Clover Corporation Limited (CLV.XA) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is Rupert Harrington, and I am the Chairman of Clover Corporation Limited. I welcome shareholders and visitors to the 2025 Annual General Meeting of the company. The meeting is webcast at the same time, we are holding a physical meeting from the offices of their auditors, PKF in Melbourne as advised in the Notice of Meeting. We are not recording using a visual medium at the AGM today. Please be aware in the room today assuming microphones, which are sensitive, so we ask all in attendants to remain silent unless they're asking a question. The company's Secretary has informed me that a quorum is present and therefore, formally declare the meeting open. Thank you for your attendance in person and on line. We're using the Computershare platform to host the meeting. The platform allows shareholders, proxies and guests to attend the meeting virtually. All attendees can watch a live webcast of the meeting. Only shareholders, proxies and corporate representatives have the ability to ask questions and submit votes. Before we proceed, I would like to introduce you to other members of the world. And we've got Ian Glasson, Andrew Allibon, who is the Company Secretary, Peter Davey, who is Managing Director, Graeme Billings, Simon Green, and Fiona Pearse. Toni Brendish is also online who can't attend today, but she is attending a verse of this meeting. Also present is Keith Walden and Tom Burton, representing our auditors, PKF. Ken and Tom will be available to answer questions on the accounts at the appropriate time. To attend this meeting, you have downloaded the links as applied from the notice of meeting and enter the credentials provided to you and recognize you as a shareholder of company. Alternatively, you may have entered as a visitor or guest. I propose that the notice of meeting dated the 17th of October 2025, which was mailed to shareholders to be taken as read. 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Please mute your webcast if you choose to use this method to avoid audio feedback. Finally, due to time constraints, we may run out of time to answer your questions. If this happens, we will answer them in due course via e-mail or by posting responses on our website. In accordance with the current practice, voting today will be conducted by way of a poll on all items of business. I will shortly open voting on all resolutions. And if you are eligible to vote at this meeting, a vote icon will appear. Pressing this icon will bring up the list of resolutions and present you with voting options. To cast your vote simply select 1 of the options. You have the ability to change your vote up until the time I declare voting closed. This is shown in the bottom of the vote page as noted on this slide. In a likely event that we experience a loss of signal with the webcast, please do not log out of the application. We have a backup webcast stream running, which will automatically appear in the Computershare application within about 30 seconds of the initial loss of signal. Finally, voting on every resolution is held open until the end of the meeting. I will communicate when voting closes. This concludes housekeeping of questions of voting. Before we move to the formal business of the meeting, I would like to present my Chairman's address. Dear shareholders, 2025 was a strong year for Clover Corporation. And as many of you will recognize a tale of 2 halves. The first half reflected the steady demand levels we experienced through the second half of financial year '24 with revenue of $37.6 million. Second half saw a strong uplift of sales to 48.4%, driven by good orders from our human nutrition customers. We've had a particularly strong final quarter with $4 million of orders brought forward as customers would demand and product com launches. The turnaround demonstrates the resilience of our business and the value of our diversification strategy. The combination of stronger sales, improved gross margins and disciplined cost management allowed us to strengthen our balance sheet and to continue reducing our debt throughout the year. Across the year, Clover achieved another step forward in performance. In Ecuador, the commissioning of our fish oil extraction facility has been successful, producing excellent quality crude oil and delivering secure supply and cost benefits to Clover and our partners. There remains significant room to further improve throughput with cost and yield benefits to contribute to further improvements in our gross margin. At, we recorded our first full year of profit, a significant milestone driven by better planning, production runs of new products and consistent uptime. Whilst the facility is now operating close to capacity, we expect further efficiency gains and larger improvements as product mix continues to evolve. At our Australia refinery in Melbourne, operations continue to perform reliably, ensuring a consistent supply of quality oils, whilst incremental margin gains this refinery remains the central part of our vertically integrated supply chain. We have been focused on managing input costs, particularly energy as we scale our manufacturing footprint and prepare for future expansion. The return to normalized sales in 2025 financial year, combined with strong manufacturing performance, placed the company in a solid position with continued reducing debt. Clover continues to drive growth by expediting the commercialization of innovative products. Our new distributor model is progressing well, expanding our reach across North America, Asia and Europe. Financial year '26 will be an important year to demonstrate the benefits of this approach, not just the sales growth but through new product launches and customer and market diversification. The product remains 1 of our most promising innovation programs. This free flowing powder offers a new revenue stream for Clover targeting both infant formula that mandated and prenatal products where it is used as an essential nutrient. Approval is expected through '26 and beyond, but it's well in process with customers research development trials progressing positively. We are exploring a range of solutions, including joint ventures and outlined purchase of additional drier. Our encapsulated powders and products continue to advance through customer trials in high-value nutraceutical markets. These are long lead time opportunities requiring and regulatory approvals, they represent meaningful medium-term growth potential. We're also progressing regulatory approval for in Australia, New Zealand and Europe. A second round of result is under expert review and essential step to obtain regulatory approval and pave the way for market entry. In my address last year, I said we expect to return to normalized revenue patterns at end of financial year '25. I'm pleased to report that this has been achieved. The final quarter of financial year '25 delivered record sales, and as a result, we experienced a relatively slow start in the new financial year. However, I'm pleased to report trading is showing continued growth and steady order flow. As a result, we expect revenue from the first half of '26 to exceed from the same period in the prior year. On behalf of the Board of Directors, I extend my sincere thanks to shareholders for your continued support and to our employees and management for the dedication and commitment throughout the year. I'll now turn to Peter, the Managing Director's report.

