The reality is how disrupted is the supply chain? and how people can get access/permission to shop for products. If there is a backlog on everything in China then the wheels are chocked and there's not fwd movement until things change. A challenge will be getting the plant up and running again and dealing with the infected staff which will cause problems right through if the mandatory 14 days quarantine needs to be observed. All well and good to have a supple agreement for product but the logistics of getting the things out there and the customers to buy it...in lock down they are stuffed, maybe local Govt can help but the inner workings of China policy may be a handbrake. This from the Company update, expect some confirmation next week on how things will move forward.. Watching. "The Company’s Xiamen production facility was closed for 10 days for the annual Spring Festival from 20 to 30 January 2020. In order to comply with the Chinese Government imposed regulations and restrictions to the coronavirus epidemic, the Company’s employees must maintain quarantine principles for 14 days after arriving in Xiamen in accordance with the mandatory infection control protocols. In order to adhere to these regulations, the Company plans to resume normal operation after 1 March 2020. The current in-country infection control protocols have allowed for very limited public movement in all areas of the country, which has caused a wide spread impact to the country’s economy as well as specific business segments, including and not limited to logistic outages between manufacturers and distributors, and to the retail outlets and shopping malls. Eagle Health has more than 300 Zhang Lao San exclusive product and franchised stores which have been affected in some capacity by the current disruptions in daily operations. Because of the stores being temporarily closed at this stage, the Company anticipates a temporary adverse effect on sales during this period."
EHH Price at posting:
18.0¢ Sentiment: None Disclosure: Not Held
