Sino Agro Food Inc (OTCBB:SIAF) recently announced its FY2014 results and recorded great financial health. The company recorded a 55% increase in revenue, with a 27% increase in profit and a decline in diluted EPS of 4%. Sino Agro operates in the Peoples Republic of China and is an agriculture technology and organic food company. The company has decided to use its improved financial status to engage with Burnham Securities Inc. Burnham Securities would serve as an investment banker and financial advisor to the company.
CEO of Sino Agro Food, Solomon Lee, expressed his thoughts that the agreement with Burnham would be a step forward in their investment plan, which the company had initiated in 2010. He also stated that the company intends to use the links of Burnham Securities, in the capital market, to develop further relationships with financing partners for future developments. The company believes this would help raise its stock value, which has seen a substantial decline in the past year.
SIAF operates with a number of sub-divisions, each of which operates independently. However, SIAF works to establish a working relation between these divisions and forms a central management. Amongst all the sub-divisions, the fishery’s was able to generate the largest revenue, contributing almost 45% to the FY2014 and increasing by a whopping 67%. The HU plant division was one that had the worst year, amongst the sub-divisions; revenues from this division, declined by 51% in FY2014. Additionally the company is one that either owns or licenses patents of the proprietary methods it uses for operations.
Apart from its great financial endeavors, the company also entered into a deal with Tesco Plc (OTCPK:TSCDF), to become a supplier and in-store butcher shop at the supermarket. The company intends to supply beef and lamb products from its own production line and design its in-store butcher shop. The company plans to start with Tesco stores in Shanghai, moving on to branded outlets and then carry out further expansion in phases.
Sino Agro Food Inc (OTCBB:SIAF) closed at $11.15, registering an increase of 5.49% yesterday.