Sino AG — Earnings Release 2015

Mar 30, 2016

Sino Agro Food Inc. Reports FY 2015 Audited Results

Sino Agro Food Inc. Reports FY 2015 Audited Results

Revenue Increases 6% to USD 429.1M with EPS of USD 3.60

March 30, 2016

GUANGZHOU, China-- Sino Agro Food, Inc. (OTCQX: SIAF | OSE:

SIAF-ME).

The Company achieved the following annual results, comparing

2015 to 2014:

(USDm, except per share and margin data) FY '15 FY '14 %

Revenue 429.1 404.3 6%

Gross Profit 111.2 129.3 -14%

Gross Profit Margin 25.0% 32.0%

Net Income 91.8 114,2 -19%

Net Income attributable to SIAF 66.4 92.0 -28%

Earnings Per Share (USD) - fully diluted 3.60 5.53 -35%

Diluted weighted average number

of shares (M) 18.6 16.7 11%

Key Points

Revenue for 2015 increased by 6 percent to USD 429.1M

(404.3). Revenue from the sale of goods increased by 4.4

percent to USD 338.7M (324.2). Revenue from project

development and management fees increased by 13.0 percent to

USD 90.4M (80.1).

Stockholders' equity increased by 21 percent to USD 483.5M

(399.6) or USD 24.66 per share, based on the weighted average

number of fully diluted outstanding shares in the year, an

increase of USD 83.9M or USD 4.52 per share in 2015.

- Aquaculture revenue from the sale of goods

decreased by 19 percent to USD 87.3M (107.3). The decrease

was mainly due to lower sales of eels (-44%) and sleepy cod

(-83%) only partially offset by an increase in prawn sales

(50%). Despite higher overall production volume with annual

seafood production of 6,762 MT, revenue decreased due to a

sales mix with a lower share of eels which demand a higher

price per kilo than prawns.

- Aquaculture revenue from project development

increased by 15 percent to USD 86.6M (75.2). Construction and

development work done on the Zhongshan MegaFarm totaled USD

65.4M.

- Integrated Cattle Farm sale of goods increased by

44 percent to USD 144.6M (102.0). Mainly due to increased

imported beef, deboning activity accounted for 104% of the

increase, jumping to USD 57.6M (13.2). Revenue from live

cattle increased by 3% to USD 64.9M (63.1) due to the sale of

21% more head of cattle offset by average prices falling $308

per head, from RMB 32/Kg in 2014 to RMB 24/Kg in 2015. Prices

averaged RMB 20/Kg. in the fourth quarter of 2015.

Gross profit for 2015 decreased 14 percent to USD 111.2M

(129.3), equivalent to a margin of 25.0% (32.0%). The group

gross profit and margin were impacted by the following

segments, in falling order:

- Aquaculture gross profit from the sale of goods

decreased by 34 percent to USD 20.1M (30.4) equivalent to a

margin of 23.1 percent (28.3%). The reduction in margin was

mainly due to a drop in eel margins caused by lower quality

supply of eel elvers forcing sales of smaller grown-out eels.

Secondarily, the sales mix included a higher portion of lower

margin mixed seafood. The Company aims to grow aquaculture

profits by increasing volumes and by stocking the more

profitable species, according to the prevailing supplies and

market prices.

- Gross profit for product development decreased by 14

percent to USD 33.3M equivalent to a margin of 36.9 percent

(44.8%). The Zhongshan MegaFarm derives lower margins

than earlier fish farms, due to larger scale.

- Within the Integrated Cattle Farm business segment, overall

gross profit increased by 8 percent to USD 33.3M (30.8)

equivalent to a margin of 23.0 percent (30.2%), mainly due to

an increase of 191 percent to USD 15.1M (3.9) in value added

processing of local and imported beef. However, the gross

profit from the sale of live cattle decreased by 43.8 percent

to USD 9.3M (16.3), equivalent to a margin of 14.1 percent

(25.6%), due to deteriorating prices

for standard domestic beef.

