Sino Agro Food : Der Agrar-Riese
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Completes Carve-out of Aquaculture Operations
Revenue: 342,9
Gross Profit: 83,9
Net Income attributable to SIAF: 115,0
EPS: 5,0
http://www.prnewswire.com/news-releases/...ual-results-300425279.html
CEO Commentary
Sino Agro Food’s Chairman and CEO Solomon Lee summarized the year:
“During 2016 we positioned our operations to continue growing while we made significant progress on our strategic plan to restructure the business and maximize value for shareholders. Our primary objectives for 2017 are to see increasing returns from our aquaculture investment at larger scale; likewise, for other business segments as the right opportunities surface; to capitalize on new capacity developed in 2015 and 2016; and to move toward actualizing properly appreciated IPO valuations.
“To recap our vision for Sino Agro Food, we are executing on our strategy to become a ‘solutions destination’ investment company, with associate investments that supply premium protein foods to the relatively new and underserved middle class in China. In 2016, we laid much of the groundwork for growth of our aquaculture and Integrated Cattle Farm (SJAP) businesses, in support of our plans to spin off these entities into publicly traded companies . In 2017 we shall continue to evaluate and work diligently on other divisional businesses of the group by exploring opportunities aiming to create more benefits for our shareholders. We believe that completing these carve-outs for eventual spinoff and subsequent listing will allow them to trade at market values commensurate with their peers. To support these businesses, SIAF has rapidly grown its revenues from $22M in 2009 to $342.9M in 2016 by investing in production facilities and processes to maximize economies of scale, commencing production, and ramping production at our facilities. We have achieved a lot to date and, with stockholders’ equity of USD 604.8M, or USD 26.08 per share as of 12/31/2016, we believe the company is now in a strong position to achieve sustainable and rapid growth.
“In 2016 we took several steps to modernize our aquaculture facilities into integrated high-yielding stations in support of the carve-out/spin-off (“COSO”) strategy to create a concentrated stand-alone entity of sufficient scale and potential to attract IPO interest at valuations rewarding to the Company’s shareholders.
“These activities were followed by the completion of the carve-out of the aquaculture operations contributing to strong overall financial results in 2016 and setting the stage for further growth and value recognition in 2017. We recorded a deemed gain on sale of $56.9M, and hold a certified fair value of $124.7M in the new entity at the time of the carve-out. The new organization for the aquaculture business will support accelerated growth, as it is better suited for infusions of working and development capital at, what we expect to be, more favorable valuations. We have long believed that our assets are undervalued, and that our organizational structure limited our opportunities to convert existing and planned development to business advantage. Completing the carve-out was a significant milestone toward unleashing this value. We expect significant accretion to SIAF earnings per share via our equity interest in the carved-out company as compared to 2016.
“By taking on a new role in our involvement with the aquaculture operations, we are able to concentrate resources on our other businesses, and we expect certain positive trends in our other businesses to continue in 2017. It is important to point out that Capital Award remains a wholly owned subsidiary, focused on consulting, engineering, and construction of A-Power Recirculating Aquaculture Systems (”APRAS”). Capital Award is the turnkey solutions provider for the new operators of Aquafarms 1-5. Part of the carve-out agreement calls for CA to license its APRAS technology for ongoing and future development (currently $100,000 per A-Power Module (“APM”)). Therefore, post separation of assets, SIAF will record recurring income in three ways:
The sale of goods, reported as a separate item derived from our investment
Continuing project development
Turnkey engineering and technology fees, coupled with licensing fees for the APRAS technology
“Project development showed healthy gains in 2016, largely as a result of the portion of the aquaculture gain on sale attributable to master licenses for Capital Award technology. In a sense, this category will become recurring revenue/income in 2017 and beyond as more APM and open dam recirculating aquaculture systems (“ODRAS”) are built and developed in China over the years by Tri-way, generating license fees for CA for A-Power Modules. As a frame of reference, AF4 uses 144 APMs and plans for AF5 call for 864. Because of the new organization, and depending on the timing of investment, the pace of project development is expected to quicken during 2017.
“At SJAP, the transition of our herd of cattle to premium brands is expected to add to the sale of live cattle in 2017, while the business also grows its other product lines to meet growing demand for livestock feed and fertilizer.
“Revenue from the Import/Export business segment grew from $6.4M in the first quarter of 2016 to $23.1M in the fourth quarter. We expect the segment to benefit in 2017 from a full year of production approaching capacity.
“As a key part of the carve out and IPO processes, we are raising growth capital for proposed carve-out candidates to accelerate their development, with Sino Agro Food expected to retain a significant stake in each of the companies after the spinoffs have occurred. We look forward to providing updates on progress throughout 2017. We are excited to move forward with our plans toward redefining Sino Agro Food as a ‘solutions destination’ investment company in China, supporting a wide range of agriculture endeavors through the delivery of value-added technology. We are pleased with the progress made in 2016, which has positioned us to execute on the next milestones in our COSO strategies during 2017.”
