NUTRITIONAL GROWTH SOLUTIONS LTD — Capital/Financing Update 2024

Oct 16, 2024

ASX ANNOUNCEMENT | 17 OCTOBER 2024

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NGS EXPANDS DISTRIBUTION TO CHINA

HIGHLIGHTS

• Export of Healthy Heights range to consumers in China with U.S.-based strategic partnership with NutriGenix International Co. LTD.

• First-year sales target is USD 1M (AUD 1.5M).

• Margins are expected to be comparable to, or better than, existing U.S. retail channels.

Nutritional Growth Solutions Limited (ASX: NGS ) (" NGS " or "the Company "), a health, nutrition, and wellness company headquartered in the United States, is pleased to announce its planned expansion of sales to Asian consumers, firstly with a new distribution partner for accessing the China market. This strategic partnership marks a significant step in NGS’s global growth strategy, capitalising on the continuing demand for high-quality children’s nutrition products in Asia.

CHINA EXPANSION

NGS’s new strategic US-based distributor partnership will leverage ecommerce models to enable consumers in China to access the Healthy Heights range of high-quality children’s nutritional products.

Ecommerce route-to-market models are a significant channel for nutritional products in Asia. Cross-border ecommerce in China is the primary channel for foreign nutritional brands to reach consumers in the market. This is evidenced by the success of foreign vitamins and dietary supplement companies and In China.

NGS will partner with NutriGenix International Co., Ltd. ( NIC ), with a particular focus on China’s continuing demand for premium foreign formulated milk powder for toddlers and children. The firstyear target for sales is USD 1M, with a minimum annual commitment of USD 250K. In years two and three, sales are projected to grow to USD 3M and USD 5M, respectively, with NIC committing to annual minimum orders of USD 750K in Y2 and USD 1.5M in Y3. These products will be identical to those sold in the U.S., ensuring consistency and quality.

This partnership marks an exciting new chapter for NGS, with significant potential for revenue growth and market expansion. Margins for this strategic partnership are on par with, or better than, the company’s existing retail channels in the U.S., ensuring these new markets will contribute positively to the company’s bottom line from the outset.

Nutritional Growth Solutions | ASX: NGS | ARBN: 642 861 774 | www.ngsolutions.co 16885 Via Del Campo Court, Suite 218, San Diego, CA 92127

ASX ANNOUNCEMENT | 17 OCTOBER 2024

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Stephen Turner, CEO and Managing Director, commented: “We are thrilled to be expanding access for consumers in China for our products with a trusted American distributor who have deep experience and focus on the region. The partnership is a critical part of our strategy to expand our global footprint in a considered and disciplined manner. We see tremendous potential in China and beyond, and are confident that our premium nutrition dairy products will resonate with consumers in Asia, just as they have in the United States.”

This announcement has been authorised for release by the Board.

For further information, please contact:

Stephen Turner

Managing Director and CEO

steve@ngsolutions.co | steve@healthyheights.com

About Nutritional Growth Solutions

Nutritional Growth Solutions is a U.S.-based health, nutrition, and wellness company. NGS develops, produces and sells clinically tested nutritional supplement formula for children following 20 years of medical research into pediatric nutrition. The nutritional supplements market has experienced tremendous growth in recent years, but most attention has been focused on adult users and children under three years of age. The three to twelve-year-old consumers represent a larger market opportunity and NGS is highly differentiated from its competitors with clinically tested products and an expanding product portfolio to capture this market opportunity.

https://healthyheights.com | https://ngsolutions.co

Nutritional Growth Solutions | ASX: NGS | ARBN: 642 861 774 | www.ngsolutions.co 16885 Via Del Campo Court, Suite 218, San Diego, CA 92127