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Ⅰ、Adjusting Direction of Business, Exploring and Expanding Fields of Development
Through repeated study and consulting specialists and scholars ever since last year, the stress of future development has been decided on specialty breeding and specialty planting, which have the benefits of great market, low cost and high return on investment. After selecting and screening among numerous projects for selection, the projects agreed upon are purchasing of tortoise incubating farms and mango plantation
Tortoise Incubating Project:
Tortoise is a valuable animal resource. In China it is the symbol of good omen and longevity. China has 30 types of tortoises and the pharmaceutical value of tortoises has been widely recognized and followed with interest. The growth of its market is geometrically rapid.
At present the annual production of tortoise products in China is about 100,000 tons with the production value of 5 Billion Yuan RMB and total profit of 1.5 Billion Yuan RMB. The tortoise breeding industry in China is still at its early developing stage and some Types of tortoises (such as alligator tortoise, stone shell tortoise and coin shell tortoise) breeding are at high profit stage. In the tortoise market in China, the most in short items are: first the breeds, second the dedicated fonder and then the types of tortoise for viewing. At the present time, the breeds are most prominent. For example, the annual demand for Brazilian tortoises is 20 Million, the price of a breed is 6 Yuan RMB and the breeding cost is less than 2 Yuan RMB, but there is not a single Brazilian tortoise breeding base that has 5 million tortoises. The breeding base we are to build will have the capacity of over 10 million tortoises per year, and only breed popular types of tortoises. Undoubtedly it will bring tremendous economic benefits.
Tortoise incubating and breeding require very strict production environment. The tortoise farms we are going to purchase are located in Hunan and Hainan respectively. The farm in Hunan has sound and complete incubating room, breeding room, breeding pond and water sewage and purification systems. The farm in Hainan does not need incubating room and thus saves cost and makes it more possible to go for larger scale development of good breed culturing. The mode of production for mature tortoises is “company plus farmers”, i.e. the tortoise farm will be responsible for providing upgrading of breeds, culturing of breeds, eggs laying, incubating, supply of tortoise breeds and technical guidance. The farmers will culture the breeds into mature tortoises and company will buy all of them at protected price and supply commodity tortoises to the market. The use of this production mode will minimize the use of resources of the company, best utilize the surrounding usable resources, shorten production cycle and improve the efficiency of the enterprise.
The greatest advantage of tortoises is the high market price. Tortoises grow faster in tropical areas and they can weigh up to 50 grams a year with heated culturing condition. Tortoises can be supplied to the market with 1 year breeding. People in Guangdong and Guangxi like eating tortoises and commodity tortoises are in short supply and economic benefits are tremendous. Taking stone shell tortoise for example, the purchasing price at the seller’s door is 560 Yuan RMB per Kg. The average weight of each tortoise is 1100 grams. Each sells for 616 Yuan RMB and each young breed cost 120 Yuan RMB. Taking away the cost, the profit for each tortoise is 400 Yuan RMB, so breeding of 2500 tortoises will yield 1 Million Yuan RMB in profit.
Mango Plantation Project:
Mango has the fame of “King of Tropical Fruits” and the plants are categorized as evergreen arbor. There are over 60 types of mangos in the world and 15 of them are edible. Mango originates from India, Burma and Malaysia with India being the oldest producer and then Pakistan, Brazil and Mexico, etc. as major producers. Mango production is scattered over 28-30 degree southern latitude and 28-30 degree northern latitude in tropical and subtropical areas. Mango with its unique taste and high vitamin content has a certain place in the production and trade in the world. There are over 100 mango-producing countries and 88 of them export mangos.
China introduced mango from India in Tang Dynasty and is one of the major mango producers. Nearly 200 kinds of mangos have been planted. China has planted mangos in southern Taiwan provinces, Guangdong (except northern mountain areas), Hainan Island, south of Baise to Wuzhou in Guangxi, south of Fuzhou of Fujian, southern and southwestern parts of Yunnan and from northern part of Yuanmo to the river valley south of Xichuan in Sichuan. In recent years Pingyang area of Wenzhou of Zejian also introduced and tried planting mango and mango trees can blossom and bear fruit there.
