Ann: Appendix 4C - quarterly, page-67

Looking at the numbers, its not overly terrible. I think the big issue is not enough transparency about how the money is spent, and we need more clarity on the strategy at the moment.
They currently have franchise stores mainly, that are generating sales... extraordinary margins and profit.
So I wonder, is it worth buying them and renovating them at high expenses so that the margins can be a little better? Perhaps a better strategy would be to open NEW stores, and keep the existing franchise stores as is. This would produce a bigger footprint, and maintain current sales, as well as generating new sales. I am aware that they are also doing this, but I dont understand why they would buy existing franchise stores. They need to clarify this better, as it seems at odds with logic. However, I am sure they have done their numbers, and can prove me wrong, just need clarification. (I dont call and speak with directors, perhaps I should. But if someone does speak with them and is comfortable to bring this up, I think if they were to clarify this issue it would tremendously help boost confidence.)
I have travelled to china and do trade with chines businesses on a regular basis. About 5 years ago when I started I realised there are 2 types of businesses in china, real ones and dodgy/fake ones. I feel that over the years, the number of dodgy ones have reduced. But I have also established my suppliers, and know who to trust. The real businesses in China are good, very good in fact. Better service, prices and quality than what is available in Australia. So I dont discredit SBB, it may be a real high quality business, just needs more transparency at this stage.