A2M 0.44% $6.85 the a2 milk company limited

Explain China new tax policy and formula registration with CFDA, page-4

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    The new formula registration with CFDA will become effective at 1st Jan 2018,there have still 20 months to acheieve it.The new formula registration with CFDA is three parts.
    First: all the formula's OEM company (like synlait milk ,Taturra,Murray Goulbour)must be certificated by China government.Here are the company list have already got permit from Australia and Newzealand.

    Here are the 8 companies  from Australia.



    Here are 13companies from Newzealand




    That means if the formula brand  from Australia and Newzealand want to sale in China,The formula must be manufactured by these company.


    Second:
      Each enterprise formula company must not exceed 3 series 9 product formulas.Thats policy dont have any influnce for A2 and Bellamy,because  they only have one brand ,A2 Platinum and Bellamy Organic and only 3stages for their products.
       The most effected by this policy is Danone Nutricia.Danone Nutricia have so many brands in Europe,China,Newzealand like Aptamil and Nutrilon.This why
    Danone ends sale of Karicare infant formula in China

    Third:
    Formula registration.Thats means formula's OEM company (like synlait milk ,Taturra,Murray Goulbour) cant manufacture exceed 5 brands formula. OEM company will  remove some brands which not sell very well and hold capacity to satisfied top 5 brands.There also dont have any influnce for A2milk,Because A2 now is the top 1 customer for Synlait milk.
 
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