GUANGZHOU, China, Nov. 13, 2014 /PRNewswire/ -- Sino Agro
Food, Inc. (OTCBB: SIAF) is an integrated, diversified agriculture
technology and organic food company (the "Company" or "SIAF") with
principal operations as primary producer, processor, and marketer
in the People's Republic of China
("PRC").
As the press release issued on September
4, 2014 alluded, the Company has conducted strategy sessions
spanning four days with Euro China Capital AB ("ECAB") in
Stockholm in late September
planning how to best enhance shareholder value. As a result of
these strategy sessions, the Board of Directors has agreed in
principle on an initial general plan as well as some concrete
initial action items as first steps of this plan.
Initiated work to unlock value in the corporate
structure
A review of the corporate structure has led to a decision by the
Board of Directors on November 11,
2014 to evaluate and to explore proposed listing
opportunities available to the integrated cattle farm joint venture
in Xining, which we refer to as
"SJAP." In this respect, a suitable financial advisor will be hired
to evaluate and to explore the said listing as well as any
prospects for domestic or international merger and acquisition or
disposition transactions for SJAP. The primary purpose of this
process is to crystallize the values that have been built in SJAP.
The Company expects to work closely with ECAB throughout this
process.
During the first six months of 2014 alone, SJAP reported Sales
of US$50.5 million ($26.9M in 2013) and Net Profit of US$15.9million ($10.9M in 2013). A summary of SJAP is available
on the Company's
website: http://www.sinoagrofood.com/?q=2014-sjap-overview
Stockholm office to
strengthen the IR and finance functions
Together with ECAB, the Company is evaluating additional stock
exchanges where the Company's shares could be listed. As part of
the preparations for a new listing, the Company is in the process
of establishing and staffing a Stockholm office, which incorporates
strengthening the IR and finance functions as well as enhancing its
Board of Directors.
Complementary reporting to facilitate analysis of SIAF's
financials
In order to better facilitate analysis of SIAF's financials for
institutional investors, a process led by ECAB is currently
preparing a complementary and comparable financial reporting format
with information and presentation more in line with the practices
used by publicly listed companies in Europe. We expect that the new complementary
and comparable financial reporting format will be made available
within ten days after we file our annual report on Form 10-K for
the fiscal year ending on December 31,
2014.
Because of historical bad examples, there is a general mistrust
of Chinese companies listed on the U.S. OTCBB. This has affected
Sino Agro Food through unfounded "guilt by association."
Given the negative effect this phenomenon has for the company's
shareholders, together with ECAB, the Board of Directors has now
decided to take actions in order to make clear that SIAF does not
belong to the group of bad examples that have caused this general
skepticism.
The Company expects to present the first concrete announcements
with regards to this subject before the end of this year.
Commented Fredrik Danielsson,
Managing Partner of Euro China Capital AB: "As a result of the
strategy meetings in Stockholm,
Euro China Capital and SIAF now have an agreed on a broad plan on
how to work in different areas to best serve the ultimate
stakeholders in the Company, its shareholders. The plan should not
only gradually support the equity valuation directly but also
indirectly, as it takes the Company closer to a position from
which it can better take advantage of its strong earnings and
balance sheet with regards to bond financing. Prudently leveraging
the balance sheet would enable continued exceptionally high growth
rates while also effectively transforming it into similar growth in
EPS."
Chairman and CEO of the Company, Solomon
Lee commented, "I am very proud of how the operations are
developing every quarter. The weeklong strategy meetings with Euro
China Capital have given me even more insight into the need for
specialist skills and experience with regards to the financial
markets and corporate actions, especially for a company like ours.
I am therefore very satisfied that we now have a partner in Euro
China Capital and its Managing Partner, Fredrik Danielsson, who can assist us with
respect to what is needed to ensure that strong operational
performance also translates into strong enhancement in shareholder
value. We shall announce more detailed information on the progress
of this work as developments materialize and conditions
warrant."
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) 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.