GUANGZHOU, China, May 18, 2015 /PRNewswire/ -- Sino Agro Food,
Inc. (OTCQB: SIAF) (also referred to herein as "SIAF" or the
"Company") posted revenue of $115.5M
for its consolidated first quarter 2015 results, ending
March 31, 2015, attaining a new high
for the seventh consecutive quarter.
In the first quarter, stockholders' equity increased by
$31.4M or $1.76 per share, based on the weighted average
number of outstanding shares in the quarter. As of March 31, 2015, the Company had unrestricted cash
and cash equivalents of $10.9M
and working capital of $254.5M.
As of May 12, the number of common
shares outstanding has increased by 129,789 to 18,199,201 from
18,069,412 at the end of Q1 2015.
The Company achieved the following quarterly results, comparing
2015 to 2014:
Consolidated
Financial Summary: Q1, 2015 vs. Q1, 2014
|
|
Q1
2015
|
Q1
2014
|
Change
|
Revenue
|
$115,476,450
|
$90,927,789
|
27%
|
Gross
Profit
|
$35,578,451
|
$28,559,848
|
25%
|
Net Income (to
SIAF and Subs)
|
$23,754,841
|
$20,787,919
|
14%
|
Diluted
EPS
|
$1.33
|
$1.38
|
-4%
|
Stockholders'
Equity
|
$431,089,735
|
$317,433,893
|
36%
|
Operating Cash
Flow
|
$27,545,084
|
$20,725,513
|
33%
|
Highlights
Total revenue from the sale of goods increased 9% to
$85.6M ($78.3M) in the first quarter. Declines in the
Fishery, Plantation and Organic Fertilizer section were offset by
strong growth in the Company's cattle businesses. Due to seasonal
factors, the sale of eels declined by $10.5M, partially offset by an increase of
$6.6M in prawns. This seasonal
variation alone created a net decline of $2.4M in gross profits versus Q1 2014, or 11%; in
the sale of goods, a decline of $3.9M
from eels offset by an increase of $1.6M from prawns.
During the quarter, the Company substantially increased deboning
of imported beef, contributing revenue of $9.4M.
Revenue from Consulting and Services Project Development more
than doubled to $29.9M ($12.7M), attributable mainly to the Zhongshan New
Prawn Project ("ZSNP"), contributing an increase of $7.1M in overall gross profit.
Commentary from Solomon Lee,
President and CEO
SIAF CEO Solomon Lee summarized
first quarter results. "The Company met its internal projections
for the first quarter of 2015. We are an agriculture company,
so seasonal variations in product mix and wholesale prices will
produce changes from quarter to quarter.
"As we commence our second five-year plan, the main growth
factors are in place. Consistent with our longer-term vision to
become a concentrated advanced aquaculture company, we continue to
invest in the Zhongshan New Prawn Project. Also, we are
investing in our other subsidiaries to reach a critical mass toward
optimizing full or partial divestitures of non-aquaculture
subsidiaries. Particularly, in the first quarter, we have invested
in Sanjiang A Power Agriculture Co. Ltd. ("SJAP"), where added
capacity facilitates our strategic plans, and in Hunan Shenghua A
Power Agriculture Company Ltd. ("HSA"), where product demand is
high and we will benefit from economies of scale.
"We look forward to the second quarter results also producing to
plan, with the Shanghai Distribution Center coming on line to
demonstrate its results, and first sections of tanks at the
Zhongshan New Prawn Project becoming operational, while the next
section of tanks are constructed to add capacity."
Consolidated Financial Results
Revenue
Total revenue for Q1 2015 was comprised of:
- Sale of goods of $85,572,543, a
9% increase over Q1 2014 revenue of $78,272,309, and
- Consulting and Services Project Development revenue of
$29,903,907, a 136% increase over Q1
2014 revenue of $12,655,480.
Revenue from sale of goods amounted to 74% of total revenue,
with Consulting and Services Project Development accounting for the
remaining 26%.
