JOYCE MARINE BUSINESS PLAN

Corporate goals
JOYCE MARINE Co., Ltd. (JOYCE MARINE registered trademarks of their international), hereinafter referred to JM, the spirit of selfowned shipbuilding for more than three decades of rich experience and unique technology of the open mold confidence, combined with stylish art design and advanced manufacturing technology in the international market to promote the establishment of own-brand JOYCE MARINE, build and Italy with quality customized luxury yachts, Taiwan onto the world stage, from Taiwan's image of cheap quality. JM selling its own brand of high-quality customized luxury yachts, creative, integrated production line, set up the standardization of operating procedures, making mass production and customization complementary, to achieve maximum production efficiency. To the success of its own brand into Europe and the United States off the top layer, JOYCE MARINE set up a synonym for luxury. JM to "quickly", "high", "good" for quality of service objectives: "Quickly": speed quickly in order to achieve the fastest time product delivery and resolve customer problems. "High": high-quality, so that customers do not worry. "Good": Good Service so that customers feel intimate services.

JOYCE MARINE builds luxury yachts

Company Profile
1. Company Name: JOYCE MARINE Co., Ltd. 2. Company Address:No.1 Penglai Road, Gushan District, Kaohsiung City 3. The creation date: March 2004 4. Chairman of Company: Chuang Fung-Feng 5. The amount of paid-up capital: NT 50,000,000 yuan 6. Company ID: 80377962 7. Number of employees: 12 people (excluding outsourcing) 8. Contact person: Antoney Chuang, general managerf 9. Contact Tel :07-5310123, fax :07-5311388 JOYCE MARINE Co., Ltd. is located in Kaohsiung City Center Pier 10, the yachting community for Taiwan's well-known brand of luxury yacht major factories. JM was established in March2004 the current market dominated by Europe and America, there are New Zealand and Australia and the Middle East to be developed. JM main products are 74-86 feet of large-scale FRP structural power turbine yacht, owned by the technical team can also be independently developed 40-120 feet ship mold to meet customer requirements.

Company history
The company's technology and management consultant, Mr. Zhuang Zu-Shou more than 30 years ago co-founded with partner Charles yachts, a decade after the establishment of Chia-Hung yacht. These two companies are Taiwan's long-standing members of the yachting community Leaders of the leading manufacturers of yachts built by the international market has perceived certain brands in Europe and America must have the status of the market. Mr. Zhuang Zu-Shou early involvement of wood shipbuilding design production, after the range of iron-hulled vessel, and then transferred to FRP structure yacht, shipbuilding experience, integrity and qualifications. Alone to the field of FRP structures is concerned, the handling of the yacht design has so far produced more than 2500, the industry claims that live shipbuilding dictionary, it is rare for the professionals. To make the concept of skill has been passed, Mr. Zhuang Zu-Shou was the occasion of the retirement age, combined with a high degree of conservation of its major fashion son, General Manager Mr. Zhuang Ming-Feng, founded JOYCE MARINE Co, Ltd., a view to Taiwan's yacht industry re-injected into a flowing water.

Joyce Marine Zhuang surname Father and Son, is currently the world's fourth-ranked Royal Yacht Taiwan, Kaohsiung industry, the main leading yacht company founder and leader

World Yacht Market Overview(1)

Europe and the United States and other developed countries has a large number of home yacht, only the United States sold over 6-700,000 one year. Europe, the United States and Canada and Australia to develop the region for a highly civilized country, its people are closely related to leisure activities and water, vessels of the yacht for an indispensable tool, has become part of culture, the market and highly sophisticated replacement fast, active secondary market and the huge system flow rate, regardless of the hardware facilities of public or club patterns are very incomplete, the extent of popular participation in other areas more than of yacht design, function and performance have a high degree of cognitive and having open and transparent valuation system. At present, these areas are the main operating market, and concentrate firepower concentrated in countries with ancient civilizations in Europe.

World Yacht Market Overview(2)

Middle East oil producing countries in the traditional construction and development of complete hardware, the trend in Europe and America tend to follow up, the yacht began to develop its own market, the demand for the emergence of the quality of performance requirements and the extent of no less than European and American markets, based company is emerging strongly developed market. Hong Kong Yacht highly intensive regions, strong demand in mainland China, the potential for good, and the active construction in coastal areas in recent years very large marina, the future demand can not be underestimated.

