When I first saw the news about the change of Regulations for...

When I first saw the news about the change of Regulations for "Daigou"s in China, I was very much concerned about my A2 shares. A2's booming relies too much on "Daigou" channel. Its business in China is increasing and turned loss into profit this year, however, the biggest increase is still the sales of IF in Australia, and most of sales replies Chinese consumers, which buy A2 IF via "Daigou" and it is known as "Grey Channel". According to the new regulation, 11.5% tax is imposed on IF sold via "Daigou" to China, which most likely will affect IF's sales. However, when we think a bit deeper, it should only affect A2's sale in short term. What we will see is, when Chinese Government decided to impose tax on "Daigou", it implied its legal market position. There is no more "Grey Channel" after 8th, April. Instead, it is a legal market and will be protected by Chinese Government. Of course, it may affect IF sales in short term, however, it is a positive news from long term's aspect. 11.5% tax is not much, just around 20-30 yuan per tin. Even after taxed price, it is still much cheaper than local IF products but A2's quality and reputation is much higher . Remember, A2's marketing strategy is not price-oriented, A2 offers quality, unique products with premium price.
My thought on Geoffrey's sale on his shares is that A2 shareholders, especially the big ones, might need to consider increasing A2's management team's remuneration as encouragement. Nevertheless, they have done a great job for its shareholders.
Just a bit thought to share, welcome criticalness but not down-rampers!! LOL