SIAF will do well if they can emerge as a leader in these sectors.
Business Segments -- Diary, Cattle and Forage Production
Introduction
The Diary, Cattle and Forage Production undertaken by Zhong Xing Agriculture and Husbandry Co. Ltd.(ZX)
ZX engages in the planning, development, operation and management of modern diary and cattle farms in the PRC.
Its diary and cattle farm is located in Fengning District (about 90 Km from Beijing City), China. It operates a dairy and is currently producing over 40 tons of fresh liquid milk per day. ZX¡¯s. Planned expansion is for scaling to 15,000 cows producing 120,000 tones of milk per year by 2010. The first lot of pre-packed fresh milk was done through the FengLing Government¡¯s R&D Institution and was tested and analysis by the Agriculture Department of PRC during last month (Oct 2007). As a result the Agriculture Department of PRC certified ZX¡¯s milk as the best 100% pure milk of the country and as such the Government Authority is going to set the quality standard of fresh milk of the country using ZX¡¯s milk as a branch mark and ZX¡¯s fresh milk will be used for the 2008 Olympics games.
ZX¡¯s plan for 2008 is targeting to achieve the followings:
To increase its milk production rate from current average of 22 Kg per cows per day for 240 days to 24 Kg per cow per day for 260 days in a year targeting to increase effectively one ton of milk per cow per year. To Milk a total up to 6,000 cows inclusive of its latest import of 2000 cows from Uruguay.
To reduce feed cost by up to 50% from its existing operation using the validated Forage Technology invented by TQST and certified by the China Agriculture Authority as one of best Forage production technologies of the country recently.
To establish a fresh milk packaging facility and to develop a franchising network in the Beijing City to distribute up to 50% of its milk production directly to the end consumers of Beijing City aiming at increasing ZX¡¯s end profit by more than 100%.
Business Segments -- Aquaculture fishery
Introduction
The Aquaculture Fishery is undertaken by Capital Award, Inc.(CA)
CA engages in the promotion, development and management of Modern Fishery Projects. CA operates primarily in China, where it owns the Master Licensee of A Power (AP) Technology, a commercially proven fishery model of the Re-circulating Aquaculture System (RAS). CA raises high quality certified organic and other fish. Our products are exportable and our RAS system has superior commercial performance when compared to other competing RAS technologies.
CA began operating in 2004. As of 31st July 2007, it had accumulated net tangible assets of US$19.7 million. CA¡¯ primary revenues to date has been from licenses sold to Chinese Investors with substance, Company¡¯s strategy going forward is to develop fish farms with A Power Modules.
CA¡¯s first stage of farm development will be using exclusively AP Technology and is scheduled to commence during the second quarter of 2009 with completion targeted by 2014. In October 2007, CA intends to exercise its purchase option for 85 acres (of a total of 330 acres) to begin development of the first fish farm and subsequently an additional 150 fish farms in its first stage of development targeting to produce 50,000 metric tones (M.T) of fish per year progressively with annual fish sales projected for US$400 million by 2014. We believe that the first farms will allow us to continue to develop our technology in an operational environment and to more effectively realize margins in the fishery business and to demonstrate the economic efficiency and durability of the AP technology / farms that will lead to a successful market launch of the sales of the lease for the said additional 150 fish farms.
The current market demand for high quality fish in China is characterized by the increase of high quality and high premium aquatic products imported at much higher averaged prices than our anticipated sales prices average of US$8,000 / M.T for 2008 and 2009. Our competitive advantage is that our technology will enable the production and supply of high quality fish within close proximate of the city centers all year round consistently based on sustainable economic efficiency without subjecting to seasonal variation . We believe that our production cost average will be capped within US$2,000.00 per M.T. over the next two to three year.
Business Segments -- Turf Plantation and Agriculture Technology
Introduction
The Turf Plantation and Agriculture Technology undertaken by Hunan Tianquan Science and Technology Development Co, Ltd.(TQST)
TQST engages in the planning, development, sales, marketing, operation and management of turf plantations (i.e., growing organic ¡°soil-less¡± and traditional turf) and associated engineering and implementation services in ChangSha City, Hunan. However the most significant of its synergistic operation is that it owns a number of patented commercial irrigation and cultivation technologies of China that will multiple field production (i.e. forage for ZX¡¯s cattle, HST¡¯s plantation and CA¡¯s hydroponics market gardens under its recycling of waste program).
By its latest R&D results, TQST is aiming to increase turf production rate to 6 times from its current level of 4.5 times per acre per year.
TOST has started to develop its newly acquired 165 acres for additional production of turf mats and associated landscaping plants in readiness to take on bigger Government contracts, (i.e. Green Roofing project of the Shanghai city, re-placement of green for local Golf Courses etc) which will effectively allow TQST to multiply its T/O in 2008 by 3.5 times from its existing production base of 65 acres.
TQST is currently trying to secure part of the roof greening project of about HK$10 billion designated by the HK government to green up Hong Kong environmentally and the Company is confident that TQST will be granted approval to take on part of the project to consolidate its revenue for 2008 and the years to follow, especially so as TQST is the only patented turf company recognized by the Federal Government of PRC.
TQST is aiming to develop the other additional land of 550 acres obtained recently from the Hunam Government such that TQST will have a production base totaling to 780 acres within year 2008 targeting to become a formable company in global standard.
Business Segments -- HU Plantation and Horticulture Technology
Introduction
The HU Plantation and Horticulture Technology undertaken by Hang Sing Tai Agriculture Development Co. Limited.(HST)
HST is a horticulture company located at Enping GuangZhou and engaged in the planning, development, operation and management of Hylocereus Undatus (HU plants) plantations, commonly known as Bean Capers or Pitaya, which is a traditional vegetable (sold in fresh and dried form) in Asia.
It utilizes advanced production technology and systems and by the end of November 2007 it will have installed all facilities in an additional cultivated land of 132 acres ready for the planting of HU plants seedlings, as such it will have more than 255 acres of cultivated HU Plants by the end of 2007. (named as Block 1 hereafter). HST is targeting to harvest at the rate of about 216,000 pieces of fresh flowers per acre in 2008, 360,000 pieces of fresh flowers per acre in 2009 and 485,000 pieces of fresh flowers per acre per year (100% maturity) thereafter for the next 15 years. (Effectively and if calculated at today¡¯s wholesale value that will mean a net profit of US$55,000 / acre from 2010 onward)
HST will take possession of an additional 495 acres of land during the month of December 2007, this block of land is situated adjacent to Block 1, as such HST will have total land bank measured up to 710 acres by the end of 2007 that will be fully cultivated within year 2009.
HST¡¯s plan for 2009 set apart from the cultivation mentioned above is to:
(a) establish a dehydrated drying and processing facility to process value added HU plant products.
(b) coordinate with Capital Award Inc. to establish a marketing network in a number of core city centers to distribute and to manage the sales of its produce / products directly into the end users markets.
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