Originally posted by Jace1984
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.
Can you explain how SAMR can be attained when they announced they have ceased manufacturing the product which they applied for SAMR. Their application was for non-organic bovine infant formula....they can not simply substitute the formulation for an organic version. If they wanted SAMR for organic, AT BEST they have to submit a variation to their application (with all associated new paperwork) and 500kg of finished samples which need to be tested again and all paperwork thoroughly reviewed. They also required new labelling submission for the new product. AT WORST they abandon the original application and submit at new application and start the process again.
Given that there are 15 people in total who process SAMR applications and only 3 who process foreign applications, and that the three foreign processing staff are now on CNY holidays and are undertaking factory inspections in ireland and holland in march.....
Oh. And how long will those sales contracts and retailers stand waiting for some never to be delivered product which has now been annoinced will never be manufactured.....and then hope those retailers will wait another year (minimum?) for a new organic product (and what differentiates WHA organic from other organic products already approved and in the market in china). Biostine (owners of swisse) just released their new global (french sourced) organic IF in chemist warehouse and cross border and general import in china...
You people can make your own assessments.