News and Press Releases

Sino Agro Food, Inc. Reports Second Quarter Results

.pdf formatted copy linked at the bottom of the press release

Aug 17, 2015

GUANGZHOU, China, Aug. 17, 2015 /PRNewswire/ -- Sino Agro Food, Inc. (OTCQB: SIAF).

Sino Agro Food, Inc.

The Company achieved the following quarterly results, comparing 2015 to 2014: 

(USDm, except per share data)

Q2 '15

 

Q2 '14

 

%

Revenue

90.9

 

97.0

 

-6%

Gross Profit

21.9

 

32.3

 

-32%

Gross Profit Margin

24%

 

33%

   

Net Income

15.4

 

29.2

 

-47%

Net Income attributable to SIAF

9.3

 

23.1

 

-60%

Earnings Per Share (USD) - fully diluted

0.51

 

1.41

 

-64%

Diluted weighted average number of shares (millions)

18.1

 

16.2

 

12%

 

Key Points

  • Project Development1 at Capital Award ("CA") had a weak quarter as the business came to an almost complete standstill due to heavy rain in Zhongshan. The business recorded sales of $8.8M in the second quarter compared to $26.1m in the first quarter. Weather conditions have now returned to normal. Also, once completed, ongoing roof build out will allow construction to continue even during any future periods of heavy rain. Had the Project Development business delivered at the same pace as in the first quarter, overall revenue for Sino Agro Food would have increased 11.9% year over year ("YoY").
  • 2015 is proving to be a weak year for the supply of eel fingerlings from Madagascar and the southern districts of China. Consequently, revenue within the Aquaculture Division2 from the sale of eels decreased by $11.6M in Q2 2015 versus the previous quarter, from $17.6M to $6.0M.
  • The weakness in project development and decrease in the sale of eels together account for more than 100% of the gross profit shortfall compared to Q2 2014.
  • With production capacity more than double Fish Farm 1, the first section of tanks at the Zhongshan New Prawn Project ("ZSNP") are now scheduled to begin stocking in late September, with sales of small stage one prawns sales commencing six to seven weeks thereafter. Sales of progressively larger stage prawns will commence approximately three weeks later per stage. The company has invested over $60m in the project. At the beginning of 2016 the number of fully operational indoor APM-modules3 in production will increase from 30 to 66.
  • Net of the conversion of Series B preferred shares to common shares, equity dilution in the quarter was less than 0.3%. This compares to average quarterly dilution during 2011-2014 of above 8%. As previously communicated, the Company has committed to discontinue the issuance of equity to trade suppliers.
  • The Company initiated a transition of the Integrated Cattle Farm in Xining4 towards the import of quarter cut beef and higher quality cattle in response to the easing of Chinese import restrictions. On the negative side, cattle prices have come down by 25% reducing gross profit by $2.3m (YoY). On the positive side, investment in the abattoir resulted in increased gross profit from deboning by $4.2M (YoY).

1

Project Development refers to income from Consulting and services.

2

The definition "Aquaculture operations" includes all seafood related business in the Sino Agro Food group but it is not a legal entity itself.  Sino Agro Food's Aquaculture operations include the legal entities Capital Award (100% equity ownership) and Fish Farm 1 (75% equity ownership). The seafood import business reported under Sino Agro Food Inc. (100% equity ownership) is also included as part of the Aquaculture operations. In addition, the Aquaculture operations have options to reach 75% equity ownership in the following non-consolidated companies: Fish Farm 2 (remaining cost to reach 75% ownership is currently USD 20.2 million), Prawn Farm 1 (remaining cost to reach 75% ownership is currently USD 6.4 million) and Prawn Farm 2 (remaining cost to reach 75% ownership is currently USD 19.3 million).

3

An APM-module consist of 2 tanks separated by a filter growing fish using recirculating aquaculture systems ("RAS"). The company currently has 16 indoor APM modules at Fish Farm 1 and 14 at Prawn Farm 1.

