May 20, 2013
Sino Agro Food Reports Record First Quarter 2013 Earnings
Sino Agro Food, Inc. (SIAF) is a publicly traded, integrated, diversified agricultural technology and organic food company focused on developing, producing and distributing agricultural products in the People’s Republic of China. It has five divisions: fisheries, beef, organic fertilizers, cattle and marketing. Within the fisheries division it farms eels, sleeping cod and shrimp.
SIAF intends to focus on meeting the increasing demand of China’s rising middle class for gourmet and high-quality food items.
On May 16, 2013, Sino Agro Food announced its financial results for the first quarter of 2013.
• Revenue: $55,107,751—compared to $15,980,016 in 2012, up 245%.
• Gross Profit: $21,522,817—compared to $8,013,592 in 2012, up 169%.
• Net Income from Continuing Operations: $16,378,772—compared to $5,632,769 in 2012, up 191%.
• Basic Earnings per Share from Continuing Operations: $0.16—compared to $0.08 in 2012, up 100%.
• Diluted Earnings per Share from Continuing Operations: $0.14—compared to $0.07 in 2012 up 100%.
Revenues of $55.1 million in the first quarter of 2013 continued a string of four consecutive sequential quarterly records. During first quarter 2013, stockholders’ equity increased by $24,750,595 to $241,841,337.
Fishery Division Performance
Revenue from the fishery division increased by $20,772,686 (187%) to $31,867,295 during the first quarter of 2013, compared to $11,094,609 for the same period in 2012. The increase was primarily due to the company’s increased contract service income from fish (sleepy cod, eels) and shrimp development contracts.
The price of live shrimp rose on average over 100% in the first quarter of 2013, compared to the same period in 2012. Currently wholesale prices for white shrimp (Penaeus vannamei) average $12/kg to $32/kg, depending on size. Prices are much higher for other species including green shrimp. On April 22, 2013, Sino Agro stocked its Shrimp Farm #1, the first indoor shrimp farm in Asia. The Company expects to produce 250-300 metric tons of shrimp in 2013.
Conference Call with Investors
On May 20, 2012, during its conference call with investors, Shrimp News asked Solomon Lee, Chief Executive Officer and Chairman of Sino Agro Food, a couple of questions:
Shrimp News: In Southeast Asia today, shrimp farms are being devastated by a new disease called early mortality syndrome (EMS), do you have any problems with EMS in your Prawn Farm #1 or Prawn Farm #2.
Solomon Lee: No, in our prawn farms, we have been very lucky so far, but we know that it has been a common disease in China this season. That’s why prices are rising so rapidly. In our farms, so far, so good. Because we use recirculating systems, I think we’re pretty safe. We get our postlarvae from our own hatchery. I don’t think EMS will be a problem for us this year.
Shrimp News: How is EMS affecting other shrimp farms in China?
Solomon Lee: In the Guangdong District [immediately north of Hong Kong], many ponds are experiencing mortalities a week after stocking.
Information: Solomon Lee, Chief Executive Officer and Chairman, Sino Agro Food, Inc., GZ Office, Room 3801, 38/F, Block A, China Shine Plaza, No. 9 Lin He Xi Road, Tianhe District, Guangzhou 510610, China (phone 6012-2004963, fax: 86-20-22057863, email email@example.com, webpage http://www.sinoagrofood.com).
Sources: 1. PR Newswire. A Sino Agro Food Press Release. Sino Agro Food, Inc., Reports Record Quarterly Revenue of $55.1M with EPS of $016. May 16, 2013. 2. Sino Agro Food, Inc.. First Quarter 2013 Earnings Conference Call. Solomon Lee. May 20, 2013.