Sino Agro Food, Inc. Reports Revenue of $89.7M with EPS of $0.51
for Nine Months Ended 2012
GUANGZHOU, China, Nov. 15, 2012 /PRNewswire/ -- Sino Agro Food,
Inc. (OTCBB: SIAF.OB), an emerging integrated, diversified
agriculture technology and organic food company with its principal
operations located throughout the Peoples
Republic of China ("PRC"), is pleased to announce financial
results for the third quarter of 2012.
Consolidated Financial Summary:
|
|
|
|
|
Q3
2012
|
Q3
2011
|
Change
|
Revenue
|
$
48,350,688
|
$
20,700,466
|
133%
|
Gross
Profit
|
$
25,752,834
|
$
9,704,980
|
164%
|
Net Income
Continued Op's
|
$
22,725,305
|
$
6,273,473
|
211%
|
Basic EPS
Continued Op's
|
$0.27
|
$0.11
|
145%
|
Diluted
EPS Continued Op's
|
$0.25
|
$0.10
|
150%
|
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Earnings Call Information
The Company will host an earnings call on November 19, 2012 at 11:00
AM EST to discuss financial results for the third Quarter of
2012. To participate in the conference call please make note of the
following information:
Date: November 19, 2012
Time: 11:00 AM, U.S. Eastern Standard
Time
Participant Dialing Instructions:
Toll Free Number: 1.800.868.1837
Direct Dial Number: 1.404.920.6440
Conference Code: 736713#
Conference Playback Instructions:
Toll Free Number: 1.800.704.9804
Direct Dial Number: 1.404.920.6604
Conference Code: * then 736713#
2012 Shareholder Video
The Company has released its annual shareholder video for 2012
at the following link:
http://youtu.be/vYmWZ-eFUIA
Aquaculture Operations
Revenue from fishery increased by $16,298,809 or 151% to $27,088,699 for the three months ended
September 30, 2012 from $10,789,890 for the three months ended
September 30, 2011. The increase was
primarily due to our increased contract service income from
fishery, Wholesale Center 1 and prawn development contracts and
sale of fish for the three months ended September 30, 2012 versus consulting income and
sale of fish for the three months ended September 30, 2011.
As of September 30, 2012, Capital
Award ("CA") had four fishery development projects in progress, and
sales of fish (sleepy-cod) generated from two of the farms; their
status summarized as follows:
The 1st Demonstration fish farm, situated at the district of
Enping City operating under "Jiangman A Power Fishery
Development Co. Ltd." ("Fish Farm 1"), was built and completed for
operation in February 2011 and is
underway with production. During the third quarter of
2012, CA sold just over 493,700 sleepy-cod weighing between 516g to
628g per fish from Fish Farm 1 compared to the second quarter of
2012 with just under 260,000 fish being sold, and purchased from
our contracted grower (supplier) over 402,000 fish weighing between
250g to 350g per fish. Inventory at Fish Farm 1 was estimated at
60,200 fish as of September 30,
2012.
The 1st Demonstration prawn farm is also situated in the
district of Enping City. The development of a prawn grow-out farm
("Prawn Farm 1") was 90% complete as of September 30, 2012, and is now running test
trials expecting production to start before year-end of 2012.
The 2nd Fish (and Eel) Farm ("Fish Farm 2") is situated in the
District of Jiangman City. Its development began in May 2011, and the Company is expecting its Phase
1 to be completed during 2012, and Phase 2 development,
(involving the grow-out farms, the nursery fingerling farm, the
Research and Development Station and all other associated
facilities) to be underway in January
2013 with production operations beginning by year end of
2013.
The main work in progress in Phase 1's development during the
Company's first quarter of 2012 was on the construction of a new
road leading from the external main access road to the project
site, and the construction of a new bridge connecting the new road
to the site. The road and bridgework was completed by
July 1, 2012 and presently provides
access for heavy equipment to the project site for work on drainage
construction. Management expects that landfill preparation to
construct the Re-circulating Aquaculture System ("RAS") farms will
begin in early 2013.
As mentioned above, work on the fish and eel farm Fish
Farm 2 is still in progress, but is being delayed because the
property is situated on an islet that is making drainage extremely
difficult and costly. In response, we are engineering a
solution that should resolve this problem.