Category
|
Q1
2015
|
Q1
2014
|
Change
($)
|
Change
(%)
|
|
|
|
|
|
Fishery
(CA)
|
$ 53,336,774
|
$43,764,265
|
$9,572,509
|
22%
|
- Sale of
Goods
|
$27,218,843
|
$31,108,785
|
$3,889,942
|
-13%
|
-
Consulting
|
$26,117,933
|
$12,655,480
|
$13,462,453
|
106%
|
Plantation
(JHST)
|
|
$ 760,052
|
($ 760,052)
|
|
Organic Fertilizer
(SJAP/HSA)
|
$ 40,376,589
|
$28,975,083
|
$11,401,506
|
39%
|
Cattle Farm
(MEIJI)
|
$ 8,289,986
|
$7,544,591
|
$ 745,395
|
10%
|
Corporate
(SIAF)
|
$13,473,011
|
$9,883,798
|
$3,589,222
|
36%
|
- Sale of
Goods
|
$9,687,127
|
$9,883,798
|
-$196,671
|
-
|
-
Consulting
|
$3,785,974
|
|
$3,785,974
|
-
|
|
|
|
|
|
Total
|
$115,476,450
|
$90,927,789
|
$ 24,548,661
|
27%
|
Cost of Goods
Cost of goods totaled $79,897,999
in Q1 2015: $63,289,988 for sale of
goods and $16,608,011 for consulting
and services.
Corresponding numbers in Q1 2014 were $62,367,941 (total), $55,864,529 (from sale of goods), and
$6,503,412 (consulting and
services).
Gross Profit
Total gross profit increased by $7,018,603 or 25% to $35,578,451 for Q1 2015 from $28,559,848 for Q1 2014.
Gross profit from sale of goods decreased by $125,225 to $22,282,555 in Q1 2015 from $22,407,780 in Q1 2014. Gross profit from
consulting services increased by $7,143,828 or 116% to $13,295,896 in Q1 2015 from $6,152,068 in Q1 2014.
Division Operation Performance and Developments
Fishery Division
Revenue from the fishery division totaled $53,336,774 for Q1 2015, 47% of total revenue and
an increase of 22% over Q1 2014.
Sale of goods amounted to $27,218,842, or 51% of the division total, a
decrease of $3,889,943 or 12.5% from
the corresponding 2014 quarter. Due to the seasonal factors
affecting the availability and supply of captured seafood from
quarter to quarter, the sale of eels decreased by $10.5M, while the sale of prawns increased by
$6.6M.
Revenue from consulting, services, and management fees increased
by $13,462,453, or 106%, from
$12,655,480 in Q1 2014 to
$26,117,933 in Q1 2015. The increase
is mainly due to the unprecedented scale of the Zhongshan New Prawn
Project ("ZSNP").
The first phase of ZSNP remains on plan, with the first section
of tanks designed for a capacity of 3,000 metric tons scheduled to
begin sales in August. The Company's 11th generation of
its APM technology will improve production efficiency and enhance
environmentally friendly conditions for prawn sustainability.
Plantation Division
Typically, the vast majority of plantation division revenue is
booked in the third and fourth quarters, as there is a limited
harvest season. There was no revenue in the first quarter of 2015
versus $760,052 in Q1 2014, which
mainly resulted from the unharvested crops at year-end 2013 being
collected and sold during Q1 2014. Bad weather at year end 2014
precluded such collection and sale during Q1 2015.
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 this division increased by $11,401,506 or 39% from $28,975,083 for Q1 2014 to $40,376,589 for Q1 2015. Revenue (with changes Q1
2015 vs. Q1 2014) breaks down as follows:
HSA
|
1) Organic
Fertilizer
|
$ 771,320
|
(-22%)
|
2) Organic Mixed
Fertilizer
|
$ 3,411,120
|
(-11%)
|
HSA
Total
|
$ 4,182,440
|
(-13%)
|
SJAP
|
1)
Fertilizer
|
$ 589,517
|
(-80%)
|
2) Bulk Livestock
Feed
|
$ 2,080,669
|
(55%)
|
3) Concentrated
Livestock Feed
|
$ 4,296,880
|
(24%)
|
4) Live
Cattle
|
$ 17,071,207
|
(4%)
|
Sub-Total
|
$ 24,038,273
|
(3%)
|
QZH
|
1) Slaughter and
deboning
|
$ 189,916
|
(vs.
0)
|
2) Deboning
(local)
|
$ 2,581,866
|
(vs.
0)
|
3) Deboning
(imported)
|
$ 9,384,094
|
(vs. 0)
|
QZH
Sub-Total
|
$ 12,155,876
|
(vs. 0)
|
SJAP
Total
|
$ 36,194,149
|
(50%)
|
Total
|
$ 40,376,589
|
(39%)
|
Gross profit from the division increased by $2,532,892 or 24% from $10,717,899 in Q1 2014 to $13,250,791 in Q1 2015.