Earnings Call Information
Date: April 7, 2017
Time: 10:00 AM, EDT/4:00 PM CET
https://seekingalpha.com/article/...nings-call-transcript?part=single
Sino Agro Food, Inc. 2016 Q4 - Results - Earnings Call Slides
Apr. 7, 2017 9:52 AM • SIAF
The following slide deck was published by Sino Agro Food, Inc. in conjunction with their 2016 Q4 earnings call.
https://seekingalpha.com/article/...6-q4-results-earnings-call-slides
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AquacultureCarve-out
FAQ§
http://sinoagrofood.investorroom.com/news-releases?item=202
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SEC Form SC 13G:
Garrett R. D'Alessandro hält 1084656 Aktien.
https://www.sec.gov/Archives/edgar/data/1488419/...0/a70767_sc13g.htm
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Ramp up at China shrimp ‘mega farm’ underway after Sino Agro spin-off
SIAF believes the aquaculture operations are now poised for growth by having “substantially” completed renovations and modernization at AF1, AF2, and AF3; AF4 commencing commercial production during the fourth quarter; and the newly independent company being better suited to procure working capital to accelerate growth.
https://www.undercurrentnews.com/2017/03/17/...er-sino-agro-spin-off/
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Sustaining the aquaculture revolution
Some companies see sustainability concerns as a business opportunity. One way farms can avoid impacting the environment is to move indoors. In the Pearl River Delta region of Southeast China, Sino Agro Food is building what will be dozens of 8,000-m2 facilities to grow freshwater giant prawns.
Constructing the buildings and equipping them with recirculating water filtration systems requires a lot of up-front capital, says Anthony C. Ostrowski, chief scientific officer of Sino Agro. But the company benefits from higher-density, year-round prawn production.
Local consumers pay more for Sino Agro’s live prawns than for chilled or frozen ones, Ostrowski says. “And there is high demand for product that is certified sustainable, raised in a good environment, with no chemicals or antibiotics.” Over the next 20 years, he predicts, indoor farms will grow in importance. They require less land than ponds, and the fish don’t escape into the wild.
http://cen.acs.org/articles/95/i18/...ing-aquaculture-revolution.html
sino agro food hat die eps-schätzungen der analysten zum ersten quartal um $0,36 übertroffen:
q1-ergebnis:
Revenue: $ 70,6M
Gross Profit: $ 14,4M
Net Income attributable to SIAF: $ 8,69M
EPS: $0,36
Earnings Call Information
The Company will host an earnings call on Friday, June 9, 2017 at 10:00 AM EDT/4:00 PM CET to discuss quarterly financial results.
http://sinoagrofood.investorroom.com/FY2017-Q1
GUANGZHOU, China, July 12, 2017 /PRNewswire/ -- Sino Agro Food, Inc. (OTCQX: SIAF | OSE: SIAF-ME), a specialized investment company focused on protein food including seafood and cattle, wishes to announce a key milestone toward the financing and spinoff of its former subsidiary, Tri-way Industries. Through its regional Hong Kong office, Dun and Bradstreet ("D&B"), assigned its strongest credit rating, 5A 1, to Tri-way, in which Sino Agro Food, Inc. holds a 36.6% ownership interest.
"We look forward to reporting additional anticipated milestone achievements in the upcoming weeks."
Of note, the D&B corporate profile for Tri-way reported its tangible net worth at 3,007,347,794 HKD, or 385M USD, about 45M USD higher than reported from the certified fair market value as of December 31, 2016, reflected in SIAF’s annual audit report (10-K).
https://www.benzinga.com/pressreleases/17/07/...-strong-credit-rating
Revolving Credit Facility and Premier Banking Privileges Highlight Strategic Partnership
GUANGZHOU, China, July 17, 2017 /PRNewswire/ --
Sino Agro Food, Inc. (OTCQX: SIAF | OSE: SIAF-ME), a specialized investment company focused on protein food including seafood and cattle, wishes to announce a key agreement toward the financing and spinoff of its former subsidiary, Tri-way Industries, in which Sino Agro Food, Inc. holds a 36.6% ownership interest.
Agricultural Bank of China ("ABC") and Jiangman Yili Fisheries Co. Ltd. China ("JFD"), a fully owned subsidiary of Tri-way Industries Ltd. ("TW") have signed a Bank-Enterprise Comprehensive Strategic Cooperation Agreement ("BECSCA") this past week in Guangzhou. JFD is one of the select companies afforded this level of partnership with ABC in the Guangdong region.
ABC is providing a revolving credit facility to TW/JFD, which is eligible to be drawn incrementally up to its maximum line of RMB 100 million, with the maximum line intermittently increased as experience and corollaries between ABC and TW/JFD materialize. The monetary amount designated for each draw and its use will be determined in consultation between both parties. A rolling audit of TW/JFD by ABC is one of the conditions that must be met satisfactorily to permit continued use and increase of the revolving credit facility.
http://www.prnewswire.com/news-releases/...i-fisheries-300488999.html
Increase in authorized shares from 27,000,000 to 50,000,000 !!!
https://www.sec.gov/Archives/edgar/data/1488419/...v471236_pre14c.htm
outstanding shares: 25,684,898 !!!
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July 2017 Status of “AF3”
A presentation used in China to support SIAF’s carve-out of its aquaculture business (into Tri-way Industries, Ltd.) is published here along with a status update about Aquafarm 3. Roughly half the slides are found in two columns on this page, and a second linked web page contains the rest. We have annotated the slides with current information about the operations and progress at Aquafarm 3.
http://www.sinoagrofood.net/content/AF3_2017
Media Extol APRAS Indoor Aquaculture; Highlight Product Quality
GUANGZHOU, China-- Sino Agro Food, Inc. (OTCQX: SIAF | OSE: SIAF-ME), a specialized investment company focused on protein food including seafood and cattle, announces recognition of its APRAS aquaculture technology and products of its former subsidiary, Tri-way Industries (“TW”), in which Sino Agro Food, Inc. holds a 36.6% ownership interest.
