GUANGZHOU, China , April 16, 2013 /PRNewswire/ -- Sino Agro Food, Inc. (OTCBB: SIAF), an emerging integrated, diversified agriculture technology and organic food company with principal operations located throughout the People's Republic of China ("PRC"), is pleased to announce financial results for the fiscal year ended December 31, 2012 :

Parallel Paths

Sino Agro Food, Inc. (the "Company") continues on target toward its 5-year plan of a $500M asset base. In 2012, the Company saw record financial growth and significant operational expansion complemented by progress in corporate governance, international import export business, and the planned listing on NASDAQ-OMX First North:

• Independent Board members appointed January 1, 2013
  • Nils-Erik Sandberg – an international investor whose experience in corporate governance, investor relations, and finance positions him well to direct the Company in its current and future endeavors. Mr. Sandberg has provided guidance and consultation to other companies seeking listing on NASDAQ OMX as well.
  • Koi Ming Yap (George) – a chartered accountant whose broad experience in international investment banking, corporate finance, investment strategies, and international auditing lends the Company a well-seasoned director to help guide the company throughout its growth phase.
• Corporate Social Responsibility: Audit and Compensation Committees established and a Code of Ethics adopted
• Import Export Operations commenced with shipments from Vietnam , Cambodia , Malaysia , and Norway
• NASDAQ-OMX First North cross-listing exercise is progressing well 

Operational Highlights

The Company's overall growth benefited from economies of scale through expanding its full wholesale operations and by vertical integration through initiating distribution, marketing, and retail operations. 

• Developed the first indoor re-circulating prawn farm in Asia
• Conducted sales or construction at six fish farms and three cattle farms
• The MEIJI, HU Plantation, and Capital Award operations began to generate internal cash flow to self-finance respective capital expenditure and working capital
• Initiated the Distribution and Marketing business, with sales at Wholesale Center 1 and Wholesale Center 2 commencing in late 2012
• Initiated Import Export business commencing sales in late 2012 and construction of a trading complex ("Trading Center") adjacent to the Warehouse Centers
• Initiated the retail operations with sales at the first "Bull" and first "Leonie's" restaurants

Fishery Division Performance

Total revenues from fishery operations increased $59,924,350 or 227% from $26,422,125 in 2011 to $86,346,475 in 2012. Fishery revenues accounted for 62% of overall company revenues. Revenues contributed by engineering consulting and services in development of fishery farms and related business operations yielded 26% and 31% of the Company's overall revenue and gross profit, respectively, during fiscal year 2012. Sales of fish accounted for 31% and 31% of the Company's revenue and gross profit, respectively, for fiscal year 2012.

Gross profit from fishery operations increased $35,454,322 or 321% from $11,029,847 in 2011 to $46,484,179 in 2012. Fishery revenues accounted for 66% of overall company gross profit.

Consulting and Services revenues derived from six (6) contracts, including the development from concept of a "marketing, distribution, seafood processing and sales" complex (Wholesale Center 1). By December 2012 , major business and operation permits (e.g., trading permits, import and export permits, business registration, taxation license, business license etc.) were issued by authorities, sale of frozen seafood had commenced, and targeted sales of live seafood to follow in April 2013 . During the first quarter of 2013, the wholesale seafood market business commenced sales of frozen seafood imported from Norway , Thailand and Malaysia .

The Company is proud to have established and to operate the first indoor re-circulated aquaculture prawn farm in Asia .

Beef Division Performance

Revenue from beef decreased by $957,898 or 6.31%, from $15,182,222 for the year ended December 31, 2011 to $14,224,324 for the year ended December 31, 2012 . The decrease was primarily due to the year over year variable maturation seasonality of calves growing to become saleable beef cattle.

All three cattle farms expect to produce mature cattle in 2013, with the Qinghai Sanjiang A Power Agriculture Co. Ltd (SJAP) operations in Xining expecting to approximately double the count of mature head from 4,500 to 9,000 from its own cattle station and cooperative farmers. The Company expects to benefit in 2013 from a stable increase in beef prices, from a base that had doubled in 2012.

SJAP itself mirrors the Company's vertically integrated "farm to plate" business model in that it provides pre-wholesale product (fertilizer and livestock feed) through retail ("Bull" restaurants), with an abattoir and deboning facility planned during year one of the operation's new five-year plan.

Plantation Division Performance

Revenue from our plantation increased by $5,765,444 or 94%, from $6,113,155 for the year ended December 31, 2011 to $11,878,599 for the year ended December 31, 2012 . The increase was primarily due to the increase of wholesale prices in fresh and dried flowers for the year ended December 31, 2012 , as well as increased value added processing.

This segment contributed 8.6% and 9.8% of the Company's overall 2012 revenue and gross profit, respectively.

With anticipated improvements and development work progressing on the 187-acre HU Plantation,  the Company plans to revitalize the HU Plantation's direct farm operations by overcoming disease threats. Including sales generated from HU flowers bought from regional growers, the Company targets further overall division revenue growth of 25%.  