4

Integrated Cattle Farm Xining it is not a legal entity itself. It includes all operations of Qinghai Sanjiang A Power Agriculture Co. Ltd. ("SJAP", 45% equity ownership), slaughter and deboning operations conducted in Qinghai Zhong He Meat Products Co. ("QZH") (fully owned subsidiary of SJAP) and trading/import/export activities of beef and mutton reported under Sino Agro Food Inc. (100% equity ownership).

CEO and CFO Commentary

SIAF CEO Solomon Lee summarized the quarter. "Second quarter results were disappointing, breaking a string of record quarters, due to several external factors coming together. Bad weather had a major impact on construction at ZSNP; supply of eel fingerlings remained limited; Madagascar introduced quotas to limit export of live seafood; and the price of live cattle declined sharply.

"As an agriculture company, revenue is subject to weather conditions, commodity and food prices, and seasonality. Each detracted from second quarter financial results. We are structurally mitigating these factors by ramping up our distribution arm, which is unaffected by all three, and which will make significant contributions to the top and bottom lines, starting in Q3. With these contributions, with weather conditions returning to normal in August, and with efforts detailed in the next section of this release; overall, we expect a return to healthy growth in the second half, ramping in the third quarter."

SIAF CFO Bertil Tiusanen commented, "With so many external factors affecting the second quarter, it can appear challenging to analyze the implications for our business going forward. I see the earnings in Q2 as a bump in the road.

"Since I joined the company in May, my confidence in our operations has grown stronger each month. Hidden within a complex conglomerate and reporting structure, at the heart of the company is very possibly the world leader in the most interesting and sustainable niche of the aquaculture industry. The recent appointment of Dr. Anthony Ostrowski as Chief Scientific Officer, a leading U.S. aquaculture authority, further validates the Company's leading position.

"The second quarter was characterized by a strategy transition in Xining (SJAP) that is already proving wise. The company has made large investments in its Zhongshan prawn project, which is scheduled to start to generating product sales revenue by the end of the year."

Outlook

Since opening May 5, 2015, the Shanghai Distribution Center ("SDC") has seen demand for beef outstrip supply, growing faster than originally anticipated at over 30% per month. The Company is confident it will exceed original target production of 1,000 metric tons per month during this quarter. Gross margins are between 12.5% and 25%, across more than 100 product/pricing categories. Starting a short while ago, seafood sales also exhibit very strong growth during this ramp up period. Next quarter will begin to show results of increased volumes at SDC, all of which accrue as incremental year over year revenue and accretive quarter to quarter. In addition, 2016 will be the first full year of operations that approach capacity.

With the weather related construction delays at ZSNP, the Company now targets stocking first tanks in late September, with first sales of stage one small prawns during the fourth quarter. Like SDC revenue, virtually 100% of sales at ZSNP in 2016 will also accrue incrementally.

In addition to the major impact of the new Shanghai Distribution Center, a return to healthy growth has already begun, due to several additional factors:

  • Although heavy rain in Zhongshan continued in July, it improved in August. Construction has restarted on a par with the first quarter's pace. Once completed, ongoing roof build out will allow construction to continue even during any future periods of heavy rain.
  • The Company has executed plans to source more seafood from other countries that will counteract the Madagascar quotas, adding incremental revenue starting in the third quarter.
  • Typically, the natural supply of eel fingerlings alternates between higher and lower quantity outputs every other year. In response the Company has been establishing supply lines for certain eel varieties that yield both higher price and margin. Company allocates seafood, prawns, and eels to meet APM tank capacity, according to supplies. A larger proportion of higher priced eels would produce higher revenue.
  • Persistent efforts and improvements at the HU plantation succeeded in overcoming problems of plant disease experienced in past years, resulting in a good harvest in Q2 despite the heavy rainy season. Combined with improving weather conditions, these efforts bode well for higher revenue performance during H2 2015 than experienced during the same period in 2014.
  • The Company anticipated that laws relaxing beef import would change the business landscape for beef sales. Consequently, the Company is transitioning its herd to higher quality, less price sensitive Wagyu beef and Angus beef grain fed for 550 days, while importing beef from Australia to debone, process and distribute.

Consolidated Financial Results

In the second quarter, stockholders' equity increased by $12.1M or $.64 per share, based on the weighted average number of outstanding shares in the quarter. As of June 30, 2015, the Company had unrestricted cash and cash equivalents of  $9.15M and working capital of $270.3M.

