News and Press Releases

Sino Agro Food, Inc. Announces First Half Results for 2011

Aug 22, 2011

GUANGZHOU, China--()--Sino Agro Food, Inc. (OTC Pink Sheets: SIAF), an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce financial results for its 2nd Quarter and six months period ending June 30th, 2011.

Revenues

Revenues including continued and discontinued operations increased by $444,313 or 4.74% to $9,826,901 for the six months ended June 30, 2011 from $9,382,588 for the six months ended June 30, 2010. The increase was primarily due to the increase of revenue generated from the fishery, HU plantation, cattle farm, beef and the maturity of other sectors’ businesses improving their revenues even though the Company discontinued its dairy segment in January 2011. The Company earned revenue $0 for the six months ended June 30, 2011 from discontinued dairy operations as compared with revenue $8,687,057 for the six months ended June 30, 2010 from discontinued dairy operations.

Revenue – Fishery. Revenues from fishery increased by $3,419,688 or 491.66 % from $695,531 for the six months ended June 30, 2010 to $4,115,219 for the six months ended June 30, 2011. The increase in fishery was primarily due to our increased contract service income from fishery and prawn development contract for the six months ended June 30, 2011 instead of consulting income for the six months ended June 30, 2010.

Revenue – Plantation. Revenues from plantation increased by $1,222,241 from $0 for the six months ended June 30, 2010 to $1,222,241 for the six months ended June 30, 2011.

Revenue – Cattle farm. Revenues from cattle farm development increased by $954,577 from $0 for the six months ended June 30, 2010 to $954,577. The increase in cattle farm was primarily due to starting up new business of provision of development contract service of cattle farm for the six months ended June 30, 2011.

Revenue – Beef. Revenues from beef increased by $3,534,864 from $0 for the six months ended June 2010 to $3,534,864 for the three months ended June 30, 2011. The increase in beef was primarily due to starting up new business of organic fertilizer, bread grass cultivation since Q3 2010.

Cost of Goods Sold

Cost of goods sold including continued and discontinued operations increased by $195,252 or 5.04% to $4,072,263 for the six months ended June 30, 2011 from $3,877,011 for the six months ended June 30, 2010. The increase was primarily due to the Company increased scale of operation from continued segment- fishery, plantation and beef for six months ended June 30, 2011 as compared for the six months ended June 30, 2010 even though the Company discontinued dairy segment since January 2011 with cost of goods sold for dairy segment of $0 for the six months ended June 30, 2011 as compared with cost of goods sold- dairy segment of $3,877,011 for the six months ended June 30, 2010.

Cost of goods sold – Fishery. Cost of goods sold from fishery increased by $1,606,581 from $0 for the six months ended June 30, 2010 to $1,606,581 for the six months ended June 30, 2011. The increase in fishery was primarily due to cost of sales for consulting service for the six months ended June 30, 2011 in contrast against cost of development contract of fish and prawn farm of $1,606,581 for the six months ended June 30, 2010.

Cost of goods sold – Plantation. Cost of goods sold from plantation increased by $431,396 from $0 for the six months ended 30 June 2010 to $431,396 for the six months ended June 30, 2011.

Cost of goods sold – Cattle farm. Cost of goods sold from cattle farm development increased by $620,474 from $0 for the six months ended 30 June 2010 to $620,474. The increase in cattle farm was primarily due to starting up new business of provision of development contract service of cattle farm for the six months ended June 30, 2011.

Cost of goods sold – Beef. Cost of goods sold from beef increased by $1,413,812 from $0 for the six months ended June 30, 2010 to $1,413,812 for the six months ended June 30, 2011. The increase in beef was primarily due to starting up new business of organic fertilizer, bread grass cultivation since Q3 2010.

Gross Profit

Gross profit – Fishery. Gross profit from fishery increased by $1,813,107 from $695,531 for the six months ended June 30, 2010 to $2,508,638 for the six months ended June 30, 2011. The increase in fishery was primarily due to our increased the volume of contract service income from fishery and prawn development contract for the six months ended June 30, 2011 instead of consulting income for the six months ended June 30, 2010.