Organic Fertilizer Division Performance

Revenue from organic fertilizer increased by $9,123,760 or 3,679% from $2,480 for the year ended December 31, 2011 to $9,126,240 for the year ended December 31, 2012 . The increase was primarily due to the startup of the new business of organic fertilizer during the year ended December 31, 2012 . This segment contributed 6.6% of total revenue. Gross profit of $3,860,193 accounted for 5.5% of total gross profit.

In mid 2012, the Company's joint venture project, Qinghai Sanjiang A Power Agriculture Co. Ltd. acquired a technology based company that holds patents for the manufacturing of concentrated livestock feed formulated for optimal growth of cattle and sheep at different stages of their lifecycles.

With the increase of production in mature cattle from its own cattle station and cooperative growers, the Company expects a proportional increase of production of fertilizer, crops and pastures and in turn bulk live stock feed, targeting to produce up to 30,000 MT of fertilizer (which is the current maximum productivity of its existing plant) and 40,000 MT of bulk live-stock feed compared to 25,000 MT of fertilizer and 22,000 MT of Bulk live-stock feed in 2012.

In addition, the Jiang Men City Hang Mei Cattle Farm Development Company (JHMC), also referred to as "Cattle Farm 1," has started to produce and to sell pure organic mixed fertilizer by its own production facilities at much higher sales prices estimated at up to US$450 / MT instead of from organic fertilizer produced by SJAP at US$195 / MT in 2012.

Cattle Farms Division Performance

Revenue from cattle farm development increased by $12,878,080 or 310%, from $4,159,921 for the year ended December 31, 2011 to $17,038,001 for the year ended December 31, 2012 . The increase was primarily due to increased development contract service of cattle farms for the year ended December 31, 2011 .

Cattle farms contributed 12.3% of Company revenues, and 13.5% of gross profits.

Collectively, the two Enping farms will have the capacity to produce up to 30,000 MT of pasture/year that is capable to feed up to 5,000 head of cattle/year.

At the Xining cattle farm (SJAP) as of December 31, 2012 , the local government provided up to 5,000 acres of rental free land to the Company for the local farmers to grow crops and pastures. These acres have not been included in the Company's acquired "Land Use Rights."

Shared Marketing, Distribution, and Retail Services

Marketing, distribution, and retail sales activities were established in 2012 as services shared by the wholesale operations, and to enhance and facilitate sales. They comprise a pivotal and critical phase in the Company's strategy to become vertically integrated. As such, they are expected to take on an increasingly more prominent role in 2013, and beyond.

From the last quarter of 2012 the Company decided to generate business income to fund its shared services operations including sales, finance, and administrative functions from the following development initiatives:

1. The Wholesale and Distribution Facilities development project including design, construction and project management of its business operation of a specialist modern beef wholesale and distribution center (Wholesale Center 2) for Guangzhou City NaWei Trading Co. Ltd ("NWT"), an unrelated Chinese third party owned company situated at the Guangzhou City, LiWan District, New Wholesale Market. Work started in November, 2012. As of the date hereof, the Company has completed a freezing room facility with the capacity to store up to 150 MT of frozen food at -25 Degrees Celsius with renovation and alteration work progressing on other facilities (e.g., wholesaling shop, packaging and processing facility, office, dry good storage, function room, etc.)
2. Project development including design, construction, and project management of a Central Kitchen, a Central Bakery, a fast food restaurant and 3 mobile food stores (Central Facility 1) situated adjacent to Wholesale Center 2. The business operation is for Guangzhou City WangXiangChen ("WXC"), an unrelated Chinese company. Work started in November 2012 , and as of the date hereof, about 50% of the construction work was completed.
3. A restaurant development project including design, construction, and project management of business operations for two new gourmet restaurants situated at the Guangzhou City, Tianhe District, ("Restaurant 3") and Guangzhou City, DaShaiWan District, Harbor City Shopping Center ("Restaurant 4"). As of the date hereof, construction and renovation work on Restaurant 3 has been completed and it opened for business on March 19, 2013 , while work is progressing on Restaurant 4.
4. The construction of a Trading complex ("Trading Center") for the Company's Import and Export trading at another building adjacent to the Wholesale Centers 1 and 2. As of the date hereof, construction work is in progress while the marketing and sales business operations are making good progress developing sales into various reputable food chain outlets, wholesale market stores and super market chains in the Guangzhou City, as well as in the southern coastal towns of the Guangdong Province .

Given current success on existing projects, the Company expects to be appointed the turnkey solution provider to develop over 50 gourmet restaurants and fast food outlets collectively within 2 years (2013/2014).

Earnings Call Information

The Company will host an earnings call and web conference with presentation on April 23, 2013 at 11:00 AM EDT to discuss financial results for 2012, with questions and answers. To participate in the conference call and web presentation please use the following information: