Investment Summary
Short seller Blue Orca has recently published reports about Ausnutria Dairy. The main
allegations include overstating import data of infant milk formula, revenue and profits;
understating its labor and staff costs; misleading Chinese consumers in relation to the
ingredients of Kabrita infant goat milk formula; the acquisition of the 40% equity interest in
Nutriunion HK was a sham transaction to unjustly enrich insiders, and the independence of
the company’s distributors. Apart from releasing voluntary announcement clarification, the
independent review committee has been established and engaged the independent consultant
to conduct the independent review.