Sino Agro Food Inc (fka SIAF)

[viking86]

RD: I agree with Orreborren that net margin is 29%. While gross profit(ability) only reflects Cost of Goods and doesnt change with who owns what % of the business (controlling interests), net profit or net margin does IMO b/c it reflects all the other costs of doing business including that of paying some of the profit to the controlling interests. As a shareholder, I Donot really care about the absolute profitability at the "gross margin" level. I only care about what me as the s/h gets "paid". In other words, even if the gross margin is huge (say 90%) but the business is 99% owned by non-shareholders, we as s/h get quasi zero net profit. That's how I have calculated the net margin all the time (Net of controlling interests).

The reason why NM is so low this quarter ( and from now on IMO) is ( besides the lower price of sleepy cod) b/c many projects that are co- owned by JV partners start now to show a profit including the wholesale centers and the fertilizer segment. In the past, most of the profits came from the service rev (100% for us) and from FF1 of which we currently own 75%.