The Company's main business activity is in the development of and/or to acquire viable agriculture related businesses in P.R.C. and to promote the application of environmental friendly technologies to enhance shareholders' benefits. In P.R.C. the rapid progress of industrialization of the last decade has unbalanced the needs of developments and activities of the agriculture industry, (i.e. diminishing of agriculture land, scarcity of farm laborers, industrial pollution and the generally over usage of chemical etc.). Therefore the P.R.C. Government has in recent years directed many incentive schemes and policies with the aim to revitalize and to modernize its agriculture industry (i.e. Protection of agriculture land, stringent laws in governing the ownership and usage of agriculture land, tax free incentive applying to incomes generated from the industry and enforcing environmental friendly developments etc.). Management of the Company has many years of practical and professional experience in various and many sectors of the agriculture industry and decided in year 2004 that it was the right timing and there would be many opportunities available to develop agricultural ventures in P.R.C. The company's business operations are and / or will be operated by its subsidiaries and as such its main function will be as their ultimate holding company.
Why Invest in Sino Agro Food, Inc.?
- Over nearly the last three decades, China's economic growth has been the greatest in the world, averaging 9% since the start of the 1980's.
- Sino Agro Foods, Inc. (SIAF) generated sales of $19,420,290 and net earnings of $12,184,890 in fiscal year 2007.
- In 2006, there was a 14.1% jump in China's farm production and a 20% increase in prices thanks to more efficient processing and government initiatives which provided incentives and investment.
- Sino Agro Foods, Inc. is a diversified agricultural company with interests in dairy production (Zhung Xian Diary & Husbandry Co. Ltd.), fisheries (Capital Award Inc.), HU plantations (Hang Shing Tai Agriculture Co. Ltd. China), and turf farming (TianQuan Science and Development Co. Ltd. China).
- Zhung Xian Diary & Husbandry Co. Ltd. (ZX) is on its way to be a major supplier of dairy fresh liquid milk and milk products to the local markets in China.
- SIAF recently received a 100% pure milk high-grade certification from the Agriculture Department of Peoples Republic of China. The Agriculture Department of China officially certified ZhongXing Agriculture's milk as the best 100% pure milk of the country and ZhongXing Agriculture's fresh milk will be used for the 2008 Olympic Games as one of the approved suppliers.
- Valuation: Peer analysis suggested high multiples and even using conservative estimates, we arrived at values ranging from $3.45 to $6.90 per share.
- An analysis of China stocks in the agriculture industry shows a booming industry.
- TianQuan Science and Development Co. Ltd. China (TSD) is the inventor and patent owner of the "Grass Mats Growing Technology" in China and was honored with the Country's top inventor Award in May 2006.
- SIAF represents a great opportunity to take part in the amazing economic growth that is being generated in China. Another strong economic year is expected for China in 2008.
- It is evident by looking at the stock charts of the Company's peer group that the China agricultural sector is booming. Sino Agro Foods, Inc. is one of the very few undiscovered China stock plays left. While there is still more room for upside potential in many of the well-known listed China companies, the relatively undiscovered ones will be the most exciting in 2008.
