Investment Assessment

New Investment assessment

Considering growth potential, social contribution and Initial Start-up Costs, I sincerely recommend you to consider FarMart as our investment choice. Please see the Reasons below.

Compare to Kang Three Designs, whose growth rate is 80, Farmart has 400. The reason behind is only because of the different size in markets. The population of Japan is 127.6 million, and the population of Korea is 50 million only. Furthermore, most of those 127.6 million people are the customer of Farmart, but only 69% of the 50 million people in Korea may contribute in Kang Three's revenue. It is very clear that within such huge customer base, we can have further to gain more revenue only by increase Farmart's margin or expand product portfolio in the future.

Second, farmer in Japan are usually at the bottom of social structure and suffer from poverty. In contrast, young people in South Korea have additional channel to pursue job change or information exchange. Although social contribution is not measurable and comparable, I believed we should help those who really needed. Improving the margin would not only help us create more revenue but help those farmers have better life.

In terms of initial cost, 8 million is obviously larger than the number for Farmart. Although it is still unstable to reach the long term contract between Farmart and Landowner, I believed this problem could be solve by building up the synergy between

Farmart and some of the property developer we invested in Japan. And for those question whether it is possible we can expand the business model out of Japan, I believed we can as long as improvement be made.

In conclusion, it is really a bargain dedicating society by investing in Farmart, and build up positive company image. I sincerely recommend you to pick Farmart as your first choice.