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ROOLIFE GROUP LTD — Capital/Financing Update 2025
Sep 23, 2025
65712_rns_2025-09-23_8b81d8d7-c2db-4301-97b7-8fe1b3b0fc7a.pdf
Capital/Financing Update
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24 September 2025
Further Details on RLG $64M Coffee Agreement
e-Commerce company RooLife Group Ltd (ASX:RLG) (“RLG” or “Company”) is pleased to provide additional information in respect to its binding two-year Supply and Procurement Agreement with Zhongshan Runlian Commercial Co., Ltd (“Zhongshan Runlian”) for the supply of its RLG branded coffee beans, beverages, food and coffee machines into the Chinese market, as announced 22 September 2025.
In line with RLG’s data-driven e-commerce and sales channel model, RLG is focused on identifying demand for highmargin products, sourcing product from suppliers based on price and quality and applying RLG’s branding to the products, rapidly deploying and selling into market.
Execution of the RLG Model
The further expansion in the Coffee vertical delivers on this model, built on market insight, rapid sourcing, branding and sales through established channels. The Zhongshan Runlian agreement demonstrates this model in practice:
Demand-led entry: Coffee identified as a high-demand category in China and the current low market penetration.
Partner-driven scale: Leveraging Zhongshan Runlian’s distribution agreements and Eternal Asia Supply Chain Management Ltd’s (SZSE:002183) (“Eternal Asia”) national retail footprint to accelerate volume sales.
Branded margin focus: Expanding RLG Coffee alongside bundled sales of equipment and subscription programs to build recurring revenue.
RLG announced the official launch and first sales of its proprietary RLG Coffee brand and range into China’s rapidly growing coffee market in August 2025, with the range to be sold online and offline, based on the strong growth profile for coffee sales in China and the current low market penetration.
Coffee consumption in China has been growing at +21% annually since 2011, compared to the global average of 1.8%, with the sector forecast to generate revenues of more than US$20 billion by 2025[i] .
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The RLG Coffee brand is supported through flagship online storefronts on prominent e-commerce platforms JD.com, Tmall and Douyin and through a range of sales sub channels including through Zhongshan Runlian and Eternal Asia. In addition to its own sales and distribution channels, Zhongshan Runlian holds co-operation and distribution agreements for coffee products being sold through Eternal Asia channels providing supply chain services, brand operations, internet-based sales and in-store sales for the RLG Coffee range.
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RLG’s entry into the coffee category is supported by established, large-scale sourcing arrangements with experienced suppliers in China, ensuring reliability, quality and the ability to scale with demand.
RLG sources its coffee through a range of suppliers driven by taste profile requirements, product pricing and volumes, including:
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COFCO, a major Chinese state-owned enterprise (SOE) and one of China’s largest food & agriculture conglomerates. COFCO is well-established and well-positioned to supply at scale to meet RLG’s requirements. It has extensive sourcing and nationwide logistics infrastructure and the capacity to reliably service large-scale coffee bean orders across China, with RLG’s requirements forming only a very minor fraction of COFCO’s overall capacity and RLG is satisfied that it can meet its expected order requirements.
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Shanghai Baorong International Trade Co., Ltd (“Baorong”), a company long-established in the procurement, sales and distribution of raw coffee beans in China, dealing in both imported and domestic coffee beans and provides RLG with a diverse range of coffee beans for roasting.
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Suzhou Xiangchen Coffee Trading Co., Ltd (“Xiangchen”) which is a specialty provider of green coffee beans in China, with a long track record having been founded in 2014.
Based on volume requirements around 70% of the base supply of required products is sourced through COFCO and around 30% through Baorong, Xiangchen and other specialty providers so as to ensure the appropriate access to volumes and product mix.
This multi-supplier model provides both volume security and quality flexibility, enabling RLG to meet demand forecasts and expand its branded range.
RLG has inspected and visited relevant warehouses, factories and sales divisions and is satisfied that the suppliers can meet the supply requirements of RLG.
Similarly, RLG has visited, met with and inspected the sales channels distribution arms, reviewed sales contracts and sales forecasts of Zhongshan Runlian, Eternal Asia and others over the last 9-month period while preparing its coffee production and distribution business operations with established sales outlets and on the basis of these engagements and the information provided, is satisfied that the contracted order volumes are capable of being serviced and financial obligations adhered to.
The Company purchases and brands products in line with agreed forecasts and orders, with 50% deposit received on monthly orders with the balance due and payable within 7 days of delivery and acceptance.
RLG’s entry into the coffee segment aligns seamlessly with RLG’s broader strategy of leveraging digital consumer platforms and high-reach supply partnerships to penetrate high-growth product verticals in China.
Confirmation of Key Terms of the Agreement
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Purchaser: Zhongshan Runlian Commercial Co., Ltd – a leading Chinese wholesaler and distributor of coffee products.
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Supplier: RLG Global Trading (Zhuhai) Co., Ltd. – wholly owned subsidiary of RLG.
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Contract Value: Minimum RMB 300 million (~AUD $64 million) over two years.
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Products: Coffee beans, beverages, dairy products, packaged foods, and coffee/food service equipment.
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Term: Two years (20 September 2025 – 20 September 2027).
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Termination Clause: If either party commits a material breach, which isn’t settled through friendly consultation, the non-breaching party has the right to unilaterally terminate the Agreement.
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Payment Terms: 50% deposit on monthly orders; balance within 7 days of delivery and acceptance.
Zhongshan Runlian and RLG will be marketing and promoting the RLG Coffee range at the Food2China Expo in Guangzhou 25–27 September 2025 (www.food2chinaexpo.com/en/).
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ENDS
i www.gcrmag.com/the-future-of-the-chinese-coffee-market
Issued by : RooLife Group Ltd Authorised by: The Board of RooLife Group Ltd
For further information, please visit the RLG website at www.rlgcommerce.com or contact:
Bryan Carr Managing Director Ph: +61 8 6444 1702 Email: [email protected]
About RLG
RLG (ASX:RLG) is a data-driven e-commerce company focused on identifying demand for high-margin products and rapidly deploying them into the world’s fastest-growing markets.
With a footprint across China, UK, Australia and India, RLG leverages market data, supplier networks and multichannel sales infrastructure to deliver products across consumer goods, food & beverage and renewable energy sectors. The Company’s model enables speed to market, margin optimisation and scalability without warehousing costs.
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