BY Health & Biotech | Tim Boreham

• The health and wellness products purveyor has suffered from cheap Chinese knockoffs
• The company has emphasised the Australian market while targeting other Asian geographies
• After “disappointing” annual results, management is striving to diversify the company’s sales channel and invest in product innovation

As a purveyor of health and wellness lines, EZZ Life Science (ASX:EZZ) would not seem to have much in common with Treasury Wine Estates (ASX:TWE), custodian of the Penfolds label.

But they share a common problem in the Chinese market: brazen counterfeiting of their valuable IP that draws on the companies’ proud Australian provenance.

EZZ chief strategy officer Glenn Cross admits that cheap rip-offs have affected EZZ’s sales in China – a region the company has worked hard to penetrate.

“Makers of Chinese supplements wrongly claim they are manufactured in Australia and that has confused the market,” he said.

“The China business is tough and our revenue is down so we are focused on the domestic market.”

Like knock-off Gucci handbags, the ersatz goods are easy to pick because they are sold at half price or less.

Cross says the company has tackled other Asian markets, including Malaysia, Singapore, Thailand and Vietnam.

But it has far from given up on the Middle Kingdom.

In the meantime, EZZ has tackled the US market with considerable success, but progress has been “a bit slow”.

Something for everyone
The only ASX-listed company of its ilk, EZZ has a range of more than 50 products.

These include vitamins, dietary supplements, sports nutrition, weight management aids and paediatric care.

Every product is backed by “rigorous scientific research”.

EZZ’s best-selling lines include an anti-ageing supplement, NAD+. This one is nicotinamide adenine dinucleotide, a critical coenzyme found in every living cell.

NAD+ is essential for cell rejuvenation, but the body produces less of it over time.

Other top sellers are a lysine (amino acid) growth dietary supplement and a bone growth chew for adolescents.

EZZ also distributes the products of local skincare group EAORON, such as face hyaluronic acid masks.

The company recently released a new range under the MeTime banner.

These include Corti Calm, to support “healthy cortisol rhythms and stress regulation”.

As its name suggests, MeTime Hunger Helper supports appetite control and weight management.

The MeTime range is stocked by Woolworths HealthLife online platform, as well as another local pharmacy distribution channel.

Slow boat to China
EZZ’s decision to focus on China is simple: it’s the second-biggest supplements market after the US (Europe is huge, too, but it consists of many markets).

“We have strong brand recognition, and we have done very well through key Chinese e-commerce channels,” Cross said.

“Our key value proposition in China is that the products are different.

“The formulations are not just vitamin C or vitamin D in a tablet.

“Having our products made in Australia under good manufacturing practice and having them registered with the Therapeutic Goods Administration was a big selling point for us.”

In August EZZ forged a deal with Xenitra (ASX:XEN), formerly Aumake, under which the Asia-focused company became exclusive global distributor for co-developed EZZ-branded products.

The tie-up goes for four years.

The deal involves Xenitra purchasing a minimum $10 million, with annual purchases of $2.5m.

Xenitra manages sales, distribution and choice of channels, “in accordance with EZZ’s brand, quality and operational standards”.

The agreement “supports EZZ’s strategy to scale distribution through established international platforms and channels”.

Disappointing results, difficult conditions
In “materially more difficult trading conditions”, EZZ reported revenue of $46.28m for the year to June 2026, down 36%.

The company narrowed a previous $6.73m net loss to $5.32m.

“Softer global economic conditions, weaker consumer sentiment, reduced discretionary spending and increased competition across key consumer health and e-commerce channels had a significant impact on the group’s performance during the year,” said chairman Gary Liu and managing director Qizhou (Mark) Qin in the annual report.

“These conditions were particularly evident in China, where activity across major e-commerce platforms including Douyin, Kuaishou and Tmall softened significantly.”

EZZ did not declare a dividend, having made payouts in the three previous years (2 cents per share last year).

“Our priority is to reward patient shareholders, so we would like to resume dividends when we are in a position to do so,” Cross said.

China’s share of EZZ’s revenue fell to 65%, from 69% in the 2024-25 year.

Conversely, Australia and NZ accounted for 20% of sales, compared with 11.5% previously.

Locally, EZZ distributes through Chemist Warehouse and Priceline, as well as the Terry White chain. Amazon and Ebay also are important online conduits.

Cross said the company had been dealing with Chemist Warehouse for many years, mainly via online channels.

While the liaison has been successful, Chemist Warehouse is developing its own generic/private label Wagner, which spans an enormous range of supplements and generic pharmaceuticals.

EZZ-i does it in the US
To date, EZZ’s US foray mainly has been via ecommerce.

Following receipt of US Food and Drug Administration (FDA) registration, the company recently launched four products targeting high-growth demand within the women’s health and general wellbeing categories.

The company has adopted the moniker EZZDAY, which slips off the tongue of Americans who pronounce their ‘Zeds’ as ‘Zees’.

Cross said the products were made in the US, which avoided any tariff issues.

“We are comfortable with the product range and quality, it’s just getting the distribution right,” he said.

“We are looking at opportunities in the retail sector, as opposed to pure e-commerce.”

He said the company was talking to one retail group, “things move pretty slowly in the States”.

The company always expected the US to be a tough, competitive market.

“It’s more of a longer-term project for us,” Cross said.

“Our approach is to steadily increase ecommerce sales and then look at retail opportunities.”

Love match
For the last two years, EZZ has sponsored the Australian Open tennis, reaching millions of viewers across China and southeast Asia.

The broadcasts in the region include plenty of EZZ branding.

This summer, the company again will wield its metaphorical racquet and return serve against the counterfeiters.

Cross says there’s no magic bullet to the problem.

“We just keep telling our story,” he said.

“We are real, we manufacture in Australia and our products are high quality. We can’t really do much else.”

He added that Chinese consumers were discerning. Just as they quickly learn that Chateau Yangtze is not Grange, they will learn that those emulating EZZ are not the real McCoy.

“We’ll continue to focus on the domestic markets in Australia and New Zealand and continue to look at new opportunities in the rest of Asia.”

“Obviously, China is still a priority. We want to get the revenues back up to what they were in the 2024-25 year because we were certainly down last year.

“Our priority will still be e-commerce channels and growing some of the direct retail opportunities in China.”

Ultimately, EZZ’s subdued full-year results are a case of adversity bringing comfort and hope – and building a better company.

Liu and Qin said the numbers “reinforced the importance of building a more diversified channel base, broadening market access and strengthening long-term brand equity beyond any single platform or market.”

If that strategy succeeds, the counterfeiters will be left in the dust of the local flea market.