- Seafood and Meat Trading gross profit decreased by

66% to USD 4.7M (14.0) equivalent to a margin of 12.5%

(27.5%). The margin contraction is due to a different sales

mix with higher share of Australian beef imports sold with

lower margin. Actions have been taken to diversify to other

seafood import sources and increase volumes in addition to

beef imports. Gross profit for imported beef increased 89.2

percent to USD 3.1M (1.7).

- Fourth quarter Gross profit from Seafood and Meat

Trading decreased by 88% percent to USD 1.2M (9.7) equivalent

to a margin of 11.1% (65.4%). The Import / Export segment

decrease explains 97% of the group's gross profit decrease in

the fourth quarter.

G&A expenses increased by 19 percent to USD 18.6M (15.6) in

2015, representing 5.5 percent (4.8%) of revenue. The

increase reflects ongoing heightened expenses related to

various corporate exercises including listing costs.

As of December 31 2015, the Company had unrestricted cash and

cash equivalents of USD 7.23M (3.03) and net working capital

of USD 322.4M (229.4). Current liabilities decreased from USD

52.3M at year-end 2014 to USD 228.4M at year-end 2015.

As of December 31, 2015, the outstanding common share count

was 20,133,757, versus 17,162,716 at December 31, 2014. Of

the 2,971,041 shares added, 707,077 were issued upon

conversion of outstanding preferred shares, and 1,888,304

were issued as security for trade and other loans. These

collateralized shares will be returned to the treasury upon

loan repayment. Net of these shares and others to adjust and

correct the total after the reverse split exercise, the

outstanding share count increased less than .9 percent in

Outlook and Subsequent Events

The Company anticipates improved gross profits and margins in

2016 by scaling existing operations and from newly built

facilities initiating production:

- Continue to grow beef imports and utilize more

available processing capacity at Sanjiang A Power Agriculture

Co., Ltd. ("SJAP). Continue to upgrade the herd of live

cattle to 550-day grain fed and Wagyu Simmental and Charolais

cattle in order to expand profit margins.

- Drive incremental aquaculture sale of goods

through current and new A Power Module capacity at the

Zhongshan MegaFarm.

- Utilize the credit trade facility and existing

capacity at the Shanghai Distribution Center to increase

volumes of imported beef.

The Company has achieved several significant corporate and

divisional milestones already in 2016

- On January 13th the Company's shares commenced

trading on the Oslo Bors' Merkur Market.

- On January 19th the Company's shares commenced

trading on OTCQX Premier, upgrading from the OTCQB Venture

Market.

- On February 11th the Company engaged ECOVIS David

Yeung Hong Kong ("ECOVIS") as its new independent registered

public accounting firm. The Company has engaged ECOVIS for

its ability to adapt its services to the Company's demands

and believes that as the world's 18th largest firm, ECOVIS is

capable to meet whatever these demands require in a timely

manner.

- On February 23rd the Company stocked the first

test tanks with 1.2 million postlarvae prawns. In March a

total of 2.4 million were stocked, as the first cycle of

prawns progresses.

CEO Commentary

Sino Agro Food's Chairman and CEO Solomon Lee summarized the

year, stating that "2015 was very much a transitional year

during which we have continued to build operational capacity

to support production well beyond current revenue. Further,

we have laid the groundwork for financial restructurings. We

expect to capitalize on these efforts in 2016.

"Operationally, during the fourth quarter we continued to see

the same challenges as in the third, which consisted

primarily of structurally lower prices for domestic beef in

China, lower market prices for some fish species, certain

supply shortages of juvenile animals for aquaculture grow

out, weather related construction delays, and changing import

and export regulatory policies for food into China.

Nonetheless, we remained profitable while providing the

underpinnings for increasing revenue in most businesses and

improving margins in many.

"We will continue to build scale in our three main operations

in 2016: Aquaculture, value added processing of meat products

at SJAP and wholesale imports of beef and seafood from

abroad. As well as having significant scale up potential,

these segments provide the highest return on invested

capital.

