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Hi Nathan,

I know Natural Beauty is too small to be considered for the Orange portfolio, but do you still follow them? Their FY12 results released recently were terrible. Overall revenue was down 18.2%, due to a 19.8% drop in their China market (makes up majority of the sales). They said the China decline "was mainly due to the deteriorating retail and economic environment". I know the Chinese economy is limping along with a meager 7.5-8% GDP growth, but how does that explain a 20% drop in sales? The stock is trading at a 52 week low at .62 HKD. I would think with the rise of the Chinese consumer, this business should be growing, not shrinking. Let me know if you have any thoughts on Natural Beauty.

See their 2012 annual report in the link below:

http://www.corpasia.net/hongkong/00157/financial/21/EN/ew001...

Thanks!
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