Yes the restaurant chains are a very smart LT strategic move . This will allow them to not only sell large guaranteed annual volumes of beef and seafood but also at continually high margins once the currently high-margin rev from construction services has come to an end.
Consider this: 46,000 rmb per cattle head sold to their restaurants vs only 26,000 rmb wholesale as currently. That's almost double the margin before the cost of the slaughter/deboning op. Maybe 50% higher than current margin with that cost included.
1 head per 3 days means about 120 heads per restaurant per year
X 50 Bull restaurants = 6,000 heads per year or 60% of capacity of SJAP cattle farm.
No wonder S thinks that most future rev and inc will come from the cattle business. That was hard for me to make sense of until I heard about the beef prices from you and the planned Bull restaurant chain.
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