GUANGZHOU, China, Nov. 14, 2014 /PRNewswire/ -- Sino Agro
Food, Inc. (OTCBB: SIAF.OB), today announced revenue of
$107.2M for the third quarter ended
September 30, 2014. Gross profit, net
income, and diluted earnings per share ("EPS") for the quarter were
$32.3M, $23.1M, and $.14
per share, respectively.
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").
The Company achieved record results across 2014 financial
metrics below:
Consolidated
Financial Summary: Third Quarter Ended September 30,
2014
|
|
Q3
2014
|
Q3
2013
|
Change
|
Revenue
|
$107,220,059
|
$70,707,697
|
52%
|
Gross
Profit
|
$34,496,664
|
$26,123,125
|
32%
|
Net Income
|
$24,501,862
|
$18,752,774
|
31%
|
Diluted
EPS
|
$.14
|
$.15
|
- 7%
|
Stockholders'
Equity
|
$373,257,199
|
$291,264,907
|
28%
|
Consolidated Results
Revenue
Total revenue for the quarter ended September 30, 2014 was $107,220,059, representing a 52% increase over
revenue of $70,707,697 in the
corresponding quarter in 2013.
Revenue in the third quarter of 2014 was derived from the sale
of goods and consulting services split 76.6%/22.9%: $82,171,415 and $24,598,641, respectively, with commissions
accounting for the remaining $450,003. The new Zhongshan Prawn Project
contributed 100% of revenue from consulting and services in the
third quarter of 2014.
The following chart illustrates the total revenue and changes by
business segment from the quarter ended September 30, 2013 to the quarter ended
September 30, 2014:
Category
|
Q3 2014
|
Q3 2013
|
Change ($)
|
Change
(%)
|
Fishery
(CA)
|
$47,780,135
|
$26,704,244
|
$21,075,891
|
79%
|
Plantation
(JHST)
|
$ 5,813,667
|
$10,534,960
|
($4,721,293)
|
(45%)
|
Organic Fertilizer
(SJAP/HSA)
|
$33,700,137
|
$20,434,953
|
$13,265,184
|
65%
|
Cattle Farm
(MEIJI)
|
$ 6,814,990
|
$4,639,397
|
$ 2,175,593
|
47%
|
Corporate/Other
(SIAF)
|
$ 13,111,130
|
$8,394,143
|
$4,716,987
|
56%
|
|
|
|
|
|
Total
|
$107,220,059
|
$70,707,697
|
$36,512,462
|
52%
|
Cost of Goods
Cost of Goods for the third quarter of 2014 totaled $72,723,395. Cost of Goods sold accounted for
$59,121,526, and cost of services
comprised the remaining $13,601,869.
Corresponding numbers in the third quarter of 2013 were
$44,584,572 (total), $41,315,537 (from sale of goods), and
$3,269,035 (services).
Gross Profit
Gross profit increased by $8,373,539 or 32% to $34,496,664 for the third quarter of 2014 from
$26,123,125 for the corresponding
quarter in 2013.
Gross profits from sale of goods increased by $2,698,151, or 13% to $23,049,889 in the third quarter of 2014 from
$20,351,738 in the corresponding
quarter in 2013. Gross profit from consulting services increased by
$5,675,388 or 98% to $11,446,775 in the third quarter of 2014 from
$5,771,387 for the third quarter of
2013.
The third quarter 2014 gross profit total of $34,496,664 consisted of $23,049,889 from sale of goods (67%), and the
remaining $11,446,775 from consulting
services (33%).
Division Operation Performance and Developments
Fishery Division
Revenue from the fishery division totaled $47,780,135 for Q3 2014, 45% of total third
quarter revenue and an increase of 79% over the third quarter 2013.
Sale of goods accounted for 49% of the total, and 51% were derived
from consulting services, commissions, and management fees. Gross
profits totaled $18,222,398 for Q3
2014, an increase of 63% over Q3, 2013.
Revenue from consulting, services, and management fees increased
by $15,724,776, or 177%, from
$8,873,865 in Q3 2013 to $24,598,641 in Q3 2014. The increase is solely
attributable to the large scale of the New Zhongshan Prawn Project.
Commission income amounted to $450,003 in Q3 2014, versus $166,557 in Q3 2013.
