IPO - Youfoodz Holdings Limited - 8 December 2020 #, page-87

End of the day, here's my opinion. I don't expect anyone to care... but here it is.

YFZ hasn't made a profit since start up... 8 years ago. Why not?

Lance Giles wanted to start up a company that delivers fresh & healthy food that will help people lose weight and/or assist with gym junkies to bulk up... Nothing wrong with that. There's many companies doing the same thing. He hit a hurdle while doing this with his previous company 'My Fit Fridge'. You can only produce so many healthy & fresh meals a week (without freezing or adding additives) before costs blow out and production hits a point where ingredients and quality starts to suffer. His old company (like others) hit this point at 15,000 meals per week. Youfoodz surpassed more than this number than (as predicted) quality started to suffer. Nowadays the complaints come pouring in. They no longer provide the clean, fresh meals that it once delivered and now produce meals that try too hard to be 'clean and healthy' but contain too much cheap ingredients, which DO work on a production/business front, however diminish the final product given to the customer.

Their biggest competitor is 'Lite N Easy'. They don't try to be what YFZ are doing. They have mastered their product. Lite N Easy don't actually sell super healthy and high protein meals, they just sell small portion sizes. We as a nation simply eat too much food. Lite N Easy picked up on this and just said that "if you eat our meals (and only our meals), you will lose weight". They were right... because they package smaller normal calorie filled meals that we should be eating. Simple. YFZ are trying to sell larger size meals with less calories and higher protein... which only works in a smaller distribution model... not bulk!

Now they want to raise money to produce MORE meals per week. The product is only going to deteriorate even further and the complaints are only going to increase. There is nothing that this company is going to come up with that other companies haven't thought of that will revolutionise how we eat food. Pandemics or not, we will never become a world that will need to rely on microwave cuisine. We will never NEED a company to provide us with high protein/low carb meals, when it's so easy to do it ourselves (a simple youtube search will show you how). This company isn't the future. It's hardly providing Lithium or Rare Earth products (for example) which the world is heading toward. It's just food. Nothing ground breaking here.

If you want to invest money here... go nuts! But what do you expect? A $15 share price in 2 years?? These guys have shown that they need credit to carry on... which means (now a listed company) further cap raising and share holder dilution just to stay afloat. The big boys holding this company up (RGT Capital etc) will eventually grow sick of being the 'rich uncle' and will sell down their stake once they realise that there's nothing new here.

ALL IMO blah blah...