Now, Tri-way is proud to announce that its operations are gaining media recognition throughout the Guangdong province, a province whose Gross Domestic Product exceeds USD 1.2 trillion; the largest provincial GDP in mainland China.
http://sinoagrofood.investorroom.com/AF4-news_Jul-2017
We believe on-going press coverage will further several aims:
- Facilitate sell-through to consumers directly, through e-commerce, and from our wholesale customers,
- Consolidate and extend premium pricing, and
- Potentially broaden the footprint of Capital Award’s APRAS technology within China, and possibly into other Asian countries.”
As referred to in the press release of July 25, 2017, Aquafarm 4 was prominently featured in two television broadcasts. These videos are presented here, along with photos of adjunct processes and businesses. Please check this page for on-going progress updates on Aquaculture Farms 4 and 5.
http://www.sinoagrofood.com/content/AF4_2017
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Aquafarm 1:
http://www.sinoagrofood.net/content/JFD
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Aquafarm 2:
http://www.sinoagrofood.net/content/EBAPCD
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"As part of this convertible bond, Sino Agro Food has undertaken a commitment to cease the issuance of new shares.....Our ambition is that the equity will never again be used as currency...." (SIAF 2014)
- 11/2016: increase in authorized shares (von 22,727,723 auf 27,000,000)
- 07/2017: increase in authorized shares (von 27,000,000 auf 50,000,000)
- 11/2016: outstanding shares: 22mio
- 07/2016: outstanding shares: 25,6mio
Statement IR:
Raising the authorized share count does not mean raising the outstanding share count. In fact, under the heading "Effects,..." the following is stated:
"At present, the board of directors has no plans to issue the additional shares of Common Stock authorized by the Amendment.
I am told that the impetus for the change was to comply with regulations with respect to having shares available to cover any ECAB convertible loan contingencies. Rather than raise the share count regularly to account for this -- even though it might not necessitate share issuance in the future either -- the Company decided to do it all at once.
The following provision in the filing is also relevant:
"The board of directors believes that the increase in our authorized Common Stock will provide us with greater flexibility with respect to our capital structure for purposes including stock based acquisitions."
The provision you cited in the ECAB loan, as I recall, referred to the practice of issuing equity to pay debts, mostly supplier debt; it did not handcuff the Company for all other future endeavors, such as using shares for collateral, nor for limited employee compensation, etc.
Tri-way Industries Updates Plans
WED, AUG 09, 2017 22:05 CET
Upgraded Fish Species Developed at Aquafarm 2
GUANGZHOU, China-- Sino Agro Food, Inc. (OTCQX: SIAF | OSE: SIAF-ME), a specialized investment company focused on protein food including seafood and cattle, is pleased to announce that its former subsidiary, Tri-way Industries (“TW”), in which Sino Agro Food, Inc. holds a 36.6% ownership interest, has updated plans for its Aquaculture Farm 1 (“AF1”) and Aquaculture Farm 2 (“AF2”).
In addition to production, AF2 houses Tri-way’s research and development facility, where new species are tested for commercial viability. One of the advantages of the indoor A Power Recirculating Aquaculture System (“APRAS”) is the flexibility to harvest different seafood species, enabling Tri-way to adapt to changes in pricing and supply conditions. Two new fish species are currently being grown successfully at Aquaculture Farm 2.
http://sinoagrofood.investorroom.com/AF1-2_news
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Progress at Aquafarm 4
Research and Development and Product Certification
Three objectives have been targeted:
Research ways to improve giant prawn (Macrobrachium rosenbergii) culture in AF4 APRAS tanks.
Initiate a disease surveillance and prevention program for the entire farm.
Initiate a pilot traceability program as a model for Tri-way group farms.
To achieve these objectives, plans at AF4 are now being made to improve the quality of source water, construct a temporary microbiology and pathology lab, and hiring of specialized staff. All is targeted to be in place by the end of the summer. Plans are also being made to build the boiler system needed to run APRAS tanks during the winter. This represents an important step towards advancing the science and agenda of sustainable aquaculture production for SIAF/Tri-way.
http://sinoagrofood.com/content/traceability-progress
revenue: $47,7mio
gross profit: $6.5 (13,6%)
net income: 0,03/share
http://sinoagrofood.investorroom.com/Q2-2017
Sino Agro Food, Inc. schedules 2017 Annual General Meeting: Agenda Items Include Dividend and Share Buyback
1) Adoption of a share buyback program,
2) Adoption of a dividend policy,
3) Formulation of outstanding share count guidelines,
4) Election of Directors,
5) Extending ECOVIS as SIAF's Certified Auditor for 2018.
Sino Agro's Chairman and CEO elaborated, "We are confident that the timing is right to formulate the first two agenda items at the AGM, and to implement thereafter, as a complement to our carve-out and spinoff ("COSO") strategies to unlock shareholder value. As always, the Company balances various considerations to determine the best use of its funds, including, of course, projected discretionary cash. Having invested a great deal of time and money to progress the Tri-way COSO strategy sufficiently now to gain real confidence in its further finance ability, the Company believes a best use of funds likely to be a meaningful share buyback plan. Such a plan or initiation of a corporate dividend would be implemented as soon as practical, well before ongoing COSO initiatives realize an IPO."
http://m.marketwired.com/press-release/...nclude-dividend-2236282.htm
..... dividende u/o aktienrückkaufprogramm?! ....wacht SIAF auf oder erneut heiße luft?
