and cash equivalents at beginning of

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows

6.3Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

7.3Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

8.4Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

10.2Place of incorporation or registration

10.3Consideration for acquisition or disposal

10.4 Total net assets

10.5 Nature of business

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

1This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2This statement gives a true and fair view of the matters disclosed.

Director

Notes

1.The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2.If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3.Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.