Taiwan Yacht Industry Overview(1)

Taiwan yacht development, has been towards large-scale, refinement of advanced yacht mainly in the international yacht market, direct with Italy, the United States, the United Kingdom and other international famous large yacht competition factory formed to enhance the technical capabilities, production efficiency and brand Value, enhance the overall market position in Taiwan yacht, and strengthen brand power and the development of mass production of high-value-type yacht. In response to M-shape society, the global yacht market is beginning to show a different situation, apart from large-scale high-value-based pleasure craft, mass production-type yachts become another development direction. These yachts, but the market demand for lower prices, and therefore focus on is an advanced process technology, product cost control and good marketing channels. RIVIERA shipyards such as Australia, the annual production of 360 yachts (60 feet), annual production value of about 300 million U.S. dollars. Such mass production techniques can be applied to the megayacht production, reduce production costs mega yachts. Large-sized yachts, mega yacht is the world trend of development, the characteristics of this type of yacht is customized, high quality, luxurious comfort, as well as high-quality image, in order to achieve these characteristics, often requiring a higher level of technical standards, and These top-level yacht also represents a high value-added

Taiwan Yacht Industry Overview(2)

Emerging markets of Asia has become the focus of public attention, especially in mainland China's rapid economic growth, produced a number of potential customers, according to British media Yacht statistics, Chinese consumers have the potential yacht 23,000,000 people. Faced with such a market, in comparison to other major producing countries in terms of the yacht, Taiwan has an excellent location on the edge, but also has a good climate, this kind of mass productiontype yacht for most of the FRP materials, If the temperature below 15 degrees, in the resin, such as the use of chemical material will be much difficult in higher-latitude countries like Japan, South Korea, the winter will not fit FRP production yachts. Therefore, if Taiwan yacht production technology can be set up at production yacht dominant position, it is not easy to replace. According to the Kaohsiung City Government Economic Development Board statistics, in 2007 exported 235 yachts, in January 2008 to October 194, and at present all over the world for more than 60-foot yacht, there is 100 per 5 are manufactured in Taiwan, foreign Research report shows that in the yacht industry on one dollar of investment, can be triggered from 6.5 to 10 U.S. dollars of economic effects.

JOYCE MARINE operating principles

JM's product positioning is designed for superior taste of the distinguished people who build yachts, all specifications tailored for top customers. JM Xu operating since the service industry, selling its own brand of high unit price (Trade Mark: JOYCE MARINE) luxury yachts, targeted at the elite world's top success. JM does not therefore get a single price, the maintenance of living in order to concentrate on fixed profits to build a boutique at the same time adhering to high standards of construction quality. The company can undertake the construction of yacht size range from 40-120 feet of yacht design and manufacture can access a single, but to achieve the best economy of scale of production efficiency, in the future will continue to be a main push 74-86 feet of large-scale FRP Yachtbased power company's hot-selling merchandise, and in response to the global economic downturn, especially the new 4-50-foot yacht on the portable in order to attack this one niche market. JM's long-term corporate business plan for the set in Europe, the Arab world, and other oil producing countries, the Americas, New Zealand and Australia for JM's major markets, Hong Kong, China as an emerging market to the current capacity of the company's existing situation, should be able to easily to reach full load capacity of short-term objectives.

A variety of different sizes, styles yacht interior and appearance

Yacht is divided into three main functions, including the sport-type yachts, most of this type for small boats, deeply loved Youth; leisure yachts, vacation home is for many purposes; the other for business travel, but also the installation of the most luxurious , usually entrepreneurs or celebrities are used to a banquet, the meeting organized by the party or venue.