.... der kurs kennt jedenfalls bisher nur eine richtung, genau wie die anzahl der ausstehenden aktien... ein gegensteuern ist längst überfällig!
grund für den erneut enttäuschenden umsatz:
The overall poor performance primarily had been due to the impact of large volumes of imported beef unsettling the local beef industry, which led to poor performance in the following segments: concentrated live-stock feed and deboning of imported beef, and, also contributing, limited service revenue derived from consulting and services this quarter resulting from Tri-way’s commitment to forego capital expenditures until sufficient debt and/or equity financing becomes available to carryout farm development.
https://www.sec.gov/Archives/edgar/data/1488419/...tv479024_nt10q.htm
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SIAF Announces Partnerships to Advance Aquaculture Scientific Techniques
- Memorandum of Understanding (MOU) with CibusDx
- SIAF Joins Public, Private, and Academic Collaboration
http://sinoagrofood.investorroom.com/aqua-partnerships
gross profit: 6,5mio
eps: 0,15
http://sinoagrofood.investorroom.com/Q3-2017-results
https://www.undercurrentnews.com/2017/11/17/...t-sino-agros-megafarm/
https://www.undercurrentnews.com/2017/11/17/...er-shrimp-at-megafarm/
Our investors have requested that the Company provide a detailed update of operations and
concepts behind our plans for Tri-Way Industries, Ltd. There are many moving parts to our
operations, and this memo is intended to correct any misconceptions that may have arisen
recently. We are happy to provide this information and hope it will inform appropriately.
Response to Undercurrent News Articles
Two articles recently published by Undercurrent News suggested that the lack of freshwater
prawn (Macrobrachium rosenbergii) production at our Zhongshan facility, Aquafarm 4 (also
known as AF4 or Megafarm) is due to problems with our prawn technology and over-exaggeration
of its potential impact. One of the articles claimed that choices of fish currently being
raised at the farm are not economical.
Nothing could be further from the truth. The fact is we decided to delay commercial prawn
production at AF4 until proper funding was in place to finish the facility and tanks, and
install the boiler and water pre-treatment systems as originally designed. These are needed to
replicate the optimum water quality and year-round rearing temperatures for prawns that currently
exist at our Enping facilities (AF1 & AF2), where the technology for prawns was developed
and where proof-of-concept was confirmed before proceeding with large-scale plans.
These are not problems with our technology to culture prawns, but necessary for operation
of the indoor RAS system at AF4 as originally designed. Since completing the construction of
buildings 1 & 2 of Phase 1 at AF4, we have been above board about these issues in reports and
conference call sessions with investors. The primary issue is and always has been the lack of
funds to complete the facility. Our decision to not proceed with commercial prawn production
at AF4 was to ensure the technology would be successfully implemented, as planned.
The production technology for prawns and projections for the future are based on replicated
data we obtained and extrapolated for AF4 during our proof-of-concept phase at AF1 and AF2 between 2011 – 2015. The production volumes achieved at these farms for prawns is a matter of public record in our SEC filings. Among the many water quality advantages of RAS, another key reason for the ability to obtain higher production harvests than in ponds for this species is the use of stacked refuges in tanks, which has also allowed us
to raise prawns to at least 2 meters in depth. We believe additional research at AF4 will help us extend the boundaries of what has been achieved already at Enping as explained below. This additional research was misrepresented in the article as resolution to problems, instead of opportunities to improve.
During the ongoing interim funding period, we wanted to test different fish species in our
modules to provide preliminary information on their suitability for the marketplace (see
species-specific economic justifications presented below). The modules were not being used as
designed for production, but as a holding facility and nursery prior to final stocking of these
animals in grow-out ponds, and for some species to test high-density culture and produce
higher-grade sashimi products. This was done with the added goal to provide some cash flow
from AF4, until loan approval for the build-out funds is achieved. There is great potential for
the species we have chosen to pursue recently, further explained in the details below.
It is important that our investors and partners appreciate the market-driven approach we
take to meet our production targets, and also the robust and growing market that exists in
China. We are not wedded to or focused on one species in our production mix, and will adjust
species composition to meet profitability targets, as we have often demonstrated. The Company employs different strategies, such as depuration (e.g., purging of off-flavors) or slotted grow-outs (e.g., raising fish of different sizes to only a slightly larger size) to gain profit and have high throughput. Our RAS system is sufficiently robust to accommodate a wide range of species and strategies, and with the addition of saltwater at Zhongshan, a potential mix now of both marine and freshwater species. This includes lower-salinity RAS culture of the Pacific white shrimp (L. vannamei), which we had not considered previously in our freshwater systems. We are already converting ODRAS ponds to white shrimp production at our other sites, with water amendments needed for lower salinity culture. Careful consideration of markets, species mix, biology, and biosecurity requirements will lead us to always seek optimum profitability. Upon loan approval, we plan to complete Phase 1 at AF4 with all needed components and build ODRAS ponds and next generation GODRAS ponds for production of Pacific white shrimp (L. vannamei) and other species. This is a conservative approach, less expensive than APM buildings, which will increase cash flow and allow profits to be generated to continue build-out of the entire facility, Phases 2 – 3, as originally planned.
Nevertheless, and despite a constriction of funds, we do currently plan to retrofit 18 tanks (3 x
6 tank Stage 1-Stage 3 grow-out) in Building 1 so our research team at Zhongshan can further
advance the current state of our technology for prawns under non-ideal, but replicable conditions.
This research includes, but is not limited to: balancing microbial communities; testing
alternative approaches of all male or all female populations; alternative culling approaches and water movement designs to reduce electrical costs; and mid-range salinity trials with Pacific white shrimp. We also plan to convert tanks to raising Pearl Grouper as explained below.
A longer-term goal is potential for development of a pedigreed selective breeding program
for targeted, signature species to produce lines specifically suited for higher density culture
in our RAS system design and approach. Selective breeding is a common, signature approach
used in animal agriculture to improve production; an approach we deem additionally beneficial
because of the lack of such pedigreed programs in China, especially for prawns or marine
shrimp. We will continue to strive to improve our technology and stay on the leading edge of
development to maintain our competitive advantage. The immense potential of prawn and
white shrimp markets in China warrants our concerted attention.
