Hey @SaberXYeh - been super busy with other things, but I think...

Hey @SaberX

Yeh - been super busy with other things, but I think RLG is continuing to roll along. The commentary does seem to be a little meaningless here, as SP volumes are so shallow that this thing can be manipulated with little more than 10-20k, and then you get the flooding comments of "dog", etc.

I've been following the Tmall data, and it's been fairly stable (nothing much to report). The main two recent call-outs have been some nice growth in Remedy, but at the same time, it looks like Essano has disappeared, although it wasn't pushing large volumes anyhow. I suspect they have pivoted to a different sales channel. Overall, the Tmall data is not significant to RLG's overall operations, just indicative.

I was just doing a closer look at the 1H financials, and the announcement yesterday - a few quick thoughts below:

1) The company is in much better position than it was 12 months ago. Based on the announcement yesterday, if revenue grows by just under 30% this quarter, we are looking at 5M. Assuming a stable Q4, this would bring FY22 revenue to full year AUD 18 million. Basically a 100% increase Y-o-Y.

2) In terms of margins, the 1H does classify certain items as "COGS" - including product/logistics/promotional/staff/contractors/others. Therefore, we can get a sense of gross margins. For 1H the GP was around 662k. Over product revenue this is around 8-9%. This is why volume is so pivotal - this is a volume business for sure, not a margin business. Assuming this margin and absolutely no growth in OPEX, annual sales needs to be around 34M to break-even. We are probably 18 months away from that.

3) Regardless of profitability - the goal here is cashflow positive, so that we don't have to raise funds (or we can target strategic investments on our terms). I believe we are much closer to this goal, since the 'cash cost' of the business should, in theory, be less than the OPEX. Regardless of this, if the burn is managed (say 500k per quarter), then we should be able to maintain and build towards a self-serving business.

Overall, I worry here that folks are looking for quick gains, and focused on the small picture. The big picture to me hasn't changed - just need time to tick a bit faster. Would obviously prefer if management gave more updates, but it's pleasing that they see $310k of cash receipts as ".... may not be considered material..." I'd call it material, especially given it's a completely new channel of sales. Anyhow, that's all I've got.

Good luck all. Need to have strong hands on this one