As of August 11, 2015 the number of common shares outstanding increased by 752,536 to 18,951,201 from 18,199,201 as of the last reported date, May 12, 2015. The increase was primarily due to the exchange for the conversion of 7,000,000 Series B preferred shares to 707,071 shares of common stock.

Revenue

Total revenue for Q2 2015 was comprised of:

  • Sale of goods of $82.0M, virtually unchanged from Q2 2014 revenue of $82.3M, and
  • Consulting and Services Project Development revenue of $8.8M, a 40% decrease from Q2 2014 revenue of $14.7M.

Revenue from sale of goods amounted to 90% of total revenue, with Consulting and Services Project Development accounting for the remaining 10%.

Financial results by business segment follow:

Revenue (USDm)

Q2 '15

Q2 '14

%

Aquaculture (CA and TRW)

19.1

26.9

-29%

Plantation (JHST)

4.2

2.5

67%

Integrated Cattle Farm (SJAP)

36.5

27.7

32%

Organic Fertilizer (HSA)

4.9

5.1

-4%

Cattle Farms (MEIJI)

9.5

7.1

33%

SIAF Corporate (Import/Export)

7.8

13.0

-40%

Sale of Goods Total

82.0

82.4

0%

       

Aquaculture (CA)

8.8

13.0

-32%

Cattle Farms (MEIJI)

-

-

n.a.

SIAF Corporate

-

1.6

-100%

Project Development Total*

8.8

14.7

-40%

Group total

90.9

97.0

-6%

* Project development fees, management fees & commission

 

Cost of Goods

Cost of goods totaled $68.9M in Q2 2015: $62.2M for sale of goods and $6,7M for consulting and services.

Corresponding numbers in Q2 2014 were $64.7M (total), $58.0M (from sale of goods), and $6.7M (consulting and services).

Gross Profit

Total gross profit decreased by $10.4M or 32% to $21.9M for Q2 2015 from $32.3M for Q2 2014.

Gross profit from sale of goods decreased by $4.5M or 18% to $19.8M in Q2 2015 from $24.3 in Q2 2014. Gross profit from consulting services decreased by $5.9M or 73% to $2.1M in Q2 2015 from $8.0M in Q2 2014.

Division Operation Performance and Developments

Aquaculture Division

Revenue from the aquaculture division totaled $28.0M for Q2 2015, 31% of total revenue and a decrease of 30% compared to Q2 2014.

Sale of goods amounted to $19.1M, or 23% of the group total, a decrease of $7.8M or 29% from the corresponding 2014 quarter. Due to year to year factors affecting the availability and supply of captured eel fingerlings, the sale of eels decreased by $11.5M, while the sale of prawns increased by $4.3M, accounting for the overall decrease.

Comparing Q2 2015 to Q2 2014, average unit sales prices of sleepy cod, eels, and prawns were down 5.2%, 7.0%, and 11.8% respectively, accounting for an aggregate decrease in revenue of $1.9M.

Revenue from consulting, services, and management fees decreased by $4.2M, or 32%, from $13.0M in Q2 2014 to $8.8M in Q2 2015. The decrease, which was more pronounced compared to Q1 2015 is due to heavy rain suspending construction at the Zhongshan New Prawn Project ("ZSNP"). 

The first section of tanks at ZSNP designed for a capacity of 3,000 metric tons is now scheduled to begin stocking within late September, with sales of small stage one prawns sales commencing six to seven weeks thereafter. Sales of progressively larger stage prawns will commence approximately three weeks later per stage. The Company's 11th generation of its APM technology will improve production efficiency and enhance environmentally friendly conditions for prawn sustainability.

In early August the Company appointed Dr. Anthony C. Ostrowski Chief Scientific Officer to lead the R & D and Certification Division. An accomplished executive and scientist, Dr. Ostrowski brings over 30 years of broad international experience in the field of aquaculture and process certification, including serving on several boards and technical committees within the aquaculture community providing both scientific and strategic direction that helped establish local and international standards and best practices for the field.