We fully support responsible, honest, knowledgeable, and objective journalism. Our results
speak for themselves; we will invite other third parties to critique our operations at Phase 1
once commercial production is in full swing. We regret any unwarranted confusion or concern
this article may have generated among our investors, partners, friends, and colleagues.
Potential for Different Species
We believe that many fresh and saltwater species can be grown commercially in our APRAS
(or APM farms) and be profitable. This is mainly because of the suitable demand environment
prevalent and growing rapidly in the Chinese market. To be commercially successful, the
following fundaments must be observed, structured, organized and managed effectively and
efficiently:
Knowledge of the Chinese markets: This includes k • nowledge of sales impact of each juvenile stage, including fingerlings (young fish) and postlarvae (young shrimp & prawns),
sales of animals under market size, sales of market sized animals, and others, and their
respective live, fresh chilled and frozen sales’ markets. Sales of individual species need to
be mapped and managed, accordingly,
• Know-how and expertise on each individual species: This covers each developmental stage
from hatchery (broodstock and larvae), nursery (youngest juveniles), and growing out
juveniles to marketable size in both in open dams (ponds) and APRAS tanks.
• Vertical integration of farms: Inclusive of open dams and APRAS farms, to implement
grow-out programs: Our integrated organization collectively aims to reduce risks through
implementation of a robust organization-wide biosecurity program, coordination of times
to transfer and grow-out animals, and calculation of profit generation at each stage of
grow-out (from juvenile, early and middle stages of grow-out to final stages of grow-out).
For instance:
(i). Our APM farms handle and manage the production of juveniles to be supplied to
our subcontracted farms as well as to external farmers to obtain economic benefits and
efficiency.
(ii). Our subcontracted farmers or part of our open dam (or ODRAS) farms will grow
and produce fish up to 200g / fish from fingerling (Stage 1 grow-out) and up to 350 g /fish from 200 g fish (Stage 2 grow-out) with each stage to obtain economic benefits and
efficiency, independently.
(iii). Finally, our APM farms will produce the fish to final market sizes, also striving to
obtain economic benefits and efficiency.
In this respect, during 2017 (Q1 to Q3) we managed to organize enough Stage 1 and
Stage 2 growers (or sub-contracted farmers including growers in our open dam farms) to
support FF1 (AF1) and PF1 (AF2) in the final stage’s grow-out of Pearl Grouper and Jade
Perch. We are still organizing Stage (1 & 2) growers in AF4 & AF5’s open dam property
(of 800 Mu). If all moves effectively we aim to organize enough production to support 12
APM units in AF4 to start the final staged grow-out of Mandarin Fish starting from Q2
2018.
Ongoing services: Provide each segment of operation w • ith support, techniques, services,
supervision of technology, veterinary, R&D, information and associated necessities.
The Economics of Selected Fish Species
We selected three species of freshwater fish as key targets to be grown commercially in 2017
and 2018 at the existing farms described below. There are strong economic reasons to choose
these species as explained in the following:
1. Mandarin Fish or Chinese Perch (Siniperca chuatsi)
A very popular high demand fish, consumed in nearly all provinces of China, with daily
domestic consumption of over 500 MT per day (~ 200,000 MT per year) in live form and
excluding value added forms. This fish has a stable wholesale price in 2017, averaging RMB 50/ Kg (or US$7.70 / Kg) ex-farm. We are doing a little better than that at an average of RMB56 /kg because our fish are being sold to retailers as well as wholesalers and distributors.
At the same time, our qualities are marketed as superior being free of antibiotics, undesired
chemicals, and grown in a pollution-free environment. These are key marketing characteristics because:
• In China, most Mandarin Fish are grown in untreated (often highly polluted) waters in
open-dam farms and fed with live bait fish that are themselves full of antibiotics. The baitfish
also contain potential human disease vectors because most are fed, or waters fertilized,
using pig and chicken wastes collected from nearby farms.
• During 2017, AF4 successfully introduced and fed the Mandarin Fish in our APM tanks
with specially designed feed pellets that fish readily accepted. We also supplied (and sold)
Mandarin Fish fingerlings (from 3 cm to 6 cm) to our subcontracted growers as well as
other external growers/clients with good results. As a result, we are confident that our
operations will successfully culture Mandarin Fish.
In 2017, we were able to successfully achieve stocking densities up to 60 kg / m3 of water of
larger sized fish in our APM tanks. We feel confident we can grow and produce 12,000 pieces of fish (to 0.5 kg each) or 6 MT per tank from Stage 2 animals stocked at an average of 0.35 kg/ fish per cycle. Each cycle is an average of 30-days.
The key point is that our APM units’ productivities are variable subject to: (i) the initial species and developmental stage being stocked; (ii) the optimum growth rate of the animals and biological limits; (iii) how well the supporting supply chains from Stage 1 & Stage 2 growers are organized to maintain continuous supply.
In an operational coordination scenario with Mandarin Fish, if we are to stock the 14 APM
units (or 28 tanks) at AF2 with 350 g animals, then the farm’s annual production can be over
2,000 MT. This is double the farm’s originally designed capacity of about 1000 MT per year.
The production cost of growing Mandarin Fish to 500 g in APM tanks is an average RMB 24
/ kg. Profits generated at this stage are reduced to 24% of sales price (56 RMB) to account for
the cost of seedstock purchased from Stage 1 and Stage 2 growers. However, since the APM
farm produces the fingerlings sold to growers (at RMB 4 / 3 cm fingerling to RMB 6 / 6 cm
fingerling), with a gross profit margin of 50%, the overall profit margin for the APM farm of
growing Mandarin Fish is 30%.