SJAP sold 5,032 head of live cattle in Q1 2015, an increase of
1,317, or 35% over Q1 2014 sales of 3,715 head. SJAP slaughtered
500 head of cattle, and deboned 1,227 metric tons of beef in Q1
2015, equating to 3,665 head of cattle. Deboning of quarter cut
imported beef totaled 1,037 metric tons, contributing quarterly
revenue of $9.4M, and on track for
full year 2015 projections of 4,000 to 6,000 metric tons.
These changes are consistent with the Company's refocused plans
for SJAP to dramatically increase import of Australian beef and
transition from its local Angus and Simmental cattle to higher
margin Wagyu cattle.
Cattle Farm Division
Revenue from the cattle farm division increased by $745,395 or 10% from $7,544,591 for Q1 2014 to $8,289,986 for Q1 2015. Jiangmen City Hang Mei
Cattle Farm Development Co. Ltd. ("JHMC" or "Cattle Farm 1") sold
2,935 head of live cattle (aromatic) in Q1 2015, an increase of 263
or 10% from 2,672 head in Q1 2014.
Corporate Division (Marketing and Trading)
Revenue in the corporate division increased by $3,589,222 or 36% from $9,883,798 for Q1 2014 to $13,473,011 for Q1 2015. The increase was
primarily due to marketing more imported seafood and newly
developed imported beef. Revenue from sale of goods
(import/trading) totaled $9,687,127: $6,248,780 from seafood and $3,438,347 from beef. Revenue from consulting
services accounted for the remaining $3,785,974.
The Shanghai Distribution Center commenced operation on
May 5, 2015, and will begin reporting
incremental revenue and returns in the second quarter. Invitations
were sent to 30 wholesalers and distributors for a grand opening
event. Due to word of mouth and keen interest, 80 had attended. The
Center's small shop at the Shanghai wholesale meat market in the PoDong
District opened the same day. By May
7, the entire inventory of 25 metric tons of grain fed Angus
had been sold out.
There is a big difference in the prices and quality of meat
between "grain fed Angus" and normal pasture fed cattle. Imported
grain fed Angus beef from Australia commands a premium price, selling
for over RMB 80 RMB per kilogram, and
is in higher overall demand in Chinese cities. "Normal" imported
beef meat sell for approximately RMB
40/KG. For reference, the Company's own Xining grain fed meat sells for approximately
RMB 60/KG.
Corporate Developments
- The Company secured two drawdown loan facilities with two third
parties totaling $25M with attractive
interest rates. During the quarter, the Company obtained net loan
amounts of $4,797,232 (loan
principal) that were secured by 753,304 newly issued shares of the
Company, according to terms of the agreements. At maturity and
after the Company will have paid back said loan principal plus all
interest payments, the said 753,304 shares will be returned to the
Company, retired, and no longer included in the outstanding share
count. However in the interim, they will be counted toward the
total outstanding shares (basic and diluted) of the Company.
- Arctic Securities has been working diligently to prepare the
Company to satisfy all requirements necessary for listing on the
Oslo Stock Exchange, including legal due diligence work, etc.
- In this respect, the Company has also engaged KPMG Norway and
KPMG China to jointly carry out Company-wide financial due
diligence, and other advisory services. The Company expects KPMG to
enhance financial presentations to stakeholders.
- By October, SIAF anticipates KPMG to be the official auditor of
"Zhongshan City A Power Agriculture Development Co. Ltd.,
China," a Sino Foreign Joint
Venture Company and the developer and owner of the Zhongshan New
Prawn Farm Project
- The Xining Government has recommended that SJAP participate in
the acquisition of two beef subsidiaries of a state owned
enterprise. Also, consistent with refocused plans for SJAP, the
Company has teamed with Burnham Securities to explore the
opportunity.
Burnham Securities, SJAP, and the Sanjiang Group ("SG") are
currently in discussions on the next steps to create a joint
venture between SJAP and two of SG's subsidiaries. Both
subsidiaries are profitable segments of SG's multi-billion dollar
corporation, and both would complement and enhance SJAP operations
very well.
- The Company appointed Mr. Peter Rosta Director and Board
Chairman for the Company's subsidiary, "A Power Agriculture
Development Co. Ltd. (Macau)," the
holding company of SJAP.
