Zimi Limited confirms $1.42 million in open orders with key distributor GSM Electrical, backed by shareholder approval for up to $6 million in future sales. The company also advances its commercial market ambitions through a new partnership with Zencontrol.
- New and backorders total $1.42 million with GSM Electrical (Trader)
- Shareholders approve related party sales up to $6 million over two years
- Historical sales of $2.37 million to Trader ratified for ASX compliance
- New distribution partnership with Zencontrol targets commercial control systems
- Enhanced governance frameworks implemented for related party transactions
Strong Order Momentum with Key Distributor
Zimi Limited (ASX: ZMM), an Australian IoT technology company, has announced a significant milestone with $1.42 million in open orders from GSM Electrical (trading as Trader), a major distributor closely linked to the company through Non-Executive Director Simon Gerard. This figure comprises $720,489 in new purchase orders alongside $699,675 in existing backorders, underscoring sustained demand for Zimi's smart electrical products.
The recent General Meeting on 28 April 2025 saw shareholders approve a resolution permitting Zimi to sell up to $6 million worth of products to Trader over the next two years. This approval formalises the related party relationship in compliance with ASX Listing Rule 10.1, providing regulatory clarity and operational certainty for future transactions.
Governance and Historical Sales Ratified
Alongside the approval for future sales, shareholders ratified approximately $2.37 million in historical sales to Trader made between May 2023 and November 2024. An Independent Expert's Report affirmed that the terms of these agreements are fair and reasonable to non-associated shareholders, bolstering investor confidence in the commercial relationship.
Zimi's board has responded by implementing enhanced governance frameworks to ensure transparency and rigorous oversight of related party dealings. This move reflects a commitment to high corporate governance standards while leveraging the strategic value of Trader as a distributor that actively markets, stocks, supports, and sells Zimi’s products.
Expanding Horizons with Zencontrol Partnership
Beyond its established smart home market, Zimi is broadening its commercial footprint through a new distribution agreement with Zencontrol, a global leader in commercial control systems. This partnership introduces Zimi’s exclusive Senoa Pro range into commercial sectors, potentially unlocking new revenue streams and market segments.
CEO Jordan Tentori highlighted the strategic importance of both relationships: "Our ongoing partnership with Trader remains crucial, and with shareholder approval secured, we can focus on fulfilling these orders. Meanwhile, our collaboration with Zencontrol opens exciting opportunities in commercial control systems, complementing our smart home offerings."
Operational and Market Outlook
Zimi is leveraging a recently announced manufacturing agreement to enhance delivery capabilities, aiming to meet the increased order volumes efficiently. The company is actively finalising product specifications with Zencontrol to accelerate purchase orders and market entry.
With a multi-billion-dollar opportunity in the Australian IoT market and ambitions for global expansion, Zimi’s strategic partnerships and governance improvements position it well for sustainable growth. Investors will be watching closely as the company executes on these fronts and reports on order fulfillment and new commercial contracts.
Bottom Line?
Zimi’s strengthened distributor ties and governance pave the way for growth, but execution on new commercial ventures will be key.
Questions in the middle?
- What are the expected timelines and margins for fulfilling the $1.42 million in current orders?
- How significant could Zencontrol’s commercial channel be to Zimi’s overall revenue mix?
- Will enhanced governance measures affect the pace or scale of related party transactions going forward?