Future trends - luxury mega yacht

JOYCE MARINE construction performance: medium and large over the 78-feet luxury yacht

82-102 Classic American style of classical, country style, low-key luxury, attention to functional;

78-103 Sports Streamline European fashion, taste for excellence, focus on the performance of control

80-105 Classic

Yacht engineering team performance

Engineering team designed and manufactured for export works yacht specifications, quantity and Manufacturing Factory 36-foot 830 Ho-Hing Plastic Glass Co., Ltd. 37-foot yacht 86 Asahi Corp. 36-40 foot yachts 180 Hexing Co., Ltd. 40-foot yacht 202 Kha Shing Enterprises Co., LTD. 43-foot yacht 198 Kha Shing Enterprises Co., LTD. 49-foot yacht 98 Kha Shing Enterprises Co., LTD. 52-58 foot yachts 289 Kha Shing Enterprises Co., LTD. 67-82 foot 5 JOYCE MARINE Co., Ltd. 70-78 foot yachts 80 Kha Shing Enterprises Co., LTD. 80-110 foot yachts 52 Kha Shing Enterprises Co., LTD. Total 2020 (boats) Engineering team design and manufacture of steel vessel has been factory specifications Works Record Manufacturing Factory 220 tons 3 United Shipyard 250 tons 4 United Shipyard 300 tons 6 United Shipyard 450 tons 1 United shipyard Total 14 (boats) Engineering team designing and manufacturing specifications for the use of works of domestic passenger ships have been factory records (ship) Manufacturing Factory 19 tons Tsengwen Reservoir classical type passenger 8 Ho-hing plastic glass company 19 tons of Sun Moon Lake Yacht 3 JOYCE MARINE company 19 tons Penghu 2 JOYCE MARINE Company 19 tons of Kinmen County, 1 JOYCE MARINE Company 120 tons to the Ryukyu Tungkang transport ship 1 Kha Shing Enterprises Co., LTD. Total 15 (boats)

JOYCE MARINE Marketing strategy small functional luxury yacht

The company's decision to cut 46-52 feet of luxury functional niche market of small pleasure craft. This yacht is the development of manufacturing tooling, new production line for enough volume to mass production of the Order. Sparrows yacht is small but fully-equipped with basic life functions, design avant-garde modern full, and speed even more than large yachts of 2-3 times, with the exception of the provision of the daily life of the use or appreciation of entry-section outside the yacht and can be stored in more than 200 sq ft super yacht as a small boat or on the boat to escape the use of a very affordable price, lock the middle class of the consumption power of the pyramid for the top to have a better car are belong to Level of consumption, although the company are low-priced products, but Gross margin remained at 20%. This yacht at the international market, at present only a single manufacturer of a virtual monopoly in the market, this company pricing strategies to consider this one into the market could be met with considerable profits, so the fund-raising For This yacht development of manufacturing tooling, the new provide enough capacity for the production line to mass production of the Order.

JOYCE MARINE Marketing strategy 100 feet above the large yacht
The Company for the Middle East oil regional market demand, lock 100 feet or more large yachts, and luxury of doing himself. This unusually high gross profit yacht, almost every manufacturer can be a gain in terms of tooling costs, so will be open during the same period two new production lines, two groups simultaneously to create a new mold, so the Company will have Small, Medium, Large Product integrity lines, flexible capacity to provide different kinds of consumer demand, in the recession period, have more sources of Order.

Fashion Leaders Heinz Jrgen KROGNERESPRIT Chairman & Group Chief Executive Officer is JOYCE MARINE loyal customer, and the other Mexican American Customer Order Units 4 hours to decide that one hundred million NT customized mega-yacht

Set up the brand and channel position

Strengthen the confidence of foreign consumers and to increase in Europe and the United States, the Middle East, Asia and other regions of the sales pipeline, the Company will work with distributors in Europe North Star co-operation set up 15 distribution positions North America and Central and South American region sales pipeline, the Company will be set up with 10 Where To Buy Teo Simeon activity fees, media advertising expenditures, yacht exhibition booth fee (one year) warranty repair deposit distribution.

SWOT Analysis
Strength: With more than three decades of rich experience in shipbuilding. The unique open-mode technology confidence, but others can not imitate the unique creativity. Diversity and customized manufacturing services to undertake the construction of yacht sizes range from 40120 feet of yacht design and manufacturing orders can be. In response to the international economic situation, flexible adjustment of product specifications, competitive prices. To increase in Europe and the United States, the Middle East, Asia and other regions of the sales pipeline, the Company has distributors in co-operation set up 25 distribution positions.