Thank you. It's pleasure. Welcome, everyone -- everybody, to the Managing Director's report. I'm going to present the FY '25 results with a bit of an outlook statement. I'm sure will help everybody in the market. So our full year highlights in revenue, we're $86 million, up 38% year-on-year. Most return to the business that we were used to. NPAT $7.1 million, up from $1.5 million the year. Our operating expenses were $15.7 million, up 22%, and that's really we were positioning the business for the growth and the additional sales that we're starting to see through the market. And EBITDA was at $12.2 million, up from $3.9 million year before. Cash 8.9 million, still very strong. We hold it with strongest cash position at that point in time in our balance sheet and a final dividend was at $0.01 per share, so up the year before. As traditionally, we tend to return money to our shareholders. So the next slide, please. So some operational highlights. Record revenue year with new customers. We saw a velocity of increased sales through the business. We added significantly new customers as we sought new channels and new products going into the marketplace. Our existing infant formula customers transitioned their business. And that was quite a significant shift for us. A lot of them have gone into the adult market, the seniors market and the children's market away from the baby segment, realizing they have significant investment in both assets and brands and they need to be able to utilize those. That's given us a benefit with our products, and I'll talk a bit more as we go through that. We've moved to a distributor strategy throughout the marketplace. So -- for us to be able to open up new markets and segments. We've been traditionally very good at accessing the infant formula market, but recognizing that we need to transition the business away from a reliance on that segment, we've appointed new distributors. Some of which came on early, some of which have come on late, so we'll continue to see the benefit out of those. But we've appointed distributors in North America, Asia, Europe, that's certainly giving us better access to the marketplace, and that will continue as we find new people to help represent us in the market. And we apply for a patent for our XL technology, which I'll discuss more with you. In terms of the Ecuador facility, that's a really good story. Twelve months on from actually starting this facility, we achieved or we achieved oil deliveries into Australia in November 2024. It is well ahead of plan. To build a greenfield site and get it going so quick was a testament to some really good management across the business in quite a difficult marketplace to do that. It now supplies 30% of our tuna oil supply. Our plan is to have it to supply 50% of our tuna oil supply. The quality of oil we're getting out of that facility and the grade of the DHA and EPA that we get out of it, is the world best. So we're getting excellent quality of oil that allows us to blend with other oils and get better. And effectively, at this point in time, we'd largely repaid all the debt. We've now paid all the get-back from that facility. Melody Dairies have been a bit of a longer story. We started the build of this and during Cove, you might recall. And so it's been a bit slower to get started. But thankfully, during this year, we saw some really strong improvement in financial performance to deliver a small profit in the business. We operate this business to get the lowest absolute cost throughout the business, and we're seeing that reflect in the margins of the business. So we've been able to increase production, it's now running 24/7. We've got a good management team. We've made all the upgrade facility, and it's operating at absolute full capacity over there last week and it's going extremely well. We added a little bit of CapEx into the business that doesn't reflect in our balance sheet, but it's really helped us get that facility to absolute full price production. We own 43.9% of that site and we are the biggest customer at the same time. If we can move to the next slide, please. So the P&L for the year delivered really strong revenue growth for the business. Europe and Asia were particularly strong as we moved our business into the nutraceutical segment and food and beverage. And infant formula really did to benefit us as well for Europe. It wasn't our focus, both the infant formula customers recovered quite well across the European markets after a couple of slower years. Our NPAT increased significantly, partly by new customers that have come on board, new products that we've given to those customers, and we've got a whole lot of new orders out of those customers are giving us much better margins through the business with the new products. Those new products gave us the margin but also with cost efficiencies through the business. Certainly, we're seeing the benefit of Ecuador oil coming through the business. and full production of Melody Dairies help with our cost of goods, it has helped our bottom line. As Rupert pointed to in his address, second half was particularly strong. In Q4, we got $4 million of orders that we didn't see coming. That's probably slow in the first half of this year because we brought forward a lot of sales, and we've struggled to keep up with the orders that we've had going through the business since a significant volume improvement and that's reflected in our outlook statement as well. Operating expenses rose, we really are putting investment into people and into the business and some reward, it for the next stage of growth of the company. So it's positioning the business for. Next slide, please. Let me move on to the balance sheet. Good strong balance sheet and net assets are up year-on-year. We've increased our net working capital and reduced our borrowings quite significantly. Our cash position is very healthy. We have been spending a fair bit. We've got very high trade receivables that you can see from the balance sheet, but we've reduced our debt across the business. So at that point in time, it was $8.9 million. We have some lumpy purchases in the business, so we always cash from the business to be able to make those purchases. Our trade receivables have increased really reflecting that we've got very strong sale momentum. And then we've reduced our inventory, improved our working capital. We've tried to demand, lead our investment in our working capital. It's a difficult balancing act, but we are able to get on top of it recently. And then our noncurrent borrowings have been fully repaid. So that's really improved the gearing through the entire business. Move to next slide. So I'm going to talk through a bit more about the business rather than the numbers, new products that's been really driving the pro business. It's been a significant addition over the last year. A lot of that has been, if you followed the business for some time, we've talked about innovation of the company and how much we've launched. What we've recognized probably in the last 12 months is the of the launch of those new products. We often refer to, we've introduced new product to customers need to trial it, learn how to use it and go through shelf life testing. A lot of the benefit of that came out in the last year. All those new products we've done over the last -- we've patented 8 products over the last 4 years. But with that, we're now seeing the benefit of those sales come through as customers start to utilize and see the benefits they get. So I'm going to turn to the next slide. Just talk a bit about CholineXcel. It's a new product that we've just applied for patent. Choline is a product that is legislated to be used in infant formula, it is also used a lot of prenatal products, medical products, products and nutraceuticals and general food applications as well. It is a -- the actual product is a salt, has significant issues associated with it in terms of its manufacturability is hydroscopic in nature. So therefore, if you put it in the atmosphere, it attracts moisture, turns into a wet sticky product and a very difficult in the manufacturing process. Being legislated for use of manufacturers have a significant problem, but a legal requirement to be able to use it. So we have invented a flowable choline product, which we've termed CholineXcel. It's a white flowable powder that has the same bulk density as milk powder. It is non-hydroscopic. It flows perfectly. It can be used in production of any sort of products. We've had it on trial with customers. It's gone into things like gummies and biscuits and power drinks. It's performing very well under trial application so far. We haven't commercially sold this product. So we introduced it to a very select group of customers initially. They've done trials. We've been talking about commercial arrangements on that, which is good. They all want it. We've got to be able to get to a production scale to actually produce it. We've applied for the patents for the technology. So we should get that globally. It's a lengthy process, but we've got protection around our patent now. We did a very soft launch of this in North America last week -- or last month, the largest food show in the world, with supply side global and to absolute client, customers that we show this product who looked at it and just went well you've actually sold a major problem and when can we have it. So it's -- it's a good story going forward. Our next issue that we need to face is getting the production capacity, sure that when we do launch this product commercially we can meet demand. We have very limited demand with our current capability. So we are talking to a variety of different providers that we could go into a toll manufacturing arrangement, a joint venture or an outright purchase of a facility to recur production. So we've got irons in many fires that allow us to get there. We would expect in the next 6 months to have a position where we can go into large-scale commercial manufacturing to have this product developed in the marketplace take some time for consumers, customers tend to do their own trial with it. I think it's a great product for the future, and we'll see the whole Clover business expand into the business considerably. If we can move to the next slide, please. Premneo. We've talked about Premneo for some time. It is an emulsion product that we created, went through a large clinical trial. The outcome it can increase the IQ of infant. So got a fantastic result getting that approved by regulators is a very challenging exercise. We're trying to put a brand-new product, a molecule into a baby. So getting it through regulatory has been challenging. We are confident that we will get there. So it's currently going through some regulatory in the, we expect to hear from that shortly. We're also going through a clinical trial work in India. There has to safety. We're going for trial work in both Singapore and Canada, which are marketplaces that when you get acceptance in those markets it will open up others. We've had extensive discussions with manufacturers in India products so they can make it as a pharmaceutical grade for a miracle food product. And they open up a distribution channel that allows us to get into 38 different countries where this product is led well. So we are down the track. Really the best that we have to get over is the regulatory approvals. We've got a great product. We've got the outcomes of it. We know how to make it. It's getting the regulators to say, yes, you can put this into the baby. That's the challenging part, I understand we're very cautious about it. And you've got a product with themselves. And then on to adult and infant nutrition. For us, the global infra formula market has probably stabilized. We've seen a real good growth with some of our newer products. So we've talked in the past about products, products that don't have any anything that has to affect the label, no protein that's going to affect the label, no fish. So products that are very specific that won't impact the baby and that's allowing our customers to create products that are different. We have higher levels of fortification that we can put into our products that consume it in our consumer, the customer use less of. That's given us new traction for new products in the marketplace. And many of our customers have found a way back in China market. So you may go back in time and see that there's a lot of regulatory change that occurred in the China market as a lot of our Western manufacturer