"Our focus in Aquaculture is on the Zhongshan MegaFarm, where

we achieved some major milestones. We have completed

construction of the first two buildings in the project's

first phase and started construction of the third. The first

test tanks were stocked in February with 1.2 million

postlarvae prawns. In March 2.4 million were stocked, as the

first cycle progresses. Considerable investments made in 2014

and 2015 by the project owner at the Zhongshan MegaFarm will

start generating sale of goods revenue in 2016.

Gross profit in the Integrated Cattle segment grew by 8%,

more than countering diminished prices for domestic beef by

expanding value added processing of imported beef. Meanwhile,

phasing out of existing large-muscled Charolais and Simmental

breeds in favor of more premium breeds continues, with circa

3,000 head of beef cattle currently being fattened. We expect

this to improve live cattle margins later in 2016 and in

2017; albeit, with somewhat lower live cattle volume.

"We have initiated restructuring of the Aquaculture segment

in preparation for a separate listing in Norway, the leading

capital market for seafood. Contracts are currently being

consolidated into our Hong Kong based Tri-way Industries Ltd.

subsidiary..

"Steps are also being taken in preparation for separate

listing of other of our subsidiaries, again in an effort to

align those operations and assets into proper market

valuations."

2015 Annual Report

For detailed segment operational performance and

developments, please take the time to read our latest 10-Q

filing, or refer to the annual report posted to the Company

website: 2015 Annual and Interim Results

Earnings Call Information

The Company will host an earnings call on Monday, April 18,

2016 at 10:00 AM EDT/4:00 PM CET to discuss annual financial

results for 2015, with questions and answers. To participate

in the conference call please use the following information:

SIAF 2015 Annual Results Call Information

Date: April 18, 2016

Time: 10:00 AM, EDT/4:00 PM CET

Participant Dialing Instructions:

SE: +46 8 5059 63 06

NO: +47 23 50 05 59

US: + 1 (866) 928-7517

UK: +44 203 139 48 30

CN: +86 400 681 54 21

Conference Pincode

21168316#

The earnings call will also be available over the web.

About Sino Agro Food, Inc.

Sino Agro Food develops and operates protein food production

facilities in the People's Republic of China. The Company

produces, distributes, markets, and sells sustainable seafood

and beef to the rapidly growing middle class in China.

Activities also include production of organic fertilizer and

produce. The Company is a global leader in developing land

based recirculating aquaculture systems ("RAS"), and with its

partners is the world's largest producer of sustainable RAS

prawns.

Founded in 2006 and headquartered in Guangzhou, the Company

had over 550 employees and revenue of USD 429 million in

2015. Operations are located in the provinces of Guangdong,

Qinghai, Hunan, and Shanghai. Sino Agro Food is a public

company listed on OTCQX U.S. Premier in the United States and

on the Oslo Børs' Merkur Market in Norway.

News and updates about Sino Agro Food, Inc., including key

information, are published on the Company's website

(http://www.sinoagrofood.com), the Company's Facebook page

(https://www.facebook.com/SinoAgroFoodInc), and on twitter

@SinoAgroFood.

Forward Looking Statements

This release may contain forward-looking statements relating

to the business of SIAF and its subsidiary companies. All

statements other than historical facts are forward-looking

statements, which can be identified by the use of forward-

looking terminology such as "believes," "expects" or similar

expressions. These statements involve risks and uncertainties

that may cause actual results to differ materially from those

anticipated, believed, estimated or expected. These risks and

uncertainties are described in detail in our filings with the

Securities and Exchange Commission. Forward-looking

statements are based on SIAF's current expectations and

beliefs concerning future developments and their potential

effects on SIAF. There is no assurance that future

developments affecting SIAF will be those anticipated by

SIAF. SIAF undertakes no obligation to publicly update or

revise any forward-looking statements, whether as a result of

new information, future events or otherwise, except as

required under applicable securities laws.

No Offer of Securities

None of the information featured in this press release

constitutes an offer or solicitation to purchase or to sell

any securities of Sino Agro Food, Inc.

Contacts

Peter Grossman Erik Ahl

Investor Relations Nordic Countries

+1 (775) 901-0344 +46 (0) 760 495 885

info@sinoagrofood.com

erik.ahl@sinoagrofood.com