Originally posted by street talk
What a poorly written report. No mention of SMRA either. This part needs to be better explained by management:
"WHA in securing the organic nutritional powder ceased production on conventional nutritional products". Does this mean they will not sell conventional baby formula into China now once SMRA comes through, if it does at all. Reads to me as though they have abandoned it now.
Those sales numbers are pathetic. Can't even pay the wages on it
Yes, I agree, it is poorly worded. However, SAMR is still on - they reconfirmed this at the AGM. They have $135m in contracts ready to go from Blend and Pack once they receive approval, and everybody is still on board, including the state backed enterprise and Masons. Laz suggested at the AGM that the Chinese government's extension of the cross border rules deadline was to allow the new SAMR dept to process the backlog of applications, including WHA's.
In the meantime they are just getting on with building their organic business while they wait for the new facilities to be built. They are launching the Uganic brand to get it established ASAP. And they still expect to be cash flow positive by the end of 2019.