Operating as a profit center, the primary mission of the division is to underpin the Company's products produced at existing aquaculture facilities and the emerging Zhongshan New Prawn Project with science, accommodating value added lines and branding. Implementing a third-party process certification and a product traceability program based on internationally accepted best practices and management standards ensures that SIAF meets global standards in sustainable farming practices, differentiating the company and its protein products from competitors, furthering the aim to expand market reach globally.

Plantation Division

Revenue from the plantation division increased by $1.7M, or 67% from $2.5M in Q2 2014 to $4.2M in Q2 2015.

Efforts over the last two years to prevent plant disease during the heavy rain season were successful in Q2, leading into Q3 and Q4, when the great majority of plantation division revenue is typically recorded due to a limited harvest season.

Integrated Cattle Farm Division

This division includes fertilizer, livestock feed, live cattle and the abattoir activity from Qinghai Sanjiang A Power Agriculture Co., Ltd. ("SJAP").

Revenue from this division increased by $8.9M, or 32% from $27.7M for Q2 2014 to $36.5M for Q2 2015.  The increase was primarily due to SJAP's sales of prepackaged meats, processed and deboned from quarter cut beef imported from Australia.

The Company is refocusing its beef business to accommodate relaxed import policies which have begun to impact locally produced cattle and beef prices, rendering sale of local live cattle increasingly less viable.

SJAP is transitioning its herd to Wagyu and Angus cattle, grain fed for 550 days.

Revenue (with changes Q2 2015 vs. Q2 2014 breaks down as follows, illustrating the company's strategic shift:

(USDm)

Q2 '15

Q2 '14

%

SJAP

     

  Fertilizer

.5

2.0

-71%

  Bulk Livestock Feed

1.4

1.4

0%

  Concentrated Livestock Feed

2.5

3.5

-29%

  Live Cattle

15.3

18.9

-19%

 Sub-total

19.8

25.9

-23%

QZH

     

  Slaughter and deboning

.3

0

 

  Deboning (local)

3.2

.7

327%

  Deboning (imported)

13.3

0

 

 Sub-total

16.7

1.8

839%

Total

36.5

27.7

32%

Organic Fertilizer Division

This division includes organic fertilizer and organic mixed fertilizer from Hunan Shenghua A Power Agriculture Company Ltd. ("HSA").

Revenue decreased by $.2M, or 4% from $5.1M for Q2 2014 to $4.9M for Q2 2015.

Cattle Farms Division  

Revenue from the cattle farms division increased by $2.7M or 33% from $7.2M for Q2 2014 to $9.5M for Q2 2015. Jiangmen City Hang Mei Cattle Farm Development Co. Ltd. ("JHMC" or "Cattle Farm 1") sold 3,243 head of live cattle (aromatic) in Q2 2015, an increase of 919 or 39% from 2,324 head in Q2 2014. Average unit sales price decreased 4%.

SIAF Corporate Division

Revenue from the sale of goods in the corporate division decreased by $5.3M or 40% from $13.0M for Q2 2014 to $7.8M for Q2 2015.

The decrease was primarily due to reduced imported seafood sales of $9.6M from Madagascar: from $13.0M in Q2 2014 (100% of corporate sale of goods) to $3.4M in Q2 2015, offset by $4.3M in revenue from imported beef and mutton from Australia in Q2 2015 compared to $0 in Q2 2014.

The Company has executed plans to source imported seafood from other countries to supplement imports from Madagascar, starting in Q3, 2015.

Import of beef and mutton from Australia to the Shanghai Distribution Center is expected to continue growing, projecting significant contribution to overall Company revenue in the second half of 2015 and beyond.

Please take the time to read our latest 10-Q filing and visit our website, both of which have additional information describing the Company's businesses.

Earnings Call Information

The Company will host an earnings call on Thursday, August 27, 2015 at 10:00 AM EDT/4:00 PM CET to discuss financial results for Q2 2015, with questions and answers. To participate in the conference call please use the following information:

SIAF 2015 Second Quarter Results Call Information

Date: August 27, 2015

Time: 10:00 AM, EDT/4:00 PM CET

Participant Dialing Instructions:

SE:       +46 8 566 427 00

NO:      +47 235 002 66

US:      + 1 (866) 388-1925

 

UK:      +44 203 428 14 13

CN:      +86 400 612 12 62

Conference Pincode China Only; otherwise, not needed):  

 115051#

 

The earnings call will also be available over the web.

