Scottsdale 7/30/2010 1:44:46 AM
Rongfu Aquaculture, Inc.’s (RNFU.OB) New Hangzhou Sales Center Hugely Successful
QualityStocks would like to highlight Rongfu Aquaculture Inc. (OTCBB: RNFU). Rongfu Aquaculture is headquartered in Fushan, Guangdong Province in the PRC. Through its subsidiaries and contractual agreements, Rongfu is engaged in commercial freshwater aquaculture in the PRC, cultivating mostly Tilapia and Snakehead types of fish and operating 13 adult fish breeding farms as one of the PRC’s best freshwater fish sellers/dealers.
In the company’s news yesterday,
Rongfu Aquaculture, Inc., announced its newly established sales center in Zhejiang Province has shown remarkably fast revenue growth and solid profitability to date.
Chairman of RNFU, Mr. Chen Zhisheng, commented on the excellent revenue growth in just two months, which shows more than $600k in sales since its opening in May – a result which was precisely what the Company’s strategy predicted for opening a northern sales center in Hangzhou. The new sales center occupies space in what is the biggest wholesale fish market in China.
The strategy has not only created a massive additional revenue stream, but the very presence of the sales center (and the act of doing business in this populous and heavily trafficked market) helps to seed the brand identity amongst consumers and industry operators alike.
Chairman Chen detailed the strategic position thus constituted as allowing streamlined penetration into other markets, and the specific selection of Snakehead – due to circumspect analysis of local trends – as leading to the conclusion that the species is a very desirable fish with high demand in and around the Hangzhou region, where it is typically a top seller.
Wuhan, Hubei Province, and the Wansha wholesale market near Guangzhou, Guangdong Province, are the next logical proposed targets, due to both regional growth and demand factors, and RNFU plans to open new sales centers there once the Company has achieved full satisfaction as to the operations in Hangzhou.
The Company farms fish in both man-made ponds, using oxygenation/aeration systems, and in fresh filtered local waters, as well as artificial lakes on land leased from villages, concentrating the majority of its adult Snakehead operations in Guangdong. A fry (juvenile fish) farm in Wenchang, Hainan Province takes advantage of a more suitable climate for the breeding of Tilapia.
Rongfu is currently the largest seller of Tilapia fry in the PRC, and is one of the top three sellers of adult Tilapia, with roughly 74% of 2009 revenue deriving from the sale of adult fish and 12.3% from frys, including 13.7% from farmer-purchased adult fish which was then re-sold into the market via the Company’s venues.
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