SOURCE: Sino Green Land Corp.

August 17, 2009 09:00 ET

Sino Green Land Achieves 34% Revenue Growth for the 6 Months Ended June 30, 2009

Generates $1.6 Million of Net Income for the Second Quarter of 2009

NEW YORK, NY and GUANGZHOU, CHINA--(Marketwire - August 17, 2009) - Sino Green Land Corporation (OTCBB: SGLA), a leading distributor of high-end fruits and vegetables in China, today reported financial results for the second quarter and six months ended June 30, 2009.

Mr. Anson Fong, Chairman, stated, "Since founding our company in 2003, we sought to build an efficient and scalable platform for the distribution of high-end fruits and vegetables across China, and believe that our compound annual growth rate of over 70% in the last three years alone is indicative of our success. We achieved this growth through the establishment of co-operative structures with farmers across China that enable us to lock in guaranteed supply by providing them an outlet for their produce. We also provide these farmers with valuable support, such as introducing new fruit species, providing technologies to help increase crop yield, and supporting the use of eco-friendly and human safe pesticides and fertilizers."

"The second component of our strategy was to leverage our expertise to build out our distribution channels. We distribute products in two large, key markets: the Guangzhou YunCheng wholesale market, which has an annual apple sales volume of over 250,000 tons; and the Beijing Xinfadi wholesale market, which has an annual apple turnover of approximately 300,000 tons. In addition, we currently focus on three key high end products that include Fuji apples, emperor bananas and tangerine oranges. We chose these fruits due to the strong and growing demand for these premium items. For instance, Fuji apples are currently sold at a rate of 27 million tons per year in China. We plan to further diversify our revenue and enhance profitability through expanded distribution as well as increased exports of higher margin premium fruits."

"China's Ministry of Agriculture is committed to increasing the availability of environmentally friendly and healthy food, and provides support to agricultural companies through its subsidiary, the China Green Food Association. China's Ministry of Agriculture has invested significant capital since 1990 to create official green food standards, and there are now over 6,000 association members that have reached these standards on over 17,000 food items. As a council member of the China Green Food Association, Sino Green Land is uniquely positioned to distribute green food products for the association's members, providing us direct access to expand into the green food arena, a category of healthy and environmentally friendly foods whose price points are 15-20% higher than conventional produce in China. We view this as a new source of high margin revenue growth going forward."

"We experienced severe weather patterns in the first quarter of 2008, which deferred a high portion of our sales to the second quarter of 2008. As a result, our year-over-year growth rate for the six months ended June 30th was more representative of our overall performance than the second quarter alone. We are pleased to report revenue growth of 34% for the six months ended June 30, 2009 versus the same period last year. Looking ahead, we plan to maintain strong double-digit revenue growth and further enhance our margins, while continuing to generate very strong cash flow. We are extremely excited about the near and long-term opportunities for the company, and look forward to maximizing value for our shareholders, given our new status as a public company in the U.S."

Revenue for the three months ended June 30, 2009 was $21.8 million, as compared to $22.2 million for the three months ended June 30, 2008. Gross profit was $2.4 million for the three months ended June 30, 2009, as compared to $2.5 million for the three months ended June 30, 2008, representing gross margin of approximately 11.0% and 11.4%, respectively. Net income for the three months ended June 30, 2009 was $1.6 million, or $0.02 per diluted share, compared to net income of $1.7 million for the same period last year, prior to the company's reverse merger.

Revenue for the six months ended June 30, 2009 was $40.3 million, as compared to $30.0 million for the six months ended June 30, 2008. Gross profit was $4.5 million for the six months ended June 30, 2009, as compared to $3.6 million for the three months ended June 30, 2008, representing gross margin of approximately 11.2% and 11.9%, respectively. The decline in gross margin year-over-year was due to the pre-payment of certain sales commissions during the first six months of 2009 that were not paid out in the comparable period in 2008, but rather in the second half of 2008. Net income for the six months ended June 30, 2009 was $1.9 million, or $0.02 per diluted share, compared to net income of $2.4 million for the same period last year, prior to the company's reverse merger. Net income for the six months ended June 30, 2009 included approximately $0.8 million of one-time expenses related to the reverse merger that took place in the first quarter of 2009.