In resent years the fruit farmers of Taiwan have successfully cultivated new kinds of mango in Mainland China that suit the taste of the Chinese. The kinds of mango we are to choose are the early-ripe ones. In the 3 months from February to April of each year, that is when it is cold in Beijing and people are observing the Chinese new year, the mangoes produced in Hainan begin to hit the market. All over the country the mangoes of Hainan are most popular at this time when there are few kinds of fruit available. This is our core competitiveness. Good price can be obtained through scales on the internet, which is 30-50% higher than other months of the year. Each kilograms of Australian mango can be sold for over 60 Yuan RMB during the Chinese new year in Beijing, and even 1 kilograms of gold mango can be sold for over 50 Yuan RMB. The output of mango per mu in our plantation can yield over 6400 kilograms and these are high return products. The market margin and potential for the supply of Hainan mango all over the country is considerable.
Specialty breeding and specialty planting must stress “special” environment and “special” kinds. Natural environment can not be substituted. Even if man-made environment is successful, it has too high cost and can not compete with natural environment. Special and good kinds require profound know-how and economic strength as the basis. This is the starting point why we choose specialty breeding and specialty planting.
The second great leap is: with Yihai as breakthrough point, we have developed more scientific content electronic information products for civil use that have infinite market potential, short production cycle, fast upgrading capability and high return on investment.
Mobile Video Broadcasting device project:
China has become a country that has the greatest number of mobile communication users in the world. According to the statistics released by the Ministry of Information Industry, mobile phone users in China have exceeded 420 million as of the end of May 2006. By the year 2010, the numbers of 3G mobile phone users in China will certainly exceed 150 million.
As an important function of 3G mobile phone- mobile phone TV program provides a very attractive market perspective. According to a forecast made by ABI, an American market research institute, mobile phone TV program users in the world will grow from 1 million at present to 250 million before the year 2010. By then the market value created will be as high as 27 billion US dollars.
The development of mobile communications has opened a wide development space and application prospect for mobile phone TV and mobile TV. The common trend of these products is the receiving units are getting smaller and more convenient with stronger video functions and clearer images. What the users concern the most is how they can have clear and hifi video images within inches of the screen as the mobile image signals are received. Now the newly developed glasses type multi-function display has solved this problem. It looks like a pair of fashionable glasses and with such glasses on, large clear virtual images can be seen within one’s field of view.
The mobile video-broadcasting device is a high tech product that can best reflect the application of Microdisplay technology. This kind of display amplifies dynamic images to virtual images of any size through optical system for viewing. It can also be widely used in the fields of TV, computers, communications and the military, and it has infinite expansion functions as digital display terminals for any mobile equipment. This product is bound to be popular all over the world in a few years, and now it is the best time to enter into this field. Our company will provide these video program view selection units on transportation systems such as trains, vessels and long distance buses for viewer to select the programs they like for viewing and entertaining themselves. In China over 2 billion people travel by train each year, and the market for this unit can be expected. Considerable revenue can be obtained based on 0.5-dollar charge for 1 hour of use!
We have reached purchasing letter of intent with the company that researched and developed this product, and we are conducting commercial negotiations with the company. Official documents will be sighed in the near future. Once the purchase is successful, we will increase investment, go for large scale production and occupy the market quickly.
The project follow up for the specialty breeding and specialty planting by our company has been carried out, such as the famous Puer Tea project in Yunnan supported by the Tehong prefacture Government for monopoly business; the nationwide freshness preservation center purchased for out of season sales of our specialty breeding and specialty planting products; and the purchase of the large scale ocean shrimp breeding base is Hainan whose product is all for export etc.
The present adjustment made to the business directions of the company has opened wider fields for our business, which will considerably improve the assets and revenue of our company. Details of these activities will be made public on our website and everyone’s attention is appreciated.
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