CFDA Update, page-68

Milk powder manufacturer WHA publishes half-year financial report sales profit with record high


The new Australian FMCG company Wattle Health Australia Limited (ASX:WHA) issued an announcement on February 28 to update the market with financial statements for the first half of fiscal year 2018.
　　Since the first half of this year, WHA has continued to increase its domestic and international brand awareness and expand its sales network in order to increase product sales. In terms of products, we have increased the supply of food for infants and young children, improved the diversification of nutritional dairy products, and entered the skin care industry not long ago. This has far-reaching significance for the company to open up new markets and establish a brand.

The company's revenue for the first half of fiscal year 2018 was A$661,261. In January of this year, its sales reached A$329,000. In other words, this 7-month income has already exceeded total sales for fiscal year 2017 (A$990,261). In the six months, the profit rate of WHA products reached 58.22%, which represented a significant increase compared with 16.39% in the same period of last year, reflecting that the business structure of the company was highly effective and established direct contact with retailers.
　　The net loss for the current period was A$13,080,506, of which the largest expense was non-cash expenditure of A$9,607,861 for the issuance of loan support staff shares (LFES).
　　On November 20, 2017, the general meeting of shareholders approved the issuance of 6 million LFES to directors of the company with a strike price of A$2.15 per share. On December 21st, 7.347 million LFES were issued to employees at an exercise price of A$2.15. The market price for the day was A$1.535 per share.
　　If all LFES issued during the six months are executed at exercise prices, the company will receive cash income of approximately A$28.9 million. At the end of the period, the company's net assets were A$15,301,981, a 219% increase (A$6,980,005) from the end of FY2017.
　　In the second half of the fiscal year, with the gradual start of the distribution channels, sales revenue is expected to continue to grow. The company has already obtained Chinese foodWith the CFDA certification, the performance of Little Innoscents Pty Ltd, a newly-acquired mother-to-child organic skincare company, has also grown considerably in early February.
　　Lazarus Karasavvidis, executive chairman of the WHA Board of Directors, said that at present, the company is in an exciting period of development, and products are gaining more recognition in the domestic and foreign markets.
　　The company laid a solid foundation in a short period of time and reached a partnership with Australian milk powder and nutritional product manufacturer Blend and Pack, and successfully applied for CFDA certification. Next, the company will continue to increase brand awareness and increase sales revenue.