Hi Princess You've made some pretty strong accusations against AU8 under the guise of trying to "help" fellow posters with their investment decisions. Given your lack of HC posts and the timing in these recent posts my feeling is you may have an axe to grind...
I previously did some thorough due diligence on the company, spoke with management and have chosen to be an investor, so I think it is only fair I provide my views on points you have raised:
- As with any industry there are good performers and bad performers. Just because a retail daigou chain is large or has many customers does not mean it is profitable. Many daigou stores started during the boom times but now the market has changed and if they are not run properly they will close. Makes sense.
- Following from this point, margins for daigou 2 years ago came from a very high selling price which has now adjusted which is natural because selling prices 2 years ago were unsustainable. So in order to make margin, the question of what price the business can buy products is critically important. If what you say is true that your friend sold a2 milk for extra $5 to aumake, who cares as long as aumake can pass this to the customer?
-No shopping receipt? As part of my DD, I went to their haymarket and parramatta stores, purchased products and receipts were provided everytime. You don’t think their auditors would have checked they provided receipts? Stupid statement.
- Seed capital was not 1c. Please go and read the prospectus again which you have claimed to do. It is much higher than that and as people in the market know, a proportion of this is subject to escrow
- Your comment about chemist warehouse making no money is incorrect. A simple google of recent news is all that is required. FY17 numbers were based on their business as a private business. Being listed will give them a huge opportunity to add margin by being able to deal directly with suppliers and increased financial capability.
Also don't forget the chinese tourist side of their business which adds further margin opportunities. Your further comments regarding revenue and sales saying you don’t trust them etc. is ridiculous because they have been audited. Your understanding of financial accounting information and the process of listing on the ASX, is clearly weak.
....By the way I can see you have a newly created account for this special occasion and who knows how many other accounts you will setup to downramp the company. This is a great company with management I have found to be transparent and forthcoming when I have dealt with them. It has an amazing future in the daigou industry and can really help daigou with their own businesses, so if you are a daigou I'm surprised you can't see this - or perhaps more likely you are small minded.
...You would be the same person who would have shouted from the rooftops against BAL, A2M, BWX etc. saying daigou will never support such brands etc etc. But now I'm sure you will tell everyone you were always a supporter to confirm your "experience". Daigou who are doing well in the industry would not have time to post comments on HC.
AU8 Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
