Valuation, page-79

A few great questions. Here is what I think: When Covid19 started, customers stocked up IFs, then whole sellers stocked up, then A2 stocked up from Sylaint - It's a chain. However, over past half year, no refreshment orders (at least not as large ones as when Covid19 started). What I heard/saw is some people in China are concerned about receiving oversea parcels due to Covid and HK press back in Aug 20 regarding 9 IF brands including Nestle, Danone & A2) tested positive for cancerogen more or less affected demand as well. I think it's short term effect. No doubt more and more companies including Feihe launched A2, but I think it's benefit to A2 sector and A2 as the brand still prevails. Low price set by Corporate Daigous is just for de-stocking. I guess that's also why A2 was expecting big lift on 2H at the beginning, however, lower than expected CBEC sales shake A2's confidence and provided a much softer outlook.