There is also the bigger picture to consider. It's also about...

There is also the bigger picture to consider. It's also about what this opens up in terms of possibilities for China label in the next four years.

Under the old domestic infant formula market, there were thousands of IF products and hundreds of manufacturers approved to produce these products.

Now under the tighter regime, it's currently down to less than 100 producers and maybe 500-600 products (and here I am counting each stage as a 'product', so A2M has 3 'products'). So in the new China label market, competition is reduced.

Just as importantly, the products approved under the new regime have upgraded nutritional requirements. For instance, I recall the required DHA level is tripled what it was previously. In the eyes of consumers these new China label products are viewed as higher quality than previously.

There might very well be a short term SP bump but these longer term benefits will boost A2's China label market share and sales.