Mega Farm Numbers
Source: JV agreement (link at bottom of press release)
http://finance.yahoo.com/news/capital-award-inks-license-agreement-140000886.html
Year Consult Capacity Profit Profit Average EPS 5-Year Contract
Profit (MT) Own 0% Own 55% Own 25% Growth Value
(Mil) (Mil) (Mil) (Mil) Rate Per Share
1 25 0 25 25 25 0.17 52.3% $8.72
2 35 1,000 39 41 40 0.27 47.4% $12.59
3 45 5,000 64 74 69 0.46 42.0% $19.38
4 55 10,000 93 114 103 0.69 35.6% $24.55
5 60 15,000 118 148 133 0.88 32.6% $28.83
6 60 30,000 175 236 205 1.37 25.6% $35.05
7 60 45,000 233 323 278 1.85 21.6% $40.04
8 60 70,000 329 470 399 2.66 15.9% $42.31
9 60 85,000 386 557 472 3.15 14.6% $45.92
10 60 100,000 444 645 545 3.63 13.6% $49.37
11 60 120,000 521 762 641 4.28 11.9% $50.88
12 60 140,000 598 879 738 4.92 10.6% $52.17
13 60 160,000 674 996 835 5.57 9.6% $53.45
14 60 180,000 751 1,113 932 6.21 8.7% $54.06
15 60 200,000 828 1,230 1,029 6.86 8.0% $54.88
16 60 220,000 905 1,347 1,126 7.51
17 60 240,000 982 1,464 1,223 8.15
18 60 260,000 1,058 1,581 1,320 8.80
19 60 280,000 1,135 1,698 1,417 9.44
20 60 300,000 1,212 1,815 1,514 10.09
21 0 300,000 1,152 1,755 1,454 9.69
Assumptions
1) Prawn farm prices $12/kg (45% net margin)
2) Capital Award resale net margin 12% (1)
3) Wholesale/export net margin 12% (2)
4) Management fee 8% (if 0% ownership) (3)
http://www.sec.gov/Archives/edgar/data/1488419/000114420413068963/v362453_s1a.htm
(1) Page 85
"CA purchases matured prawns from EBAPCD and sells to third parties (in wholesale markets) at gross profit margin around 15%. "
"CA purchases matured prawns from ZSAPP and sells to third parties (in wholesale markets) at gross profit margin around 15%."
(2) Page 71
"Consequently, we are seeing the 5-year plan play out as envisioned. Particularly at the wholesale level in the fishery and beef divisions, economies of scale are being realized. And the benefits of vertical integration are being achieved gradually, most in evidence between the wholesale and distribution levels. These are enhancing the Company's competitive position. We are beginning to see a multiplier effect generating core sustainable value and adding a layer of corporate maturity and operational reliability, reinforced by all financial metrics continuing to move positively."
(3) Page 54
"Management fees and commission fees charged to Prawn Farm (2) based on RMB20 / 10,000 pieces of Mexican White prawn fingerling and RMB40 / 10,000 pieces of Big Giant Prawn fingerling"
