NOBASHI
NOBASHI VANNAMEI
RAW
HO CENTRAL PEELED BT
COOKED
COOKED PDTO VANNAMEI
PRE-FRIED SHRIMP
FRITTER VANNAMEI
VEGETABLES
GINGER
VEGETABLES
BÍ NHẬT
NOBASHI
NOBASHI VANNAMEI

CONTENTS OF ADMINISTRATION BOARD’S RESOLUTION THE SESSION OF THE FIRST 6 MONTHS, 2009

At the meeting held on July 24, 2009, the Administration Board of Sao Ta Foods Joint-Stock Company has adopted some following contents

1)     The characteristics of situation:

- World economy remains in difficulty that makes FMC’s product consumption decrease in volume and selling price.

- Shrimp farmers lack of capital and doubt about bad fluctuation of price, so farming area has been reduced considerably.

- Due to decreased volume of raw material, in order to maintain its operation, processing factories compete in collecting that results in high price of raw material and decrease the effectiveness of production and business. Meanwhile, taking advantage of raw material shortage, wrongdoers have injected foreign matters into raw shrimps which cause raw material quality not in compliance with requirements and the increase of treating fees.

- Due to not being borrowed on preferential interest to pay back previous debts, so FMC is just able to settle completely borrowings on high interest of previous time at beginning of 2nd quarter.

- Some equipment of FMC is downgraded, causing the increase of energy expense which results in the increase of product cost.

2)     Solution in the first 6 months:

- Focus on customer consolidation and market expasion. FMC attended the largest international seafood exhibitions in Boston and Brusells, thanks to that FMC’s consumption clients have increased. FMC has gained fairly good consumption level in EU market, had agreemet in primary products with U.S big customers and been making its efforts in connecting to Russian market where FMC has fairly good customers.

- Improve plants, maintain downgraded equipment.

- Reinforce its organization and personnels.

- Build up saving movements, constantly review the coefficient of expense in order to minimize its market price.

3)     Outcome of Production and Business.

Description

Unit

The first 6 months of 2009

% in compared with 2008

Volume of processed shrimps

Ton

2.162

85

Volume of consumed shrimps

Ton

2.032

83

Volume of consumed vegetables.

Ton

467

 

Grand Total of export turnover

USD million

19

87

Profit

VND billion

2

33

4)     Comments :

Normally, volume and profit just increase strongly in the 3rd quarter and beginning of 4th quarter. However, volume and profit are lower over same period of last year. The reason is that the Company faces difficulties in consumption volume and price, as well as severe competition in raw material collection from other processing factories, so its profit ratio decreases considerably.

In general, The Board of General Directors has made its best efforts and effected good solutions to increase the Company’s consumption volume and turnover which is in compliance with the ex-Administration Board’s resolutions.

5)     The course of Direction for the later 6 months of 2009 :

- Enhance marketing works for gaining outputs of shrimp and vegetable products. FMC will attend Japan Seafood Show in July to expand variety of exported products.

- Value currency trading, take full advantage of exchange rate to enhance competition strength.

- Re-check facilities and equipment, consider to invest new equipment in 2010 in order to strengthen competition of product quality. However, in the context of difficult situation, salvage and saving factors should be valued in the investment which aims to decrease depreciation and market price. Estimatively, investment level is about USD 1 million. If any arising charges, Board of General Directors will report to the Administration Board.

- Continuously enhance saving awareness, conduct production scientifically in order to increase capital circle.

- Actively recall domestic and abroad debts. Minimize the investment of aquaculture and cultivation in areas with big pending debts. Enhance monitoring to invested places.

- Enhance works of personnel, prepare inheritable management team.

- Minimize stock products as consumption price won’t increase suddenly.

6)     Members of Administration Board:

Further to Adminitration Board’s rights and actual situation, Administraion Board will be supplemented one more member who should have a thorough knowledge of the industry, administrative competence and strategic visibility of the industrial activities. Mr. Ma Ich Hung- FMC’s Vice General Directoris unanimously elected as a member of FMC’s Administration Board, this result will be adopted by the nearest meeting of shareholders under new chatter.

Administration Board sincerely announces.