The 2nd prawn farm ("Prawn Farm 2") is situated
in the District of Zhong Shan City. Its development was begun in
November 2011. As of September 30, 2012 Phase 1 work in progress is as
follows:
- Boundary fencing (2.3 Km) (50% completed);
- Heating room(completed);and
- Third nursery station for nurturing high-value prawn flies
(completed).
The Company's application for a permit to import the high-value
brood-stock prawns and to sell its flies to local growers has
been tentatively approved by the authorities pending the completion
of the boundary fence, which is the last prerequisite necessary for
official approval.
Phase 2 of the development is being carried out on an adjacent
200 Mu (132,000 square meters) block of land. Construction began in
May of 2012, which was extended into two (2) stages of construction
as a result of quadrupling the size and scope of the project from
the originally planned 50 Mu (33,000 square meters). The
first stage is anticipated to be completed by December 31, 2013, and the second by April 30, 2014. As of September 30, 2012, 53% of Stage 1 construction
had been completed.
Production of Mexican prawn flies is operating smoothly, with
the Company having produced and sold over 165 million flies in the
third quarter of 2012 and generating over $400,000 in sales revenue for the quarter.
Respectively, CA earns income from Farm 2 in fixed monthly service
fees and in sales commissions as the farm's marketing and sales
agent until such time as Prawn Farm 2 becomes a Sino Foreign Joint
Venture Company ("SJVC"), allowing the Company to include its
revenue within the consolidated financial statements. The Company
is preparing documents to apply for its SJVC with the relevant
authorities. One of the documents, the environmental impact study
report, is requiring a substantial amount of time, and therefore
management anticipates that this SJVC will be approved
sometime during the third quarter of 2013.
During the third quarter, operations at the contracted 600 Mu
open dam fish farm sold over 315,400 sleepy cod weighing between
505g to 545g per fish with current inventory estimated at 490,680
fish at the end of the quarter.
On August 16, 2012 CA began
development of a new project, namely an additional Prawn Grow-out
Farm (Prawn Farm 3) at Unit 1, Front Block A, No. 498, Bei Da Road,
Huangyuan County, Xining City,
QuingHai Province China.
Cattle Farm, Beef and Fertilizer Operations
Revenue from the cattle farm increased by $6,451,054 or 310% to $7,266,365 for the three months ended
September 30, 2012 from $2,078,099 for the three months ended
September 30, 2011. The increase was
primarily due to increased development contract service of cattle
farms for the three months ended September
30, 2012.
Revenue from beef decreased by $806,114 or 17% to $3,785,964 for the three months ended
September 30, 2012 from $4,592,078 for the three months ended
September 30, 2011. The decrease was
primarily due to the fact that calves grow and became saleable beef
cattle during this quarter.
Revenue from organic fertilizer increased by $1,710,687 for the three months ended
September 30, 2012 from $0 for the three months ended September 30, 2011. The increase was
primarily due to the start-up of the new business of organic
fertilizer during the first quarter of 2012.
As of September 30, 2012, the
Company had three separate entities operating within this division
plus an additional project in development of another cattle farm in
the Enping district which is described in the quarterly
report on Form 10-Q for the second quarter of 2012.
Sanjiang Yi Li Agriculture Development Co. Ltd.
("SJYLA")
SJYLA conducted the following operations during the third
quarter of 2012:
- Sold 3,971 MT and manufactured 5,047 MT of organic fertilizer
with end of quarter inventory at 5,989 MT;
- Sold 879 MT and produced 24,866 MT of livestock feed with end
of quarter inventory at 25,391 MT;
- Sold 1,290 head of 13+ month-old cattle with end of quarter
inventory at 1,118 head; and saw its restaurant operations continue
to perform well.
- SJYLA will apply the loan proceeds of RMB 20 million obtained from the Agriculture Bank
of China to the development of the
new enzyme factory that will be developed on a block of land
adjacent to the corporate building, the new concentrated livestock
feed manufacturing factory on another piece of land adjacent to the
existing property, and other associated developments.
The Company is exploring the possibility of a new joint venture
with a reputable and experienced local value-added beef processing
firm to jointly develop a slaughter house with a boning
factory that will be built on an adjacent site (90 Mu) in an effort
to reduce the learning curve in establishing this type of
operation.
On September 17, 2012, the
Company, through MEIJI, a wholly owned subsidiary of the Company
incorporated in Macau,
China, acquired a total of 75%
equity interest in the Enping demonstration Cattle Farm
("Cattle Farm 1") and became the controlling shareholder of the
subsidiary. Work in progress continued during the third quarter
of 2012, constructing more cattle houses to house more than
600 head of cattle in the fourth quarter of 2012.
