News and Press Releases

Update on Sino Agro Food, Inc. and Euro China Capital AB Strategic Plan

Dec 22, 2014

GUANGZHOU, China, Dec. 22, 2014 /PRNewswire/ -- Sino Agro Food, Inc. (OTC QB: SIAF) is an integrated, diversified agriculture technology and organic food company ("the Company") with principal operations as primary producer, processor, and marketer in the People's Republic of China ("PRC").

A meeting with Euro China Capital AB ("ECAB") and Sino Agro Food, Inc. ("SIAF") was held on December 15 in Guangzhou to follow up on the strategic plan to create shareholder value that was agreed in Stockholm in late September.

Here is an update of the progress:

Qinghai Sanjiang A Power Agriculture Co., Ltd.

The Company has met with global Tier-1 investment banks in Hong Kong in order to find a suitable advisor regarding the planned listing or merger and acquisition activity of the Company's integrated cattle operations in Xining, "SJAP."  Interest has been strong. The Company concludes that peer group multiples for similar companies listed on the Hong Kong stock exchange is very encouraging. This strengthens the company's view that structural changes can unlock great shareholder value. As part of this process, the company is also in discussion with a top-4 CPA firm to become auditor of SJAP.

Due diligence reports made as preparation for potential new listing

For some time the Company has been evaluating a new, more appropriate listing of the SIAF shares. As a preparation, an extensive legal due diligence ("DD") report has been made by Delphi on the group. Including law firms in China, a total of four law firms have assisted Delphi. With regards to SJAP and as part of the plans for this business unit mentioned above, a separate legal DD has been made by King & Wood Mallison. Also, Deloitte has conducted a financial DD for SJAP. The Company is contractually from making any these three DD reports available to the public. However, the Company can report that the three DD reports are all satisfactory with some minor remarks on SJAP that are currently being amended. However, the Company is able to release the underlying filings made to the Chinese "State Administration for Industry & Commerce of the People's Republic of China "  ("SAIC"). These have been important parts of the material used for the three DD reports. As of today, the SAIC filings are accessible on the Company's web site.

Stockholm Office

The staffing of the Stockholm office is on-going, and the Company is currently interviewing candidates that it believes would add significant experience and know-how to the group.

Dividend

Being a producer of organic food in China for the Chinese population, demand for the company's products is soaring.  The company has consequently invested heavily in production capacity across all its business lines over the past years resulting in negative cash flow, despite significant reported profits. However, as shown in the financial reports, the underlying cash flow generation is also improving at a steady pace. Together, the Company and ECAB have analyzed the forward cash flows, and decided to start paying an annual cash dividend based on the net profit to SIAF Inc. and subsidiaries, beginning with the dividend based on 2015's full year report, to be paid in 2016. The exact dividend policy will be announced during 2015.

The preferred F series shares (dividend) of  $3.40 (totalling $3,146,063) will be paid in full on May 30, 2015. Payments will also include 10% retroactive interest.

Commented Fredrik Danielsson, Managing Partner of Euro China Capital AB: "Since the strategy meeting in September, ECAB has continued to work on a broad range of improvements on the areas referred to in earlier announcements. Amongst other things, I have made two week-long trips to mainland China and Hong Kong with the purpose of further updating myself on SIAF's operational progress, and to meet investment banks and other financial advisors. To conclude, I feel more confident than ever about the Company.  I expect that the work initiated after the convertible note was announced in September will gradually start to generate significant benefits during the first half of 2015."

SIAF CEO Solomon Lee remarked, "Having worked closely together over the last month, I am delighted to conclude that Euro China Capital AB and Fredrik Danielsson really have the skills and relations to lift the company to a completely new level, bringing experience and expertise in areas we have been lacking. I am convinced that our complementary skills will enable the company to deliver on the plan to enhance shareholder value."

About Sino Agro Food, Inc.

Sino Agro Food, Inc. is an agriculture technology and natural food holding company with principal operations in the People's Republic of China. The Company acquires and maintains equity stakes in a cohesive portfolio of companies that SIAF forms according to its core mission to produce, distribute, market and sell natural, sustainable protein food and produce, primarily seafood and cattle, to the rapidly growing middle class in China. SIAF provides financial oversight and strategic direction for each company, and for the interoperation between companies. The Company owns or licenses patents, proprietary methods, and other intellectual properties in its areas of expertise. SIAF provides consulting and services to joint venture partners to construct and operate food businesses, primarily producing wholesale protein foods. Further joint ventures market and distribute the wholesale products as part of an overall "farm to table" concept and business strategy.

News and updates about Sino Agro Food, Inc., including key information, are published on the Company website (http://www.sinoagrofood.com) and the Company's Facebook page (www.facebook.com/SinoAgroFoodInc)

Forward Looking Statements

This release may contain forward-looking statements relating to the business of SIAF and its subsidiary companies. All statements other than historical facts are forward-looking statements, which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements involve risks and uncertainties that may cause actual results to differ materially from those anticipated, believed, estimated or expected. These risks and uncertainties are described in detail in our filings with the Securities and Exchange Commission. Forward-looking statements are based on SIAF's current expectations and beliefs concerning future developments and their potential effects on SIAF. There is no assurance that future developments affecting SIAF will be those anticipated by SIAF. SIAF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

Not a Broker/Dealer or Financial Advisor

Sino Agro Food, Inc. is not a Registered Broker/Dealer or a Financial Advisor, nor does it hold itself out to be a Registered Broker/Dealer or Financial Advisor. All material presented in this press release, on the Company's website or other media is not to be regarded as investment advice and is only for informative purposes. Readers should verify all claims and conduct their own due diligence before investing in Sino Agro Food, Inc.

Investing in small-cap, micro cap and penny stock securities is speculative and carries a high degree of risk.

No Offer of Securities

None of the information featured in this press release constitutes an offer or solicitation to purchase or to sell any securities of Sino Agro Food, Inc.

SOURCE Sino Agro Food, Inc.

For further information: Peter Grossman, Investor Relations, +1 (775) 901-0344, info@sinoagrofood.com


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