Ann: Cettire Confirms China Launch, Provides FY24 Update, page-216

What are your thoughts on the significant portion of its revenue potentially stemming from mis-declarations during customs and duty processes? Since your last investment at 50 cents, here's what's changed—and the implications for investors:

• Revenue and earnings have grown: This sounds positive at first glance.
• Earnings margins are stagnant or declining: This is troubling, as businesses are typically valued based on earnings, and there's no clear reason why CTT's costs should have risen proportionally with its revenue.
• Concerns about overcharging customers for duty: This raises red flags regarding the company's reputation.
• Potential mislabeling during customs: This could have serious legal consequences and result in a permanent decline in earnings compared to previous levels.
• Slowdown in China's luxury goods market: Many top brands with stronger competitive advantages than CTT are seeing declines, which likely spells trouble for CTT.
• Launch of the China website: If this was a last-ditch effort to save the company, why wasn’t it done sooner if it was so critical?

Good luck to all shareholders—capital destruction benefits no one.