customers were challenged by that. you didn't find a way back in that didn't get licensed. Most of them have now found a way back into the marketplace. In the last 12 months, we saw a flip between the Western brands and the Chinese brands, where the Western brands have now overtaken the Chinese brands by volume and sales again. So the consumer is voting in China to take the Western brands more than the Chinese brands, which we supply both, don't really care for wins as long as we're in the product in the can at the end of the day. We're supporting both sides. And then really, the big change for us is we've been able to -- over the years, our stable of products is significantly broader than any of our competitors. If you followed us, we have continuously innovated and invented. That's what this company is about. We don't sell a commodity product. We sell the unique products. We have a broad stable of different powders that can suit multiple different applications. If you go to a competitor, you get 1 or 2 options, us you get 22 options. We can go into a whole range of different products that's allowed us to go and leverage different market opportunities. We're getting really good growth into those nutraceutical sports and senior nutrition especially the seniors market, as is the growing market. The world is getting older. We expect a significant business in that market. And that's where we really saw a lot of that pull forward that 4 million sales in the year that was really going into the adult senior nutrition market, not the infant nutrition market. Over the next page, going to some other products, a bit of a pipeline story. In the highly concentrated part of the marketplace, we're getting some good traction with the product that we launched 2 years ago. We would have put it into 1 of these decks. It was a very highly concentrated and DPA. So it's an element of omega-3. It helps with reduced inflammation within the body. We're getting some applications into nutraceuticals at food, it amazing that it's a really strong growth marketplace for us. And then food for special medical purposes, in fact, we're putting this product into a cancer drug that's being sold into China or cancer patients. In the gel-form product, we launched some time ago. This is an evolving product. We are developing it so it has a much higher concentrate of DHA and Omega 3. When you think of a product, we only have a limited space that you can put things into. You want to be able to be it's at least possible to get the highest outcome. So we've been able to develop higher concentrates of oil that are now going into our gel foam product and getting better traction with customers. So they can put less in to get a higher fortification rate. It's the only product in the world that you can get high levels of Omega-3 into UHT product. We have good traction in the U.S. We've got a lot of trial work going on the EU. In the Asian markets, we are going through regulatory approvals. Again, unique product. Most markets have never seen something like this before. They're trying to work out what is it, how we position it. Is it a food the medical product? Is it a nutraceutical product? So we're going through that process with some. And a little bit more about the future with our probiotics product. We've been, for a long time, challenged by our customers to help them with their probiotics. Probiotics are traditionally, it's a live organism. They're grown and frozen and ground down for powder. That's a very expensive difficult process to, but a frozen cold chain distribution network around the world. It's very expensive to move product. We've got a frozen powder that you're trying to put into a powder product, very sticky. It's very difficult, product starts to defrost. The probiotic becomes alive from a dormant state and they're starting to die. So we've been working on technology around encapsulating rather than the freezing. Takes out the cost of the freezing, a lot of asset cost, a lot of time cost. A lot of electricity cost go directly into our spray drying technology. We've been quite successful at a lab level with 1 range of robotics. We're looking at a second range of probiotics. We will -- it's a continuing R&D project with exciting developments for the future. It's -- it is another calling. If we can get this right, and we invent something that's game changer then it's another opportunity for this business to take another growth step. So a bit of a pipeline for the future, but there's good potential for us. Some of the projects that we've got through in the business. Into the next slide, a little bit about strategy and outlook to take through. If you move to the next slide, we put in a specific slide with regards to China. We've been working on China a long time, and I think we're starting to find our channel into that marketplace through the people, the products and the distribution we have. It represents a real growth opportunity for us because we're moving maybe not away from on infant formula, but we're focusing more on dietary supplements, pet food and functional food applications. It is the single largest marketplace in the world for our products. We're finding that our infant formula market in China, there is massive assets and brands that exist in China. Most of you would be aware that the birth rate in China has roughly halved over last year. So it's a significant reduction in birth rates and companies have an enormous investment in assets to produce distribution channels and brands. And where we're starting to see some real opportunities in those manufacturers are now looking to how do we get in to use our assets to go into other segments. Saw significant growth in the second quarter. So we are now in 2 products that are going into toddlers, baby milk, not infant milks in the sports nutrition or in sort of growing on products and especially into the senior segment, Specialty products in the senior segment going to China now there's all virtually equal space on shelf to a baby as to a senior, because we have a unique range of products, we can take customers into those segments. We're not a niche tool of the others, the competitors in the market. We can provide high concentrates and EPA products, DHA products. Products that suit different applications. We can -- they can be cooked. They can be put to jellies. They can be. It's our broad range that's allowing us to access that China segment we are in, which is wonderful. Some of our distribution partners are helping us into that. We will broaden our distribution in China over the coming year to help us access more of that marketplace because we can see that broadened diversification beyond infant formula is a marketplace that we can be different in men. It's a great opportunity for the future. We're also seeing that our Western customers are getting more growth into the China market. So as they don't record as a China sale to us. If you look at the breakdown of our sale, I might not much. We're supplying into around 60% of the formula manufacturers. And about 60% to 80% of their business ends up in Mainland China. So we are a significant part of the China marketplace indirectly by that. So also, a lot of the Western manufacturers have set up manufacturing in the China market place. So they have facilities there. We might sell a product into China market. It adds up in the China market. So it is something to look at. And then we've got Choline to launch there probably later in the year, when we get some capacity, and that will help us differentiate our position further. We'll be able to take a Choline DHA blend, which no 1 else well provide something unique. Again it's legislated to be used in China, you have to include Choline on the products. So we've got a good decision. On to the next page, a few other points about our strategies for growth. We've talked a lot about our new products. We put a lot of invest into our R&D facilities to our people. So now is the intent to try and accelerate that growth. So we're putting more resources into that. A big part of that is the distribution strategy. Those distributors are giving us access to get into new markets that our traditional sales force hasn't been able to access. So I just come back in the U.S. We were able to see 4 customers a day that we would have never got into before. They're not interested in just talking to us about DHA. They want to buy a range of products, not just. So it was wonderful to offer them a product that's so differentiated to what they've seen before, able to get access and talk to them, which provides us with some opportunities for growth, especially in the U.S. And then it's allowing us to diversify our products into new markets. So medical foods and nutraceuticals is large segments and valuable segments in the marketplace that we can access with our range of products. And then a part of the other development we've done is we've been very successful with Europe. We're putting technical support into the field. So whereas normally all that our technical support has been made in Australia, we've put a resource into Asia and one into Europe, where we have a technical person in the field to actually go and visit customers and provide solutions just customers do value it. We go in and we're not trying to sell them a commodity. We're trying to sell and service and advice as well. Not just is a product, but it is how you use the product, and that's really helping us great growth. You look at our year-on-year European growth, you see that our numbers were significantly improved year-on-year. That's really driven by that technical support and new market growth. So next slide, please. if you move a bit into our FY '26 trading update. We're seeing really good growth across that human nutrition. So infant formula for us has really morphed into human. Most of our manufacturers today are now manufacturing a whole range of products. They're not adjusting for manufacturers. And that's just a matter of necessity as the birth rates are dropping globally. Wonderful for us because of our range of products suit it perfectly. We're continuing to report the distributors. We've had some good experiences with them. We're going to become distributor managers. That's going to be our business a lot of the way, and that's great. We can leverage the people we've got in the field to focus on helping distributors sell into new segments and new geographies, so more opportunities for growth. In Ecuador, currently supplying 30%. Our target is to get to 50% and that's where we're trying to get to this year. It's really a matter of being able to get enough tuna through the business to be able to extract the oil out of it. It's just a volume game in home. And about Choline, we've given the soft launch in October at Supply Side West with great results. We think we'll see some fast track results in that. It's our capacity to be actually able to make and sell enough product we don't overpromise them at close, and we don't want to disappoint the marketplace. And so if I'm a customer and I start making a product and I can't get the volume, then I'm going to disappoint them too quickly. At the moment, we can make a limited tonnage. We need another facility to be able to leverage that growth. We've made some very round over the last few months to be able to access that and increase the capacity of the business. And those customers will go through their own production trials and shelf trials to be able to sell growth. And then with Premneo, as I said before, I was seeking regulatory approval, ANZ and should be soon and we're also seeing improvement in Singapore and India and Canada as well. So trying to get that product within the marketplaces. We're trying to also ensure that we've got this well ring-fenced with patents and controls and understanding of the products. So it doesn't -- we don't lose it along the way. It's a wonderful product that has taken time to get to the marketplace. So as I turn to the last slide, our outlook for this year is based on the current sales forecast demand. The Board now expects the first half of FY '26 revenue to be in the range of $40 million to $43 million. Certainly an improvement of where we will. And assuming that demand momentum continues, supply's chain remains stable. We expect the full year revenue should outperform I would say a vast improvement of where we've been and happy to deliver some better results for the shareholders. Thank you very much for your time. I appreciate it. Nice to be good results.