Revenue from the sale of goods increased by $3,133,209, or 16% from $19,598,282 in Q3 2013 to $22,731,491 for Q3 2014. Sale of goods for Q3,
2014 broke down as follows: eels, $14,406,907, or 63.4%; prawns, $6,790,885, or 29.9%; and sleepy cod,
$1,533,699, or 6.7%.
Gross profits from the sale of goods in the fishery division
increased by $1,405,522 or 26% from
$5,390,101 for Q3 2013 to
$6,795,623 for Q3 2014.
In Q3 2014 the Company sold larger eels: an average of over 2.8
Kg/eel compared to an average of 1.3 Kg/eel in the previous
quarter, Q2 2014. Larger eels command higher prices per kilogram;
accordingly, the average sales price increased by RMB34/Kg from RMB116/Kg in the second quarter, 2014 to
RMB150/Kg in the third quarter. Sales
of eels were generated collectively from our own Fish Farm 1,
unincorporated Prawn Farm 2 and Fish Farm 2, and a few other
sub-contracted growers. Effective gross profit margin in our own
farms and unincorporated farms for eels averaged 60%.
Effective gross profit margin in our own farms and
unincorporated farms for prawns maintained 75%, but varied from
other subcontracted growers.
Jiangmen City A Power Fishery, Development Co. Ltd.
("JFD" or "Fish Farm 1")
By the end of September, 2014 Fish Farm 1 increased its prawn
growing tanks to 10, along with four tanks for eels and two tanks
for sleepy cod. Most prawns are the Big Giant Prawn species. In
addition, two tanks for Grass Prawns, and one tank for Mexican
White are being used for further trials and experiments to optimize
grow out results. The latter two species require a mix using ocean
salt water. Positive test results would benefit the new Zhongshan
Prawn Project.
The eel tanks are growing eels delivered from Gao Qiqiang
Aquaculture farm ("Fish Farm 2") from 1.5 - 1.8 Kg to 3Kg/eel.
Converting the outdoor dams at Fish Farm 2 to the re-circulating
aquaculture system ("RAS") successfully allowed eel growth from
fingerling to adult.
Enping City Bi Tao A Power Prawn Culture Development Co.,
Ltd. ("EBAPCD" or "Prawn Farm 1")
During Q3 2014, the Company completed construction of additional
A Power Module ("APM") tanks, bringing the total to 12 tanks.
Currently, the Company is installing all filters and other
equipment, targeting to start production during Q4.
The Company also targets commencing construction of an adjacent
hydroponic farm during Q4. Once completed, it will be the first
symbiotic aquaculture/hydroponic farm in China, possibly the world.
Zhongshan A Power Prawn Culture Farms Development Co.
Ltd. ("ZSAPP" or "Prawn Farm 2"):
During the quarter, the Prawn Farm 2 completed six semi-enclosed
dams, and is operating 12 other semi-RAS outdoor grow-out dams
producing prawns, eels, and fish. Prawn Farm 2 has sources of salt
water nearby, facilitating proper conditions for Mexican White and
Grass prawns. During the quarter the Company harvested over 30
metric tons of these two varieties of prawns.
Zhongshan New Prawn Project ("ZSNP"):
Work continued in Q3 2014 on much of the infrastructure to
support the first stage of the project's first phase, targeting
capacity production of 10,000 metric tons/year. To date, the
Company has completed a complex of office space, staff quarters,
storage, parking areas and landscaping encompassing a total of
2,000 square meters on 15,000 square meters of land (about 23
Chinese mu or about four acres). These facilities are sufficient to
house the staff personnel and working areas to administrate Phase I
of the project.
During the quarter, the Company advanced construction of Stage 1
APM farms. APM tanks are modular; accordingly, the Company expects
the first set of modules to begin operations by the end of the
first quarter 2015, and to have a production capacity of 2,000
metric tons per year.
HU Plantation Division
Revenue from the HU plantation division ("JHST") decreased by
$4,721,293 or 45% from $10,534,960 in Q3 2013 to $5,813,667 in Q3 2014. The decrease was primarily
due to this year's very wet season. Regional growers did not
contribute fresh flowers for drying this year, substantially
lowering the division's sale of dried flowers.
