RooLife Group has secured a two-year supply agreement with Eternal Asia, granting access to over one million retail outlets across China and potential annual orders worth up to AUD 110 million.
- Two-year strategic supply agreement with Eternal Asia
- Access to 1 million+ retail outlets in 320+ Chinese cities
- Potential annual order value up to CNY 500 million (~AUD 110 million)
- Initial orders received; no minimum purchase commitments
- Future expansion possibility into renewable energy products
A Gateway to China’s Vast Retail Market
RooLife Group Ltd (ASX, RLG) has announced a significant partnership with Eternal Asia Supply Chain Management Ltd, one of China’s largest supply chain service providers. This two-year strategic supply agreement positions RLG to supply health, wellness, and food & beverage products across Eternal Asia’s extensive distribution network, which spans over 320 cities and more than one million retail outlets.
The deal is notable not only for its scale but also for the quality of access it provides. Eternal Asia services over 100 Fortune Global 500 companies and thousands of major enterprises, offering RLG a direct channel into China’s general trade retail sector; a market segment that accounts for the majority of retail sales in the country. This includes physical stores, supermarkets, pharmacies, and domestic e-commerce platforms.
Financial Scope and Strategic Fit
The agreement outlines an estimated annual gross order value of up to CNY 500 million, approximately AUD 110 million, contingent on confirmed purchase orders and agreed pricing. While there are no minimum purchase commitments, RLG has already received initial product order requests and is actively sourcing suppliers to fulfill these.
RLG’s Managing Director Bryan Carr highlighted the strategic importance of the partnership, emphasizing how Eternal Asia’s data and distribution capabilities will enhance RLG’s Intelligent Commerce engine. The deal aligns with RLG’s lean, agile business model focused on fast-moving, high-margin products, enabling scale without the traditional costs of warehousing or brand-building.
Potential for Growth Beyond Consumer Goods
Beyond health and wellness products, the agreement includes provisions for future expansion into renewable energy technology products, signaling RLG’s intent to diversify its portfolio within China’s rapidly evolving market. This could open additional revenue streams and deepen the partnership’s strategic value over time.
Headquartered in Shenzhen and ranked #158 on the 2023 Fortune China 500, Eternal Asia is a subsidiary of Shenzhen Investment Holdings Co., Ltd., a Fortune Global 500 enterprise. Its established reputation and vast network provide RLG with a rare opportunity to scale quickly in one of the world’s largest retail economies.
As RLG embarks on this partnership, the market will be watching closely to see how effectively the company can convert initial orders into sustained revenue growth and whether it can leverage this foothold to expand into new product categories.
Bottom Line?
RLG’s partnership with Eternal Asia could redefine its growth trajectory; execution will be key.
Questions in the middle?
- How quickly can RLG scale to meet potential order volumes from Eternal Asia?
- What impact will this agreement have on RLG’s financial performance in the next reporting period?
- Will RLG successfully expand into renewable energy products under this partnership?