The Corporate business segment primarily carries out the Company's Import and Export and distribution businesses. In addition, it conducts all project development activity that is not aquaculture related. Aquaculture related project development is accounted for in the Capital Award direct subsidiary and Aquaculture business segment.
SIAF conducts all centralized and common corporate functions, including strategic oversight guiding interoperation between project companies, as well as group level initiatives, such as financings, any potential merger and acquisition (M&A) activities, and/or new exchange listings, sometimes in cooperation with the Company's Swedish subsidiary, SIAFS.
Opened in 2015, the Shanghai Distribution Center imports premium Angus Beef quarters from Australia for distribution at one of Shanghai's newer, modern Wholesale Markets. With over 3000 square meters of offices, warehouse, freezer rooms, seafood tanks, and employee housing, it is situated in an industrial complex not far from the PoTung District, where it acts as a central hub to service the Shanghai wholesale markets, regional distributors, as well as super market chains and restaurants in Shanghai with seafood and meats. The Shanghai Distribution Center targets selling up to 12,000 metric tons of meat and 5,000 metric tons of seafood per year within two years.
The SDC is the first facility in China to employ advanced defrosting technology from Taiwan. Using static electricity, beef quarters are transformed from frozen to perfectly chilled beef within 24 hours, without the usual effects of defrosting (e.g., soggy meat that drips liquid). The beef is also aged during this chilling process. The SDC also imports live seafood, which it distributes to retail establishments and restaurants in Shanghai.
SIAF's Wholesale and Distribution Facilities development project for Guangzhou City NaWei Trading Co., Ltd. (NWT), included design, construction, and project management of the business operation of a specialized, modern beef wholesale and distribution center (Wholesale Center 2 or WC2). The freezing room facility has the capacity to store up to 150 MT of frozen food at -25° Celsius. Facilities at WC1 and WC2 include a wholesale shop, packaging and processing facility, office, dry goods storage, and function rooms.
The Leonie's restaurant chain completed its Central Kitchen, and the Central Bakery has been in operation since May 2013. Five restaurants are complete. The Central Kitchen and related facilities development project is complete, including design, construction, project management of development, and management of business operation for Guangzhou City Wangxiangcheng (WXC), an unrelated Chinese company. This project (Central Facility 1) includes a Central Kitchen, a Central Bakery, a fast food restaurant, and three mobile food stores situated adjacent to WC2. SIAF continues to manage the Leonie’s restaurant development project, including design, construction, project management, and management of business operations for WXC.
Work is in progress on the expansion of the Restaurant (4) at Zhongshan City. Renovation and alteration of Leonie's Restaurant 1 turned it into a Steak House that successfully caters to an average over 500 customers per day. Each weekend, there are long lines of waiting diners.
We have established five restaurants, and at this time three of them are profitable. We aim to improve the financial performance of the other two, now that we have established three viable concepts that are well received by the middle class.
The small meat and seafood shop (semi-wholesale and mainly retail) began operation in Q3 2014, we expect it to be self-sustaining in its early days of operation, and target that it will be profitable within 3 months of operation.
In Madagascar, the Company affiliates with local businessmen that supply processed seafood (i.e., cooked and peeled frozen crayfish and crab meats, frozen groupers and snappers etc.). We target completing all arrangements, including export permits during the fourth quarter of 2014 to start shipments early in 2015.