Originally posted by towkay
I wondered if his first year finance lecturer told him there r 1.4 billion people in China
(or maybe he was not listeningclear.png) and they don't have reliable milk to feed their babies. clear.png
Shelves stripped bare at Woolworths Ryde.
Source:News Corp Australia
See how desperate they are:
https://www.news.com.au/lifestyle/p...e/news-story/21fbb3b8b742cb7017de8d110b3c5d74
AuMake Quarterly Activities Review: Addition of dairy category to owned brand product portfolio.
"AuMake is developing a range of owned brand milk powder formula products specifically tailored to the Chinese market, with the exception of infant formula in the initial phase. The A1 product range is scheduled for launch pre-Christmas, with the A2 range due in April / May 2019."
Hopefully, AU8 can help them solve the problem.
Last annual report says AU8 has 400,000 daigou as client working through its daigou hubs. Someone is busy! clear.pngclear.png
Actually, working for a company that exports (food) directly to China I have a fairly good understanding of the market there and what drives consumer decisions.
Yes there are 1.4 billion people... Yes they need food... No they won't buy it from a flashy shopfront in Sydney just because the staff "speak Chinese" and can package their goods up for them to save them a trip to the post office.
AuMake can develop powdered milk all they want (notably, not infant formula) that won't change the fact that their business model is flawed and they have been burning cash at an alarming rate for the past 12 months.