Gross profit generated from the HU plantation decreased by
$1,593,240 from $5,702,163 for Q3 2013 to $4,108,926 for Q3 2014. Gross profit margin
increased to 72% in Q3 2014 from 54% in the corresponding 2013
quarter.
During the quarter, JHST harvested 152.5 metric tons of Immortal
Vegetables from approximately 70 Mu (about 12 acres). These were
processed, packed and sold to distributors at an average price of
RMB450/Kg, contributing revenue of
$1.11M. JHST also harvested 18.8M
pieces of HU flowers during the quarter, with very few harvested
subsequently, making a very short season. The Company is engaging
agricultural experts to determine how yields might improve even in
the very wet conditions experienced this autumn
Organic Fertilizer Division
For purposes of segment reporting, the Company consolidates the
results from Qinghai Sanjiang A Power Agriculture Co., Ltd.
("SJAP") and Hunan Shenghua A Power Agriculture Company Ltd.
("HSA"), including sales of beef.
Revenue from organic fertilizer increased by $13,265,184 or 65% from $20,434,953 for Q3 2013 to $33,700,137 for Q3 2014. Revenue breaks down as
follows:
HSA
|
|
1)
Organic Fertilizer
|
$1,095,621
|
2)
Organic Mixed
Fertilizer
|
$4,698,541
|
HSA
Total
|
$5,794,162
|
SJAP
|
|
1)
Fertilizer
|
$ 440,588
|
2) Bulk Livestock
Feed
|
$ 1,101,471
|
3) Concentrated Livestock Feed
|
$ 3,095,750
|
4) Live
Cattle
|
$17,599,116
|
Sub-Total
|
$22,236,925
|
QZH
|
|
1) Slaughter
and deboning (local)
|
$ 3,936,627
|
2)
Slaughter and deboning (imported)
|
$ 1,732,423
|
QZH
Sub-Total
|
$5,669,050
|
SJAP
Total
|
$27,904,975
|
Total
|
$33,700,137
|
SJAP slaughtered 845 head of cattle during the third quarter. Of
these, 506 head of cattle were deboned grossing 285 metric tons of
locally supplied meat product and 28 metric tons of bones. In
addition, 214 metric tons of meat imported from Australia was deboned: 88 metric tons of beef
and 126 metric tons of lamb. Altogether, slaughtering and deboning
activities generated $5.7M in revenue
for SJAP in the third quarter 2014.
At the end of the third quarter, SJAP operated two "Bull"
concessions within Tesco PLC stores in Shanghai. By the end of October, five were in
operation.
Gross profit margins Q3 2014 were 33% at SJAP, including 38% at
the slaughterhouse and deboning facilities.
HSA completed constructing expanded fermentation facilities,
improving overall production efficiency and capacity. At HSA, the
trend of steadily increasing sales to lake fishermen and to grape
farmers in the first half of 2014 continued during Q3 2014, with
13,000 metric tons of various types of fertilizer sold. HSA
harvested 8,000 metric tons of yellow grasses to be sold to local
cattle farmers in the fourth quarter.
During the quarter, the government approved HSA's application
for a cattle farm. Accordingly, construction will start in
December 2014.
Cattle Farm Division
Revenue from the cattle farm division increased by $2,175,593, or 47% from $4,639,397 for Q3 2013 to $6,814,990 for Q3 2014. During Q3 2014, Jiangmen
City Hang Mei Cattle Farm Development Co. Ltd. ("JHMC" or "Cattle
Farm 1") sold 2,846 head of live cattle (aromatic) in Q3 2014, an
increase of 1,346, or 90% from 1,500 head in Q3 2013.
Corporate Division (Marketing and Trading)
Total revenue in the corporate division increased by
$4,716,987 or 52% from $8,394,143 for Q3 2013 to $13,111,130 for Q3 2014. All revenue was
from sale of goods. The increase is primarily due to marketing more
imported seafood.
The Company has increased the quantity and variety of seafood
imported from Madagascar. The
Company expects to complete permitting to export a variety of
frozen, processed seafood from Madagascar in the fourth quarter, and begin
import to China during the first
quarter of 2015.