Cattle sales of Cattle Farm 1 and MEIJI during the third
quarter of 2012
MEIJI, as the marketing agent of Cattle Farm 1, has sold 256
head of cattle weighting between 668Kg to 726Kg per head to the
Guangzhou cattle wholesale markets
and bought/inventoried 240 head of young cattle weighting between
162Kg to 168Kg per head during the third quarter of 2012.
The Company executed a new Consulting and Servicing Contract for
MEIJI in the second quarter of 2012 to build "Cattle Farm 2
Enping". On May 25, 2012, a Sino
Joint Venture Agreement (an "SJVA") was executed between MEIJI and
another group of Chinese businessmen for the development and
construction of a cattle farm at a 500 Mu site in YaneXiaoban
Village, Enping District for the growth of cattle and sheep using
our aromatic-feed formula and our free ranging system.
As of September 30, 2012, 59% of
the work in progress on the Phase (1) development of Cattle Farm 2
was completed, with a view to completing this phase on or
before May 2013.
Hunan Shenghua Yi Li Agriculture Co. Ltd. ("HSYLA")
As of April 30, 2012 development
and construction work on the mixed fertilizer manufacturing
facility for HSYLA was being carried out consisting of a 7,000
square meter production and storage factory, external fencing to
cover the production area of about 11.55 acres of land, internal
roads, landscaping, drainage, a 300 square meter office, staff
quarters that will provide accommodation for up to 25 workers and
all related basic infrastructure, etc. As of September 30, 2012, construction on one of the
production and manufacturing buildings was completed, production
and packaging plants are being installed, and part of the
fermentation and germination building was partially finished to
enable the installation of plant and equipment.
Management is excited by the test results of its organic
fertilizer being applied by fresh-water lake fish growers to the
lakes where their fish are grown which have been shown to enhance
water quality and protein enriched enzymatic fish feed, which is in
line with the PRC Government's current policy to discourage lake
fish growers from applying mineral rich fertilizer to their
lakes. The Company also has received positive feedback from
regional grape growers who are pleased with the organic
fertilizer's results as well. HSYLA has sold more than 4,000
MT of fertilizer during the third quarter of 2012, 60% of which was
supplied to lake fish growers. Potentially, if all continues well
with the test results, there may be sales of up to 30,000 MT/year
to fish growers throughout the region.
Plantation Operations
Revenue from plantation of flowers increased by $3,995,787 or 123% to $7,236,186 for the three months ended
September 30, 2012 from $3,240,399 for the three months ended
September 30, 2011. The increase was
primarily due to the increase of wholesale prices in fresh and
dried flowers during the three months ended September 30, 2012.
Harvest results as of September 30,
2012 were much better than the same period last year, where
more than 27 million pieces of fresh flowers were harvested, but it
is still below our expectations due to disease problems. However,
the Company managed to purchase from external growers roughly an
additional 20 million pieces of fresh flowers for drying. Coupled
with the higher sales price of HU flowers this season, revenue of
US$8.8M generated during the third
quarter of 2012 was much healthier than the same period last year
when no more than $3.24M in revenue
was generated as a result of dry season.
Marketing and Distribution Network
Renovation on the Seafood wholesale shops and Processing Factory
at Guangzhou's new wholesale food
market on lots 206 through 216 remains in progress for our first
wholesale distribution center consisting of a cold storage facility
including quick freezing, freezer and chill rooms, a processing and
packaging area, and a retail outlet for live and frozen seafood,
which the Company refers to as its Wholesale and Seafood Processing
Shop ("Wholesale 1").
As of September 30, 2012, all
refrigerated cold storage, a small sales office, frozen seafood
shop, and the process factory were completed with work in progress
continuing on the live seafood shop. Management is expecting
Wholesale 1 to commence operations during the fourth quarter of
2012.
On August 15, 2012, Guangzhou YiLi
Na Wei Trading Co. Ltd. granted a consulting and service contract
to the Company to develop a beef wholesale shop on lots 217 to 223,
including the second and the third floors of existing facilities,
in the GZ Market to include cold and dry storage, value added
processing and packaging, a beef wholesale shop, sales office, and
staff quarters, etc.
