CC Highlights Part 1:
"We have signed a 5-year joint venture agreement with a 3rd party who will bear the expenses to develop approximately 70 acres of various fruit trees and to distribute end product. JHST will receive 25% of profits. Towards the end of Q2, 40% of the acres have been planted. We are encouraged by this today and believe that our willingness to adapt to changing market conditions…will drive significant cash flow beginning in the 4th Quarter."
CTO Tony Ostrowski on Tri-way:
• "We plan to obtain detailed operational data with scientifically based comparisons to improve both biological and economic performance of the farm. Importantly, we expect these efforts to result in significant sales volume which is yet to be achieved at AF4. We are encouraged by recent research and development results, some of which are now available on our website. We will provide periodic summaries of subsequent trials on our website as well. A separate research and development team of South Korean experts have been working on White Shrimp culture in high salinity at Aquafarm 1. After 2 trials, growth after 31 days from PL10, or 10-day old post larvae is exceeding that which we have obtained previously in the nursey."
• "During the last few months we have also been developing a trading division for Tri-way in Hong Kong. This division will trade in seafood and other seafood items for sale in Hong Kong, Macau and China markets. This new business has been progressing smoothly, and we are cautiously optimistic at targeting first annual sales exceeding $100 Million dollars commencing later in September. We expect to generate gross margins averaging 17%. Shareholders will be kept updated on the progress of the trading and aquafarming divisions quarterly as successful implementation even at initial ramp up will have a material positive impact on Tri-way’s results."
• "Tri-way achieved net profit of $16.2M in the first 6 months of 2018 contributing $5.2M to SIAF. Most of the income came from Aquafarm 1-3 and other ODRAS farms. Fully utilizing AF4 capacity will improve Tri-way’s bottom line. Therefore we are optimistic that the new operational plans at our aquafarming and trading division will lead Tri-way to increasingly better years starting in 2019. A final note, the production scheme planned at AF4 is targeted to enhance cash flow which will support CA final development at AF4 and AF5 and all other planned aquafarming issues."