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 Friday, May 22, 2015 at 10:00 AM EDT/4:00 PM
CET to discuss financial results for Q1 2015, with questions
and answers. To participate in the conference call please use the
following information:
SIAF 2015 First
Quarter Results Call Information
|
Date: May 22,
2015
|
Time: 10:00 AM,
EDT/4:00 PM CET
|
Participant
Dialing Instructions:
|
SE: +46 85 66
42 700
NO: +47 23 50 02
52
US: + 1 (855)
753-2235
|
UK: +44 20 342 814
13
CN: +86 40 061 212
62
|
Conference Pincode
(China Only; otherwise, not needed):
681266#
The earnings call
will also be available over the web.
To access, click
the following link: Sino Agro Q1 2015 Earnings
Call
|
A webcast will be made available in the Investor Relations
section of the Company's website.
Financial Tables
SINO AGRO FOOD,
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
March 31,
|
|
|
December
31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(Unaudited)
|
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
10,932,661
|
|
|
$
|
3,031,447
|
|
Inventories
|
|
|
|
49,227,718
|
|
|
|
45,967,993
|
|
Cost and estimated
earnings in excess of billings on uncompleted contracts
|
|
|
|
1,306,885
|
|
|
|
-
|
|
Deposits and prepaid
expenses
|
|
|
|
76,791,239
|
|
|
|
75,951,591
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
|
103,774,371
|
|
|
|
104,503,071
|
|
Other
receivables
|
|
|
|
60,944,553
|
|
|
|
52,305,260
|
|
Total current
assets
|
|
|
|
302,977,427
|
|
|
|
281,759,362
|
|
Property and
equipment
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net of accumulated depreciation
|
|
|
|
64,750,441
|
|
|
|
64,352,975
|
|
Construction in
progress
|
|
|
|
87,710,314
|
|
|
|
69,120,277
|
|
Land use rights, net
of accumulated amortization
|
|
|
|
62,763,167
|
|
|
|
63,322,202
|
|
Total property and
equipment
|
|
|
|
215,223,922
|
|
|
|
196,795,454
|
|
Other
assets
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
724,940
|
|
|
|
724,940
|
|
Proprietary
technologies, net of accumulated amortization
|
|
|
|
11,327,787
|
|
|
|
11,480,298
|
|
Long term
investment
|
|
|
|
814,067
|
|
|
|
817,127
|
|
Temporary deposits
paid to entities for investments in Sino joint ventures
companies
|
|
|
|
41,109,708
|
|
|
|
41,109,708
|
|
Total other
assets
|
|
|
|
53,976,502
|
|
|
|
54,132,073
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
$
|
572,177,851
|
|
|
$
|
532,686,889
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
|
$
|
23,127,256
|
|
|
$
|
22,138,835
|
|
Billings in excess of
costs and estimated earnings on uncompleted contracts
|
|
|
|
4,034,158
|
|
|
|
8,060,580
|
|
Due to a
director
|
|
|
|
1,008,000
|
|
|
|
1,172,059
|
|
Series F
Non-convertible preferred stock redemption payable
|
|
|
|
3,146,063
|
|
|
|
3,146,063
|
|
Other
payables
|
|
|
|
11,084,679
|
|
|
|
11,695,982
|
|
Short term bank
loan
|
|
|
|
4,394,210
|
|
|
|
4,410,727
|
|
Bonds payable
|
|
|
|
1,725,000
|
|
|
|
1,725,000
|
|
|
|
|
|
48,519,366
|
|
|
|
52,349,246
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
|
Other
payables
|
|
|
|
4,797,332
|
|
|
|
-
|
|
Long term debts
|
|
|
|
2,297,421
|
|
|
|
2,306,057
|
|
Convertible bond
payables
|
|
|
|
16,286,754
|
|
|
|
15,803,928
|
|
|
|
|
|
23,381,507
|
|
|
|
18,109,985
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
|
Preferred stock:
$0.001 par value
|
|
|
|
|
|
|
|
|
|
(10,000,000 shares
authorized, 7,000,100 issued and outstanding as of March 31, 2015
and December 31, 2014, respectively)
|
|
|
|
|
|
|
|
|
|
Series A preferred
stock: $0.001 par value
|
|
|
|
-
|
|
|
|
-
|
|
(100 shares