Renovation and development work is in progress with completion
projected by July 2013. However,
management expects that sufficient progress will have been made to
allow the beef wholesale shop to begin operating by November 30, 2012 simultaneously with Wholesale
1's operation.
Progress on Import and Export of Seafood
As of September 30, 2012,
Wholesale 1 has frozen seafood inventory in Cod Fish imported from
Norway, Cuttlefish, Squids and
Ribbonfish imported from Malaysia
and Prawn meats packed in our facility in preparation of Wholesale
1's business operations expected to open in the fourth quarter of
2012.
Progress and development on the Restaurant Chain
The Company is negotiating a consulting and service contract
with Guangzhou City Wang XiangCheng Enterprise Management
Consulting Co. Ltd. ("WXCE") to build and develop a central kitchen
with a distribution center on another block of 20 shops in
the Guangzhou Market that will facilitate up to 60 catering
outlets and/or restaurants in the Guangzhou City area. If this contract gets
underway it will help to accelerate our marketing plans in 2013 for
the sale and marketing our line of products.
Consolidated Results
Revenues
Revenue including continued and discontinued operations
increased by $ 27,650,222 or 133% to
$48,350,688 for the three months
ended September 30, 2012 from
$20,700,466 for the three months
ended September 30, 2011. The
increase was primarily due to the natural growth of revenue
generated from the fishery, plantation, organic fertilizer, cattle
farms, beef and the maturity of on-going divisional businesses
improving their revenues.
Cost of Goods Sold
Cost of goods sold included in continued and discontinued
operations increased by $11,602,368
or 105% to $22,597,854 for the three
months ended September 30, 2012 from
$10,995,486 for the three months
ended September 30, 2011. The
increase was primarily due to the Company increasing its scale of
operations from continuing operations in terms of its fishery,
plantation, cattle farm and beef operations for three months ended
September 30, 2012 as compared for
the three months ended September 30,
2011 and the new organic fertilizer division that began to
operate during the first quarter of 2012.
Gross Profit
Gross profit, including continued and discontinued operations,
increased by $16,047,854 or 62% to
$25,752,834 for the three months
ended September 30, 2012 from
$9,704,980 for the three months ended
September 30 2011.The increase was
primarily due to the corresponding increases in revenues from our
fishery, plantation, organic fertilizer, cattle farm and beef
operations.
General and Administrative Expenses
General and administrative expenses (including depreciation and
amortization) in continuing operations decreased by $390,477 or 22%, to $1,317,759 for the three months ended
September 30, 2012 from $1,708,236 for the three months ended
September 30 2011. The decrease
was primarily due to an decrease in office and corporate expenses,
wages and salaries, and others and miscellaneous amounting to
$302,971, $413,606 and $27,314, respectively.
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.
SINO AGRO
FOOD, INC. CONSOLIDATED BALANCE SHEETS
|
|
September
30, 2012
|
|
December
31, 2011
|
|
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
$
|
|
$
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$5,411,583
|
|
$1,387,908
|
Inventories
|
|
|
15,702,905
|
|
4,435,445
|
Cost and estimated earnings in excess of
billings on uncompleted contracts
|
2,429,907
|
|
456,104
|
Deposits and prepaid expenses
|
|
31,260,184
|
|
14,868,838
|
Accounts receivable, net of allowance
for doubtful accounts
