Most, if not all, of the consultancy revenue comes from design and construction of the farms. They build it from the ground up. This is what SIAF is getting paid for, because they have the know-how and the technology. The JV partners pay for the whole construction. When it's finished the JV partners will own 75% and SIAF 25%. SIAF has an option to repurchase a 75% stake, at cost, at a later stage. Which they will obviously execute when the JV starts to generate profits.
The only project that has been completed so far is Fish Farm 1. And although current capacity (600MT-800MT) is surpassing the original planned capacity of 500MT, it is still ramping up to max capacity of roughy 1,000-1,200 MT. (Ramping up from zero to max capacity will usually take 3 years. That applies to all farms).
All the other projects are either in the construction phase and/or ramping up production. Except for the cattle farm in Xining which should be close to max capacity of 4,000 head per year now. Then there is also fertilizer, and feedstock obviously.
So, no, you will not see a lot of revenue from sales in 2012 but it adds up if they are all ramping up at the same time. Which answers your 2nd question why AR is going up so fast. Because the company is growing so fast! You should take a look at "deposits for inventory purchases"... it's going up even faster. and this is also why they need a lot of money.
It's a beauty. Downside is, they are still desperate for cash even though it's highly profitable with great margins, and growing very fast. Like I said before, one in a million. So it should be no surprise to anyone that the market doesn't understand.
News 
Market Data 
Discover 
AI
