Sino Agro Food Inc (fka SIAF)

[viking86]

There is a question in my mind re. the payment terms of the JV's that are all set up in a similar way by SIAF. In the JV contracts, SIAF or one of its subsidiaries, be it CA or Meiji or Triway, is the (initial) 25% partner but it is also the provider of design and construction services who gets paid for its services by the JV. For example, for the new Beef Wholesale and Distribution Shop (BWDS), the contract price is about $3.7m payable to SIAF itself as the partner.

So does SIAF get paid 100% of the service fee as the service provider or only 75% of service fee being the 25% partner itself? How much of that amount is booked by SIAF in its reports? My guess: 100% booked as revenue and 25% booked as expense or Account Payable. Also, it usually takes at least 6 months, sometimes a year or two to have the JV approved as a SFJVC by the gvmt. In the mean time, most of the facility has already be built and all other related expenses are prepaid by the 75% partner and those will be refunded to the partner after the SFJVC has been approved per contract:

5. The Parties agree to apply to the China Authorities to form a sino foreign joint venture company (hereinafter called “SFJVC”) to develop the Project soon after the execution of this Agreement, and prior to the official approval of the SFJVC, the Developer shall will be responsible to provide funding for the development needs of the Project, and such, upon the official establishment of the SFJVC, the Parties agree to transfer this Agreement to the SFJVC, and the SFJVC will be responsible to fund the required development capital needs of the Project.

Let's assume all the "other" construction and initial setup/supply costs in total 4M. Most likely, SIAF gets paid the $4M in cash in several partial payments as they incur by the partner. After the SFJVC has been approved, 75% of those partial expenses will be refunded to the partner, hence the many smaller amounts of debt settlements shown in the 8k report, dated a few days or weeks apart for the different projects. The debts are paid in shares issued to the partner based on the stock price the day the cost was paid.

We know the rest of the story. 6 months later, the shares become unrestricted and dumped on the market, mostly in batches of a few millions shares at a time... Agreed?