 

To access, click the following link:  Sino Agro Q2 2015 Earnings Call

 

A webcast will be made available in the Investor Relations section of the Company's website.

 

 

SINO AGRO FOOD, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 
 

June 30,

   

December 31,

 
 

2015

   

2014

 
 

(Unaudited)

   

Audited

 
           

ASSETS

             

Current assets

             

Cash and cash equivalents

$

9,153,234

   

$

3,031,447

 

Inventories

 

50,174,717

     

45,967,993

 

Costs and estimated earnings in excess of billings on uncompleted 
     contracts

 

1,306,885

     

-

 

Deposits and prepayments

 

84,834,061

     

75,951,591

 

Accounts receivable, net of allowance for doubtful accounts

 

106,452,443

     

104,503,071

 

Other receivables

 

68,036,101

     

52,305,260

 

Total current assets

 

319,957,441

     

281,759,362

 

Plant and equipment

             

Plant and equipment, net of accumulated depreciation

 

68,318,398

     

64,352,975

 

Construction in progress

 

100,856,648

     

69,120,277

 

Land use rights, net of accumulated amortization

 

62,576,946

     

63,322,202

 

Total plant and equipment

 

231,751,992

     

196,795,454

 

Other assets

             

Goodwill

 

724,940

     

724,940

 

Proprietary technologies, net of accumulated amortization

 

11,190,705

     

11,480,298

 

Long term investment

 

817,795

     

817,127

 

Temporary deposits paid to entities for investments in Sino joint venture companies

 

41,109,708

     

41,109,708

 

Total other assets

 

53,843,148

     

54,132,073

 
               

Total assets

$

605,552,581

   

$

532,686,889

 
               

LIABILITIES  AND STOCKHOLDERS' EQUITY

             
               

Current liabilities

             

Accounts payable and accrued expenses

$

19,631,992

   

$

22,138,835

 

Billings in excess of costs and estimated earnings on uncompleted
      contracts

 

4,632,895

     

8,060,580

 

Due to a director

 

246,184

     

1,172,059

 

Series F Non-convertible preferred stock redemption payable

 

-

     

3,146,063

 

Other payables

 

14,575,385

     

11,695,982

 

   Borrowings - Short term bank debts

 

4,414,334

     

4,410,727

 

Bonds payable

 

1,725,000

     

1,725,000

 
   

45,225,790

     

52,349,246

 
               

Non-current liabilities

             

    Other payables

 

4,797.332

     

-

 

   Borrowings - Long term debts

 

2,307,943

     

2,306,057

 

Convertible notes payables

 

34,870,297

     

15,803,928

 
 

$

41,975,572

   

$

18,109,985

 
               

Commitments and contingencies

 

-

     

-

 
               

Stockholders' equity

             

Preferred stock: $0.001 par value (10,000,000 shares authorized, 100 and 7,000,100 issued and outstanding as of June 30, 2015 and December 31, 2014, respectively)

             

Series A preferred stock:  $0.001 par value (100 shares designated, 100 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively)

 

-

     

-

 

Series B convertible preferred stock:  $0.001 par value) (10,000,000 shares designated, 0 and 7,000,000 shares issued  and outstanding as of June 30, 2015 and December 31, 2014, respectively)

$

-

   

$

7,000

 

Series F Non-convertible preferred stock:  $0.001 par value) (1,000,000 shares designated, 0 shares issued  and outstanding as of June 30, 2015 and December 31, 2014, respectively)

 

-

     

-

 

Common stock:  $0.001 par value (22,727,272 shares authorized 18,899,271 and 17,162,716 shares issued as of  June 30, 2015 and December 31, 2014, respectively)

 

18,899

     

17,162

 

Additional paid - in capital

 

130,757,937

     

121,158,996

 

Retained earnings

 

306,326,151

     

273,261,108

 

Accumulated other comprehensive income

 

7,380,528

     

6,452,815

 

Treasury stock

 

(1,250,000)

     

(1,250,000)

 

Total Sino Agro Food, Inc. and subsidiaries stockholders' equity

 

443,233,515

     

399,647,081

 

Non - controlling interest

 

75,117,704

     

62,580,576

 

Total stockholders' equity

 

518,351,219

     

462,227,657

 

Total liabilities and stockholders' equity

$

605,552,581

   

$

532,686,889

 

 

 

 

 

 

SINO AGRO FOOD, INC.

