Welcome to the annual general meeting of Bubs Australia. Today's meeting is being held online by the Lumi Digital platform. This allows shareholders, proxies, and guests to attend the meeting virtually. All attendees can watch a live broadcast of the meeting. In addition, shareholders and proxies have the ability to ask questions and submit votes. Before I introduce our Executive Chairman, Mr. Dennis Lin, to commence the formal business of the meeting, I will explain the process for asking questions and voting. Online attendees can submit questions at any time. To ask a question, select the messaging tab at the top of the Lumi platform. At the top of that tab, there is a section for you to type your question. Once you have finished typing, please hit the arrow symbol to send.
Please note that while you can submit questions from now on, they will not be addressed until the relevant time in the meeting. Please also note that your questions may be moderated or if we receive multiple questions on one topic, amalgamated together. For those shareholders who wish to ask a verbal question, the audio questions facility is available during this meeting. To use this service, please pause the pro-broadcast on the Lumi platform and then click on the link under asking audio questions. A new page will open where you will be prompted to enter your name and the topic of your question before being connected. You will listen to the meeting on this page while waiting to ask your question. If you have any issues using the system, please return to the Lumi platform.
Finally, due to time constraints, there may not be sufficient time to answer all of your questions. If this happens, they will be answered in due course. Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, Executive Chairman Dennis Lin will shortly open voting for all resolutions. At that time, if you are eligible to vote at this meeting, a new voting tab will appear. Selecting this tab will bring up a list of resolutions and present you with voting options. To cast your vote, simply select one of the options. There is no need to hit the Submit or Enter button as the vote is automatically recorded. You can, however, change your vote up until the time the Executive Chairman declares voting closed.
I will now hand over to Executive Chairman Mr. Dennis Lin to commence the meeting.
Thank you, Vivian. Ladies and gentlemen, welcome to the 2021 annual general meeting of Bubs Australia. My name is Dennis Lin, Executive Chair of the company. To commence today's proceedings, our Chief Executive will present an overview of Bubs' journey in FY 2021 through to post-COVID recovery, including insights into where we see our growth strategy taking the business in the next three years through our strategic ambition of one brand, one family, one world. Following the CEO's address, I will then outline each resolution during the formal business of the meeting and address your questions and comments on the resolutions on which shareholders are voting. I declare voting open on all items of business now. The voting tab will soon appear, so you can submit your votes at any time.
At the end of the meeting, I will give you a warning before I move to close voting. Before closing the meeting, I will also address any general questions related to the business. I would now like to formally introduce your board. Firstly, Kristy Carr, Founder and Managing Director. Kristy founded the business in 2006 and is responsible for the DNA and authenticity that makes Bubs so special. She leads a team of extremely talented people between our Sydney, Melbourne, and Shanghai offices. Next is Mr. Steve Lin, Non-Executive Director. Steve is managing partner of C2 Capital Partners, a Hong Kong-based investment fund anchored by Alibaba Group. Steve provides the board with industry-leading expertise on growth capital, proprietary insights, and operational support to scale in China. Our newest board member, Ms. Katrina Rathie, Non-Executive Director. Katrina joined Bubs board earlier this year.
Katrina was partner in charge for King & Wood Mallesons and brings 35 years’ experience as a leading expert in international IP and a consumer brand lawyer with extensive governance experience. We're all very happy to have Katrina on board. Finally, Jay Stephenson, Company Secretary. Jay has performed this role since our public listing in 2017. Jay is a professional company secretary with extensive experience for numerous ASX-listed companies. Also with us during our AGM today and online, our executive leadership team. I would like to also introduce them. Firstly, Fabrizio Jorge, Chief Operating Officer.
