ATM - A2 Milk Corporation Limited

[Blue Skies]

Will ATM be one of the most affected stocks by the Evergrande effect?

We shall see today.

Bound to be, but ATM will surely benefit eventually from NZ being out of the AUKUS agreement. That would have been the final nail in the coffin.

[whatsup]

$5-40 bottom for now, Im tempted !

UP UP and AWAY ( for now ! ). Will be interesting to see the Aussie open.

[Balance]

Bound to be, but ATM will surely benefit eventually from NZ being out of the AUKUS agreement. That would have been the final nail in the coffin.

But ATM is operated & managed out of Australia.

[Blue Skies]

But ATM is operated & managed out of Australia.

Hush, did you have to mention that ?
Lets emphasise its Headquarters is in Auckland & of course it was founded in NZ.

[Balance]

Hush, did you have to mention that ?
Lets emphasise its Headquarters is in Auckland & of course it was founded in NZ.

Should not take the Chinese for fools. If they decide to take action against the dairy sector (possible but unlikely at this stage), they will know that ATM is an Australian managed and operated company.

ATM should be smart and relocate its management operations back to NZ before the shxt hits the fan.

[Baa_Baa]

Should not take the Chinese for fools. If they decide to take action against the dairy sector (possible but unlikely at this stage), they will know that ATM is an Australian managed and operated company.

ATM should be smart and relocate its management operations back to NZ before the shxt hits the fan.

Certainly the Chinese are not fools, we're talking about their government here. They've already shown what they can do if they want to. Probably more to come. Whether it affects A2 Milk remains to be seen, so far it doesn't affect it at all.

While Australia represents A2's largest market - for fresh milk - and China it's second largest - for infant formula, all A2 infant formula product into China is sourced and shipped from New Zealand, manufactured by Synlait under very strict rules imposed by the Chinese.

A2 Milk has "management operations" in a number of countries, with China having its own dedicated A2 Milk management operations. A2 Milk, Synlait and Mataura all have significant strategic ownership representation of Chinese company's.

Australia – a2 Milk™
Australia – a2 Platinum®
New Zealand – a2 Milk™
USA – a2 Milk®
China – a2™至初® ... check out the China operations (you'll need a translator if only read English)
Canada – a2 Milk™
China – Official Tmall China store
HK – Official Tmall Global store

Sure, the macro risk is there but trying to pin it on A2 having offices in Australia, well I'm not sure what would motivate such a narrow focus.

[Balance]

Management operations as in CEO & all key operational executives - we and China know they manage & operate out of Australia. All key decisions are made from there.

Impossible not to notice given the big hooha with Jayne’s appointment & subsequent termination.

[Baa_Baa]

An illustration of the relationship A2 Milk has with China government is via the 'China Animal Husbandry Group' (CAHG), a China 'State Owned Enterprise'. CAHG’s parent company is the state-owned China National Agriculture Development Group, which also owns a logistics and distribution company in Shanghai which is a key partner for A2 Milk. "CNADC adheres to the plans made by the Central Committee of the CPC and the State Council"

CAGH announced in 2016 the acquisition of Mataura Valley Milk processing plant. Since then the ownership has recently changed with A2 Milk taking 75% share and CAHG retaining 25%.

The Mataura Valley Milk Board composition changed with David Bortolussi as chair but they retained Dr Tingwu Xue as Director; he is President of China Animal Husbandry Group (the largest Chinese SOE in Animal Husbandry and the major shareholder of Mataura Valley Milk, BODCO Limited). Chairman of Mataura Valley Milk, BODCO Limited and Nouriz. They also retained Deyong Zhang as DirectorChief Compliance Officer and General Manager of International Business of China Animal Husbandry Group.

The CAHG website describes New Zealand Milk as "Best Source of Milk in the World".

The CAHG relationship with A2 Milk is highly strategic, indeed critical in terms of the infant formula supply and distribution channels from NZ into China.

I think A2 Milk is sufficiently well known by, and connected to, the CAHG, CNADC SOE's and ultimately the strategy and plans of the CPC, to realise A2 Milk is a New Zealand company sourcing, manufacturing, infant formula into China. It does the CAHG, CNADC, and CPC an injustice insulting them in that they might naively think A2 Milk is an Australian company.

It would be quite the thing if China sanctioned, embargoed or otherwise compromised the A2 Milk Company. I just can't see it happening, is there risk, yes, is there great risk or impending doom. Yeah nah.

[flyinglizard]

Evergrande debt crisis triggers tighten monetary policy in Chinese banking system. The total property value/ total GDP ratio is over 400% in China. Bank won't lend to medium - high debt Chinese corporates at least in the near future. The rumour of A2 takeover from Chinese equity will be killed as a result in this incident.

[aperitif]

Is this a fact or your opinion? Interesting