By: musicwhiz Sorry for the lack of updates - life is getting busier and I took the liberty of taking a short vacation to "chill out". Though one is a full-time investor at heart, one cannot practically devote too much time to investing; otherwise other aspects of life will be neglected. Money is, after all, simply a means to an end, and not an end itself. Since the AGM of CFG is tomorrow (April 28, 2008 4 p.m. at Raffles Hotel), I shall post some of the highlights of the Annual Report after browsing. I will attempt to capture some of what goes on during the AGM proper in another separate post. 1) The Group's blended margins have dropped year-on-year. GP margin has fallen from 38.2% in FY 2006 to 34.8% in FY 2007. Net margins have fallen from 30.7% to 21.8% year-on-year (Page 4). This is due to the debt financing of the Peruvian operations and also the structure of the 4th VOA (which Management is negotiating to change right now). As a result of expansion, net margins have fallen but I feel this is tolerable for now as it is part of CFG's plan to expand their operations significantly. Once everything stabilizes, margins should start to creep up again as Management has a good track record of improving margins. Read more... Related Articles China Fishery - FY 2007 Analysis and Review (Part 1) China Fishery - FY 2007 Analysis and Review (Part 2)