Fabrizio joined us mid-year from Fonterra, where he was general manager for Fonterra brands for Thailand, Laos, and Myanmar, following four years as head of Fonterra's Australian ingredients business. Fabrizio brings more than 20 years of global dairy experience to driving our global growth strategy and oversight of all our operational activity. Prior to Fonterra, he held various international leadership roles within Nestlé. Next, we have Dylan Lu, Managing Director of Greater China. Based in our Shanghai office, Dylan brings over 23 years of experience with leading consumer brands in the U.K. and China. Most recently, he led marketing and e-commerce at the A2 Milk Company for Greater China. Next, Iris Ren, our Chief Financial Officer, who has extensive experience in financial advisory and transactions, audit and compliance. You heard earlier from Vivian Zurlo, our Chief Marketing and Innovation Officer.
Vivian has significant domestic and Asia Pacific experience in the food, dairy and health and wellness categories, marketing and also brand strategy. We also have Richard Paine, our Chief Manufacturing Officer. Richard is a 30-year veteran in dairy and supply chain operations, including past experience in key roles at Bega Cheese and also Marigold. Finally, we have David Orton, our General Manager of Supply Chain. David is responsible for supply chain and operations and integrated business planning by implementing systems and procedures for our high-growth business. Working closely with Bubs family throughout the challenges presented by COVID-19 has convinced me more than ever that we have the optimum combination of talent to best serve you, our shareholders, going forward. Our auditor, Deloitte, is represented here by partner Andrew Sun, who will be happy to take questions on the financial statements relevant to the audit process.
Also present online, we have Carly Lane, our Partner at Ashurst, who acts as our legal advisor. I will now hand over to Kristy Carr to present a business update and outline the key elements of our growth strategy to take us forward. Kristy Carr.
Thank you, Dennis. Good morning, everyone. At this time last year, we stood before you following the initial disruptions of COVID-19 and outlined the impact that had had on our business. In the ensuing year, we have learned many lessons and effectively reshaped our business to take advantage of the inbuilt resilience of our integrated supply chain. We moved quickly to rethink the way in which we approach our China business while recognizing there are significant markets beyond China in which we are well-placed to participate. Importantly, we have a strong master brand, coupled with the organizational expertise and agility to become a category leader in infant nutrition as we continue to expand our global reach. The first thing that must be said is there has been significant disruption across our industry.
This has driven changes in the routes to market, reflecting China's accelerated transition to e-commerce retail, together with the reinvention of the corporate Daigou channel, which has become a powerful and truly digitized social e-commerce network of marketers and resellers. From the initial impact of COVID-19 disruption caused by prolonged border closures, we recognized the fundamental channel shifts affecting our China business and continued throughout FY 2021 to refine our approach to rebalancing supply to meet current channel demand and resetting our price architecture. The company focus now moves to the channel and product reinvigoration aimed at protecting our existing business and partnerships, identifying growth and innovation opportunities in each channel, and boosting utilization of the plant capacity at our Deloraine facility with both our branded portfolio and an increased emphasis on our B2B business, which is growing rapidly.
Underpinning this is our specialist dairy expertise and the equity built up in the Bubs master brand that enables us to stretch the brand across multiple product categories and consumer groups. Despite the challenging macro environment continuing into FY 2022, our Q1 revenues returned to high growth, which is a testament to the agility and the effectiveness of our response. Recognizing the changing market dynamic and structural changes, we set about building a platform for returning the business to high growth and diversification, including protecting our strong home-based heritage in domestic retail, where Bubs remains the fastest-growing infant formula manufacturer across Coles, Woolworths and Chemist Warehouse. Sustaining value chain confidence by rebalancing channel inventory to meet stabilized demand and enhancing channel margins, as well as leveraging brand equity in China to accelerate our omni-channel sales strategy.
Finally, driving export market diversification across existing Southeast Asian markets and our launch into North America. During FY 2021, management was focused on delivering our operational action plan for building on our strategic foundations in response to the COVID-led channel disruption. I'm pleased to say that we have completed most objectives ahead of time, namely driving the highest and best use of our milk pool, reinforcing Bubs as a specialty dairy business. We restored and reactivated China as an integrated sales channel by facilitating cross-border e-commerce, social commerce and online to offline or O2O under one brand strategy with rebalanced inventory and sustained integrity of our value chain pricing. Working alongside our strategic channel partner, we have continued to support the reactivation of the Daigou model. We further optimized our channel and product mix, consolidated supply chain efficiencies, and increased Deloraine utilization capacity with B2B customers and product innovation.