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014 (UNAUDITED)

 
     

Three months ended

   

Three months ended

   

Six months ended

   

Six months ended

 
     

June 30, 2015

   

June 30, 2014

   

June 30, 2015

   

June 30, 2014

 
                           

Revenue

                                 

- Sale of goods

   

$

82,020,302

   

$

82,357,060

   

$

167,592,845

   

$

160,629,369

 

- Consulting and service income from development contracts

     

8,343,423

     

14,346,298

     

37,713,262

     

26,589,500

 

 - Commission and management fee

     

490,003

     

329,146

     

1,024,071

     

741,424

 
       

90,853,728

     

97,032,504

     

206,330,178

     

187,960,293

 

Cost of goods sold

     

(62,208,398)

     

(58,049,860)

     

(125,498,386)

     

(113,914,389)

 

Cost of services

     

(6,708,419)

     

(6,685,461)

     

(23,316,430)

     

(13,188,873)

 
                                   

Gross profit

     

21,936,911

     

32,297,183

     

57,515,362

     

60,857,031

 

General and administrative expenses

     

(5,392,206)

     

(3,281,860)

     

(9,958,113)

     

(5,950,254)

 

Net income from operations

     

16,544,705

     

29,015,323

     

47,557,249

     

54,906,777

 

Other income (expenses)

                                 
                                   

Government grant

     

58,661

     

124,440

     

141,841

     

237,672

 
                                   

Other income

     

89,821

     

1,265

     

152,467

     

4,523

 
                                   

Gain of extinguishment of debts

     

-

     

198,373

     

-

     

241,393

 
                                   

Interest expense

     

(1,326,472)

     

(110,386)

     

(2,110,078)

     

(219,493)

 

Net income (expenses)

     

(1,177,990)

     

213,692

     

(1,815,770)

     

264,095

 
                                   

Net income (expenses) before income taxes

     

15,366,715

     

29,229,015

     

45,741,479

     

55,170,872

 

Provision for income taxes

     

-

     

-

     

-

     

-

 
                                   

Net income

     

15,366,715

     

29,229,015

     

45,741,479

     

55,170,872

 

Less: Net (income) loss attributable to the non - controlling interest

     

(6,056,513)

     

(6,141,977)

     

(12,676,436)

     

(11,295,915)

 

Net income from continuing operations attributable to the Sino Agro Food, Inc. and subsidiaries

     

9,310,202

     

23,087,038

     

33,065,043

     

43,874,957

 

Other comprehensive income (loss)

                                 

Foreign currency translation gain (loss)

     

817,766

     

(108,578)

     

788,405

     

(816,214)

 

Comprehensive income

     

10,127,968

     

22,978,460

     

33,853,448

     

43,058,743

 

Less: other comprehensive (income) loss attributable to the non - controlling interest

     

(152,564)

     

43,000

     

(139,308)

     

156,521

 

Comprehensive income attributable to the Sino Agro Food, Inc. and subsidiaries

   

$

9,975,404

   

$

23,021,460

   

$

33,714,140

   

$

43,215,264

 
                                   

Earnings per share attributable to Sino Agro Food, Inc. and subsidiaries common stockholders:

                                 

Basic

   

$

0.51

   

$

1.47

   

$

1.87

   

$

2.91

 

Diluted

   

$

0.51

   

$

1.41

   

$

1.87

   

$

2.78

 
                                   

Weighted average number of shares outstanding:

                                 
                                   

Basic

     

18,140,209

     

15,695,971

     

17,714,995

     

15,056,498

 

Diluted

     

18,140,209

     

16,403,041

     

