CFDA/SAMR, page-101

I am not a holder, however very interested in the stock as the valuation looks cheap.

Would like to contribute my knowledge in regards to the new e-commerce law.

1. The new law is mainly to guarantee authenticity of the products sold on e-commerce platforms and the legal liability is forced on the platform operators.

->This would be unlikely to affect BAL in anyway

2. The sellers on the e-commerce platform are required to be registered as company/partnership/sole traders

->Most sellers are already registered anyway. The unregistered small sellers (to avoid tax) would probably exit the market (if audited) causing temporary drop in BAL revenue, but eventually market consolidation will happen and bigger sellers would take over the market share.

3. Non-registered products will not be allowed to be sold on the e-commerce platform.

->This is the tricky part. BAL without SAMR reg will not be allowed to sell on e-commerce platform anymore. (I wonder why no one on this forum mentions this).

It is unknown how much revenue BAL derives from the e-commerce sellers, and whether the lost revenue can be able to be replaced by the grey channels of daigous. (Daigous sell both to e-commerce sellers as well as "grey channels" which refers to gifting to relatives/friends.) There is also potential risk with the grey channels, as the border customs collect national ID of parcel receivers, and who knows when they will start taking actions and audit people with large quantity of received parcels per year.


My honest opinion.

DYOR.