FY20 Half yearly report, page-121

from the AFR

Citi analyst Sam Teeger said there were a number of positives in the results including China market share gains and increased distribution in mother and baby stores in China.But he noted a major negative was a2 Milk's consideration to build its own manufacturing capacity which reduces the appealing capital-light nature of the business, but is required to ensure it can comply with evolving Chinese regulations over the longer term.Mr Babidge told analysts a2 Milk is accessing a number of opportunities."We have got significant product into China so you would expect it to be in the mix," he said when asked about the new location.Mr Teeger said another negative was US profitability with US losses widening to $30 million, ahead of his estimate of a $22 million loss.

I don't rate Sam Teger but I am putting this info out there as I was not aware ATM were required to own more than what they already. That said, a JV on a new site with either Synlait or Fonterra or someone else is better than buying more of Synlait's existing business.