NCA are a newly registered cnca manufacturer. As they have no...

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TheChoice

767 Posts.

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09/08/18

21:55

Post #: 34845078
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Originally posted by smickp ↑

I'm very new here but I think "The Choice" knows what he is talking about.
Golden Koala hasn't got CFDA approval. If you have a look at the CFDA approval site (link below) you'll see it takes between 1 and 2 years and costs $30,000 USD for each product. So the deal JAT has so proudly posted dosn't amount to much right now.
On the other hand NCA has Australian and Chinese (CNCA) operating licenses but are "Seeking a strategic investment partner to enable factory expansion to accommodate massive international demand" through BPS Advisory
They state they "have the capacity to produce 864 containers per annum (at 48 weeks x 6 days), each of 17,772 x 900g tins" http://www.thebpsgroup.com.au/businesses-for-sale/milk-powder/
The one thing I havn't been able to find is who they are selling their product through or what kind of exposure they have in the Chinese market. So for now JAT should be putting the majority of their attention towards NCA. But this would probably require another capital raising if JAT were to be NCA's strategic investment partner.
http://www.sfdachina.com/info/176-1.htm

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NCA are a newly registered cnca manufacturer.
As they have no cfda registrations neither they, nor any of their customers, are exporting any infant formula for general import into china.

However chinese media (being no less sensationalist than Australian media; maybe even more so) there will be articles already in china about NCA's administration....

When chinese consumers start doing their brand investigations into any brand manufactured by NCA, the administration articles will come up in their baidu searches....

This wont be fatal in the long run but will cause some hesitancy from some consumers for a while.

JAT Price at posting: 7.5¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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