News and Press Releases

Sino Agro Food, Inc. Announces First Half Results for 2010 and Schedules Shareholder Conference Call

Aug 12, 2010

GUANGZHOU, China--()--Sino Agro Food, Inc. (Pink Sheet:SIAF), an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to announce operating results for second quarter 2010 and sets date for shareholder conference call to discuss current operations and provide updated guidance.

Results of Operations

Assets. Our total assets were $85,451,738 as of June 30, 2010, an increase of 9% when compared to $78,148,919 as of June 30, 2009. This increase of assets from June 30, 2009 to June 30, 2010 was primarily a result of the growth in net earnings and injection of additional capital.

Liabilities. Our total liabilities were $6,834,442 at June 30, 2010, a decrease of 50% when compared to $13,585,410 as of June 30, 2009. This decrease was primarily due to improvements in the Company’s cash flows during the periods reported.

Total Stockholders’ Equity. Our stockholders’ equity was $78,617,296, or $1.51 per share as of June 30, 2010, representing an increase of 22% compared to $64,544,922 as of June 30, 2009. This increase in equity was primarily due to increases in net earnings, additional capital injected, exchange translational gains and minority interest, but there was no increase of common stock issued and outstanding.

Revenues. Our Revenue was $13,170,210 for the 6 months ended June 30, 2010, representing an increase of 64% from $8,016,158 for the same period ended June 30, 2009. The increase was primarily due to an audited adjustment made to 2009’s revenue being carried to this quarter, and there was an increase of sales revenue in the dairy due to the quarter’s heavy launching of sales of retail dairy products.

Gross Profits. For the three months ended June 30, 2010, we had gross profit of $5,100,003, an increase of 148% when compared to a gross profit of $2,053,131 for the three months ended June 30, 2009. This increase was due to higher productivities, sales margins, increased operational efficiency and increased profits derived from the sale of retail dairy products. Further reductions were made by a larger number of crops being grown and harvested internally instead of outsourcing raw materials from third parties. Dairy productions also increased as the maturity of our cows have begun reaching better yields. At the same time there was better performance from Capital Award Inc. having obtained a service contract to build its first Aquaculture Fish Farm in China. During this same period, there was adjustment of sales from 2009 being adjusted to this quarter as requested by our auditor due to result of their audit done for our fiscal year ended December 2009 that increased revenue for this quarter.

Our net income from operation was $1,765,449 or $0.03 per share and $949,088 net of minority for the three months ended June 30, 2010 and 2009, respectively. This represents an 86% increase from 2009 to 2010 during the same period. The increase was due to an increased profit margin during the three months ended June 30, 2010 compared to the three months ended June 30, 2009.

Interest expense was $237,925 and $118,349 for the three months ended June 30, 2010 and 2009, respectively, an increase of $119,576. The increase is due to an increase in debt servicing during the quarter of 2010 compares to same quarter of 2009.

The Company will publish its full first half year report on OTCmarkets.com for review by August 15th, 2010. The format presented is the result of current changes to the fiscal year ending to June 30th in preparation of its Form 10 filing with the SEC. Comparatives will vary based on this. Quarterly break down will be provided in the report to be filed with OTCmarkets.com.

The Company will host a shareholder conference call on August 31st, 2010 at 11:00 AM EST to discuss both second quarter earnings as well as guidance for the remainder of the year. Shareholders will be provided with a question and answer session. Details on how to attend the conference call will be provided on or before August 27th, 2010. Shareholders are reminded that August 27th, 2010 is also the Ex. Dividend Date in order to receive the previously announced annual cash dividend.

The Company is currently waiting on final audited reports for the periods ending December 31st 2008 and 2009 to be finalized and issued by our auditor anticipating sometimes within the month of August 2010 and subsequently with the auditor’s review for fiscal year ended June 30, 2010 within the month of September 2010. The Company expects to have the completed audited reports’ results published prior to the shareholder conference call. However the financial results presented hereof have included all adjustments made by our auditors for fiscal years ended December 31, 2008 and 2009.

The Company Investor Relations team will be in China from August 14th through the 21st visiting all operations and the site construction for its new aquaculture demonstration farm. During the visit all operations will be documented and recorded so that a video presentation and Company documentary can be produced and provided to shareholders on DVD by request or can be viewed via the Company web site.

ABOUT SINO AGRO FOOD, INC.

Sino Agro Food, Inc. (“SIAF”) (http://www.sinoagrofood.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 Bio-Organic Fertilizer and Stock-Feed, as well as, fisheries, dairies, and Hylocereus Undatus plantations. SIAF’s products are produced to meet the high organic quality standards of the United Kingdom. SIAF is owner of a patented process; the conversion of corn stalk into high quality feed for livestock and is the “Master Licensee” for China with exclusive right to a patented Bacterial used in converting food based agriculture produce wastes into nutritional feed products that are also applicable in the manufacturing of Bio-Organic fertilizer. The Company also holds the “Master License” for China on a modern re-circulating Aquaculture Technology “A Power RAS Technology” that has the capacity to commercially grow quality table fish and seafood free from chemical and pollution in enclosed modules on land in a system designed to promote economic sustainability and viability. Currently the Company has total employment of 520 persons of which 60 are skilled and experienced management staff.

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
Phone: 86-20-22057860
info@siafchina.com
or
Investor Relations (US and Europe)
Mr. Chad Sykes
Chad.Sykes@sinoagrofood.com