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.
- 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.
- 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.
- 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.
- 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.