Thanks, Peter. I now move to the formal business as set out in the notice of the meeting. Each of the resolutions will be taken in turn. I will introduce each item and resolution. Shareholders will have a chance to ask questions on the resolution and I will display the proxy results received for the resolution on the screen before we move to the next resolution. Voting is now open. I will go to the first item on the formal business. As required by the Corporations Act, the financial reports of the company for the year ending 31st of July 2025, comprising the company's financial statements, directors' declaration together with the directors' report and the auditor's report will be considered and I present a copy of them to the meeting, which is signed by me for the purpose of identification. I invite you to ask any questions about these reports. I remind you that there are no resolutions required on this item. Please limit your questions at this time to matters related to the financial statements and other reports. There will be -- also be time for general questions at the conclusion of the meeting. Questions may be addressed to me or to of company's auditor through me. Are there any questions regarding the reports?

Chair, there is no verbal question on the phone.

John Sablejack. In regard to the accounts, I'm just wondering, 5 years ago, Clover was doing ROE of circa 20%. We've had our hiccup and downturn, now at 9.8%. Is there a plan that we will return to approximately 20% ROE in the future? Or is 10% sort of where it's at?

I think the -- if you want to -- if you stop the business, you can increase its ROE and you don't grow. And I think challenges are to continue to grow and look at your asset base and decide what is an appropriate asset base for the business. We've increased the asset base of the business, investment in Melody Dairies, our investment in Ecuador which we think are strategic and risk mitigation for the business. We've also expanded our footprint in relation to broader representation and spending more money on product development. We're focusing really on a high margin business in areas that we can grow more rapidly. It's I think -- our focus is on growth and gross margins and managing our cash flows to do that. We think if we do that, we can improve our return on investment. I'd like to be able to say that we make a promise...

I'm just saying, 5 years ago, even though we were in a growth phase then, we were getting 20% ROE. I understand there's been a whole range of issues. Now that things have stabilized and improved, and we're talking about a bunch of premium products, broad product range, competitive positioning in the market that's advantageous relative to our competitors. Do we not be getting a premium pricing that enables that return on equity to...

Well, our strategy is to approach that and also try to be asset-light in relation to the way in which we achieved that. I think part of the challenge is in relation to growth and representation. And so part of the move to a distributor model is to help in relation to that. I think it is a focus to continue to improve. And I think we would like to see the return certainly in the double-digit teens, aspirational have no problem to aspiring for '20, but it's not in process -- are there any other questions in the report?

There are other questions online.

Before we formally thank PKF for allowing us to be facilities today. And I think it's related to go through our partners in business, but also have a good central location where we'll have shareholders meeting. Thank you, Ken. As now turn to Item 2, which is the retirement of Graeme Billings. I will invite Graeme to speak a little bit about his time and reminisce a little about some of the changes that have occurred during his time before we're acknowledge thank you for his time on the board.

Thanks, Rupert, and good morning, everyone. I've been very proud to observe on this Board. I can recall when I joined the Board all those years ago, the 14th of May 2013, I can recall thinking that this was a different world. This is a sector that I was not overly familiar with, but I can see, I was really interested in the business. I see that this business and the track is going to make some meaningful contributions. And that hasn't disappointed me. So it is a business interest these days. Just to reflect on when I did join, in 2013, some numbers and personnel, we've experienced as a Board going forward. Then revenue was $44 million, a return on sales of 14%. That, of course, revenue is about 86% -- $86 million. turn on sales of 8%, but almost doubling the revenue. Net assets, 2013, $32 million. In assets in '25, $72 million, so done. So the company is, goes without saying, has really grown. Board back then had 5 directors. Peter Robinson's Chair. Ben Brown was the Managing Director. Some of you have been around for a while might remember these people. Marily Sleigh as well as Cheryl Hayman, and as well as David Wills. During my time, we've had 3 CEOs, including Peter. We had 2 Chairman, including Rupert, and we've had 4 CEO and CFOs, including Andrew. Virtually home meetings in 2 head offices over and going up to Brisbane for the R&D facility. But we had an office in Tullamarine some years ago. And then we continue to fit out the plant in North Altona, where we moved Board meetings to. Sydney was always a prolific meeting spot because of equity in our company. So the company continues to be on a journey establishing itself as a serious player in the sector. I think it's fair to say that everyone around the board table would attest to the fact that this is a quality company and certainly punched above our weight, which I think is a testament to the management team and the Board over the years. Company's R&D facility in Brisbane, second to none, and enable significant research to occur. Innovation has been the cornerstone of what Clover does best. Over the years, we have seen innovation manifest itself on a range of product development projects such as Premneo, talked about Choline,, probiotics, gel foam. As part of the growth than company has identified partners to supplement specialist skills. We urge this practice to continue. I know we have the right management team and Board skills in place to drive this growth. The company is at an inflection point, as a sustainable growth. We must be prepared to continue to invest in our future, be bold in our view of the future and be aspirational in what we can achieve. Shareholder wealth will always be a priority for us. So thank you to everyone just before I do final things. I'd like to welcome Fiona to the Board. Fiona stepped on probably 3 months ago, or takes over the tier of the Audit Committee role today. So I know we've got someone right skills and the right person. for this role. Congratulations. Thank you to everyone's staff, investors management team and the Board for your support over the years. And lots of good luck as we go forward. Thank you. Thanks, Graeme.

