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.
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.
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.
SOURCE Sino Agro Food, Inc.