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Re: SidneyReilly post# 66006

Wednesday, 06/04/2014 11:51:44 AM

Wednesday, June 04, 2014 11:51:44 AM

Post# of 163719
Sidney, this is what Solomon said about lower margins from cattle and prawns in Q1.

Well, that one we already explained under the Qs because half those revenue come from the cattles under, we brought a subcontractor, he grow some cattle from us and then we buy from them and sell, so that reduced the overall cattle operation profit but increased its revenue. Same as the prawns because we only got one prawn farm that it is our subsidiaries the others we just have to buy from them and sell them, so the profit margin under this kind of arrangement is low, and that brought down the average share profit margin, but it doesn’t mean our prawn farm has lower margin, it doesn’t mean by that, except we increased the revenue, one sector we earn less profit, the other sector we earn high profit reducing the average and that’s it you see. And we already explained that in the Qs.

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