Ann: Half Yearly Report and Accounts, page-67

Didn’t you see JAT knew that re-selling is not a sustainable business? Therefore, they started acquiring potential business? GK, Sunnya and Green Forest and start producing our own products? Building new plant in Sydney? All these are transition from re-selling to producers.

“In line with its business expansion strategy, Sunnya is expanding the NEURIO product range to appeal to the health requirements across a wider age group.”

“Jatenergy will be the major shareholder in the new com
pany which will establish a manufacturing operation to produce health products, including vitamins and supplements, dairy product and other over-the-counter products.”

Bear in mind, in the process of the transition we already achieved positive cash flow. This will make our expansion much easier. There will be higher margin as we produce more of our own products.

I was comparing Golden Koala IF and WHA, and BUB. And explained how Golden Koala has been affected by SMAR, same to GK’s peers. But you compare JAT’s re-selling business with WHA and BUB which is quite mis-leading. I compare apple with apple and you compare orange with apple.

 

Regarding SMAR, even BAL didn’t expect the complication of this new regulations which affect their sales and sp significantly. JAT acquired GK before change ofregulation SMAR OKAY.

 

“Only question probably worth replying to is, with suchstrong growth demonstrated and guided to, why isn't the SP off the races withinvestors bidding over each other to get a piece of JAT?”

 

I hope you are not new in stock market. Currently there areso many uncertainties in the market, trade war, Brexit, China slowdown and etc.

1.       Peoplejust trade and take profit as they can. Reduced risk.

2.       Heldback by CR’s price @ 6c

3.       SP doesn’talways co-relate to the company value, until it really rerate. PLS been helddown to 35-50c range for 2 years in 2016-mid 2018. Bal. A2 been heavily shortedand half below $3 until rocket from early 2017.
4.      JAT's MD is Chinese, this certainly have impact, will take next and 2 quarters to build confidence.