On the Altran Board and shareholders, I'd really like to say grantors wonderful contribution over the years. He's been very -- member of the Board, but always insightful. Helpful in establishing the risk management and governance procedures within the company, which I think we believe will stack up with anybody else in the sector or other significantly listed companies. He's mentored number of CFOs. And I think he's board experience as a senior director has added to the growth of other directors around the table and the contributions he brings to the table. Graeme, thank you very much, and wish you well in your retirement.

Thanks very much for -- thank you.

Sorry, Mr. Chairman, there's a general question from shareholders. Stephen Maine. He is just asking if Graham and I'll bridge the question given the commentary that's taken place is growing, can take what he believes to be the 2 best decisions made by the Clover Board during his time with the company. And does he have any regrets?

Well, thank you, Steve Maine. Firstly, no regrets. We always move forward. But yes, there have been 2 standout decisions out of a number of decisions. Firstly, along the journey when the Board really adopted in a serious way the growth strategy. That was about reinvesting into the company, particularly into R&D and innovation in the Brisbane facility. That's been a real highlight. We've talked a lot about the outcomes there on new product development, like on Choline, probiotiocs, gel foam and Premneo. So some of those, of course, still yet to prove out totally. But we're very confident that those products will be success. Secondly, the investment in the, Melody Dairies and Ecuador still playing out that will be -- represent the future of this company.

No further questions.

Item 3, resolution 1, set out in the notice of the meeting which are related to remuneration report ending the 31st of July 2025. The remuneration report is in the Directors' report section of the published company's annual report Pages 18 to 27. And in summary, the remuneration report explains the company's remuneration policy and the process of determining the remuneration of directors and executive officers. Sets out remuneration details for each director and each of the company executives named in the report, the financial year 31st of July 2025. Section 250R2 of companies -- of the Corporation Act requires companies to put a resolution to their members that the remuneration report be adopted. Please note that the resolution is advisory only and does not bind the company or the Board. I move that the resolution, adoption of the remuneration report for the year ending 31st of July 2025 to be put to the meeting in the form of Resolution on set out in the notice of meeting. Details of the proxy votes in respect of this proposed resolution are shown on the screen. Are there any questions regarding the remuneration report?

There's no questions on the line. There's no verbal questions on the phone.

So no questions now the question I put the motion to the meeting that the remuneration report be adopted. The results will be decided by weather all at the end of the meeting. I now move to the next item. The fourth item being, the second resolution relates to the reelection of Simon Green. Simon is required to retire by rotation pursuant to the constitution and being eligible offers himself reelection. Simon has been on the Board since the October 2020 and chairs the Innovation and Development Committee, which provides oversight and support of strategic to the management team in conjunction with 2 independent consultants. Simon, would you like to make some comments and about you and your commitment.

Thank you, Rupert, As Rupert said, I've served on the Board since October 2020, and I'm still incredibly energized at the prospects of the company. It's a well-governed company. It's got an outstanding management team and a clear strategy for growth as I see it. As Rupert said, I take quite delight in sharing the Innovation and Development Committee for Clover Corporation. And as Rupert said, the focus is to govern the tipping programs that underpin delivery of innovative world-leading products and help diversify our product offerings in order to help fuel future growth. I have a bachelors of science degree with honors, got a PhD from Melbourne University in the field of biochemistry. I am graduate of the Australian Institutional Health Company Directors. Have international experience having worked in the United States, in Europe, and also in Australia. I spent 17 years at CSL Limited during its global expansion phase where our held positions of Senior Vice President for our Global Research and Development for products as also the General Manager of our operations in Europe based in Germany and also ran our Board Meadows facility here in Australia. I've experience in managing innovation, developing new products for global markets, manufacturing operations due diligence and mergers and acquisitions. I'm also currently the co-founder and CEO of Immunosis, a small biotech start-up company, that is developing artificial intelligence-driven RNA technologies for diagnosis and management of patients with immune disorders. I have 10 years' worth of board experience on ASX-listed companies and I confirm that if I'm elected, I have the capacity to serve as a Board member for the next term. I'm incredibly excited about the opportunity to stand for reelection contribute my knowledge, my energy and my passion to the Clover Board and the subcommittees that I participate in. Thank you very much. Back to you, Rupert.

Thank you, Simon. The Board with Simon abstaining, unanimously recommends the reelection of Dr. Green as an executive director of the company and recommends that you vote in favor of the resolution. Details of the proxy votes in respect of this resolution shown on the screen. Are there any questions regarding this resolution.

One question because you are clearly a director with a focus on R&D roadmap with the company being not huge company or a biotech data. Can you elaborate on your thoughts on how to focus the team on the best return of capital objects because the company do seem to have multiple high potential growth targets, iron in the fire. But as shareholders, we would like to know we have punching above our weight, but also very focused and consider manner in managing the capital.

So I'd love to hear your thoughts on that. So I think the most important starting point is having a clear strategy, so at the board level and at management level about what the company would like to do. and then to translate that strategy into activities that occur within the whole company, but specifically within the R&D organization. We have a formal process within the organization that involves the input from the commercial side of the organization, the research part, manufacturing operations. So each part of the organization comes to contribute to a formal process that we have that looks at all different opportunities and then selects best opportunities to progress. There are many good ideas that we still don't -- they're on the shelf, but the ones we are progressing, we think are the best for shareholders and for future growth of the organization. And then once we've done that, then we have an ongoing process for monitoring how those projects are progressing. And the Board regularly reviews the progress of the R&D projects, and we also go for a deeper dive, 3 times a year with the innovation and development.

You might like to comment on the formation and the members of the Innovation Committee.

