Zoono Group Ltd (ASX:ZNO) has entered into an exclusive distribution agreement with Beijing Youmeng Technology and Development Limited for the childcare and hotel sectors in China.
The agreement has an initial 5-year term with minimum purchase volumes of:
- NZ$1.5 million in the first 18 months;
- NZ$2.3 million in year two; and
- NZ$3.0 million in year three; and
- Increasing by 10% in years thereafter.
Zoono has received an initial payment of NZ$775,000.
Shares hit new all-time highs
Zoono is trading up 26% today at $1.255, which is an all-time high since its listing on the ASX via reverse takeover in May 2017.
Today’s childcare and hotels distribution agreement follows a recent market update on 30 January 2020 in which Zoono first revealed it was receiving coronavirus related enquiries.
Zoono also revealed that it has received product orders in excess of NZ$1 million in the last two weeks of January predominantly from China and Hong Kong.
March quarter revenues already exceed December half
Zoono’s unaudited revenues for the March quarter to date are NZ$2.4 million, with on-line sales in Australia and New Zealand contributing strongly.
To put this in perspective, Zoono generated NZ$1.72 million in the recent December half and NZ$1.78 million in the entire FY19.
Today’s hotel and childcare distribution agreement is the fourth agreement for an industry sector in the Chinese market in the last six months.