Sino Agro Food Inc (fka SIAF)

[RealDutch]

I know they need capital to grow the business but I can't believe they would be unable to pay out 1/4 of earnings.

Let's take Wholesale center 1 as an example. They get paid $4M for design and construction. $2M of that money is profit. But they can't use that cash. They have to set it aside in order to acquire a 75% stake. Which undoubtedly happened in Q1. After that, it will generate profits that can be used by the company.

There are lots of JV's where they acquire a 75% stake. The number of JV's that generate cash is growing rapidly. So after 2013 the company doesn't need external financing and can increase its dividends.

All this time they are growing very fast. But fast growth requires capital initially.