This means that for the AF2 example of 28 APM tanks, annual sales for growout of Mandarin
Fish could be RMB112 million (or US$16.7 m), with a gross profit of about US$ 5 million.
2. Jade Perch (Scortum barcoo)
Currently, a large demand for Jade Perch does not exist in China (estimated at about 10,000
MT / year). Nevertheless, we are confident of developing our Jade Perch gradually into a desirable and viable commercial species for the following reasons:
It is a fish exceptionally suited and easy t • o grow in our APM farms, with fast growth rates
and higher stocking densities than have been obtained for the Mandarin Fish. We have
been successfully stocking up to 75 Kg / m3 at our AF1 and AF2 during the past months.
That effectively translates into an annual production of 90 MT per tank (collectively from
12 monthly cycles) with the initial stocking of 350 g fish. As an example, again using AF2
with 28 tanks, annual production could reach 2,500 MT which is 2.5 times greater than
our originally planned annual production capacity.
• Jade Perch, compared to some other freshwater fish species, contains very high levels of
omega-3 fatty acids, the highly unsaturated derivates of which (called HUFAs), EPA and
DHA, are known to be beneficial for human health and nutrition. While the fatty acid
composition of fish flesh is primarily dependent upon the fatty acid composition of their
diet, there is some evidence to suggest that Jade Perch can concentrate or retain high levels
of HUFAs in their flesh fed high HUFA and omega-3 fatty acid diets, and may require
higher basal levels of HUFA or omega-3 fatty acids in their tissues compared to other
freshwater species. Many freshwater fish, like salmon and Murray cod, have ability to
convert dietary omega-3 fatty acids into DHA and EPA in their bodies to varying degrees,
although this is not yet demonstrated for Jade Perch. In contrast, marine fish do not have
this ability, and must obtain all their required HUFA’s from their diet. Favorable marketing of high HUFA content in Jade Perch can be accomplished by feeding finishing diets high
in omega-3 fatty acids and HUFAs.
Purchased fish grown in our clean-water APM farms a • re cleared (or depurated) from any
prior antibiotic and undesirable chemical treatment, and off-flavors (earthy or muddy
taste). This enhances superior quality as compared to Jade Perch grown elsewhere in
China and provides key benefits for the marketing of our Jade Perch.
• Strong financial performance, (again using AF2 as an example):
The overall cost to grow Jade Perch to an average 500 g is RMB18 / Kg (inclusive cost of
purchased juvenile, feed, mortality and supplementary feed, etc.). The average of wholesale
price at the Guangzhou wholesale markets in 2017 was RMB39 / Kg ex-farm (or US$6/ Kg). We achieved an average sale price of RMB43 / Kg (or US$6.6) from our APM farms
(average of that sold to wholesalers, distributors, and retailers). Gross profit from our
APM farms after allocating profits to Stage 1 and Stage 2 Growers is about RMB 17 / Kg,
including gross profit derived from fingerling sales. This represents an overall gross profit
margin of 39.5% (~43-(18+17)/18). Annual sales of the exampled AF1 = RMB107.5 m (or
US$16.53 m), with a gross profit of US$6.53 m.
3. Pearl Grouper (Epinephelus lanceolatus x Epinephelus fuscogluttatus)
Pearl Grouper (PG) is a well-developed species of fish in China’s Hainan Province that also
enjoys good demand in the Southern part of China (estimated current annual sales of 30,000
MT in the Guangdong wholesale markets), at attractive yearly wholesale average prices of
RMB 76 / Kg in 2017. PG is a hybrid cross between two different species, hence the bifurcated scientific designation.
Throughout 2017, we managed to develop growers in Hainan to support the production of
PG at our APM farms with Stage 1 and Stage 2 stocks. We have already stocked PG in 4 APM units (or 8 APM tanks) in AF1 and plan to do additional stocking in another 14 APM units (or 28 tanks) at AF4 within Q1 2018. Several advantages are clear with PG:
• It has a very fast growth rate. We can reach 600 g fish (from 350 g fish) within one month
at our APM farms.
• Our team has good experience in growing PG. We have already achieved a stocking density
of 60 kg / m3 at AF1, or 6 MT / tank per monthly cycle, or the equivalent of 72 MT /
tank / year
• Cost of grow-out is averages RMB 30 / kg. This results in a gross profit of RMB 46 / kg,
again distributed between Stage 1 & 2 growers and our APM farms. This results in a net
32% gross margin for our APM farms.
• To illustrate for AF2 (based on 28 APM tanks):
Annual Production = 2,000 MT
Annual sales revenue = RMB152 million (or US$23.38 m)
Gross Profit = RMB7.48 m
•During 2017 we also discovered that there i • s good market demand for smaller-sized PG
(between 300g / 350 g fish) at the Freshly Chilled wholesale markets of Guangzhou City
that we intend to explore during Q1 2018.
Description and Current Status of Tri-Way Industries, Ltd. Farms
Aquafarm 1, located in Enping City, is the first A-Power Module (“APM”) farm established
and developed by Capital Award, Inc.(“CA”), applying our A-Power Recirculating Aquaculture System (“APRAS”) technology in 2010. Commercial operations began in 2011. AF1 has 16 APM units in operation with each APM having two production tanks (with each tank containing 100m3 working water volume) and a central filtration baffle system which is 12m x 1m x 2.2m = 18m3 working volume.