As of June 30, 2009, the company had cash and cash equivalents of $627,605 and shareholders' equity of $17.8 million.

About Sino Green Land Corporation

Sino Green Land Corporation is a leading agricultural distributor of high-end fruits and vegetables in the People's Republic of China. Since its inception in 2003, Sino Green Land has grown from a small distributor of various produce to become a large distributor of high-end fruits such as: Fuji apples, emperor bananas and tangerine oranges. In the process, Sino Green Land has built a solid reputation, a sophisticated supply chain and a distribution network that stretches from Beijing to Guangzhou.

Safe Harbor Statement

This press release may contain forward-looking statements. Such statements include, among others, those concerning the company's expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to the company's ability to overcome competition in its market; the impact that a downturn or negative changes in the price of the company's products could have on its business and profitability; the company's ability to simultaneously fund the implementation of its business plan and invest in new projects; economic, political, regulator y, legal and foreign exchange risks associated with international expansion; or the loss of key members of the company's senior management; any of the factors and risks mentioned in the "Risk Factors" sections of the Company's amended current report on Form 8-K/A filed on April 24, 2009. The Company assumes no obligation, and does not intend, to update any forward-looking statements, except as required by law.

                        CONSOLIDATED BALANCE SHEETS
                AS OF JUNE 30, 2009 AND DECEMBER 31, 2008
                                (UNAUDITED)



                                                    June 30,   December 31,
                                                      2009         2008
                                                  ------------ ------------
                      ASSETS
Current Assets
                                                  ------------ ------------
Cash and cash equivalents                         $    627,605 $    544,860
                                                  ------------ ------------
Accounts receivable, net                               225,852      200,731
                                                  ------------ ------------
Advances to suppliers                                  485,344      497,568
                                                  ------------ ------------
Due from related parties                               241,574      352,799
                                                  ------------ ------------
Inventories                                             15,501       16,931
                                                  ------------ ------------
Other current assets                                   333,929       58,046
                                                  ------------ ------------
Total Current Assets                                 1,929,805    1,670,934
                                                  ------------ ------------

                                                  ------------ ------------
Property and Equipment, net                             99,841      139,765
                                                  ------------ ------------
Long-term Prepayments                               18,891,915   16,258,707
                                                  ------------ ------------
Total Assets                                      $ 20,921,561 $ 18,069,406
                                                  ------------ ------------


   LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

Accounts payable and accrued expenses             $  2,087,064 $  1,529,787
                                                  ------------ ------------
Advances from customers                                 48,739       56,443
                                                  ------------ ------------
Due to related parties                                 384,501      129,444
                                                  ------------ ------------
Due to shareholders                                    105,047            -
                                                  ------------ ------------
Convertible debenture                                  483,494      313,627
                                                  ------------ ------------
Total Current Liabilities                            3,108,846    2,029,300
                                                  ------------ ------------

Shareholders’ Equity
                                                  ------------ ------------
Preferred stock, $0.001 par value, 20,000,000
 shares authorized,  0 shares issued and
 outstanding as of June 30, 2009 and December 31,
 2008                                                        -            -
                                                  ------------ ------------
Common stock, $0.001 par value, 780,000,000
 shares authorized,  87,480,593 and 81,648,554
 issued and outstanding as of June 30, 2009 and
 December 31, 2008                                      87,481       81,649
                                                  ------------ ------------
Additional Paid-in capital                           5,413,520    5,419,351
                                                  ------------ ------------
Other comprehensive income                             908,745    1,075,973
                                                  ------------ ------------
Retained earnings                                   11,402,970    9,463,134
                                                  ------------ ------------
Total shareholders’ equity                          17,812,716   16,040,107
                                                  ------------ ------------

                                                  ------------ ------------
Total Liabilities and Stockholders’ Equity        $ 20,921,561 $ 18,069,406
                                                  ------------ ------------


     CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
        FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008
                                (UNAUDITED)




                    Three Months Ended June 30,  Six Months Ended June 30,
                    --------------------------  --------------------------
                         2009         2008           2009         2008
                    ------------  ------------  ------------  ------------
Net sales           $ 21,775,636  $ 22,168,860  $ 40,306,199  $ 30,011,571
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Cost of goods sold    19,389,024    19,648,340    35,796,603    26,441,705
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Gross profit           2,386,612     2,520,520     4,509,596     3,569,866
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Operating expenses
                    ------------  ------------  ------------  ------------
Selling expenses         838,796       305,668     1,237,851       526,474
                    ------------  ------------  ------------  ------------
General and
 administrative
 expenses                372,528       537,898     1,309,480       628,218
                    ------------  ------------  ------------  ------------
Total operating
 expenses              1,211,324       843,566     2,547,331     1,154,692
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Operating income       1,175,288     1,676,954     1,962,265     2,415,174
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Other  income
 (expense)
                    ------------  ------------  ------------  ------------
Interest income
 (expenses), net               -        (2,027)      (22,500)       (1,650)
                    ------------  ------------  ------------  ------------
Beneficial
 conversion feature
 expense                 125,000             -             -             -
                    ------------  ------------  ------------  ------------
Others, net              284,320          (453)           72          (453)
                    ------------  ------------  ------------  ------------
Total other income       409,320        (2,480)      (22,428)       (2,103)
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Net income             1,584,608     1,674,473     1,939,837     2,413,070
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Other comprehensive
 income (loss)
                    ------------  ------------  ------------  ------------
Foreign currency
 translation gain
 (loss)                 (140,287)       90,995      (167,228)      122,505
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Comprehensive
 income             $  1,444,322  $  1,765,469  $  1,772,609  $  2,535,576
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------
Net income per
 share
                    ------------  ------------  ------------  ------------
Basic               $      0.019  $      1.005  $      0.023  $      1.448
                    ------------  ------------  ------------  ------------
Diluted             $      0.018  $      1.005  $      0.023  $      1.448
                    ------------  ------------  ------------  ------------

                    ------------  ------------  ------------  ------------


Weighted average
 number of shares
 outstanding
                    ------------  ------------  ------------  ------------
Basic                 85,466,388     1,666,297    84,396,563     1,666,297
                    ------------  ------------  ------------  ------------
Diluted               86,017,744     1,666,297    84,947,919     1,666,297
                    ------------  ------------  ------------  ------------



                  CONSOLIDATED STATEMENTS OF CASH FLOWS
             FOR THE SIX MONTHS ENDED JUNE 30, 2009 AND 2008
                                (UNAUDITED)


                                                           June 30,
                                                      2009          2008
                                                  -----------  -----------
Cash flows from operating activities
 Net income                                       $ 1,939,837  $ 2,413,070
 Adjustments to reconcile net income to net cash
  provided by operating activities
    Depreciation                                       42,088       40,484
    Amortization                                      423,991      137,975
    Decrease / (Increase) in current assets
      Accounts receivable                             (25,338)     (51,182)
      Inventories                                       1,410       15,828
      Advances to suppliers                            11,658      (30,475)
      Other current assets                           (275,851)     (95,741)
    Increase in current liabilities
      Accounts payable & accrued exp                 (422,913)    (115,096)
      Advances from customer                           (7,638)      48,602
      Tax payables                                  1,031,302         (473)
      Other payables                                  (29,234)     346,549

Net cash provided by operating activities           2,689,314    2,709,542

Cash flows from investing activities
    Acquisition of plant, property, and equipment      (2,336)      (3,771)
    Increase in long-term prepaid expense          (3,074,581)  (3,046,707)
    Net cash used in investing activities          (3,076,917)  (3,050,477)

Cash flows from financing activities
    Due to related parties                            471,016      (79,647)
    Short term loan                                         -      399,362
    Net cash provided by (used in) financing
     activities                                       471,016      319,716

Effect of exchange rate change on cash and cash
 equivalents                                             (668)      22,329

Net increase in cash and cash equivalents              82,745        1,110

Cash and cash equivalents, beginning balance          544,860      443,046
Cash and cash equivalents, ending balance         $   627,605  $   444,156



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