PROPOSED DEVELOPMENT AT TELAGA AIR AQUACULTURE SITE

ABOUT SEA PARTY INTERNATIONAL

Taiwan-based private limited company- established 10th July 2008

Led by Dr Ray Lin Experiences in i) live and frozen fish products delivery ii) transportation iii) air flown business 2009, signed agreement with Tanjung Manis Food & Industrial Park Sdn Bhd pioneer investor initiate & execute TMHH program

JOINT VENTURE ORGANISATION CHART

Sea Party International Tanjung Manis Food & Industrial Park

Tanjung Manis Taiwan Food Park

Sea Party Microbes

Sea Party Aquaculture

Sea Party Technology

Sea Party Industry

Sea Party Biotech Industry

Sea Party Technology R&D Centre

SEA PARTYS AIM

Become the pioneer in INTEGRATED BIOTECH AQUA BASED INDUSTRIES produce high value and high quality fish and shrimps to cater for the Muslim Market as part of TMHH program.

CURRENT ACTIVITIES
At present, Sea Party has been rearing tilapia breeders at Tanjung Manis, supply fries, feeds and provide consultation to our respective vendors.

Feeding session at Tanjung Manis

Harvesting session at Tanjung Manis

CURRENT ACTIVITIES

Sea Partys Tilapia fish

Sea Partys White Shrimps

Aquaculture expert, vendor, engineer

Release of Prawn Fries into Haji Husseins ponds (Sea Partys vendor)

WORLDWIDE AQUACULTURE TILAPIA SALES

For

year 2000 =US $ 1,744,045,000

(FAO FishStat 2007)

2005
2010

sales = US $ 2,457,312,000
sales > US $ 5,000,000,000

(FAO FishStat 2007)

FUTURE GLOBAL TILAPIA PRODUCTION

US largest importer of tilapia production

SEA PARTY SOCIO ECONOMY VENDOR PROGRAM

In order to produce high value and high quality fish and shrimps, Sea Party establishes Socio Economy Vendor Program for our respective vendors/ entrepreneurs in which Sea Party :provide consultation and technical services on polyculture system (co-rear fish & prawns) supply fries, feeds and all necessary fish farming gears commit to buy back all aquatic products with terms and conditions to be laid Propose to have our vendors/ entrepreneurs to start their aquaculture business venture besides manpower and entrepreneur trainings

VENDOR PROGRAM
Commercial Premier Vendors (self funding) entrepreneurs that have existing commercial aquaculture business and have the intention to expand their production Entrepreneurship Vendors (under loan scheme) the unemployed graduates registered under the State Govt CBG Program Unemployed Graduates from Agriculture Institute NGO Agencies e.g Koperasi, Unions and Organizations including members Prospective public members

CSR Vendor Program (under smart partnership with relevant Govt Agencies) Members under SFO program Prospective Hard Core Poor With available redundant ponds at Telaga Air, and under full technical guidance, this Social Economy Program can create better spin off economy impact to the stat.

PROPOSED VENDOR PROGRAM SITE

(TELAGA AIR AQUACULTURE SITE)
425 hectares of usable land - 57 Lots many abandoned ponds

BUSINESS PROPOSAL
Sea Party hereby proposes to LCDA for the reestablishment of its abandoned Telaga Air Aquaculture Site venture into Sea Partys poly culture system under Sea Party Social Economy Program By forming a Management Company (MC) under the Profit Sharing method MC LCDA, SFO & SPT Role of MC manage the entire operation of the business within the concession area leased from the land owner (LCDA)

ROLES OF MC
provide adequate expertise and extend its technology to the local entrepreneurs train and select entrepreneurs to participate as vendors of the company, Responsible to collect yearly rental of operational fish ponds from vendors Sourcing of inputs (eg. fish fries, prawn fries and feeds) Sales of outputs into the domestic or export markets To ensure that the whole concession area is fully utilized and operational. To ensure the transfer of technology is well executed to the local vendors and the technical teams.

RESPONSIBILITIES OF EACH PARTY

LCDA Provide land and basic infrastructures (roads, power supply and fresh water) to make the site operational for aquaculture business investment. Advise on land matters, provide administrative support and coordinate with any state GLCs and authorities concerned.
SEA PARTY Provide technical services, trainings, supply of quality feeds required and all necessary farming gears and equipments for the production. Responsible to purchase and market all productions. To ensure that the whole area/ponds are fully occupied to generate income. AND responsible to take charge of the overall Companys business operations SFO Assist in coordinating with relevant agencies on grants and fundings for the participating entrepreneurs if necessary Recruit and select potential vendors /entrepreneurs from its community To work together in all fields including creating programs for its prospective members

PROJECT IMPLEMENTATION
2011 PRE INCORPORATION Business Proposal Presentation Agreement JVC SPT, SFO, LCDA 5 YEAR DEVELOPMENT PHASES 2011 2012 2013 MOBILIZATION PHASE PHASE II I JVC Survey Land 50 ponds 100 Vendor Program ponds Entrepreneurship Program Investors 2014 2015 PHASE III PHASE IV 150 ponds 200 Ponds