Yes. So we have -- so the innovation committee has now been running for over 12 months. We have selfish the Chair of that committee, and we also have the Head of Research and Development. So I'm Glenn Elliott from the company; Peter Davey, our CEO, also joins that meeting when available. And we have 2 external experts in the field that we have recruited on to that board. Colin Barrows from Lincoln University, and Effi from Sydney. colin brings an awesome background in oils, fermentation, EFI has spent some time working with Danone as Head of Regulatory Affairs. And so we've really been focusing that committee on understanding the regulatory strategy for all of our projects, and Collins provides information on the.

Thank you, Simon. Any other questions? If there are no further questions, I now put the motion that Resolution 2 be adopted. The results will be decided by way of a poll at the end of the meeting. This concludes Item 3 of resolution to. The fifth item being, resolution relates to Fiona Pearse. Fiona having been appointed by the Board with an effective date of the first of August 2025 is required to offer herself for reelection. We've had a question by way background, and so it's appropriate that I answer that question at this stage, which relates to the process of recruitment of Fiona. We -- at this time last year, as part of transition and trying to retire this meeting that was understood. And so we started a process to recruit them. We for what we consider to be appropriate. Looking at a few metrics and looking at what impact Graeme's departure would have and what we needed to sort of expand on it or bring additional skills on to the Board. Out of that came a specification for the recruitment of an effective director. We looked at 3 different parties who could assist us with this, help us, who could bring and selected 1 of partners. And so very broad -- a broad range of opportunities much which was still down into a short list. An important part of that was we were keen that -- we had a broad selection of male and female. We wanted to ensure that it was talent, but we had an adequate pool of talent to give us some options and opportunities. Fiona not done to any of the other directors on the Board and certainly wasn't introduced that way. She was interviewed by the Board and by individual directors and as part of a short list of people. And so the process, I think, was thorough. And I think we've all been happy with selection. So Fiona may be you'd like to give some background of you and your reasons for being here.

Thank you very fast. I have an accountant, I worked for about 19 years at BHP and BlueScope Steel in a wide variety of different jobs in that time on-site and its strategic head office roles, financial accounting, management accounting, tax of the whole gamut and in the last roughly 16 years, I have sat on a variety of different Boards. So some of them are very large Boards, one at the moment 25,000 staff, public hospitals, private hospitals, aged care and then also private companies like I chair the Board of an ethical fund manager and then listed so I'm on the Board of Smart Parking, which is a high-growth global company. When I joined the Board in 2019, and I've chaired the Audit Committee there for most of that time. When I joined the Board in 2019, its share price was sub-$0.20. It's now more than $1.20. So it's been seen huge rapid growth, and we've done a really big global expansion into Europe and the U.S. I guess what I really attracted to me about Clover was it's another growth story. I hope that a lot of my pay doesn't come from I pay. It comes from the shares of just about $100,000 worth of shares. And I hope a lot will be good upside in which is -- and I love the challenge of growing a business. I will bring that -- I'll be asking that I already think I have some of the hard questions on the finance front, and that's not just the annual report. That's more how do we grow, how do we actually how do we price, how do we get the cost? How do we grow the business? That's what I love doing. I have got a bachelor of economics. I've got an MBA. I am a fellow of CPA Australia and I'm a fellow with the AICD. So I think that's enough.

The Board, Fiona abstaining, unanimously recommends the reelection of Fiona Pearse as a Non-Executive Director of the company and recommends that you vote in favor of the resolution. After Graeme's retirement, Fiona will be appointed to the position of chair of Audit and Risk. Details of the proxy vote in respect of the proposed resolution were shown on the screen. Are there any questions on this resolution?

There's no further questions online. I think Mr. Stephen Mayne's question has been interested, Mr. Chairman.

If there are no further questions, I have put the motion that resolution may be adopted, the resolution will be decided to have a mention the meeting. This concludes items 5 of resolution 3. Item 6 being resolution before is set out in the notice of meeting relates to the approval of the issue of financial year, '26 performance rights to the Management Director under the company's long-term incentive plan. Approval of this resolution the company to issue 529,638 performance rights to Mr. Davey, on the 31st of July 2028. The Managing Director has 832,068 outstanding performance rights yet to divest, previously approved by shareholders at previous AGMs. Mr. Davey will hold performance rights vest over the next 3 years if Resolution 4 is approved. In terms of these performance rights are summarized in the notice of meeting, on Page 9, the explanatory statement. I move that the resolution for approval of the acquisition of the management performance rights and the issue of other provisions of shares in satisfaction of performance rights are put in the meeting in the form of Resolution 4 set out of the announced of the meeting. Details for proxy vote in respect of the proposed resolution are seen shown on the screen. Are there any questions regarding resolution 4?

Mr. Chairman, there are no questions in regard to the resolution 4 online.

Questions from here, if there are no questions, I move the approval be given to Mr. Peter Davey on the terms described in the memorandum of companies in this notice meeting. Item 7 being Resolution 5, as set out in the notice of the meeting relates to the approval of the company's long-term incentive plan. That was previously influenced by resolution of shareholders at the company's Annual General Meeting on the 18th of November 2021, more than 3 years ago. Companies considering providing financial assistance to the trustee of its employee share trust, to acquire fully paid ordinary shares in the company to be handling on the terms of the trust through the provision of funding to the CPU for the acquisition of shares in the company on market to hold them in the of the trust. An exemption to the financial assistance provision of the Corporation Act inclines where financial assistance is given under employee share scheme that has been approved resolution passed at the General Meeting of the company Section 260C4 of the Corporations Act. I move that the resolution for the approval of the long-term incentive can be put to the meeting in the form of Resolution 5 set out in the notice of meeting. Details of the property of votes in respect of this proposed resolution are shown on the screen. Are there any questions regarding this resolution?

There are no questions online, Mr. Chairman.

Thank you. I move that for the company to provide financial assistance on the terms described in the memorable the company and notice of meeting. Item 8 Resolution 6 set out in the notice of meeting relates to the approval for the adoption of the new constitution. The company's existing constitution memorandum of association -- and articles of association were adopted in 1988. The articles of association were amended at the Annual General Meeting of the company held on the 23 November 2010, a replacement of Article 28 with nearly the memorandum of the articles have been amended so that time. In the circumstances, directors propose to draft a new constitution to replace the existing constitution in its entirety. This is intended to the company constitution into the current and corporation governance practice. I don't propose to detail -- the detail of the changes. The Resolution 6 being a special resolution 75% approval. I move that the resolution for approval and the adoption of the new constitution being pushed to the meeting in the form of Resolution head out in the notice of meeting. Details of the proxy priority in respect of this proposed resolution are shown on the screen. Are there any questions regarding Resolution 6.

I sort of fell sleep halfway with the constitution. So I just wonder if you could tell us at a high level what the key changes are in terms of implementing this, apart from changing the name of the ASX and changing some of the other sort of -- I think the housekeeping-type issues.

