QEX Logistics has inked a partnership distributor deal with French food maker Danone which is expected to lift revenue, it said in a statement to the stock exchange.
“The partnership adds to an extremely strong year for QEX, which provides cross-border logistics and supply chain services focused on New Zealand and China,” it said.
QEX facilitates the storage, supply, packaging, customs clearance and delivery of New Zealand and Australian products bought from stores, online and e-commerce sites by individual consumers from China or through a so-called daigou. The daigou are essentially an army of informal traveling shopping agents who buy products in Australasia for sale in China.
QEX’s main business is sending New Zealand milk powder and infant formula to Chinese customers, largely sourced from Fonterra and Danone.
It also started a new business early last year with two other equal shareholders called ANZ Brand House which was granted the New Zealand distribution rights for Munchkin Grass Fed Infant Formula and accessory products into China.
Late last year, it signed a three-year contract to operate its own bonded warehouse in Shanghai. A bonded warehouse is one that allows the storage of internationally sourced goods prior to being processed through customs, with import duties deferred until the products are released. It remains under the control of the regional government.
QEX reported revenue of $32.4 million in the six months to Sept 30 and is forecasting full year revenue of $60 million.
Its shares last traded up 0.8 percent at $1.20. It listed on the NXT last February and migrated to the main board in October.