The Company is developing a wholesale and distribution center in
Shanghai to service Shanghai wholesale markets, Tesco stores,
regional distributors, and other Shanghai super market chains. With 3,000
square meters of build out, the center is scheduled to commence
operations in December, 2014 targeting sales of 12,000 metric tons
of meat and 5,000 metric toms of seafood per year within 12 to 24
months.
Strategic Developments
On August 29, 2014 the Company
completed a convertible note funding with Euro China Capital AB
("ECAB") for net proceeds of up to $25M. With this funding the Company began to
leverage its balance sheet, and shifted the manner in which it
funds growth. In ECAB, the Company believes that it also gained a
partner with substantial expertise in international financial
markets. This partnership reinforces Company initiatives to bolster
corporate level support systems with complementary advice promoting
actions to enhance shareholder value.
With improved cash flow, the new funding supports infrastructure
and facility investment in the company's two largest and highly
scalable projects: processing, distributing and selling packaged
meats from its SJAP joint venture, and wholesale production and
sale of prawns at the new Zhongshan Prawn Project.
During the quarter, the Company continued expanding production
capacity at its slaughterhouse, deboning, and packaging facilities
at SJAP, while preparing a new distribution warehouse in
Shanghai to commence operations in
December 2014.
Also during the quarter, the Zhongshan Prawn Project contributed
100% of the Company's $24.6M in
revenue from consulting and services. Together with construction in
prior quarters, sufficient infrastructure for the entire first
stage of the project's first phase was completed in the third
quarter to also start building the first module of APM tanks. The
first module targets production capacity of 2,000 metric tons of
prawns, with operations scheduled to begin in March 2015. The Company plans for module
dependent projected production of 10,000 MT/year in stage one of
phase one of the Zhongshan Prawn Project. The Company targets
bringing online new APM tanks with the capacity to produce 1,000 to
2,000 metric tons per year.
Please take the time to read our last 10-K filing, this
quarter's 10-Q filing, and visit our web site, all of which have
additional information describing the plans and potential of the
Company's businesses.
Earnings Call Information
The Company will host an earnings call on Thursday, November 20, 2014 at 10:00 AM EST to discuss financial results for Q3
2014, with questions and answers. To participate in the conference
call please use the following information:
SIAF 2014 Third
Quarter Results Call Information
|
Date: November 20,
2014
|
Time: 10:00 AM, U.S.
Eastern Time
|
Participant Dialing
Instructions:
|
Toll Free
Number:
(1-800)
868-1837
|
Direct Dial
Number:
(1-404)
920-6440
|
Conference
Code: 956219#
|
An audio replay of the conference call will be made available in
the Investor Relations section of the Company's website.
SINO AGRO FOOD,
INC.
CONSOLIDATED BALANCE
SHEETS (Unaudited)
|
|
|
|
September 30,
2014
|
|
|
December 31,
2013
|
|
ASSETS
|
|
|
(Unaudited)
|
|
|
|
(Audited)
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
4,691,157
|
|
|
$
|
1,327,274
|
|
Inventories
|
|
|
37,439,892
|
|
|
|
8,148,203
|
|
Cost and estimated
earnings in excess of billings on uncompleted contracts
|
|
|
1,224,287
|
|
|
|
663,296
|
|
Deposits and prepaid
expenses
|
|
|
55,610,463
|
|
|
|
51,291,708
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
122,773,881
|
|
|
|
82,057,942
|
|
