Sino Agro Food, Inc. Provides Updates on its Operations
GUANGZHOU, China, March 26, 2013 /PRNewswire/ -- Sino Agro Food,
Inc. (OTC BB: SIAF), an emerging integrated, diversified
agriculture technology and organic food company (the "Company")
with principal operations located throughout the People's Republic of China ("PRC") is
pleased to report highlights of its operations that will be
discussed in greater detail in upcoming filings/reports.
In early 2010, the Company embarked upon a five-year plan to
build and operate horizontally and vertically integrated facilities
across the food production chain from pre-wholesale through retail,
delivering high quality organic and sustainable food products at
synergistically attractive net margins. The Company is on pace
toward its planned $500M asset base.
The Company now manages and is constructing nine (9) substantial
fish and beef/cattle wholesale operations, with wholesale
distribution and retail components expected to achieve greater
prominence in 2013.
The Company looks forward to reporting next month on its revenue
trajectory for 2012. Historically, the consulting and services
sector was the principal revenue producer. Now, the pace of product
sales is growing faster than overall revenue growth, accounting for
approximately 60% and 64% of overall revenues in 2011 and 2012,
respectively. Even with new farms being developed, revenues from
food product sales are expected to increase to approximately
70%-75% of the total in 2013, and to approximately 85% in 2016.
Highlights
Pre-Wholesale
- Sales of mixed fertilizer and current bulk livestock feed at
the Company's Xining City,
Qinghhai Province facility ("SJYL") are expected to increase
approximately 50% combined. As of February
28, 2013, SJYL completed development of its Concentrated
Livestock Feed Manufacturing Factory, and sales commenced in
March 2013.
- The Company's subsidiary Hunan Shanghua Yi Li Agriculture Co.
Ltd. ("HSYLA") began to sell pure organic mixed fertilizer produced
at its own recently completed production facilities. HSYLA targets
producing 30,000 MT in 2013, aiming to gradually increase
production to 90,000 MT/year by 2015. Prices per MT of higher
concentration of potash are estimated to be at least twice that of
the mixed fertilizer currently sold by SJYL.
Wholesale
- There are currently a total of six aquaculture farms; two
("Fish Farm 1" and "Prawn Farm 2") operating to production
capacity, two in or beginning production this year -- including
Asia's first indoor prawn
aquaculture farm -- and two are being constructed. In addition,
expansion construction is underway, while additional farms are in
negotiation.
- Total 2012 fish and prawn production is targeted to increase
approximately 60% year-over-year in 2013. In addition, the
production of prawn flies is expected to approximately double, with
a markedly increasing proportion being Green Prawn flies, which
command a price three times that of the Mexican White variety.
- During 2012, wholesale prices in China rose 100% for live cattle and 53% for
cut beef meat.
- There are currently three cattle farms in production or under
construction, all expected to sell cattle in 2013. The Company
continues to work on establishing additional Joint Venture
partnerships to create and develop similar operations.
- Through developing more internal cattle houses and increasing
contributions from local cooperative farmers, SJYL targets doubling
its production from approximately 4,500 head of mature cattle in
2012 to 9,000 in 2013.
- SJYL expects to add sheep farming in 2013, and is scheduled to
begin producing revenue within 2013 from its slaughterhouse and
deboning room, which is currently under development.
- SJYL is making progress with credentials required to become a
Dragon Head business within 2013 or early 2014.
Distribution
- The marketing, distribution, seafood processing and sales
complex ("Wholesale Center 1"), with Guangzhou NaWei A Power
Trading Co. Ltd. has begun selling frozen seafood imported from
Norway, Thailand and Malaysia, with selling of live seafood to
follow. The marketing and sales business operations are making
progress developing sales into various reputable food chain
outlets, wholesale market stores and super market chains.
- Work on beef wholesale and distribution center, ("Wholesale
Center 2"), which is also situated at the Guangzhou City, LiWan District, New Wholesale
Market, has progressed since November
2012. Its freezing room facility, which has the capacity to
store up to 150 MT of frozen food at
-25 degrees Celsius at any one time, has been completed. Renovation
on other facilities (i.e., wholesaling shop, packaging and
processing facility, office, dry good storage, function room, etc.)
is progressing well.
- The Company expects fairly sustainable growth in the trading
and sales of imports, exports and value added products as the
business operations become more seasoned in 2013, targeting to
increase this segment's revenue up to 15%-20% of the total
consolidated revenue in 2013, up from 1% in 2012.
Retail
- There are currently three "Leonie's" restaurants in operation
or commencing shortly, with a fourth under construction. Plans call
for developing over 50 "Leonie's" gourmet restaurants and fast food
outlets collectively in 2013 and 2014, as well as a number of
modern health food department chains in the Guangzhou City within 2014 to 2015.
- SJYL aims to expand its branded ("Bull") steakhouse restaurant
to a chain of 50 locations over time.
The Company looks forward to reporting progress on these
integrated fronts throughout the year.
The Company's progress toward applying to NASDAQ-OMX First North
is moving forward. Any updates we are permitted to disclose
throughout the process will be made public, once available.
In conjunction with the Company's growth, and with the broader
audiences expected from the anticipated cross listing in
Sweden, the Company is undertaking
a new and extended communications approach. This includes new
personnel that have been hired in the
United States and in-house in China, as well as personnel in Sweden to be engaged in the near future.
The Company also heartily thanks Mr. Chad Sykes for his invaluable investor relation
services during the Company's vital early growth period since 2009,
and wishes him well in future endeavors. The Company highly values
its need to readily communicate with shareholders, and appreciates
the time necessary to create an effective venue.
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 beef and lamb products, fish products, bio-organic fertilizer,
stock feed and cash crops.
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.
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 "estimates," "believes," "anticipates," "intends," expects"
and 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.
SOURCE Sino Agro Food, Inc.