Other than what you’ve mentioned, there are three additional reasons given by the company; increased in fixed cost due additional lines added, decrease in government subsidiary and loss of foreign exchange. All these seem to be a temporary setbacks when the demand comes online (who knows right?). Since the future profitability is always uncertain, no one can guarantee if the company will remain profitable.
But from analytical perspective, there are three large aseptic players in the market; Tetra Pak, Combi Block and Greatview. Combi Block uses an entirely different set of machines from Tetra and Greatview. In other words, Combi Block has different set of customers from the other two. So the head-to-head competition is between Greatview and Tetra Pak (since Greatview leverages their feeds on Tetra’s machines at customers site). Both companies shared many similar customers such as Mengniu and Yili. Clearly, Mengniu and Yili are the largest customer of Greatview. The question is… Do you know why would Yili or Mengniu choses Greatview as their supplier?