Gross profit – Plantation. Gross profit from plantation increased by $790,845 from $0 for the six months ended June 30, 2010 to $790,845 for the six months ended June 30, 2011.

Gross profit – Cattle farm. Gross profit from cattle farm development increased by $334,102 from $0 for the six months ended 30 June 2010 to $334,102. The increase in cattle farm was primarily due to starting up new business of provision of development contract service of cattle farm for the six months ended June 30, 2011.

Gross profit – Beef. Revenues from beef increased by $2,121,052 from $0 for the six months ended June 30, 2010 to $2,121,052 for the three months ended June 30, 2011. The increase in beef was primarily due to starting up new business of organic fertilizer, bread grass cultivation since Q3 2010.

                 
Three months Three months Six months Six months
ended ended ended ended
June 30, 2011 June 30, 2010 June 30, 2011 June 30, 2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Continuing operations $ $ $ $
 
Revenue 6,705,370 395,531 9,826,901 695,531
 
Cost of goods sold   2,881,648     -     4,072,263     -  
 
Gross profit 3,823,722 395,531 5,754,638 695,531
 
General and administrative expenses   (544,094 )   (928,376 )   (1,234,240 )   (1,442,712 )
 
Net income (loss) from operations   3,279,628     (532,845 )   4,520,398     (747,181 )
 
Other income (expenses)
 
Other income 9,314 - 18,616 -
 
Gain (loss) of extinguishment of debts 489,500 (1,586,000 ) 582,426 (6,151,180 )
 
Interest expense   (4,300 )   (1,934 )   (7,472 )   (4,861 )
 
Net income (expenses)   494,514     (1,587,934 )   593,570     (6,156,041 )
 
Net income before income taxes 3,774,142 (2,120,779 ) 5,113,968 (6,903,222 )

 

 

Provision for income taxes   -     -     -     -  
 
Net income (loss) from continuing operations 3,774,142 (2,120,779 ) 5,113,968 (6,903,222 )
 
Less: Net (income) loss attributable to the non - controlling interest   (762,664 )   10,529     (1,191,577 )   21,176  
 

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

  3,011,478     (2,110,250 )   3,922,391     (6,882,046 )
 
Discontinued operations
 
Net income from discontinued operations - 2,295,263 19,941,880 3,817,507
 
Less: Net income attributable to the non - controlling interest   -     (504,936 )   (9,737,929 )   (700,986 )
 

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

  -     1,790,327     10,203,951     3,116,521  
 
Net income (loss) attributable to the Sino Agro Food, Inc. and subsidiaries 3,011,478 (319,923 ) 14,126,342 (3,765,525 )
 
Other comprehensive income (loss)
 
Foreign currency translation gain (loss)   1,676,536     364,014     2,852,210     700,850  
 
Comprehensive income (loss) 4,688,014 44,091 16,978,552 (3,064,675 )
 

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

  (101,798 )   (80,131 )   (395,716 )   (160,141 )
 
Comprehensive income (loss) attributable to the Sino Agro Food, Inc. and subsidiaries   4,586,216     (36,040 )   16,582,836     (3,224,816 )
 

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

 
From continuing and discontinued operations
 
Basic $ 0.05   $ (0.04 ) $ 0.25   $ (0.07 )
 
Diluted $ 0.05   $ (0.04 ) $ 0.22   $ (0.07 )

 

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

 
From continuing operations
 
Basic $ 0.05   $ (0.09 ) $ 0.07   $ (0.13 )
 
Diluted $ 0.05   $ (0.09 ) $ 0.06   $ (0.13 )
 
Weighted average number of shares outstanding:
 
Basic   57,420,993     51,942,636     57,272,885     52,943,579  
 
Diluted   64,620,993     54,128,579     64,272,885     52,943,579  
 

Plantation Harvest

As of June 30th, 2011, HST harvested just less than 15 million pieces of flowers which is a performance far superior to the 2010 season when HST had no harvest during June 2010 due to heavy rains and flooding. Out of which HST has sold over 6.5 million pieces of fresh flowers at an average of RMB0.55 per piece against the production cost of RMB0.18 per piece and has dried over 79.784 tons of dried flowers at production cost of around RMB13.63 per Kg with latest wholesale prices averaging RMB43 per Kg.