Other
receivables
|
|
|
16,475,508
|
|
|
|
3,782,771
|
|
Total current
assets
|
|
|
238,215,188
|
|
|
|
147,271,194
|
|
Property and
equipment
|
|
|
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation
|
|
|
61,274,162
|
|
|
|
46,487,058
|
|
Construction in
progress
|
|
|
69,088,637
|
|
|
|
59,134,732
|
|
Land use rights, net
of accumulated amortization
|
|
|
58,995,505
|
|
|
|
60,705,829
|
|
Total property and
equipment
|
|
|
189,358,304
|
|
|
|
166,327,619
|
|
Other non-current
assets
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
724,940
|
|
|
|
724,940
|
|
Proprietary
technologies, net of accumulated amortization
|
|
|
11,587,564
|
|
|
|
12,081,470
|
|
Temporary deposits
paid to entities for investments in future Sino Joint
Venture
companies
|
|
|
41,109,708
|
|
|
|
41,109,708
|
|
License
rights
|
|
|
-
|
|
|
|
-
|
|
Total other non-
current assets
|
|
|
53,422,212
|
|
|
|
53,916,118
|
|
Total
assets
|
|
$
|
480,995,704
|
|
|
$
|
367,514,931
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
16,477,918
|
|
|
$
|
11,055,194
|
|
Other
payables
|
|
|
11,177,713
|
|
|
|
10,768,786
|
|
Billings in excess of
costs and estimated earnings on uncompleted contracts
|
|
|
3,373,432
|
|
|
|
3,146,956
|
|
Due to a
director
|
|
|
4,244,519
|
|
|
|
1,793,768
|
|
Series F shares
mandatory redemption payable
|
|
|
3,146,063
|
|
|
|
-
|
|
Bonds
payable
|
|
|
1,725,000
|
|
|
|
-
|
|
Short term bank
loan
|
|
|
-
|
|
|
|
4,100,377
|
|
|
|
|
40,144,645
|
|
|
|
30,865,081
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Series F shares
mandatory redemption payable
|
|
|
-
|
|
|
|
3,146,063
|
|
Long term
debts
|
|
|
2,616,610
|
|
|
|
180,417
|
|
Bonds
payable
|
|
|
-
|
|
|
|
1,725,000
|
|
Convertible note
payable
|
|
|
6,982,667
|
|
|
|
-
|
|
|
|
|
9,599,277
|
|
|
|
5,051,480
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Preferred stock:
$0.001 par value
|
|
|
|
|
|
|
|
|
(10,000,000 shares
authorized, 7,000,100 shares issued and outstanding
|
|
|
|
|
|
|
|
|
as of September 30,
2014 and December 31, 2013, respectively)
|
|
|
|
|
|
|
|
|
Series A preferred
stock: $0.001 par value
|
|
|
-
|
|
|
|
-
|
|
(100 shares
designated, 100 shares issued and outstanding
|
|
|
|
|
|
|
|
|
as of September 30,
2014 and December 31, 2013, respectively)
|
|
|
|
|
|
|
|
|
Series B convertible
preferred stock: $0.001 par value
|
|
|
7,000
|
|
|
|
7,000
|
|
(10,000,000 shares
designated, 7,000,000 shares issued and outstanding
|
|
|
|
|
|
|
|
|
as of September 30,
2014 and December 31, 2013, respectively)
|
|
|
|
|
|
|
|
|
Series F
Non-convertible preferred stock: $0.001 par value
|
|
|
|
|
|
|
|
|
(1,000,000 shares
designated, 0 shares issued and outstanding
|
|
|
-
|
|
|
|
-
|
|
as of September 30,
2014 and December 31, 2013, respectively)
|
|
|
|
|
|
|
|
|
Common stock: $0.001
par value
|
|
|
168,128
|
|
|
|
137,602
|
|
(170,000,000 shares
authorized, 167,128,223 and
137,602,043 shares
issued and outstanding as of
September 30, 2014
and December 31, 2013, respectively)
|
|
|
|
|
|
|
|
|
Additional paid - in
capital
|
|
|
118,514,375
|
|
|
|
104,913,676
|
|
Retained
earnings
|
|
|
249,573,317
|
|
|
|
181,196,498
|
|
Accumulated other
comprehensive income
|
|
|
6,244,379
|
|
|
|
6,260,131
|
|
Treasury
stock
|
|
|
(1,250,000)
|
|
|
|
(1,250,000)
|
|
Total Sino Agro
Food, Inc. and subsidiaries stockholders' equity
|
|
|
373,257,199
|
|
|
|
291,264,907
|
|
Non - controlling
interest
|
|
|
57,994,583
|
|
|
|
40,333,463
|
|
Total
stockholders' equity
|
|
|
431,251,782
|
|
|
|
331,598,370
|
|
Total liabilities
and stockholders' equity
|
|
$
|
480,995,704
|
|
|
$
|
367,514,931
|
|
SINO AGRO FOOD,
INC.
