Short levels are not even high at all for A2M. Not even sure why it is a discussion. 4% is nothing.
Agree with your points about improving profitability though.
I would add to that, the composition of China label (lower margins) vs English label (higher margins) will also impact profitability. Since daigou collapsed and English label switched to CBEC channels, margins have been impacted. The China label segment has done a lot of the heavy lifting and that's partly why margins flatlined for a while.
However, I think English label has performed better than expected more recently. It could be partially to do with economic conditions in the China market and people not affording the ultra premium China label products. It'll be really interesting to see what the addition of Gentle Gold product does.
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