|
59,880,431
|
|
27,531,915
|
Due from related parties
|
|
12,820,752
|
|
15,820,752
|
Other receivables
|
|
|
7,932,944
|
|
9,688,871
|
Total
current assets
|
|
|
135,438,706
|
|
74,189,833
|
Property and equipment
|
|
|
|
|
Property and equipment, net of
accumulated depreciation
|
8,003,872
|
|
2,667,765
|
Construction in progress
|
|
10,410,966
|
|
3,577,869
|
Land use rights, net of accumulated
amortization
|
54,945,220
|
|
56,507,470
|
Total
property and equipment
|
|
73,360,058
|
|
62,753,104
|
Other
assets
|
|
|
|
|
|
Goodwill
|
|
|
724,940
|
|
724,940
|
Proprietary technologies, net of
accumulated amortization
|
8,213,501
|
|
6,977,675
|
Long term accounts receivable
|
|
-
|
|
5,936,718
|
License rights
|
|
|
1
|
|
1
|
Unconsolidated equity
investee
|
|
-
|
|
1,258,607
|
Total
other assets
|
|
|
8,938,442
|
|
14,897,941
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
$217,737,206
|
|
$151,840,878
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
$3,284,693
|
|
$1,202,104
|
Billings in excess of costs and
estimated earnings on uncompleted contracts
|
5,198,425
|
|
1,962,119
|
Due to a director
|
|
|
1,029,974
|
|
289,764
|
Dividends payable
|
|
|
3,146,987
|
|
155,957
|
Other payables
|
|
|
11,502,538
|
|
11,968,148
|
Due to related parties
|
|
|
-
|
|
867,413
|
Short term bank loans
|
|
|
1,577,038
|
|
-
|
|
|
|
|
|
25,739,655
|
|
16,445,505
|
Commitments and contingencies
|
|
-
|
|
-
|
Stockholders' equity
|
|
|
|
|
|
Preferred stock: $0.001 par
value
|
|
-
|
|
-
|
(10,000,000 shares authorized,
7,000,100 shares issued and outstanding
|
|
|
|
as of
September 30, 2012 and December 31, 2011, respectively)
|
|
|
|
Series A preferred stock: $0.001
par value
|
-
|
|
-
|
(100 shares designated, 100 shares
issued and outstanding
|
|
|
|
as of
September 30, 2012 and December 31, 2011, 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
September 30, 2012 and December 31, 2011, respectively)
|
|
|
|
Series F Non-convertible preferred
stock: $0.001 par value)
|
-
|
|
-
|
(1,000,000 shares designated, 0 shares
issued and outstanding)
|
|
|
|
as of
September 30, 2012 and December 31, 2011, respectively)
|
|
|
|
Common stock: $0.001 par
value
|
|
91,931
|
|
67,034
|
(100,000,000 shares authorized,
91,931,287 and 67,034,262 shares issued and outstanding
|
|
|
|
|
|
as of
September 30, 2012 and December 31, 2011,
respectively)
|
|
|
|
Additional paid - in capital
|
|
86,354,021
|
|
72,794,902
|
Retained earnings
|
|
|
85,956,571
|
|
50,395,444
|
Accumulated other comprehensive
income
|
3,503,608
|
|
3,446,838
|
Treasury stock
|
|
|
(1,250,000)
|
|
(1,250,000)
|
Total
Sino Agro Food, Inc. and subsidiaries stockholders'
equity
|
174,663,131
|
|
125,461,218
|
Non -
controlling interest
|
|
17,334,420
|
|
9,934,155
|
Total
stockholders' equity
|
|
191,997,551
|
|
135,395,373
|
Total
liabilities and stockholders' equity
|
$217,737,206
|
|
$151,840,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes accompanying these
financial statements included in the Form 10-Q to be filed with the
Securities and Exchange Commission on are an integral part of these
consolidated financial statements.
SINO AGRO
FOOD, INC. CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Three
months
|
|
Nine
months
|
|
Nine
months
|
|
|
|
|
ended
|
|
ended
|
|
ended
|
|
ended
|
|
|
|
|
September
30, 2012
|
|
September
30, 2011
|
|
September
30, 2012
|
|
September
30, 2011
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Continuing operations
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
48,350,688
|
|
20,700,466
|
|
89,678,991
|
|
30,527,367
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
goods sold
