From the transcript conference call for August 31, 2010.
A Fishery business model consists of the followings:
A). Early year during development and construction of an A Power Modular fish farm (APMFF)
We shall contract to give services in engineering, supply of P&E, installation and supervision,
training and management of the APMFF, in term, we earn service fee and technology license
fee.
Normally, a standard APMFF will have the capacity to produce up to 250 MT of fish / year,
And cost about US$3.5 million to be established and built, as such, we are targeting to get gross
profit up to 65% on each APMFF’s service contract. AN APMFF can be built and established
within 4 months from start to operation in China.
B). at later years (usually within 7 to 9 months from day of the APMFF operation begins),
Fish sales will begin, so in the interim we shall take up equity interest in the APMFF, and in term
earn income from its fish sales. (In this respect, it will be subjecting to our internal financial
capacity at the time of how much % equity interest that we shall acquire, however it is our aim to
secure up to 75% by year 3 from the APMFF’s operation starting day.)
C.) Further down the road when there will be sufficient APMFFs built with volume of production
will come up sufficiently for us to start up a marketing net-work to sell and distribute all
production under one roof, as such, we shall earn from the marketing and sales of all production.
Principally that is the model.
How many fisheries do you target for 2011, 2012 and beyond?
Yes I am targeting 4 APMFF and 8 APMFF for 2011 and 2012 respectively