Year Estimated number of vendors Estimated number of workers

2012 6

2013 13

2014 19

2015 25

Total 63

36

78

114

150

378

PROPOSED ORGANISATION CHART

Board of Directors

General Manager

Quality Control & Supervisions

Administration & Finance

Sales & logistics Support

FINANCIAL FORECAST ASSUMPTIONS

As s umption 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Total number of ponds (5 years ) Number of Fis hes Per Ponds Number of Prawns Per Ponds Survival Rate Fis h Survival Rate Prawn Growing Period Fis h FCR Cos t of Fis h Fry Cos t of Prawn Fry Cos t of Fis h Feed Cos t of Prawn Feed Cos t of Fis h (350g) Cos t of Fis h (500g) Cos t of Fis h (800g) Cos t of Prawn (14g) Cos t of Prawn (20g) Cos t of Prawn (25g) Sales of Fis h Fry Sales of Prawn Fry Sales of Fis h Feed Sales of Prawn Feed Sales of Fis h (350g) Sales of Fis h (500g) Sales of Fis h (800g) Sales of Prawn (14g) Sales of Prawn (20g) Sales of Prawn (25g) 500 12,000 600,000 85% 65% 8 Months 1.80 0.3 RM/Per Fry 0.012 RM/Per Fry 2.2 RM/Per KG 3.9 RM/Per KG 4.00 RM/Per KG 6.00 RM/Per KG 8.00 RM/Per KG 10.50 RM/Per KG 11.10 RM/Per KG 11.60 RM/Per KG 0.40 RM/Per Fry 0.014 RM/Per Fry 2.70 RM/Per KG 4.50 RM/Per KG 6.00 RM/Per KG 8.50 RM/Per KG 10.50 RM/Per KG 13.50 RM/Per KG 15.00 RM/Per KG 16.00 RM/Per KG

5-YEAR FINANCIAL FORECAST

Projected Profit & Loss Revenue - fry Revenue - feed Revenue - fish Revenue - prawn Total Revenue Cost & Expenses Cost of Fry Feeding Cost Cost of Fish Cost of prawn Salaries of Man Power (CPI = 3% ) Utility - Water & Electricity Processing fee Transporting Depreciation Repair & Maintenance Miscellaneous Expense Total Cost & Expenses Earning Before Interest, Tax 0 0 0 0 0 0 0 0 0 0 0 0 0 676,800 1,355,983 1,150,560 3,363,360 856,672 141,876 851,254 236,460 180,000 94,584 960,000 9,867,549 (1,301,048) 2,088,000 5,611,732 5,573,280 14,297,790 1,617,100 626,508 3,759,049 1,044,180 260,004 417,672 1,920,000 37,215,315 (952,520) 4,384,800 12,785,961 13,180,440 31,540,275 2,422,449 1,414,629 8,487,774 2,357,715 393,336 943,086 2,880,000 80,790,465 624,113 7,416,000 22,859,956 24,059,760 56,353,830 3,274,777 2,545,506 15,273,035 4,242,510 553,332 1,697,004 3,840,000 142,115,711 3,580,444 7,948,800 29,072,516 32,370,720 70,658,640 3,373,498 3,270,492 19,622,952 5,450,820 713,328 2,180,328 3,840,000 178,502,094 6,098,619 2011 0 0 0 0 0 2012 823,200 1,630,141 1,562,640 4,550,520 8,566,501 2013 2,546,400 6,785,065 7,537,800 19,393,530 36,262,795 2014 5,349,600 15,478,463 17,790,840 42,795,675 81,414,578 2015 9,052,800 27,696,644 32,456,400 76,490,310 145,696,154 2016 9,720,000 35,302,593 43,586,640 95,991,480 184,600,713

ROI ANALYSIS
Cash Flow from Investment Activities Office Building & Staff Quarter Consultation Fee Capital Equipment Subtotal Cash Flow from Operational Activities Earning Before Interest, Tax Depreciation Subtotal ROI=(Subtotal NPV/ Total Investment) 2011 0 900,000 0 0 900,000 0 0 0 23% 2012 1,200,000 0 0 0 1,200,000 (1,301,048) 180,000 (1,121,048) 2013 2,000,000 0 0 0 2,000,000 (952,520) 260,004 (692,516) 2014 2,400,000 0 0 0 2,400,000 624,113 393,336 1,017,449 2015 2,400,000 0 0 0 2,400,000 3,580,444 553,332 4,133,776 2016 0 0 0 0 0 6,098,619 713,328 6,811,947

BENEFITS OF SOCIO ECONOMY VENDOR PROGRAM

Assist the State government in reducing unemployment rate - (create job opportunities , train and develop skilled aquaculture entrepreneurs) Upgrade the communitys standard of living Localized polyculture system creating sustainable aquaculture industry enhance the States aquaculture industry Improve the States economy with high quality aquatic products and high technology downstream food processing (eg. Fish fillets) Implement eco-friendly aquaculture system (eg. Biowaste management)

ACKNOWLEDGEMENTS