|
|
22,597,854
|
|
10,995,486
|
|
42,354,317
|
|
15,067,749
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
25,752,834
|
|
9,704,980
|
|
47,324,674
|
|
15,459,618
|
|
|
|
|
|
|
|
|
|
|
|
General
and administrative expenses
|
(1,317,759)
|
|
(1,708,236)
|
|
(6,275,758)
|
|
(2,949,948)
|
Net
income from operations
|
|
24,435,075
|
|
7,996,744
|
|
41,048,916
|
|
12,509,670
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government grant
|
|
3,312
|
|
-
|
|
82,164
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
127,551
|
|
91,289
|
|
564,749
|
|
109,905
|
|
|
|
|
|
|
|
|
|
|
|
Gain
(loss) of extinguishment of debts
|
641,831
|
|
49,265
|
|
1,459,343
|
|
631,691
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
(5,630)
|
|
-
|
|
(5,630)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net
other income (expenses)
|
|
767,064
|
|
140,554
|
|
2,100,626
|
|
741,596
|
|
|
|
|
|
|
|
|
|
|
|
Net
income before income taxes
|
25,202,139
|
|
8,137,298
|
|
43,149,542
|
|
13,251,266
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
25,202,139
|
|
8,137,298
|
|
43,149,542
|
|
13,251,266
|
Less:
Net (income) loss attributable
|
|
|
|
|
|
|
|
|
to the
non - controlling interest
|
(2,476,834)
|
|
(1,863,825)
|
|
(4,462,754)
|
|
(3,055,402)
|
Net
income (loss) from continuing operations
attributable
|
|
|
|
|
|
|
|
|
to the Sino Agro Food, Inc. and
subsidiaries
|
22,725,305
|
|
6,273,473
|
|
38,686,788
|
|
10,195,864
|
Discontinued operations
|
|
|
|
|
|
|
|
|
Net
income from discontinued operations
|
-
|
|
-
|
|
-
|
|
10,203,951
|
Less:
Net income attributable to the non - controlling
interest
|
-
|
|
-
|
|
-
|
|
-
|
Net
income from discontinued operations
attributable
|
|
|
|
|
|
|
|
|
to the
Sino Agro Food, Inc. and subsidiaries
|
-
|
|
-
|
|
-
|
|
10,203,951
|
Net
income (loss) attributable to
|
|
|
|
|
|
|
|
|
the
Sino Agro Food, Inc. and subsidiaries
|
22,725,305
|
|
6,273,473
|
|
38,686,788
|
|
20,399,815
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation gain (loss)
|
(545,616)
|
|
477,072
|
|
1,095
|
|
3,329,282
|
Comprehensive income (loss)
|
|
22,179,689
|
|
6,750,545
|
|
38,687,883
|
|
23,729,097
|
Less:
other comprehensive (income) loss attributable
to
|
|
|
|
|
|
|
|
|
the non
- controlling interest
|
186,885
|
|
(185,214)
|
|
55,675
|
|
(580,930)
|
Comprehensive income (loss) attributable
to
|
|
|
|
|
|
|
|
|
the
Sino Agro Food, Inc. and subsidiaries
|
22,366,574
|
|
6,565,331
|
|
38,743,558
|
|
23,148,167
|
Dividend
|
|
|
3,125,661
|
|
-
|
|
3,125,661
|
|
-
|
Earnings (loss) per share attributable to Sino
Agro Food, Inc.
|
|
|
|
|
|
|
|
and subsidiaries common stockholders:
|
|
|
|
|
|
|
|
From
continuing and discontinued operations
|
|
|
|
|
|
|
|
Basic
|
|
|
$0.27
|
|
$0.11
|
|
$0.51
|
|
$0.34
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$0.25
|
|
$0.10
|
|
$0.47
|
|
$0.31
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share attributable to Sino
Agro Food, Inc.
|
|
|
|
|
|
|
|
and subsidiaries common stockholders:
|
|
|
|
|
|
|
|
From
continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$0.27
|
|
$0.11
|
|
$0.51
|
|
$0.17
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$0.25
|
|
$0.10
|
|
$0.47
|
|
$0.15
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
84,475,977
|
|
57,889,347
|
|
75,676,204
|
|
59,542,620
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
91,475,977
|
|
64,889,347
|
|
82,676,204
|
|
66,542,620
|
|
|
|
|
|
|
|
|
|
|
|
The notes accompanying these
financial statements included in the Form 10-Q to be filed with the
Securities and Exchange Commission on are an integral part of these
consolidated financial statements.
