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EZZ’s launches new China e-commerce partnership with HIC

  • Two-year deal expected to result in additional $16m revenue annually
    As part of the formal launch, executives from both companies met with a number of key influencers at an event in Guangzhou, China. Source: EZZ.
  • HIC to distribute two products to customers in 27 countries
  • One product contains popular nicotinamide mononucleotide (NMN) ingredient
  • NMN market projected to reach US$386 million globally by the end of 2027

EZZ Life Science (ASX:EZZ) has formally launched a two-year partnership with Aubay Pty. Ltd. (HIC) which was announced back in May.

With an impressive track record of servicing over three million consumers across 27 countries, including in key markets such as China, the UK, and the USA, HIC’s social e-commerce model provides a unique opportunity for EZZ Life Science’s (ASX:EZZ) products to reach consumers outside of the company’s existing distribution channels.

HIC has also been granted distribution rights to two innovative EZZ products: EZZ NMN 175,000mcg and the EZZ L-Lysine Growth Capsule 60.

HIC has exclusive distribution rights for the two products excluding in Australia, New Zealand and on a number of e-commerce marketplaces in mainland China including Douyin and Alibaba Group’s Tmall.

$16m in new revenue annually
The company says the partnership will result in an additional $16m of revenue annually for the next two years, commencing FY24.

To put that in context, the company’s full year sales revenue for FY23 was $37.1 million.

A recent research report from Lodge Partners noted they expect revenue to continue to grow strongly off that back of the HIC agreement.

“As such, we have conservatively forecasted top line revenue growth of 20% over coming years and a long-term gross margin of 60%,” the report said.

“Based on the above, we maintain our BUY recommendation on EZZ, increasing our price target from $1.00 to $1.46, reflecting an implied return of 145% from current levels.”

A slice of the NMN Chinese market
Notably, one of the products includes a supplement featuring the nicotinamide mononucleotide (NMN) ingredient, a form of vitamin B3 which is increasingly popular for its health and anti-aging benefits including improved mental clarity, energy, and sleep.

China is the biggest consumer of the NMN supplements in the world, accounting for 67% of global consumption.

With an increasingly health conscious population, China tops the global NMN market which was valued at US$253 million in 2020 by Nature Media, and is projected to reach US$386 million by the end of 2027.

New marketing campaigns underway
This collaboration aligns with EZZ’s global focus on health and wellness, providing accessible avenues for consumers to access the company’s premium range of health products.

The company is set to initiate a series of robust marketing campaigns and activities, confident of the partnership’s potential to fortify its market footprint across China and Asia.

“Our collaboration with HIC marks an exciting leap forward. Harnessing HIC’s well-established distribution networks across China and neighbouring Asian countries through its membership-based platform, EZZ is positioned to amplify its market presence,” EZZ chairman Glenn Cross said.

“We look forward to the evolution of this partnership with HIC.”

This article was developed in collaboration with EZZ Life Science, 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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