Ann: March Quarterly Report & Appendix 4C, page-18

I live in Melbourne and as many who follow my posts would know am in my 7th decade of life.

In my younger days, an upstart company started dotting Melbourne with CD stores. The shops were very plain, very simple almost warehouse style with words line "cheapest" and "discount" splashed all over the place in black and yellow.

Like many older people, I liked the targeting of their market, the display designed to re-inforce the discounted brand and the fact that the shops could be replicated anywhere.

The company floated on the ASX in the early 2000's and like AuMake, was nothing to write home about Profit/Loss wise. Participating in all capital issues, buying the dips etc. that stock has been a 30 bagger. Sure, I have backed some losers as well, but a dozen 10 -100 baggers has well and truly covered up any crevices.

AuMake has similar characteristics to JB in targeting and reaching its market. If you are counting people in the shops you're looking in the wrong place for where this business gets its revenue. This is a 21st century business and essentially a logistics business, selling to a premium market of direct and daigou based buyers.

The company has stated many times that online channels like WeChat represent a substantial portion of turnover. The stores are mainly the introduction to the business its products and human faces.

The market cap at this point is time is a discounted potential future cash flow valuation of a growing business. Plug in whatever ROE, P/E,EBIT etc you like, because it is an unknown quantity. If they are successful $75m could be a fraction of its value. If they are unsuccessful, it will be a rich multiple of its
worth.

That is what we will all find out in 12-24 months' time.