Sino Agro Food Inc (fka SIAF)

[RealDutch]

The year-end report for the fish operation suggests a number below 30%.

That includes resale. They tell you in the 10-K how much they get for that.

When the project company initiates production Sino Agro Food acts as the sole marketer of food products and the supplier for the C&S Project Company under the terms and conditions of the C&S agreement. Sino Agro Food acts as the selling supplier and buying wholesaler to the company supplying items such as feed, young cattle, and RAS technological components and buys mature prawns, sleepy cod, eels and live cattle. Sino Agro Food earns a gross profit of between 10-15 percent based on the C&S Project Company’s revenue on this exclusivity.

That is why the average is below 30%. That will no longer apply after the carve-out.

Prawns generate 60% gross margin. Sleepy Cod close to 35%. If they rotate finfish faster, margins will be lower. But they will be selling a lot of prawns either way (from the RAS ponds).