Ann: Business update - Chinese sales, page-109

I am not expecting too much excitement from the March quarter results. We only acquired GK at the end of March so don't expect sales for GK. There is also plenty of outgoing based on what they are doing with the money received from the CR's. Many will milk that for all the negativity they can. Next quarter will be telling.

But there was this quote from the previous quarterly.

"Revenues from customers over the period were consistent with the previous quarter ($800,000 compared to $799,000) and profit margins remained similar. Manufacturing and operating costs rose from $729,000 to $934,000 as a result of timing differences and a significant down payment on milk powder production, the revenues from which are expected to be booked in the March 2018 quarter."

So I hope we are pleasantly surprised.