It helps if you read the report in context. This was for the...

It helps if you read the report in context. This was for the half year ended 31 December 2020. We already know this was the worst hit period of covid and that the A$32m Sunnya deal was secured in the following quarter. Further to this the retail Shangai store, online retail store, Wumart and other revenue chains don't commence till February.

We already knew revenues would be low. It is what they achieve in 1H 2021 and particularly 2H 2021 that really counts. A quick review of the positives.

GROSS PROFIT MARGIN
Gross profit margin has increased to 40%. If JAT can maintain these margins when revenues ramp up we should see a big increase in NPAT.


DEBT REPYAMENT
The company has acknowledged the high interest debt needs to be removed and once done a solid profit will be achieved. Either an equity investment or replacement low cost loan would be a great result for shareholders and see another $1.6M a year in interest fees saved.



The market sell off wasn't surprising. Obviously some had a knee jerk reaction to the results maybe not realizing they are historic and major deals have been achieved since. The other thing was flagging a potential placement is always going to see front running in the retail end.

Management are taking proactive measures to remove the debt and increase the gross profit margins. If they continue executing their plan and hit the forecast revenue rate the 2H of 2021 will look much different to this report.

There is a lot to look forward.