China Unlimited

[RealDutch]

CA resale won't disappear, but it will be "a bit lower" (ref I/R) and will depend on the final structure of TRW. Have to admit I don't understand the full implication of this since CA will be owned by TRW! Maybe you could explain

CA will not be owned by Triway. CA consists of 2 parts.
- Consultancy for Aqua
- Resale

We have every indication that SIAF will still get paid for consultancy. And lots of it, IF they ramp up fast. But they can't pay themselves, so it will probably only be 100-39 = 61% of what we are used to.

Resale you know all about. They get paid 10% profit margin for every fish sold from farm x to farm y as long as one of them is a third party. That's a lot of revenue. I think it will be dissolved within Triway (JFD) and we will "lose" it. Well, we will own 19% of JFD (Triway)'s profits.

If SIAF acquires the wholesale centers, we will get all of that revenues back though (including the 10% profit margin). But that won't happen any time soon. They will have their hands full as it is.

So, the spin-off date is important. Because it also means they have the $30M loan. And the subcontractor deal. And the bank underwriting the IPO. It is one package IMO.
Then, next year, they will have to grow fast! Because we only get 19% of profits from Triway. They will have to convince us that they can do it. More delays will have a negative effect on EPS growth.