AF1 was the only farm belonging to Tri-way Industries, Ltd. prior to the addition of all of the
other farms, listed below.
AF1 was remodeled and renovated during 2016, which caused down time that reduced production in 2016. Production levels returned to normal by Q3 2017.
Aquafarm 2 is another APM farm also located in Enping City, approximately 3 km from AF1.
AF2 started commercial operations in 2014. AF2 has 14 APM units, each with two production
tanks (measuring at 6m x 12m X 2.2m depth = 100m3 working volume) and a central filtration tank of 18m3. AF2 has two main functions, with several sub-activities:
1. Research & Development work on the RAS technology, as well as production and grow-out
2. Production of multiple species of fish and prawns. Production was interrupted and reduced during 2016 while it was being refitted to incorporate
R&D activities. Production is back online since Q2 2017.
Aquafarm 3a is located in Sanjiao Town, Zhongshan City. The major activities at AF3a are
hatchery production of prawns and shrimp, along with minor production and growing of fish
and prawns/shrimp in open dams (referred to as Open Dam “ODRAS”). Open dams occupy
just over 153 Mu on AF3a’s main property. An additional 250 Mu of ponds are situated on
contracted/ leased land adjacent to the main property.
Construction and development of AF3a started in 2012; completion by 2018 is contingent on
sufficient development funds. Alternatively, organic growth could occur through generated
profit and be completed by 2019. Hatchery and pond production has been ongoing since 2013
at existing facilities.
Of the 153 mu on the main property, 30 mu is occupied by the hatchery for prawn and shrimp
postlarvae production, 20 mu is under 3rd Generation ODRAS production that was retrofitted
in late 2016 with operation starting during Q3 2017, 30 mu is being reserved for the development of additional hatchery and nursery capacity for prawns and shrimp, and the remaining 73 Mu is currently operating using 2nd generation ODRAS technology.
Aquafarm 3b, also located at Shenwan, Zhongshan City, is operated by Aquafarm 3a. AF3b
comprises over 579 Mu of traditional open dams in operation since 2014. We plan to develop
a farmers’ production cooperative, employing an additional 2000 Mu by year end 2019. A
small cooperative, recently established, targets 250 mu of traditional dams being employed by
the end of Q3 2017.
In addition, 170 Mu of the noted 579 mu were converted into 2nd generation ODRAS in
2016, with operations beginning in Q4 2016.
Aquafarm 4 and Aquafarm 5 are both located at Cuiheng, Zhongshan City on 3,750 Mu
of land. AF4 occupies 80 mu and the majority of the construction of two out of three APM
buildings was completed by Q3 2016. The third APM farm (out of a three building production
unit) targets completion in 2018, subject to capital funding. Alternatively, it can be completed
organically by 2019, depending upon results of production.
The two semi-completed APM buildings each are 9,000 m2 in total footprint (7,590 m2 interior).
Trial operations began in Q4 2016, and semi-commercial operations in Q1 2017. The
target was to reach annual production of 6,000MT by Q1 2018. Completion of the third building will bring total PF3 production to 10,000 MT by Q2 2019. Originally, it was planned to mainly produce giant freshwater prawns in AF4; however, we have delayed and revised those plans due to reasons previously noted (i.e., lack of funding to build water treatment facilities for incoming source water and outgoing waste water, the water-heating facility, the R&D and product quality control laboratories, lack of trained technical staff, the unfamiliarity of the project, and the inexperience of the existing management team on the operation of a RAS farm of this magnitude).
Nevertheless, as mentioned, we are able to use the facilities in a non-traditional way to test
the feasibility of various species in APM tanks (i.e., Mandarin Fish, Jade Perch, Silver Cod,
California Cod, and other species). This also allows cash flow generation until AF4 is properly completed to begin full commercial production of giant freshwater prawns.
Further, we plan to utilize the expertise of one of our AF4 farm managers to conduct hatchery
production of fish fingerlings. Certain species of fish are in demand and can be produced
and sold with good profitability. We market tested selling fingerling Mandarin Fish, Jade
Perch and Silver Cod beginning in Q2 2017. As a result, a nursery is also planned to be built
adjacent to one of the existing AF4 buildings during early 2018. First production and sales of
fingerlings is targeted to begin in Q2 or Q3 2018, depending on available cash flow.
Major construction and development work has not started on Aquafarm 5, although some of
the basic infrastructure work has been underway since Q1 2017. AF5 will occupy a total area
of about 400 Mu, consisting of 18 APM buildings (six times the size of AF4 at completion)
targeting annual production of 60,000 MT.
No further work is planned on AF5 until development funds are available.
Aquafarm 4a, comprising 400 Mu of traditional open dams was built during late 2016, and
came into operation beginning Q1 2017. AF4a’s production is included in total production
numbers of Aquafarm 4.
Aquafarm 5a, another 400 Mu of traditional open dams, was built during Q1 2017 and came
into operation beginning Q2 2017. AF5a’s production is included in the total production
numbers of Aquafarm 5. The reasons for building traditional open dams at AF4a and AF5a include:
(i). Traditional dams are much less expensive to build and can be built within a short period
of time.
(ii). Plenty of land was available and not being utilized at the Zhongshan site, making sense to
employ while waiting for funds to develop the APM buildings.
(iii). Traditional dams would increase sales revenues of PF3 & PF4 in the interim period.
Aquafarm 4b will be built on 150 mu with 3rd generation ODRAS beginning Q3 2017, with
targeted production to start Q2 2018.
