Sino Agro Food, Inc., an emerging integrated, diversified agriculture technology and organic food company with subsidiaries operating in China, is pleased to report its first quarter financial results for 2010.
Results of Operations
Results of Operations for the Years Ended March 31, 2010 compared to March 31, 2009
Assets. Our total assets were $82,954,021 as of March 31, 2010 compared to $73,499,070 as of March 31, 2009. This increase of assets from March 31, 2009 to March 31, 2010 was primarily a result of a growth in net earnings and an increase in Shareholders' additional capital.
Liabilities. Our total liabilities were $12,105,877 as of March 31, 2010 compared to $12,634,194 as of March 31, 2009. This decrease was primarily due to the improvement of the Company's cash flows during the period reported.
Total Stockholders' Equity. Our stockholders' equity was $70,848,144, as of March 31, 2010 compared to $60,864,876, as of March 31, 2009. This increase in equity was primarily a result of growth in net earnings and an increase in Shareholders' additional capital.
Gross Profits. For the three months ended March 31, 2010, we had a gross profit of $2,314,716 and Operating Profit of $1,869,346 compared to a gross profit of $2,291,109 and an Operating Profit of $1,416,025 for the three months ended March 31, 2009. This increase was due to increase on productivities, higher sales margins/profits, direct production costs and general expenses being reduced to an efficient level due to more crops being grown and harvested internally instead of having to buy and sources raw materials from externally sources, also as the maturity of our HU Plantations and our cows reaching better yield cycles that also help to increase productivity while their basic cost of upkeep would increase only marginally at a rate much lower the rate of growth. Managements of the Company is expecting this trend to be sustained for the coming years.
Net Income. Our net income from operation was $1,453,139, or $0.03 per share and $1,119,008, or $0.02 per share for the three months ended March 31, 2010 and 2009, respectively. This increase from 2009 to 2010 was due to an increased profit margin during the three months ended March 31, 2010 compared to the three months ended March 31, 2009.
Interest expense was $117,345 and $117,364 for the three months ended March 31, 2010 and 2009, respectively, there was minimal increase due to better cash-flow, keeping debt facilities from 2009 to 2010 at its minimal.
Mr. Lee Solomon, Sino Agro Food, Inc. CEO, stated, "First quarter is historically our slowest due to the winter seasons. Our results for first quarter are in line with our previous guidance of $.0.29 per share for 2010 based on organic growth without funding. For second quarter we will maintain previous guidance, however data expected to come in from both our HU Plantations, Feed Stock and Fertilizer operations in second quarter should result in increased guidance for the remainder of the year."
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 Bio-Organic Fertilizer and Stock-Feed, as well as, fisheries, dairies, and Hylocereus Undatus plantations. SIAF's products are produced to meet the high organic quality standards of the United Kingdom. SIAF is owner of a patented process; the conversion of corn stalk into high quality feed for livestock and is the "Master Licensee" for China with exclusive right to a patented Bacterial used in converting food based agriculture produce wastes into nutritional feed products that are also applicable in the manufacturing of Bio-Organic fertilizer. The Company also holds the "Master License" for China on a modern re-circulating Aquaculture Technology "A Power RAS Technology" that has the capacity to commercially grow quality table fish and seafood free from chemical and pollution in enclosed modules on land in a system designed to promote economic sustainability and viability. Currently the Company has total employment of 520 persons of which 60 are skilled and experienced management staff.