CONSOLIDATED
STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 2014 AND 2013 (Unaudited)
|
|
|
|
Three months
ended
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
Nine months
ended
|
|
|
|
September 30,
2014
|
|
|
September 30,
2013
|
|
|
September 30,
2014
|
|
|
September 30,
2013
|
|
Revenue
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
- Sale of
goods
|
|
$
|
82,171,415
|
|
|
$
|
61,667,275
|
|
|
$
|
242,800,784
|
|
|
$
|
140,368,479
|
|
- Consulting and
service income from development contracts
|
|
|
24,598,641
|
|
|
|
8,873,865
|
|
|
|
51,188,141
|
|
|
|
39,070,677
|
|
- Commission
income
|
|
|
450,003
|
|
|
|
166,557
|
|
|
|
1,191,427
|
|
|
|
776,621
|
|
|
|
|
107,220,059
|
|
|
|
70,707,697
|
|
|
|
295,180,352
|
|
|
|
180,215,777
|
|
Cost of goods
sold
|
|
|
(59,121,526)
|
|
|
|
(41,315,537)
|
|
|
|
(173,035,915)
|
|
|
|
(93,418,818)
|
|
Cost of
services
|
|
|
(13,601,869)
|
|
|
|
(3,269,035)
|
|
|
|
(26,790,742)
|
|
|
|
(19,760,570)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
34,496,664
|
|
|
|
26,123,125
|
|
|
|
95,353,695
|
|
|
|
67,036,389
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
(3,594,509)
|
|
|
|
(2,026,989)
|
|
|
|
(9,544,763)
|
|
|
|
(5,840,681)
|
|
Net income from
operations
|
|
|
30,902,155
|
|
|
|
24,096,136
|
|
|
|
85,808,932
|
|
|
|
61,195,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government
grant
|
|
|
57,340
|
|
|
|
343,481
|
|
|
|
295,012
|
|
|
|
423,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
155,032
|
|
|
|
41,264
|
|
|
|
159,555
|
|
|
|
107,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
extinguishment of debts
|
|
|
33,693
|
|
|
|
160,997
|
|
|
|
275,086
|
|
|
|
1,212,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(263,664)
|
|
|
|
(286,376)
|
|
|
|
(483,157)
|
|
|
|
(398,386)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(expenses)
|
|
|
(17,599)
|
|
|
|
259,366
|
|
|
|
246,496
|
|
|
|
1,344,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before
income taxes
|
|
|
30,884,556
|
|
|
|
24,355,502
|
|
|
|
86,055,428
|
|
|
|
62,539,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
30,884,556
|
|
|
|
24,355,502
|
|
|
|
86,055,428
|
|
|
|
62,539,743
|
|
Less: Net (income)
loss attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to non -
controlling interest
|
|
|
(6,382,694)
|
|
|
|
(5,602,728)
|
|
|
|
(17,678,609)
|
|
|
|
(13,077,257)
|
|
Net income from
continuing operations attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Sino Agro Food,
Inc. and subsidiaries
|
|
|
24,501,862
|
|
|
|
18,752,774
|
|
|
|
68,376,819
|
|
|
|
49,462,486
|
|
Other
comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign currency
translation (loss) income
|
|
|
869,931
|
|
|
|
822,349
|
|
|
|
(33,241)
|
|
|
|
2,258,890
|
|
Comprehensive
income
|
|
|
25,371,793
|
|
|
|
19,575,123
|
|
|
|
68,343,578
|
|
|
|
51,721,376
|
|
Less: other
comprehensive loss (income) attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non - controlling
interest
|
|
|
(139,032)
|
|
|
|
(165,987)
|
|
|
|
17,489
|
|
|
|
(331,758)
|
|
Comprehensive
income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sino Agro Food,
Inc. and subsidiaries
|
|
$
|
25,232,761
|
|
|
$
|
19,409,136
|
|
|
$
|
68,361,067
|
|
|
$
|
51,389,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to Sino Agro Food, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and subsidiaries
common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
$
|
0.45
|
|
|
$
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
0.14
|
|
|
$
|
0.15
|
|
|
$
|
0.43
|
|
|
$
|
0.40
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