HST is expecting a harvest of 60 to 75 million pieces by the end of October 2011. As such HST will be able to retain a reasonable amount of dried stocks to be sold in 2012 in order to even out its yearly sales.

Fishery Operations

By July 15th 2011, we have two fish farms in operation.

The Enping APM fish farm is now in full operational order stocking currently over 165,000 (Sleepy Cod) fingerlings measuring from 60mm up to 120mm sized fingerlings. This farm has a total of 16 grow-out tanks, and it is anticipating that for the remainder of 2011, each tank would have a grow-out capacity to gain up to 100 Kg of net fish weight per day per tank. In this respect, we intended to arrange by August 2011 all 165,000 fingerlings to be kept in no more than 8 tanks. The remaining 8 tanks will be used to keep and grow out fish from new stock that will be of larger size (i.e. from 300 gm sized fish and upward) in order that revenues will be generated more quickly. The reason we could not house much bigger fish in quantity earlier on, is that bacteria in the Bio-filters required time to grow to a respectable quantity in order that enough soluble waste will be consumed to maintain the water quality of the tank. Based on this arrangement, we are expecting up to 250 tons of fish sales to be generated on or before December 31st, 2011.

The Company contracted 600 Mu (about 100 acres) of open dam fish farming in April 2011 with a local fish grower to grow up to 600,000 fish for and on behalf of CA between 2011 and 2012. We have stocked these dams with over 600,000 fingerlings ranging from 40mm up to 120mm, and fish ranging from 200 gram up to 350 gram. The grow-out of these fish is based on a fixed cost basis in that the grower is responsible for the mortality factor such that we are guaranteed to have a minimum of 300 tons of fish for sales within the contracted period. In this respect we are anticipating that there will be a minimum of 100 tons of fish sales to be generated from these dams on or before the year end of 2011.

Livestock, Feedstock and Fertilizer Operations

As of June 30, 2011 there was 14,575.4 Tons of fertilizer manufactured at cost of average of RMB406.92 per Ton and sales of 13,402.44 Tons at an average sale price of RMB948.99 per Ton.

There was 226.89 Tons of live-stock feed manufactured at cost of RMB426.86 per Ton which was mainly used in-house to feed its own cattle at an internal sales price averaging RMB669.85 per Ton.

As of July 15th, 2011, Qinghai SanJiang A Power Agriculture Co. Ltd. is housing over 860 head of young cattle.

Conference Call

The Company will host its regularly held mid-year conference call in September following its upcoming annual shareholder tour. The Company anticipates completing an updated investor presentation as well as a video production on its current operations prior to the conference call date. During the upcoming conference call the Company will provide updates and discuss projects currently underway, new contracts signed and pending, the Form 10 approval process and plans for the Company’s 2011 dividend. The Company will provide a time and date for the conference call in a future press release.

ABOUT SINO AGRO FOOD, INC.

Sino Agro Food, Inc. (“SIAF”) (http://www.sinoagrofood.com) and (http://www.siafchina.com) is an integrated, diversified agricultural technology and organic food company focused on developing, producing and distributing agricultural products in the Peoples Republic of China. The Company intends to focus on meeting the increasing demand of China’s rising middle class for gourmet and high-quality food items. Current lines of business include the manufacture and distribution of beef and lamb products, fish products, bio-organic fertilizer, stock feed, cash crops and hylocereus undatus plantations.

FORWARD LOOKING STATEMENTS

This release contains certain “forward-looking statements” relating to the business of SIAF and its subsidiary companies, which can be identified by the use of forward-looking terminology such as “believes, expects” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on SIAF’s current expectations and beliefs concerning future developments and their potential effects on SIAF. There can be no assurance that future developments affecting SIAF will be those anticipated by SIAF. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. 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 may be required under applicable securities laws.

Contacts

Sino Agro Food, Inc.
CEO Mr. Solomon Lee, 86-20-22057860
info@siafchina.com
or
Investor Relations (US and Europe)
Mr. Chad Sykes
Chad.Sykes@sinoagrofood.com


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