SINO AGRO
FOOD, INC. CONSOLIDATED STATEMENTS OF CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended
|
|
Nine
months ended
|
|
|
|
|
|
|
September
30, 2012
|
|
September
30, 2011
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from operating activities
|
|
|
|
|
|
|
Net income (loss) from continuing
operations
|
|
|
$38,686,788
|
|
$13,251,266
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income
(loss) from continuing operations to net cash from
operations:
|
|
|
Depreciation
|
|
|
|
|
320,519
|
|
139,251
|
Amortization
|
|
|
|
|
1,826,424
|
|
692,835
|
Common stock issued
for services
|
|
|
|
2,139,057
|
|
1,069,529
|
Gain on extinguishment
of debts
|
|
|
|
(1,459,343)
|
|
(631,691)
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
|
Increase in
inventories
|
|
|
|
|
(7,458,736)
|
|
(529,144)
|
Increase in cost and
estimated earnings in excess of billings on uncompleted
contacts
|
(1,973,803)
|
|
(23,752)
|
Increase in deposits
and prepaid expenses
|
|
|
|
(18,172,533)
|
|
(2,268,224)
|
Increase in due to a
director
|
|
|
|
|
13,966,356
|
|
1,018,321
|
Increase in
accounts payable and accrued expenses
|
|
|
852,493
|
|
767,466
|
Increase in
other payables
|
|
|
|
850,877
|
|
18,643,702
|
Increase in
accounts receivable
|
|
|
|
(26,411,798)
|
|
(16,018,426)
|
Increase in billings
in excess of costs and estimated earnings on uncompleted
contracts
|
3,236,306
|
|
3,150,035
|
Decrease in amount due
to related parties
|
|
|
|
(867,413)
|
|
-
|
Decrease in amount due
from related parties
|
|
|
3,000,000
|
|
-
|
Decrease (increase) in
other receivables
|
|
|
|
1,755,926
|
|
(14,951,249)
|
Net
cash provided by operating activities
|
|
|
|
10,291,120
|
|
4,309,919
|
Cash
flows from investing activities
|
|
|
|
|
|
|
Purchases of property and
equipment
|
|
|
|
(2,527,245)
|
|
(233,320)
|
Acquisition of proprietary
technologies
|
|
|
|
(1,500,000)
|
|
-
|
Investment in unconsolidated corporate
joint venture
|
|
|
-
|
|
(698,855)
|
Business combination of a
subsidiary
|
|
|
|
(2,499,184)
|
|
-
|
Payment for construction in
progress
|
|
|
|
(2,317,082)
|
|
(624,026)
|
Net
cash used in investing activities
|
|
|
|
(8,843,511)
|
|
(1,556,201)
|
Cash
flows from financing activities
|
|
|
|
|
|
|
Short term bank loan raised
|
|
|
|
|
1,577,038
|
|
-
|
Non - controlling interest
contribution
|
|
|
|
2,993,186
|
|
-
|
Dividends paid
|
|
|
|
|
(134,631)
|
|
(3,905)
|
Net
cash provided by (used in) financing activities
|
|
|
4,435,593
|
|
(3,905)
|
Net
cash provided by continuing operations
|
|
|
5,883,202
|
|
2,749,813
|
Cash
flows from discontinued operations
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
-
|
|
-
|
Net cash used in investing activities
|
|
|
|
-
|
|
(3,137,885)
|
Net cash provided by financing activities
|
|
|
|
-
|
|
-
|
Net
cash used in discontinued operations
|
|
|
-
|
|
(3,137,885)
|
|
|
|
|
|
|
|
|
|
Effects on
exchange rate changes on cash
|
|
|
|
(1,859,527)
|
|
(1,979,445)
|
Increase (decrease) in cash and
cash equivalents
|
|
|
4,023,675
|
|
(2,367,517)
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of
period
|
|
|
1,387,908
|
|
3,890,026
|
Cash and cash equivalents, end of
period
|
|
|
|
5,411,583
|
|
1,522,509
|
Less: cash and cash equivalents at
the end of the period - discontinued operation
|
-
|
|
-
|
Cash and cash equivalents at the
end of the period - continuing operations
|
|
$5,411,583
|
|
$1,522,509
|
|
|
|
|
|
|
|
|
|
Supplementary disclosures of cash flow
information:
|
|
|
|
|
|
Cash paid for interest
|
|
|
|
|
$5,630
|
|
-
|
Cash paid for income taxes
|
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Non
- cash transactions
|
|
|
|
|
|
|
|
Common stock issued for settlement
of debts
|
|
|
$13,226,146
|
|
$4,550,369
|
Common stock issued for services
and compensation
|
|
|
$357,870
|
|
$4,278,114
|
Common stock acquired for
cancellation
|
|
|
|
$
-
|
|
($820,000)
|
Common stock issued
|
|
|
|
|
$
-
|
|
$780,000
|
Disposal proceeds receivable of
sale of subsidiaries , HYT and ZX
|
|
$2,386,233
|
|
$17,935,905
|
Land use rights payable due to
related parties
|
|
|
$
-
|
|
$25,469,078
|
Transfer construction in progress
to property and equipment
|
|
$4,478,667
|
|
$
-
|
Acquisition of treasury
stock
|
|
|
|
$
-
|
|
$1,250,000
|
The notes accompanying these
financial statements included in the Form 10-Q to be filed with the
Securities and Exchange Commission on are an integral part of these
consolidated financial statements.
SOURCE Sino Agro Food, Inc.