 Weakness: Nowadays the old yacht construction sites, and there is a half open-air status, in case of bad weather, only use half of venue construction, hampered efficiency. Subject to the hinterland of limitations must have Factory production capacity constraints, the expansion is not easy to ship a limited amount of supply. The factory without test tank, each test will increase the water lifting costs, greatly reduce production efficiency. Shipyard yacht design itself is more a lack of relevant professionals. Hard to find skilled workers, as well as problems of an aging workforce.

 Opportunity: Combination of fashion art and design with advanced manufacturing technology, to create same as Italy with quality customized luxury yachts, and with the European manufacturers with the grades received by the European market. The company-specific design and development capabilities, customers can directly meet the various needs, do not have to ask somebody else to foreign well-known designers, virtually reducing the cost of purchase of the customer. Judging from the role of foreign agents, the company launches a reasonable price and good quality. Set up in Europe, Australia and the Middle East distribution network. To meet market demand at all levels a wide range of different market segments for the Order. Production line into 46-52 feet of luxury functional niche market of small pleasure craft. 46-52 feet of luxurious functionality of small pleasure craft on the international market, at present only a single manufacturer of a virtual monopoly in the market, in accordance with the Company's pricing strategy into this market, could be met with considerable profit. The company's future orders will also be the order of large areas of Europe and the Arab world yacht manufacturing its own brand as a priority, supported by the United States, Australia, Hong Kong and the region of the original agents yacht own-brand orders higher gross profit, and finally with OEM orders will be filled with spare production line.

 Threat: Dependence on major international markets. Economies of scale phenomenon recession after 1990, because the international situation changes, the North American market to shrink, yachts reduced export volume, making yacht manufacturing plant can not be substantial to gain advantage. Global energy and raw materials continues to rise up stress. China's rapid industrial rise of yachts for several years growing export yacht, big step to follow behind in Taiwan so that Taiwanese manufacturers feeling the pressure of competition on the Chinese yacht. Recently, the international economic situation suddenly deteriorated, consulting, much longer period, prices and adversely affected the production of the scheduled program to reduce the production efficiency and equipment Jia moving rate, resulting in higher manufacturing fixed costs. So far the global financial and economic situation remains unclear, the regional, national, industry affected by varying degrees, the company is facing is the global market, rather than a single region,

country.

The new plant capacity for the current amplification of 5-fold

Super-large and small die once developed, will be able to give full play to the flexibility of the marketing strategy, even though the economy because the impact of customer to consider a view to lengthen, but the gross profit margin high, still above the medium-to large-scale production of yachts as a priority, at waiting period, will be able to produce small and medium-sized yacht orders to fill production capacity. On the other hand when the market on brand JOYCE MARINE small yacht, better quantity, brand visibility on the higher sales for the super yacht is even more beneficial, mutually reinforcing, flexible and fast to cope with changes in the market. Our current production efficiency has been upgraded to every vessel (80 ft) construction period of only 7 months. If this condition of the company in profit analysis, a conservative estimate of annual production capacity of 4, the average unit price of NT then 1 billion, 20 percent gross margin, gross profit of about a year when the NT 8 million. The Company set up a new plant, will be amplified for the current production capacity of 5 times, which is the target output is set to 18-20 in order to meet market demand. The Company looks forward to knock in the near future the Middle East (Dubai) market gate, so the target will be reached easily.

Demand for funds

52-foot ship model development 130-foot ship model development Distribution channel fees DJ light steel structure plant The factory test tank Central Dust environmental protection equipment

Unit 10,000USD
60 132 228 180 120 80

5.13 acres Linhai Industrial Area, 1293 yacht directly into the water space

Total amount

2093

The next six years revenue forecast, unit: 10,000 U.S. dollars
Year 46feet model 2009 2010 2011 2012 2013 2014 15 30 25 25 10 10 80feet 5 5 5 5 10 5 5 5 5 5 118feet 130feet
Revenue Net forecast profit

1912 2515 5625 6154 6882 7335

382.4 503 1165 1230.8 1376.4 1467