GUANGZHOU, China, July 1, 2015 /PRNewswire/ -- Sino Agro Food,
Inc. (OTCQB: SIAF, also referred to herein as "SIAF" or the
"Company") is an integrated, diversified agriculture technology and
organic food company with principal operations as primary producer,
processor, and marketer of protein foods in the People's Republic of China ("PRC").
In September 2014, Sino Agro Food,
Inc. and Euro China Capital AB ("ECAB") initiated a strategic plan
designed to complement operational performance with corporate steps
to unlock shareholder value. Updates of the progression of these
steps have been communicated in subsequent press releases, and the
implementation of this plan continues.
The Company has held careful discussions internally and with
advisors and legal counsel concerning the payout policy, taking
longer than anticipated.
It is SIAF's overall purpose to generate healthy returns for its
common stockholders. The Company generates strong cash flow before
investments in its operations. The Board of Directors continuously
evaluates the use of capital, whether for expansion, securing an
acquisition, or distribution to shareholders. In that respect, the
Company will distribute (a portion of) surplus cash to its
shareholders unless it can be invested at a return on capital
employed ("ROCE") above at least 20%. The distribution to
shareholders can occur in the form of dividend payouts, share
repurchases, or redemptions.
As an organic protein food producer in China, SIAF is in a unique position to take
advantage of investment opportunities in several of its business
segments. In addition, recent Chinese legislation to limit the use
of chemical fertilizer will benefit the Company's organic
fertilizer operations in the years to come.
During the last three years, net income attributable to SIAF and
subsidiaries has increased by 98%, with a return on capital
employed during fiscal year 2014 of 28%. For the Fishery and
Qinghai Integrated Cattle Farm divisions, ROCE was 54% and 29%
respectively.
Regular dividend
As previously communicated, the Company will start paying an
annual cash dividend based on full year net income attributable to
SIAF and subsidiaries. The Board of Directors will take into
consideration the company's growth prospects and return on invested
capital as well as its financial position when proposing the size
of the dividend.
The Board of Directors will propose a dividend based on the
fiscal year net income to the Annual General Meeting of
Shareholders.
Special dividend
In line with the Company's vision to become a leading
sustainable aquaculture company, other businesses will be
restructured, either through separate listings or merger and
acquisition ("M&A"). SIAF will disburse a substantial amount of
the net proceeds from such M&A and/or trade sale activities,
while a percentage of the shares in subsidiaries will be
distributed to the common stockholders at the time prior to or upon
the IPO.
CFO Bertil Tiusanen commented:
"SIAF is a growth company on a trajectory to become a leading
sustainable aquaculture company, and already deploys capital
efficiently with a high return on invested capital. We will, of
course, honor our promise to our shareholders, but as long as
growth prospects and capital returns are attractive, most of the
Company's cash flow will be reinvested into existing or new
projects."
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.