SML - Synlait Milk Ltd

[The BOWMAN]

Always wondered how the current Chinese regulatory approval process will weigh in on the online auction price. Can China import WMP through the online auction? If yes, then how does the regulatory approval process kick in? If not, surely that will cause a major impact on demand and depress the auction price. Anyone knows?

[K1W1G0LD]

Getting meaningful information from this company is like getting blood from a stone.
here's the latest email communication from Michael Wan (media)



Hi G

The verification audit was carried out as scheduled. We are now waiting on the outcome from authorities before taking the next step of seeking Chinese registration.

Kind regards

Mike



From: G
Sent: Tuesday, 5 August 2014 4:04 p.m.
To: Michael Wan
Subject: Re: RE:

Michael. its now the 5th August , past your stated deadline of the end of July, any news on registration process yet ...............................or do we have to wait another month or two.

regards , G


when will Synlait be granted registration to resume exports to China , your guess is as good as mine, think of a timeframe then double it and you'll probably be about right . /U]

[zigzag]

I was thinking we would know by the end of July. They sure aren't much chop at keeping investors in the loop. Some kind of progress report would have been appreciated. The share-price seems to be falling in a vacuum of information. At the end of September they release the full year result, and then the remaining escrow shares are released. See what happens then. Thanks for posting the replies to your e-mails.

[Billy Boy]

k1w1gold... Tks for posting your email replies.
I am fast gaining the impression that Synliat may have missed out.
BB

[K1W1G0LD]

Thanks zigzag and BB , no they don't even seem to be aware that they are supposed to keep shareholders informed of delays which are negatively impacting their profits and the shareprice .
"Shareholders" , no, she'll be right mate !!? that good old kiwi attitude that just does'nt cut it in todays business world.
I'll bet they keep their major partners informed though!

[BlackPeter]

A number of agricultural exporters (including Synlait) planning a common Shanghai office. Might be the way to go to cost effectively approach the Chinese market?

http://www.nbr.co.nz/article/collabo...es-jb-p-160713

[K1W1G0LD]

BP would've been good to hear this news directly from Synlait themselves rather than secondhand.

[BlackPeter]

BP would've been good to hear this news directly from Synlait themselves rather than secondhand.

True - its probably fair to say that good communication with shareholders does not seem to be one of their strengths!

[BlackPeter]

Just in case somebody else on this forum was wondering as well how Synlait's recent projects are going - I contacted them end of last week (investor relations) and asked about progress on their blending and consumer packaging facility, as well as on Chinese approval.

Here is what Synlait told me yesterday in response:

• construction of the blending and consumer packaging facility is complete; commissioning began in June 2014. At this stage they claim to have met all deadlines previously stated with no material change, and therefore they didn't see the need for any further update.
• next step is to obtain approval of their Risk Management Plan by the Ministry of Primary Industries. This process is well underway and they are waiting on the outcome before taking the next step of seeking Chinese registration.
• they are confident of receiving the required Chinese regulatory approval to export finished infant formula into China following the approval of this plan.

No concrete dates and they sort of dodged my question why many competitors already managed to get approval but they didn't. I take from their communication, that they didn't yet started the process to seek Chinese approval (waiting for PMI's approval of their risk management plan). However - it sounds like we can sleep well in the knowledge that commissioning goes according to plan.

[sharer]

So it is NZ bureaucrats holding things up ?

Thanks for the news efforts BP.