This brings us to our growth strategy. Our growth ambition can be summed up in one phrase, one brand, one family, one world. We aim to provide a comprehensive portfolio of Bubs nutrition tailored to cater for families across the world. We will achieve this by leveraging the foundational strengths of Bubs master brand that speaks to the same core values and brand proposition across the whole family throughout the world. Bubs is uniquely blessed to have a highly extendable brand, one that can be applied to almost every feeding occasion for families with young children, whether it's our original Bubs infant nutrition through to our latest extension for the whole family, Bubs Family Nutrition. As a dairy specialist, there are many opportunities to stretch Bubs brand equity across four key category pillars for growth, including infant nutrition, junior nutrition, family nutrition, and specialty nutrition.
Each of these pillars are grounded in our key brand values and underpinned by our expertise in specialty dairy. The COVID disruption did not slow down our innovation pipeline. Rather, it sparked an intense focus on ways to drive customer acquisition and grow brand relevance through new products tailored to specific consumer segments and markets. Here we see the power of Bubs brand already on display in the growing spectrum of addressable segments from infant formula through to junior nutrition, organic baby food and toddler snacks, vitamins and mineral supplements, and of course our newest addition, Bubs Family Nutrition. Our growth strategy is built around four strategic sales streams that are complementary to unlocking value within our brand equity, including Australia, China, international, and B2B Deloraine Dairy Solutions.
FY 2021 demonstrated that with our strong domestic position as a lead challenger brand, we are well placed to continue our international growth momentum. We have the products, brands and the expertise to tackle new horizons and regions to help mitigate future unforeseen macroeconomic risks. Unparalleled vertical integration knowledge is now part of our branded branding under Bubs Trusted Nutrition and the independently tested new gold standard for purity, the Clean Label Project Purity Award bestowed on Bubs infant formula range. Our vertically integrated business model provides supply chain security and traceability, as well as having the potential to deliver enhanced margins for our branded products via economies of scale through our facility. The onset of our growth strategy is demonstrated in our Q1 FY 2022 results, delivering a turnaround to accelerated growth.
Our performance since the pandemic has been marked by a combination of business resilience and refocusing of our strategy with a 96% uplift in quarterly group gross revenue compared to Q1, FY 2021, and a 45% increase on the prior quarter. As the lead challenger brand, Bubs has continued to gain market share with 35% increase in scanned sales, noticeably outperforming the category during the pandemic period. Bubs is now the clear number two goat and the number two organic infant formula brand across Coles, Woolworths and Chemist Warehouse. In the recent Double Eleven online shopping festival in China, our CapriLac Tmall Global performance delivered a 119% increase in sales compared to the prior year and is now ranked the number one adult goat milk powder product on the Tmall Global platform.
At the same time, Bubs goat infant formula moved up one ranking to be the number seven goat infant formula brand on Tmall during the 2021 campaign period. Importantly, our go forward strategy is based on an integrated omni-channel approach, acknowledging the Daigou cross-border e-commerce and O2O channels are merging. Our international market diversification strategy is centered on expanding our core product portfolio across markets with well-established and accessible channels, where consumer demand for clean, natural and nutritious imported brands is in high growth. We have established an introductory presence in Vietnam, Malaysia, and Singapore with opportunities to build general trade and e-commerce brand penetration. In North America, we have secured ranging on leading retail e-commerce platforms, including Walmart.com and Amazon.com with our clean label range of FDA label compliant toddler formula and aim to expand to premium supermarkets focused on health and wellbeing.
Furthermore, there are opportunities to selectively target markets with high growth affluent consumer segments across the Middle East, Africa, and the Pacific Islands with our family nutrition portfolio. Deloraine Dairy enables us to develop and tailor products to suit individual markets and better manage market fluctuations for diversification of our customer base. Our renewed strategic focus on B2B will further increase market leverage and the utilization of this valuable asset. Ingredient sales and contract manufacturing already contributed 17% of revenue in Q1 FY 2022. There is no doubt in our minds that Bubs has the potential to become a leading vertically integrated specialist dairy manufacturer on the global stage. We have a strong strategic reset scorecard leading the way into the financial year 2022.