Third-generation ODRAS technology (dubbed GODRAS) is based on the basic RAS theory
of our indoor APM systems, with a few construction-related differences. GODRAS technology
employs outdoor open-dams serviced by centrally located filtration dams. All dams
are connected, and water recirculated and recycled, with the filtration dams removing both
soluble and insoluble wastes. GODRAS cost less to build than APM buildings but are similarly
enclosed using a greenhouse that will have shading in the summer to keep dams cooler and
plastic covers in winter to retain incident heat. GODRAS will particularly help in the outdoor
production of Pacific white shrimp (L. vannamei) because of the use of recycled pond water
with stable microbial communities, and organically enhanced biosecurity. Similar systems are
being successfully employed by competitors for this species.
Additional Comments and Outlook for 2018
During fiscal year 2017 (from Q4 2016 to Q3 2017) there were many interruptions to farm
operations (i.e. retrofitting of AF1, reorganizing AF2 to incorporate R&D activities, the retrofitting and rebuilding of 20 mu traditional open dams into 3rd GODRAS, and converting
some 200 mu of AF1’s Shenwan old dams into 2nd generation ODRAS). Despite these interruptions, and together with the start-up issues at AF4, our overall fishery operation is, in fact, doing well. We were able to produce and sell just under 9,000 MT, which is below our original
forecast of 12,000 MT. As our operational and financial situation improves, the outlook for
2018 will improve.
Quelle: Facebook Sino Agro Food
SC 13G/A1: Garrett R. D’Alessandro erhöht Aktienzahl auf 5,141,831Aktien!!
https://www.sec.gov/Archives/edgar/data/1488419/...4/schedule13ga.htm
....obwohl dies ein Ausdruck großer Zuversicht ist, bleiben die großen Fragen weiterhin ungelöst:
Wann werden die längst überfälligen Tri-way-Anteile an SIAF Aktionäre ausgezahlt?
Erhält Tri-way endlich die benötigte
Finanzierung, um den ins Stocken gekommenen Bau der Mega-Farm zu beschleunigen?
Kommt es endlich zu einem AGM, welches bereits für Dezember angekündigt wurde, und wird eine mögliche Dividendenpolitik oder ein Akienrückkaufprogramm beschlossen?
Warum gibt es keine Insiderkäufe des Managements?
Warum profitiert der CEO von einem sinkenden Aktienkurs bezüglich seiner Bezahlung in Form von Aktien? ( je niedriger der Kurs, umso größer die Zahl der ausgezahlten Aktien )
SIAF hat nachdem ACAB-Deal folgendes versprochen:
"As part of this convertible bond, Sino Agro Food has undertaken a commitment to cease the issuance of new shares.....Our ambition is that the equity will never again be used as currency...."
Warum hält sich SIAF nicht mehr an die Abmachung? Die Zahl der ausstehenden Aktien liegt derzeit bei 30Mio.!!!
Ist ein Ende der Verwässerung in Sicht oder ist dies nur der Anfang einer erneuten Verwässerungswelle, wie vor dem ECAB Deal? Wie wird sich ECAB nach dem möglichen Vertragsbruch verhalten?
Schafft es SIAF in 2018 das stark geschrumpfte Vertrauen wieder etwas aufzubauen? Noch ist nicht ganz klar, ob es sich hier um einen weiteren China-Betrug handelt oder ob man ernsthaft daran interessiert ist eine große Idee in die Wirklichkeit umzusetzen! Garrett R. D’Alessandro glaubt scheinbar an Letzteres.... man wird sehen, ob er recht behält!
Outstanding Shares: 31,209,153 (Feb 06, 2018)
--------------------------------------------------
New Boiler Installation at Aquafarm 4
A new boiler system is currently being installed for the indoor buildings at Aquafarm 4 (aka the Megafarm) in Zhongshan. This will allow indoor tanks to maintain optimum growing temperatures (26 – 28o C) during the winter months. During winter, ambient water temperatures can reach as low as 17 – 19o C.
The boiler will be completed by the beginning of the upcoming growing season, allowing perhaps an early start to stocking of the indoor tanks. It will be fully operational for the 2019 winter months, allowing year-round production starting in March or April of 2018.SEC Form SC 13G filed on Jan 29, 2018.
http://www.sinoagrofood.com/content/new-boiler_AF4
--------------------------------------------------
Name of Reporting Person
Forsakringsaktiebolaget Avanza Pension
Amount beneficially owned:
3,456,006
https://www.sec.gov/Archives/edgar/data/1488419/...18-3816_1sc13g.htm
Outstanding Shares: 31,669,239 (Feb 26, 2018)
--------------------------------------------------
Continued Progress into the Year of the Earth Dog for Sino Agro Food, Inc.
https://globenewswire.com/news-release/2018/02/27/...ro-Food-Inc.html
--------------------------------------------------
Name of Reporting Person
Nordnet Pensionsförsäkring AB
Amount beneficially owned:
2,718,846
https://www.sec.gov/Archives/edgar/data/1488419/...20_sc13ga-sino.htm
Outstanding Shares: 31,794,239 (03/08/2018)
SIAF hat nachdem ECAB-Deal:
"As part of this convertible bond, Sino Agro Food has undertaken a commitment to cease the issuance of new shares.....Our ambition is that the equity will never again be used as currency...." (2014)
OS Dez. 2014: 16,554,566
OS März 2018: 31,794,239
ECAB sind richtige ausgeklügelte Dealmaker!
"As part of this convertible bond, Sino Agro Food has undertaken a commitment to cease the issuance of new shares.....Our ambition is that the equity will never again be used as currency...." (SIAF 2014)
"As part of this convertible bond, Sino Agro Food has undertaken a commitment to cease the issuance of new shares.....Our ambition is that the equity will never again be used as currency...." (SIAF 2014)