Strategic location of our processing unit.
Strategic geographical presence.
Quality Assurance and Quality Control of our products.
Strong, cordial & long-term relationship with our customers.
Cost effective production and timely fulfilment of orders.
Well experienced management team.
We operate in an environmentally sensitive industry and are subject to biosecurity risks at shrimp farms, shrimp hatchery, landing areas, our processing and other facilities and during the transportation of raw and processed shrimp and fish products, which could have a material adverse effect on our business, financial condition and results of operations.
General outbreaks of fish and shrimp diseases can significantly restrict our ability to conduct our operations and this could have a material adverse impact on our business, financial condition and results of operations.
We derive a significant portion of our revenue from two products. If sales volume or price of such products declines in the future, or if we are unable to sell such products for any reason, our business, financial condition, cash flows and results of operations could be adversely affected. Our commercial success is largely dependent upon our ability to strategically diversify our product portfolio. Presently, we deal in a limited number of products and therefore, our ability to diversify and successfully market our products might be limited, which may have an adverse impact on our revenue and profitability.
A significant portion of our revenue is generated from our limited number of large customers and if we are unable to maintain our relationship with such customers or if there is a reduction in their demand for our products, our business, results of operations and financial condition will be materially and adversely affected. Further, these large customers exercise substantial negotiating leverage with us, which could adversely impact our results of operations.
We derive a significant portion of our revenues from repeat orders which we identify as orders placed by key customers that have placed orders with our Company previously. Any loss of, or a significant reduction in the repeat orders received by us could adversely affect our business, results of operations, financial condition and cash flows.
Majority of our revenue is earned from our export operations in the countries such as, China, Israel and Europe. Any adverse changes in economic and political conditions in these countries may have an adverse impact on our business, results of operations, cash flows, and financial condition.
Our international operations expose us to complex legal, tax and economic risks, and exchange rate fluctuations. Our inability to successfully manage our geographically diverse operations could adversely affect our business and results of operations.
In the past, we have generated a majority of our revenue through offering job work services relating to processing of fish and shrimp products to third party exporters. We typically do not have firm commitment with our customers in this vertical. If our customers choose not to source their requirements from us, there may be a material adverse effect on our business, financial condition, cash flows and results of operations.
We do not have contractual agreements with suppliers for our raw materials, and an increase in the cost of or a shortfall in the availability of raw shrimp and fish could have an adverse effect on our business and results of operations.
We have limited experience in our ready to cook segment, and we may be unable to compete effectively with our competitors in the same line of business, which could have a material adverse effect on our business, financial condition and results of operations.