Ann: Strategic Review - Presentation, page-22

Speaking of the Daigou Channel, I am not familiar with it but I can share what I can see on the Chinese social media. I notice that at the very beginning, overseas students etc are reselling the baby formula on Alibaba shop or wechat private shop/friend circle. That is okay because it is like reselling it in private. But for commercial Daigou, I can see that AZ Global as commercial Daigou are distributing baby formula to mother and baby shops because I can see the advertisements on the social media. However, from around March this year there are restriction on selling baby formula in the stores now because of the new SAMR (but the mother and baby shops can probably still continue to sell the old stocks). Without the new SAMR you can’t sell it in mother and baby stores now. So If now Bub is going to find a commercial Daigou, it is more difficult than last year because of the SAMR.