17,714,995

     

15,763,568

 

 

 

 

SINO AGRO FOOD, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014 (UNAUDITED)

 
   

Six months ended

   

Six months ended

 
   

June 30,
2015

   

June 30,
2014

 
         

(Restated)

 

Cash flows from operating activities    

               

Net income for the period

 

$

45,741,479

   

$

55,170,872

 

Adjustments to reconcile net income from operations to net cash from
operations:

               

Depreciation

   

1,606,873

     

1,131,273

 

Amortization

   

1,095,000

     

1,056,859

 

Common stock issued for services

   

1,760,066

     

66,872

 

Gain on extinguishment of debts

   

-

     

(241,393)

 

Other amortized cost

   

1,605,232

     

100,000

 

Changes in operating assets and liabilities:

               

(Increase) in inventories

   

(4,206,724)

     

(17,789,615)

 

(Increase) in costs and estimated earnings in excess of billings on uncompleted contacts

   

(1,306,885)

     

(94,007)

 

(Increase) decrease in deposits and prepayments

   

(2,870,991)

     

35,642,872

 

Increase in due to a director

   

18,348,071

     

1,968,340

 

(Decrease) increase in  accounts payable and accrued expenses

   

(2,506,843)

     

8,727,830

 

Increase in  other payables

   

7,676,735

     

10,466,922

 

(Increase) in accounts  receivable

   

(1,949,372)

     

(35,126,269)

 

(Decrease) increase in billings in excess of costs and estimated earnings on uncompleted contracts

   

(3,427,685)

     

374,465

 

(Increase) in other receivables

   

(15,730,841)

     

(7,243,282)

 

Net cash provided by operating activities    

   

45,834,115

     

19,132,816

 

Cash flows from investing activities    

               

Purchases of plant and equipment

   

(3,913,897)

     

(3,372,840)

 

Payment for investment in Sino Joint Venture Companies

   

-

     

(35,078,923)

 

Payment for construction in progress

   

(33,275,507)

     

(15,655,682)

 

Net cash used in investing activities    

   

(37,189,404)

     

(19,028,522)

 

Cash flows from financing activities    

               

Proceeds from long term debts

   

-

     

2,436,193

 
                 

Net cash (used in) provided by financing activities  

   

(3,146,063)

     

2,436,193

 

Effects on exchange rate changes on cash  

   

623,572

     

(236,195)

 

Increase in cash and cash equivalents

   

6,122,220

     

2,304,292

 

Cash and cash equivalents, beginning of period

   

3,031,447

     

1,327,274

 

Cash and cash equivalents, end of period

 

$

9,153,234

   

$

3,631,566

 

Supplementary disclosures of cash flow information:

               

Cash paid for interest

 

$

504,846

   

$

219,493

 

Cash paid for income taxes

 

$

-

   

$

-

 

Non - cash transactions

               

Common stock issued for settlement of debts

 

$

-

   

$

9,575,000

 

Series B convertible preferred stock converted into common stock

 

$

7,000

   

$

-

 

Common stock issued for services and employee compensation

 

$

726,362

   

$

-

 

Common stock issued to decimal stockholders for rounding up shares holding

 

$

2,772,281

   

$

-

 

Common stock issued to secure debts loan

 

$

5,996,665

   

$

-

 

Transfer to plant and equipment from construction in progress

 

$

1,594,864

     

1,865,678

 

Transfer to land use rights from deposits and prepayments

 

$

-

     

4,404,179

 

Transfer to plant and equipment from deposits and prepayments

 

$

9,323

   

$

513,272

 

Proceeds from convertible bond payables applied to investing and financing
activities

 

$

17,823,400

   

$

-

 

 

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's website (http://www.sinoagrofood.com), the Company's Facebook page (https://www.facebook.com/SinoAgroFoodInc), and on twitter @SinoAgroFood.

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.

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SOURCE Sino Agro Food, Inc.

For further information: Peter Grossman, Investor Relations, +1 (775) 901-0344, info@sinoagrofood.com; Tomas Oqvist, Investor Relations - Nordic Countries, +46 70 797 9793, se-info@sinoagrofood.com


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