Nocera, Inc. (OTC: NCRA) Announces Agreement to Produce 6,500 Tank Systems for Procare International Co., Limited
ATLANTA, Jan. 6, 2020 /PRNewswire/ -- Nocera, Inc. www.nocera.company (OTC: NCRA) a provider of design, build, and installation services of aquaculture (fish farm) equipment is pleased to announce that it has entered into a Project Contract with Procare International Co., Ltd. to produce 6,500 Recirculating Aquaculture System ("RAS") for a RAS fish farm development in Ru Hu, Guang Dong province. The production and installation of the 6,500 RAS tanks is expected to begin late in the 1st quarter of 2020, and extend over a 3 year time period. Based upon the current exchange rates, each tank has a contract value of approximately $18,000; with the estimated total contract value of approximately $117,000,000 over three (3) years.
Procare International Co., Limited based in Hong Kong is a company in the sales and production of audio speakers and related parts to Walmart, Radio Shack, and Amazon, as well as other companies. After seeing our demonstration site in China and the demand for fresh water fish, the president of Procare, Ms. Lee Chin Chu signed a master contract with Ru Hu township to invest and build a fish farm containing 6,500 tanks over the next 3 years.
Ru Hu is a township with a population of 52,000 and is located approximately 2 hours northwest from Hong Kong and Shenzhen. Guang Dong province is a coastal province located in southeastern China, and borders Hong Kong and Macau.
Currently, the Company is awaiting the initial payment before the start manufacturing. It is currently expected the initial payment will be received in late Q1 of 2020, and with an expected production and delivery of 1,000 to 1,500 tanks during 2020.
Management Commentary
Yin-Chieh "Jeff" Cheng, Chief Executive Officer, Nocera stated, "We are very pleased with the contract agreement. The President of Procare, Ms. Lee Chin Chu believes this investment is a step in the right direction for addressing China's food supply requirements through the development of sustainable fish farms utilizing RAS tank systems. China introduced its new clean water policy in 2017, resulting in the removal of all fish farms in public waters, including lakes and rivers. As a result, Chinese fish farm operators have been forced to move to tank based fish farms in order to sustain production. In 2018, we produced and delivered 473 tank systems to our Chinese customers. We expect that the long-term demand over the next several years in China to be more than 10,000 systems, and more than 16,000 systems worldwide."
