Replies to post #130253 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

I understand the need for dividends but there is no money to pay out, and thy need desperately every dollar thy can lay their hands on.

Some things have changed since the carve-out. Let me try to explain the situation as far as I understand it.

SJAP and HSA are irrelevant. Even if they generate cash flow, they can't get the money out or will simply reinvest it. So no change there. Except that capex should be much lower than in the past.

HU is not generating much cash flow now. But it could again, longer term. So that one won't help us much either, for now.

Import/Export is generating cash flow, but not a whole lot. Perhaps $5M per year.

Which leaves the fish farms and CA. And things get more complicated now. Previously, CA was generating cash from resale and that's no longer the case. But CA had to reinvest every dollar from profits and that's no longer the case either. Short term, it boils down to this, TRW owes SIAF some $18M and potentially another $30M from the MF partners. Part of which they should be able to spend on shareholder friendly actions. This is money "freed up" after the carve-out.

Longer term, the cash flow will have to come from CA. In China and from abroad. And things get complicated again, from a cashflow perspective.

But what matters for now is the loan, or financing for TRW. That should open a few doors. And CA will start getting paid again. Longer term, there are a few other things they can do if they need more cash. First they have to get up on their feet.