Ann: Appendix 4C - quarterly, page-63

The way I read the logistics issue is that Covid has prevented Chinese people from visiting and studying in Australia, which has the knock-on effect of reducing Daigou sales and exports. The report notes that JAT is trying to rapidly establish alternative sales channels including a group-buy mechanism via WeChat. It will take time for the alternative systems to become known and used to any significant degree. Border closures are the main issue I think, and that gives us a hint to the value of the Daigou sales channel within overall sales.

They also point out that Chinese consumers were slowly increasing purchases post the Covid lockdowns. This will take time to recover as Covid ebbs and flows during the coming months and years.

I still take the view that JAT is a developing company that rapidly tests and trials products, partnerships, and sales channels to see what works, and to keep up with changing trends. In other words, JAT will take a few years yet to fully mature with well-developed product lines and markets. The Long-term outlook still looks good in my view.