In summary, we remain focused on our long-term sustainable growth agenda with our driving aspiration of one brand, one family, one world being the guiding principle supporting resilience, rebuild, and transformation to underpin our growth. In FY 2021, our team demonstrated discipline and focus with all major executional goals in our operational plan designated for early FY 2022 achieved ahead of schedule, including our important channel inventory rebalance and our successful Daigou channel reactivation. Our Bubs brand equity and master brand proposition has also demonstrated ability to stretch into adjacent growth categories. Our home market advantage with supply chain integration will continue to be leveraged to build on diversified market access.
I would like to take this opportunity to thank the Bubs family for the way they were able to support the business and rise up to the challenges of responding to the significant macro environment forces during this past year. We couldn't have achieved such a significant turnaround without their loyalty and dedication. I would also like to extend my gratitude to our shareholders and strategic partners for your ongoing support of Bubs' journey to becoming a global dairy company and category leader in infant nutrition. That concludes the business update and strategic business overview. We hope you now have a clear understanding of the steps we have taken to support our resilience and have confidence in our ability to continue our sustainable growth trajectory, notwithstanding the challenging macro environment. I will now hand back to Dennis for the formal business of the meeting.
Thank you very much, Kristy. Since by now you will have received the notice of meeting, with your permission, I will take these as read. I'm advised by our company secretary that this meeting is properly constituted, that the proxies have been inspected and all those validly lodged have been accepted, and that the necessary quorum of shareholders is present. Now, it being the annual general meeting for the company, I am obliged to table the financial statements, directors' report and auditors' report for the company for the year ended June 30th, 2021. I now table those documents which are contained in the annual report, which is available on the company investor website.
In the presence of the company's auditors, if anyone would like to address any questions or comments on the financial statements, I'm happy to receive them at the relevant time for questions in our meeting. I now turn to the resolutions for today's meeting. On the screen, you will see there are now three resolutions before the meeting today. Please note, as our market capitalization is now over AUD 300 million, the company is no longer eligible to obtain the ASX Listing Rule 7.1A mandate. Resolution four has therefore been withdrawn. The three resolutions before the meeting today are resolution number one, the adoption of Remuneration Report. Resolution number two, the re-election of Director Mr. Steven Lin. Resolution number three, the election of Director Ms. Katrina Rathie. Resolution one is a non-binding ordinary resolution.
Resolutions two and three are ordinary resolutions and will be passed if more than 50% of the votes cast by shareholders present or by proxy are voted in favor. I confirm that all resolutions will be held by poll. I will now proceed to put forward the resolutions to shareholders. Resolution one, the adoption of the remuneration report, which is a non-binding resolution. The motion is that for the purpose of Section 250R(2) of the Corporations Act, and for all other purposes, approval is given for the adoption of the remuneration report as contained in the company's annual financial report for the financial year ended June 30th, 2021. The proxies are outlined on the screen. Ladies and gentlemen, at a listed company's annual general meeting, a resolution that the remuneration report be adopted must be put to shareholders.
Please note that the vote on this resolution is advisory only and does not bind the directors or the company. Moving on to the next item. The motion is that for the purpose of Clause 14.2 of the Constitution, ASX Listing Rule 14.4, and for all other purposes, Mr. Steve Lin will retires as a director by rotation and being eligible, is re-elected as a director. The proxies are outlined on the screen. I probably want to actually take this opportunity as well to thank Steve for all his support over the last few years. It's been great to actually have someone who is an expert in China on the board together with us. Moving on to the next motion.
