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Revenue Increasing from Sino Agro Fishery Division

Lucy Towers
22 August 2013, at 1:00am

CHINA - Sino Agro Food, an emerging integrated, diversified agriculture technology and organic food company with principal operations located throughout China, has achieved a quarterly revenue of $54.4 million and earnings of $14.3 million.

 $.13 per share confirm the company's operations are on track to plan. In addition, the Company realized a foreign currency translation gain of $1.7 million in the second quarter.

Fishery Division Performance

Revenue from the fishery division increased by $2,104,341 or 13.32 per cent to $17,904,106 for the three months ended June 30, 2013 compared to $15,799,765 for the three months ended June 30, 2012.

The increase was primarily due to increased contract service income from fishery, wholesale center and prawn development contracts and sale of fish for the three months ended June 30, 2013 compared to consulting income and sale of fish for the three months ended June 30, 2012.

However, the gross profit of the fishery decreased from $9,207,455 for the three months ended June 30, 2012 to $4,130,711 (or -55.13 per cent) for the three months ended June 30, 2013. The decrease was primarily due to part of the sales from Fishery Segment being reallocated to a new segment marked "Corporate and others." This amounted to $3,086,909 of the decrease.

The remaining decrease of $1,989,835 (or 1.7 cents per share) was due primarily to the decrease in the sales prices of sleepy cod decreasing from $27/kg in the three months ended June 30, 2012 to $15.3/kg during the three months ended June 30, 2013.

The Company currently has five indoor fish or prawn farms either in operation or being constructed, or both.

Jiangmen City A Power Fishery is fully operational, producing to a capacity of 1,000 metric tons per year. Its built up area is 9,900 square meters. The configuration of 16 AP RAS tanks is being adapted to accommodate sleepy cod, prawns, and flower pattern eel production, all three of which are now being stocked and grown.

Enping City A Power Prawn Co. is the first indoor prawn farm in Asia. Its built up area is 23,100 square meters, and construction is in two phases. The first phase is complete and in operation, with sales commencing in the third quarter and targeting 250-300 metric tons of prawns in 2013.

Zhongshan A Power Prawn Co. is contracted for 120,000 square meters in two phases. Phase one is complete and has been generating revenue since May 2012. The second phase of construction is scheduled to complete by the end of 2013. Currently, ZSAPP is marketing Green Prawn fries, which command prices three times that of the Mexican White variety, which constituted the main sales in 2012.

The Fish and Eel Farm is currently under construction, in three phases, with phase one 35% complete and scheduled to commence operation in June 2014. Its built up area will be 33,000 square meters.

The Xining City Prawn facility is currently 10 per cent complete, phases, and operations are scheduled to commence in December 2014. Its built up area will be 10,560 square meters.