Well, I think most of them are housekeeping. I think the only thing that is -- wasn't in the old 1 was the ability to hold electronic meetings. And other than that, everything else, as I would recall, housekeeping. There were no changes in form or substance proposed by the Board to change the power anything that was to be done under the previous constitution. If there are no further questions, I move for the adoption of the new constitution described in the explanatory memorandum company of this meeting.

There are no questions online.

In accordance with the ASX rules, I now ask the floor and everyone online to finalize their votes. -- now the metadata and the malaise there are any present believes they are in total development interest to vote will you please raise your hand to resistance. Persons entitled to vote its shareholders, representatives and attorneys of shareholders and proxies who hold the mission card. Blue card is the voting card, yellow non voting, white is the visitor. I will now go through the procedure for filling out the voting papers. Proxy holders have attended to the admission card solar of proxy vote, which entitled the voting instructions for business items the appointment of documented in your favor. By completing the voting paper, when instructed to vote in a particular manner, you are deemed to have voted in accordance with these instructions, in respect of any open votes a proxy holder may be intelligent to cast, you need to have to lot to be sent a motion to indicate how you wish to catch your vote. Proxy holders should refer to the summary of proxy votes form attached to your voting payment for the resonation channels also need to mark box beside the motion to indicate a elution to cast their pots. Please ensure that you print your name where indicated in your voting paper. We have finished filling in your voting people lodge it in the ballot or pass it to Computershare representative who will move around the room to collect and ensure you are all accounted. If you require any assistance, please raise your hand. I will pause while voting papers are completed and collected. Please indicate by raising and if you require more time to complete your voting card. Shortly I will close the voting system. Please ensure that you have cast your vote on all 6 proportions. As Chair and as previously advised in the meeting, it is my intention to vote all open proxies given the of each resolution. Having been completed I now open the floor for questions from shareholders to the Board. Questions are passed of the moderator.

Chair, there's no verbal questions on the phone.

We have 2 remaining questions online under general business. And I'm on the floor. Mr. Gary Ellis is asked with you'll provide a bit of an update on Ecuador and I read the question, is the present political climate in Ecuador and its surrounding neighboring countries causing concern to management, with respect to the with respect to the ongoing processing and supply of its fish oil from its fish head processing plant and has the company investigated or considered establishment of additional or alternative facilities within the Australasia region given the high quality of seafood from our southern oceans.

Peter would like to take that question.

Ecuador isn't without its challenges. We certainly have practices and process in place to ensure that our shipments and production is protected. Our facility is actually behind the 12-foot wall, it is held on guard. All of our shipments are conducted by a third party who video take the entire process with security. All containers are loaded under secure mechanisms. The trucks that take the product are all escorted trucks that take it from our facility through the actual port when it goes in behind locked gates in the board. To date, we've had no issues, without political issues within the country. So we haven't been -- I think it Ecuador all be affected by Venezuela or all things that are happening in other countries. It's quite think in its own borders. Have we looked at other facilities within the region. We have considered things in the region much of the tuna fish that's in this region, is farm tuna fish, it doesn't contain the right levels of the HA or Omega-3 within it. Because it's farmed fish, it is not deep sea fish. We only use deep sea fish for use in the infant formula. It's World Health Organization policy. So -- but it doesn't stop us thinking about other facilities in other parts of the world. Ecuador is very new. It's going extremely well. We've got growth opportunities there. Once it is at its full capacity, we would then turn our attention to other supplier.

I just wondering whether you could talk about the impact of AI to your business, especially given the amount of R&D you do and what impact and whether that's delivering any benefits?

I think you can answer it a little bit from the innovation committee.

We have invested in AI in the business. So we're just rolling it out now. It's in its infancy. We're certainly looking at projects around how we best apply it into our R&D process To give you a glimpse into 1 of the questions we've asked the people that we're dealing with is we've got a problem, and we've been in this business for a long time. How do you look back within what we've already done in the past and find that information and do it in a couple of seconds, we can get answers. It is a game changer for all industries, I think, in R&D, is certainly important. So it's a long track, just begun, but will certainly be in applications now.

And yes, just echoing that. At this point, the AI is really about sort of information gathering and precise processes rather than being the core foundation of the products that we have. And so I think that in time, that will change. But at this point, really about the reading efficiency and information gathering.

When you say in time, we're talking 1 year, 2 years.

And I think it depends on type of company. So if your information -- if you're an IT company, you'll be talking about that now, you'll have new products coming out. I think for us, we are physical products. So community only contribute to the design of those products rather than actually being in the product.

Mr. Chairman, we have 1 remaining question, which comes from Mr. Stephen Mayne again. in relation to when was the audit last tender and when will it be tended next.

I don't know the data when you listed, but he wasn't in the last 3 or 4 years is -- it was 9 years, I can see -- the process, I think, is when we look at order is the -- we look at the quality of the outcome and the relationship with the auditor, cost perspective, I think we do get an insightful perspective from common directors in the Board. It's I think like all things are always happy to review from time to time. We've got -- the existing audit partner has got 1 more year to run his appointment within his organization before he moves out of rotation. Fiona is taking over the chair of audit and risk. And so that's related to that would be -- the transition, I think, is important. And then sure that Fiona will look at what we think to do or what we need to do in relation to ensuring that we refresh our process and that we'll have in our processes. I would think that will probably be something that will be reviewed at the end of next year.

If I could -- just firstly, on the New Zealand trends and just looking costs at is there. There's been a couple of movements there in terms of capacity. I'm just wondering in terms of the capacity might become available in New Zealand and explain on the Choline just what sort of plant you need will there be scope is some of those plants they're underutilized, maybe use some of that capacity in New Zealand going forward.

The plants that you described are products. So effectively, they are massive facilities that do on average, probably 8 to 10 tonnes an hour. Our are significantly smaller. So we do -- we have a of 750 to 1.2 tonnes because we're doing very specialty products, smaller runs, they are way beyond the scope of our business. So once we've looked at our smaller are available, there are a number of throughout New Zealand. And as I described earlier, we were talking to a number of players around whole manufacturing with them, joint venture manufacturing within and a buyer. So there are other options on the table in New Zealand. New Zealand is a good marketplace for us. It's the second largest marketplace in the world. We do significant amount of the formula business there. So it speaks well. We've got people and really operational people who is the right place for us to look. The big ones are just too big.

Using MG sites...

Relatively small growth...

Is the Choline, is a different type of dry or thinking about? Or what's sort of dry what sort of rate?

It's a nutritional dryer that it requires a fair bit of upgrading and change to be able to run the Choline product. So we're using a dryer here in Victoria now that's gone through 12 months to be able to make the product, and we would have to do the same.

With the connection you've got with H2, then you're talking about raising new products going forward, how do you see opportunities English will label versus the China label and what they've got planned.

I wouldn't comment on any individual customer. All I'd say that generally, all customers are looking at broadening the scope as I described earlier. If you are an infant formula the manufacturer, you have to go and invest in other products and other applications. We have been doing very well in that field. If I am infant formula manufacturer, and I want to produce a product for a seniors product. It's not the same ingredients that I'm going to put into an infant formula product. There's a few competitors out there that can match the products that we've got. So we're well positioned to take advantage of those opportunities.

I think the -- when you look at China and you look at the infant formula market in China, and you look at the birth rate decline. you can see that it's incumbent on all of those parties to want to find that broadens the to the movies. And so we see opportunities to feed into all of that chain across all markets. Sorry.

Yes. And as you say, that trend you look to switch towards in labor even with A2. But similarly, we denote happening as well -- is this -- do you think this is a temporary or a temporary phenomenon? Or what you think is behind? And does this represent a pivot away from China to the our paint manufacturers business not really targeting the car or is it complementary?

We've certainly seen a shift in the last 12 months away from wards Western manufacturing product. They probably investor. That is Western manufacturers. We're lost a lot of share in the marketplace. They are favored the local manufacturers. Western manufacturers invested significantly in online marketing, and therefore, using bonded warehouses and electronic shop fronts to represent their brands. They've done very well at marketing those products using influencers within the China market. And it did swing back towards the Western manufacturers in the last 12 months. I have no doubt that the Chinese are very good at competing and they will fight their way to try and win back the share that they lost. It will be a fight between the 2. As I said earlier, we supply both. So we're quite happy to -- for anyone to win business as long as our ingredients in formula are manufactured.

Following on the question related to A2's big change in supply chain. So obviously, you can't comment on a specific customer. But can you give us some sense on whether there's going to be any impact on your relationship going into the new design.

I would just say all of those as an opportunity. There is more capacity -- it's an opportunity for us to get more business. And hopefully, we do get that business.

I actually have 2 questions. Why only if I can your takes. There's please -- the first 1 is coming back to Choline itself. Now you mentioned in the next 6 months, you're at coming to the ability to be able to supply commercial amounts. Could you maybe talk us through the time line and what we should expect? Do you need to see a certain level of commitment from your end customers? And what do the Board need to have in terms of the confidence in the return on equity or committed amount of volume offtake to pull that trigger for either JV contract. And when can we see that? When should we expect that to happen? And then after that, what should we expect you guys actually announced a JV or should you go for your own greenfield CapEx or signing a toll producer.

Well, that's a big question. You want to start and I will finish, okay.

From a Board perspective, the growth opportunities so as you correctly question is, what is the timing in relation to various takeoffs. I think if we had a facility of our own and we bought something, then we would be saying what is the cost the transitional plan? How do we manage whilst we're building up Choline, what else got to do with this facility, and therefore, how do we manage it, make it cost effective and we from an investment perspective. That's sort of one leg. The other leg is, I think to manufacturing is we -- all our trials that we're doing. We've got to somebody who would total manufacture for us, but they've got limited capacity. And so we know we can get to a certain level. We -- it's a good relationship and all of our volume trials themselves been. So they're probably the 2 gains. And if you are to scale up, then it's outside of that, what is the next opportunity. And to what extent is that going to be driven by access, problem with going to third parties is location. Can you get access when you want, or have you got to process from time to time? So how do you deal with that? I think we are still in the stage of assessment in relation to it. And I think the -- all of those things are aligned. And I'm not sure that there is any 1 answer we can give you today. I think the Board is very supportive of the strategy to implement this. We see it as a great growth opportunity. And I think -- and we're happy to take measured risk around it to support a sensible plan by management.

And maybe the extension of that is we've had a number of initial trials done with the product before being very successful. So now we are expanding that. So we'll -- we probably signed up another 10 customers in North America last month. So again, it will be staged to ensure that product actually functions, works that the supply chain is correct, and it actually has the shelf life required branding investment you in product. So those customers will take about 12 months to go through their own production and shelf life testing before they'll start ordering product in volume. Gives us time to catch up and scale up to be able to meet best demand. The intent is not to go greenfield, we've got very good knowledge, we can back it up. We can present a case to the Board that says we need the investment in greenfield. That's probably 5 years down the track. We've a very small facility at the moment where we we've been able to manufacture the product. We fulfill that demand fairly quickly. Therefore, that's why we're looking for more of a brownfield operation or a joint venture or a toll manufacturing. Issue with it, as I said to Mark, is you can't just go and manufacture on any facility. You need a nutritional dryer, and then you need to invest in that dryer's, if it is ours or somebody else's that record upgrades and changes to manufacture the product. It's not a simple product to make. It is a really hard product to make. So I'm not keen on investing in somebody else's dryer, rather invest in my own asset.

So in for about 6 months after 6 months of assessment and small scale gating up working on the transition. My local customer is 12-month shelf light thing, you might get some sort of maybe verbal commitment on them for you to move on to brownfield, that if you do eventually do a greenfield, it's like couple of year.

The 6 months reference was that we should be in a position where we know we've got another facility or a toll manufacturer, a joint venture. -- actual moving to customer orders and sales is probably more of a 12-month.

Second question, Second question please. We talked so much about China. So I got to ask about China. It's been, about the Chinese market. And how you guys have gone in the Chinese market. This is a part working making, but we still haven't seen a material line just for Chinese domestic -- can we actually expect that to ever happen?

I don't know the answer. You can to can lead to holster water. So we've had ups and downs within the China marketplace. We are certainly qualified with the top 5 major infant formula brands. We have 1 business with them that tends to be in their premium brands. The opportunity now is that the in China, all licensees have to reapply for their license basically starting now, which means that we're again, an opportunity to be in the licenses, which will then stay for 5 years. So every 5 years, you have to relicense. There's a good opportunity there. As I said earlier, we won business within the senior market, which we'll see growth out of. It's a significant market. It's a very competitive market, and you're probably aware we don't compete on price. So we have to compete on technology. That's where we win. So if you look at some of the localized brands, they have an absolute super premium segment. We tend to be in those products where there's no -- where people are paying for a product they don't want any sensory issues, no smell or no taste. They want high doses of Omega-3 in their product, which we can achieve with locals really don't compete. But that's we try, we quote, we work at it. I think what I tried to show you earlier was that we are trying to now leverage our broader application of products into different applications. Formula channel is extremely price conscious.

You spoke during your presentation about incorporating some of your technical staff with customers in their product development. Is that done on a fee-for-service basis, that's the sales and marketing expense is harming response here.

So we because our product is very unique. You actually have to teach customers how to use your product is not like you just buy it off the shelf and you can test how to when to incorporate the product. So it's not destroyed in the process. If you put it in too early or too hot or too cold, it will impact the product, it's a thing, it's a mega 3. It has significant issues if you break the barrier and you're going to destroy your products. We have to text them and show them how to do it properly.

Any other questions?

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As there are no further questions, I'd like to thank you all for your attendance today. The results of the poll will be announced in the market via the platform later today. As the business of the meeting has been concluded, I declared the meeting closed. Thank you again for your attendance and your continued support of our corporation. I look forward to updating you. Thank you.