The motion is that for the purpose of Clause 14.4 of the Constitution, ASX Listing Rule 14.4, and for all other purposes, Ms. Katrina Rathie, who being eligible, is elected as a director. The proxies are outlined on the screen. Now, before we address any questions from our shareholders, this is dear Katrina's first time at our AGM. I guess it's wonderful to have Katrina join our board. Katrina, if it's okay, I might invite you to say a few words before we address any questions from shareholders.
Thank you so much, Dennis, and good morning, shareholders. I'm Katrina Rathie, an Independent Non-Executive Director who joined the Bubs board in the middle of the year. I'm really delighted to join the Bubs family following a 35-year career in law and business, most recently as Partner in charge of King & Wood Mallesons in Sydney. During my career, I acted as a trusted advisor to many food and beverage companies in the FMCG, including in the infant formula market and branded consumer goods. I've been a shareholder in Bubs for some years now and look forward to helping the company grow and prosper as it expands into exciting markets across Asia, America and internationally. Thank you.
Thank you very much, Katrina. Certainly, I always feel very supported by our board members, as always, the leadership team, and the broader Bubs family, which includes the shareholders that are here with us today. On that note, we will now address any questions from our shareholders. I do have here a written question that has come from Mr. Brian Lee. I will read out the question, and to the extent I'm able to answer them, I will answer them. Otherwise, I am supported by our board and also our leadership team members, who may be able to address the question in a better way. The first question is from Mr. Brian Lee. There has been a sharp increase in shares issued over the past four years.
From AUD 226 million in 2017 to AUD 612 million in 2021, while the share price performance has deteriorated 35% during the same period from AUD 0.75 in late 2017. Bubs has been operating at a net loss every year since 2014. Has the board revisited its strategy on expansion by capital raising and considered to prioritize consolidation over expansion until business operation can be fully supported by its revenue without the need to further dilute shareholder value? What are the strategies by the board to control its operating expenses and bring its net loss operations to positive earnings? W hen does the board expect to reach this inflection point? That ends the question. Mr. Brian Lee, thank you for putting that question forward.
I think it is relevant to recognize and acknowledge that, in the period that you have mentioned, we did go through two years of COVID. I think, certainly during that time, we've had to change our mindset. Bubs has always been a company that has focused on growth because, given our industry and our underlying segment, it is very important that we focus on growth to achieve a particular level of scale in order for us to be able to deliver sustainable shareholder returns. So your question is very relevant in that we will always ensure that we are able to deliver the shareholder value as much as we can.
I think as Kristy has presented earlier on. It is quite important to acknowledge what a difficult year or two it has been for not just I guess us as a company or the people that have been impacted by COVID either within our immediate circles or more broadly. Certainly many businesses have been impacted small medium or large by the pandemic. Our focus has been really on the resilience and ensuring that we are able to actually protect the base and the foundation of the company. Certainly our focus is very much on ensuring that we are able to deliver that shareholder return through being able to deliver profit and that break-even point.
However, to get to that point, it is very important that we get to scale first, which has been the focus over the last period. Certainly, with the first quarter through end of FY 2022, we do remain quite optimistic about the future that is to come. Thank you very much for your support and your question. Okay. I might just wait and see whether there are any additional either written questions or audio questions that might come through. I'll just wait for a few more minutes or probably a few more seconds for everyone to see whether they did have any additional questions. I understand that there are no further written questions.
I would remind, I guess, the attendees and shareholders that it is possible during this particular AGM to ask audio questions, and we do want to allow, I guess, our shareholders full opportunity to answer, to ask questions. Okay, I think I have given everyone the ample opportunity, so, I can see that we no longer have any further questions, written or audio form. That concludes our discussion on the items of business. In a couple of minutes, I will close the voting system. Please ensure that you have cast your vote on all resolutions. I will now pause to allow you time to finalize those votes. I do have somewhat of a timer on, so, there is a reason for the silence. All right, just a few more seconds. All right.
Thank you, everyone. I guess we wanted to actually allow for 60 seconds for everyone to have the opportunity to cast their votes. Voting is now closed. The results of these votes will be released to the Australian Securities Exchange later today. On that note, thank you everyone for attending. I will now close the meeting.