Sino Agro Food Inc (fka SIAF)

[jyyoo]

New business developement for Triway:

One of the issues that Tri-way faces is generating sufficient stand-alone income that would meet both the minimum required to become eligible for listing on the senior exchange, but more importantly to demonstrate to the investing public that Tri-way has attained a certain level of stand- alone income (excluding JFD’s income as a primary producer) that warrants investing in its future and with which our financial advisors help determine is necessary to warrant its participation in the process. To this end, Tri-way has needed to decide on how to meet its income goals while at the same time navigating the China tax code, namely China’s exemption on primary producers of agricultural products.

Tri-way, a HK registered company with operations in China, has up until now been exclusively dependent on its farms in China as its primary source of income that with sufficient CapEx would be capable of having production levels ramping up over the next three years, and in turn, generate sufficient cash-flow to meet the income levels needed to be achieved throughout the pre-IPO process. The project’s facilities in China can grow organically regardless of outside financing yet its chances for obtaining senior listing on the exchange as well as a successful IPO would be curtailed, significantly. Faced with developing a plan allowing Tri-way to work around the limits being discussed, Tri-way has been organizing a Trading Division based in HK to import frozen seafood and other frozen food products from other countries to be sold in China by JFD’s commercial arms (which are special vehicles (or companies)) being established since mid-2017 each holding their respective import/export permits and licenses. In this regard, Tri-way’s imports (Frozen seafood and other foods) will differentiate from SIAF’s imports that mainly consist of live seafood and slaughtered/dressed beef. Having the Trading Division established in HK would 1) allow Tri-way’s China operations to maintain its source of income as a primary producer of agriculture products and forego incurring any tax liability from value added and / or commercial sales of its product; and 2) allow Tri-way through its HK Trading Division to generate sufficient sales through the import/export industry helping it to attain a respectable IPO at a sooner date by helping to increase revenue in a shorter period of time than it would take to both build and initiate production at the Aquafarms in China. To date, Tri-way has approached and received interest from many suppliers from other countries (i.e. Brazil, India, Argentina, Malaysia, Indonesia, Vietnam, Philippine, Thailand, Taiwan and Russia) to supply various quality frozen seafood and food products (i.e. King crabs, different types of tropical marine fish, prawns, squids, shell fish, cold water marine fish and scallops, as well as chicken products) to be sold in China. Estimates of performance from this division initially shows trade sales amounting to $300 to $500m per year at a healthy profit margin.