163,046,209
|
|
|
|
122,057,655
|
|
|
|
153,109,854
|
|
|
|
115,580,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
170,046,206
|
|
|
|
129,057,655
|
|
|
|
160,109,854
|
|
|
|
123,525,159
|
|
SINO AGRO FOOD,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 2014 AND 2013 (Unaudited)
|
|
|
|
|
|
Nine months
ended
|
|
|
Nine months
ended
|
|
|
|
September 30,
2014
|
|
|
September 30,
2013
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
$
|
86,055,428
|
|
|
$
|
62,539,743
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income for the period to net cash from
operations:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,768,047
|
|
|
|
995,408
|
|
Amortization
|
|
|
1,619,267
|
|
|
|
1,469,457
|
|
Common stock issued
for services
|
|
|
255,033
|
|
|
|
271,800
|
|
Gain on
extinguishment of debts
|
|
|
(275,086)
|
|
|
|
(1,212,010)
|
|
Other amortized
cost
|
|
|
229,857
|
|
|
|
14,152
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Increase in
inventories
|
|
|
(29,291,689)
|
|
|
|
(818,748)
|
|
(Increase) decrease
in cost and estimated earnings in excess of billings on
uncompleted
contacts
|
|
|
(560,991)
|
|
|
|
577,059
|
|
Increase in deposits
and prepaid expenses
|
|
|
(583,670)
|
|
|
|
(37,090,703)
|
|
Increase in due to a
director
|
|
|
2,450,751
|
|
|
|
1,640,331
|
|
Increase in accounts
payable and accrued expenses
|
|
|
5,361,625
|
|
|
|
2,468,434
|
|
Increase in other
payables
|
|
|
12,415,301
|
|
|
|
17,952,791
|
|
Increase in accounts
receivable
|
|
|
(40,715,939)
|
|
|
|
(6,742,274)
|
|
Increase (decrease)
in billings in excess of costs and estimated earnings on
uncompleted
contracts
|
|
|
226,476
|
|
|
|
(376,629)
|
|
Increase in other
receivables
|
|
|
(12,692,737)
|
|
|
|
(3,623,402)
|
|
Net cash provided
by operating activities
|
|
|
26,261,673
|
|
|
|
38,065,409
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(3,418,741)
|
|
|
|
(4,188,660)
|
|
Payment for
construction in progress
|
|
|
(22,227,905)
|
|
|
|
(31,494,031)
|
|
Acquisition of land
use rights
|
|
|
-
|
|
|
|
(489,904)
|
|
Net cash used in
investing activities
|
|
|
(25,646,646)
|
|
|
|
(36,172,595)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Net proceeds from
convertible note payable
|
|
|
5,237,000
|
|
|
|
-
|
|
Proceeds from long
term debts
|
|
|
2,436,193
|
|
|
|
-
|
|
Short term bank loan
repaid
|
|
|
(4,100,377)
|
|
|
|
(742,109)
|
|
Net proceeds of bonds
payable
|
|
|
-
|
|
|
|
339,884
|
|
Dividends
paid
|
|
|
-
|
|
|
|
(951,308)
|
|
Net cash provided
by (used in) financing activities
|
|
|
3,572,816
|
|
|
|
(1,353,533)
|
|
|
|
|
|
|
|
|
|
|
Effects on exchange
rate changes on cash
|
|
|
(823,960)
|
|
|
|
624,869
|
|
Increase in cash and
cash equivalents
|
|
|
3,363,883
|
|
|
|
1,164,150
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
|
|
1,327,274
|
|
|
|
8,424,265
|
|
Cash and cash
equivalents, end of period
|
|
$
|
4,691,157
|
|
|
$
|
9,588,415
|
|
|
|
|
|
|
|
|
|
|
Supplementary
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
422,058
|
|
|
$
|
398,386
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Non - cash
transactions
|
|
|
|
|
|
|
|
|
Common stock issued
for settlement of debts
|
|
$
|
12,006,374
|
|
|
$
|
13,782,651
|
|
Common stock issued
for services and compensation
|
|
$
|
2,519,232
|
|
|
$
|
133,744
|
|
Series B convertible
preferred stock cancelled
|
|
$
|
-
|
|
|
$
|
(3,000)
|
|
Transfer construction
in progress to property and equipment
|
|
$
|
13,136,410
|
|
|
|
14,406,643
|
|
Transfer deposits and
prepaid expenses to property and equipment
|
|
$
|
513,272
|
|
|
$
|
-
|
|
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.