designated, 100 shares issued and outstanding as of March 31, 2015
and December 31, 2014, 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 March 31,
2015 and December 31, 2014, respectively)
|
|
|
|
|
|
|
|
|
|
Series F
Non-convertible preferred stock: $0.001 par value)
|
|
|
|
-
|
|
|
|
-
|
|
(1,000,000 shares
designated, 0 shares issued and outstanding as of March 31, 2015
and December 31, 2014, respectively)
|
|
|
|
|
|
|
|
|
|
Common stock: $0.001
par value
|
|
|
|
18,069
|
|
|
|
17,162
|
|
(22,727,272 shares
authorized 18,069,412 and 17,062,716 shares issued as of March 31,
2015 and December 31, 2014, respectively)
|
|
|
|
|
|
|
|
|
|
Additional paid - in
capital
|
|
|
|
128,862,006
|
|
|
|
121,158,996
|
|
Retained
earnings
|
|
|
|
297,015,949
|
|
|
|
273,261,108
|
|
Accumulated other
comprehensive income
|
|
|
|
6,436,710
|
|
|
|
6,452,816
|
|
Treasury
stock
|
|
|
|
(1,250,000)
|
|
|
|
(1,250,000)
|
|
Total Sino Agro
Food, Inc. and subsidiaries stockholders' equity
|
|
|
|
431,089,734
|
|
|
|
399,647,082
|
|
Non - controlling
interest
|
|
|
|
69,187,244
|
|
|
|
62,580,576
|
|
Total
stockholders' equity
|
|
|
|
500,276,978
|
|
|
|
462,227,658
|
|
Total liabilities
and stockholders' equity
|
|
|
$
|
572,177,851
|
|
|
$
|
532,686,889
|
|
SINO AGRO FOOD,
INC.
|
CONSOLIDATED
STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME AS OF MARCH 31,
2015 AND 2014 (UNAUDITED)
|
|
|
|
|
Three months
ended
|
|
|
Three months
ended
|
|
|
|
|
March 31,
2015
|
|
|
March 31,
2014
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
- Sale of
goods
|
|
|
$
|
85,572,543
|
|
|
$
|
78,272,309
|
|
- Consulting and
service income from development contracts
|
|
|
|
29,369,839
|
|
|
|
12,243,202
|
|
- Commission and
management fee
|
|
|
|
534,068
|
|
|
|
412,278
|
|
|
|
|
|
115,476,450
|
|
|
|
90,927,789
|
|
Cost of goods
sold
|
|
|
|
(63,289,988)
|
|
|
|
(55,864,529)
|
|
Cost of
services
|
|
|
|
(16,608,011)
|
|
|
|
(6,503,412)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
35,578,451
|
|
|
|
28,559,848
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
|
(4,565,907)
|
|
|
|
(2,668,394)
|
|
Net income from
operations
|
|
|
|
31,012,544
|
|
|
|
25,891,454
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government
grant
|
|
|
|
83,180
|
|
|
|
113,232
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
|
62,646
|
|
|
|
3,258
|
|
|
|
|
|
|
|
|
|
|
|
Gain of
extinguishment of debts
|
|
|
|
-
|
|
|
|
43,020
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
(783,606)
|
|
|
|
(109,107)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(expenses)
|
|
|
|
(637,780)
|
|
|
|
50,403
|
|
|
|
|
|
|
|
|
|
|
|
Net income before
income taxes
|
|
|
|
30,374,764
|
|
|
|
25,941,857
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
income taxes
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
|
30,374,764
|
|
|
|
25,941,857
|
|
Less: Net (income)
loss attributable to the non - controlling interest
|
|
|
|
(6,619,923)
|
|
|
|
(5,153,938)
|
|
Net income from
continuing operations attributable to the Sino Agro Food, Inc. and
subsidiaries
|
|
|
|
23,754,841
|
|
|
|
20,787,919
|
|
Other
comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation loss
|
|
|
|
(29,361)
|
|
|
|
(707,636)
|
|
Comprehensive
income
|
|
|
|
23,725,480
|
|
|
|
20,080,283
|
|
Less: other
comprehensive (income) loss attributable to the non - controlling
interest
|
|
|
|
13,255
|
|
|
|
113,521
|
|
Comprehensive
income attributable to the Sino Agro Food, Inc. and
subsidiaries
|
|
|
$
|
23,738,736
|
|
|
$
|
20,193,804
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share attributable to Sino Agro Food, Inc. and subsidiaries
common stockholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.39
|
|
|
$
|
1.45
|
|
Diluted
|
|
|
$
|
1.33
|
|
|
$
|
1.38
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
17,114,989
|
|
|
|
14,308,910
|
|
Diluted
|
|
|
|
17,822,059
|
|
|
|
15,015,980
|
|
SINO AGRO FOOD,
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2015
AND 2014 (UNAUDITED)
|
|
|
Three
months
|
|
|
Three
months
|
|
|
|
ended
|
|
|
ended
|
|
|
|
March 31,
2015
|
|
|
March 31,
2014
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
$
|
30,374,764
|
|
|
$
|
25,941,857
|
|
Adjustments to
reconcile net income from operations to net cash from
operations:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
802,338
|
|
|
|
534,803
|
|
Amortization
|
|
|
514,121
|
|
|
|
509,080
|
|
Gain on
extinguishment of debts
|
|
|
-
|
|
|
|
(43,020)
|
|
Common stock issued
for services
|
|
|
630,033
|
|
|
|
33,436
|
|
Other amortized
cost
|
|
|
809,868
|
|
|
|
50,000
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Increase in
inventories
|
|
|
(3,259,725)
|
|
|
|
(11,593,523)
|
|
Increase in costs and
estimated earnings in excess of billings on uncompleted
contacts
|
|
|
(1,306,885)
|
|
|
|
(4,528)
|
|
(Increase) decrease
in deposits and prepaid expenses
|
|
|
(597,390)
|
|
|
|
6,600,205
|
|
Increase (decrease)
in due to a director
|
|
|
6,340,525
|
|
|
|
(892,415)
|
|
Increase in accounts
payable and accrued expenses
|
|
|
988,421
|
|
|
|
7,587,849
|
|
Increase in other
payables
|
|
|
4,186,029
|
|
|
|
4,967,306
|
|
Decrease (increase)
in accounts receivable
|
|
|
728,700
|
|
|
|
(10,700,017)
|
|
(Decrease) increase
in billings in excess of costs and estimated earnings on
uncompleted contracts
|
|
|
(4,026,422)
|
|
|
|
476,053
|
|
Increase in other
receivables
|
|
|
(8,639,293)
|
|
|
|
(2,741,573)
|
|
Net cash provided
by operating activities
|
|
|
27,545,084
|
|
|
|
20,725,513
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(1,451,880)
|
|
|
|
(907,666)
|
|
Payment for
construction in progress
|
|
|
(18,845,219)
|
|
|
|
(5,248,183)
|
|
Net cash used in
investing activities
|
|
|
(20,297,099)
|
|
|
|
(6,155,849)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from long
term debts
|
|
|
-
|
|
|
|
2,438,192
|
|
Net cash provided
by financing activities
|
|
|
-
|
|
|
|
2,438,192
|
|
Effects on exchange
rate changes on cash
|
|
|
653,229
|
|
|
|
431,747
|
|
Increase in cash and
cash equivalents
|
|
|
7,901,214
|
|
|
|
17,439,603
|
|
Cash and cash
equivalents, beginning of period
|
|
|
3,031,447
|
|
|
|
1,327,274
|
|
Cash and cash
equivalents, end of period
|
|
$
|
10,932,661
|
|
|
$
|
18,766,877
|
|
Supplementary
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
119,181
|
|
|
$
|
109,107
|
|
Cash paid for income
taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
Non - cash
transactions
|
|
|
|
|
|
|
|
|
Common stock issued
for settlement of debts
|
|
$
|
-
|
|
|
$
|
5,976,105
|
|
Common stock
issued
|
|
$
|
7,703,917
|
|
|
$
|
-
|
|
Common stock issued
for services and employee compensation
|
|
$
|
-
|
|
|
$
|
133,744
|
|
Transfer to property
and equipment from construction in progress
|
|
$
|
-
|
|
|
$
|
1,784,678
|
|
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.
Contacts
|
Peter Grossman
|
Tomas Oqvist
|
Investor Relations
|
Investor Relations – Nordic
Countries
|
+1 (775) 901-0344
|
+46 70 797 9793
|
info@sinoagrofood.com
|
se-info@sinoagrofood.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sino-agro-food-inc-reports-q1-2015-results-300084648.html
SOURCE Sino Agro Food, Inc.