Borneo Aqua Harvest Berhad’s (Group) Future Plans
15th July 2011

Since the commencement of operations, Borneo Aqua (Group) has continuously expanding and improving its broodstock management, research and development, hatchery, nursery and rearing technologies and operations. With its many achievements over the years, the Group was granted the International ISO 9001: 2008 Standards for the whole production process and distribution of Grouper species from UKAS Management Systems (UK) and Standards of Malaysia (from Accredited Certification Body), as well as obtaining the HACCP Codex Alimentarius certificate on 18th January 2011 and is the first Malaysian marine aquaculture company in live marine finfish sector to obtains such certificates. The Group’s hatchery technology and capacity have continued to improve optimistically and therefore the volume of fish fry production has increased to an average of 500,000 to 1,000,000 tails per month. As a result, the Group is targeting to exports approximately 600 to 1,000 tonnes of live marine finfish to Hong Kong and Southern China in financial year ending 31 March 2012.

Demand for live marine fish, especially in Hong Kong and Southern China is expected to increase due to income growth, population growth, improving standards of living in terms of dietary preference and health conscious. The growing future demand for live marine finfish especially in Hong Kong and Southern China is be expected to be met by marine aquaculture productions, with the fact that the volume of live wild-caught fishes from the ocean is depleting every year and some species even near to extinction. Recent breakthroughs in the Group’s technology in hatchery operations for its existing key commercial finfish species has enable the Group to increase its production and hence, increasing its supply of quality live marine finfish to the industry, and hence, the Group is in a position for an exponential growth. Thus, the Group is optimistic that the business prospects is in high potential and the demand for our products in the Hong Kong and Southern China markets is expected to grow positively in the future.

In line with the increase in production and as part of future expansion plans to meet the growing demand of its products, the Group plans to acquire an additional live fish carrier with a tonnage capacity of 60 tonnes of live fish by December 2011. In addition, by financial year ending 31 March 2012, the Group plans to set up a distribution centre for trading live marine finfish in Xiamen, China. The Group has recently acquired a parcel of 7.5 acres aquaculture land in Silam, Lahad Datu, Sabah which will be used for hatchery and nursery centres’ expansion purpose, with construction expected to starts in January 2012. The Group’s breeding, hatchery, nursery and rearing technologies and operations are expected to continue to progress positively over the next few years and hence, the Group’s annual production of live marine finfish is expected to increase to 3,000 to 5,000 tonnes annually in the next three to five financial years. With continuous research and development breakthroughs by the Group’s R&D team, the Group also foresees that there will be two new marine finfish species to be introduced for commercial trade purpose in the future.