I have no idea about how can they move such a large inventory...

I have no idea about how can they move such a large inventory level. As far as my limited accounting knowledge, the 105-110m inventory level is the cost of the goods. if we use the current Gross margin of 60% in the 1H of FY17, that means it has around 180m worth of products in stock, with annual sales of 240m. The company need to take 3 quarter to sell the current stock, that's really too much. (correct me if I am wrong.)

moms do care about their children, and they are sensitive to the manufacturing date of the formula. How can the company can formula that are produced almost one year ago at a premium price.

Both A2m and Bal made a mistake by producing too much stage 3. However, A2 has more demand coming to absorb the stock, creating revenues. but Bellamy does not, because they has ruined the relationship with Daigous. The biggest concern of Bellamy is their Stage 1 and 2, the slow sales movement means there are less new customer choosing Bellamy. When the current Stage 3 kids stop drinking IF, where will these stocks go?