NEW YORK and GUANGZHOU, China, Nov. 18 /PRNewswire-FirstCall/ --
Sino Green Land Corporation (OTC:SGLA) (BULLETIN BOARD: SGLA) , a
leading distributor of high-end fruits and vegetables in China,
today reported financial results for the third quarter and nine
months ended September 30, 2009. Third quarter 2009 highlights: --
Net sales increased 12.7% to $31.2 million compared to the same
period last year -- Gross profit increased 26.3% to $3.5 million
and gross margin increased 120 basis points versus the third
quarter of 2008 -- Net income excluding a non-cash warrant expense
of $290,091 and a non-cash beneficial conversion feature expense of
$153,425 would have been $1.9 million or $0.02 per diluted share --
$1.3 million of cash and no long-term debt -- Shareholder's equity
of $22.2 million Mr. Anson Fong, Chairman, stated, "We experienced
a sharp increase in gross profit as a result of increased sales and
higher selling prices, both of which bode well for future quarters
as we add new cooperative arrangements with farmers and enter new
wholesale markets. We plan to build upon our strong foundation and
quality brand by expanding outside the wholesale realm, and
entering the retail market. We have an exciting strategy and
merchandising plan that we intend to roll out in 2010 which
includes entering the green foods market. We recently implemented
the first phase of a plan to construct the China Green Foods Hub
that will span 20 thousand square meters of space in Guangzhou,
China. China's appetite for healthier foods is expanding due to a
growing middle class that can afford the 15%-20% higher price
points on the healthier, environmentally friendly green foods
versus conventional produce. Our green foods hub will be open to
retailers as well as wholesalers and we plan to open the facility
in the second half of 2010. Green food consumption in China has
been increasing at a 40% compound annual growth rate for the past
five years, and there are no signs that this growth is abating."
Revenue for the three months ended September 30, 2009 increased
12.7% to $31.2 million, as compared to $27.7 million for the three
months ended September 30, 2008. The increase was primarily due to
higher volume sales of apples, bananas and oranges, combined with
stronger unit pricing. Gross profit was $3.5 million for the three
months ended September 30, 2009, as compared to $2.8 million for
the three months ended September 30, 2008, representing gross
margin of approximately 11.2% and 10.0%, respectively. Net income
for the three months ended September 30, 2009 was $1.4 million, or
$0.01 per diluted share, compared to net income of $1.8 million for
the same period last year. Net income for the three months ended
September 30, 2009, excluding a non-cash warrant expense of 290,091
and a non-cash beneficial conversion feature expense of $153,425,
would have been $1.9 million or $0.02 per diluted share. Net income
also included approximately $239,000 of transaction expenses
related to the company's financing consummated in August, 2009,
which provided the company growth capital to accelerate its growth
plans. Net income for the three months ended September 30, 2009
also reflects higher administrative expenses due to the company's
status as a public company since January, 2009. Revenue for the
nine months ended September 30, 2009 increased 23.9% to $71.5
million, as compared to $57.7 million for the nine months ended
September 30, 2008. Gross profit was $8.0 million for the nine
months ended September 30, 2009, as compared to $6.3 million for
the nine months ended September 30, 2008, representing gross margin
of approximately 11.2% and 11.0%, respectively. Net income for the
nine months ended September 30, 2009 was $3.4 million, or $0.03 per
diluted share, compared to net income of $4.2 million for the same
period last year. Net income for the nine months ended September
30, 2009, excluding a non-cash warrant expense of 290.091 and a
non-cash beneficial conversion feature expense of $153,425, would
have been $3.8 million or $0.03 per diluted share. Net income also
included approximately $239,000 of transaction expenses related to
the company's aforementioned financing consummated in August, 2009.
Net income for the nine months ended September 30, 2009 also
reflects higher administrative expenses due to the company's status
as a public company since January, 2009. As of September 30, 2009,
the company had cash and cash equivalents of $1.3 million, no
long-term debt and shareholders' equity of $22.2 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, regulatory, 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 September 30, 2009 AND DECEMBER
31, 2008 (UNAUDITED) SEPTEMBER DECEMBER 31, 30, 2009 2008 ---------
------------- ASSETS Current Assets Cash and cash equivalents $
1,289,297 $ 544,860 Accounts receivable, net 184,582 200,731 Due
from related parties 242,042 352,799 Inventories 13,587 16,931
Other current assets 380,010 58,046 ------- ------ Total Current
Assets 2,109,518 1,173,366 Property and Equipment, net 79,195
139,765 Advances for construction 2,433,990 497,568 Long-term
Prepayments 19,013,617 16,258,707 ---------- ---------- Total
Assets $ 23,636,319 $ 18,069,406 ========== ========== LIABILITIES
AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and
accrued expenses $ 920,082 $ 1,529,787 Advances from customers
48,833 56,443 Due to related parties 397,418 129,444 Due to
shareholders 101,876 - Convertible debenture - 313,627 - -------
Total Current Liabilities 1,468,209 2,029,300 Shareholders' Equity
Preferred stock, $0.001 par value, 20,000,000 shares authorized,
1,000,000 and 0 share issued and outstanding as of September 30,
2009 and December 31, 2008 1,000 - Common stock, $0.001 par value,
780,000,000 shares authorized, 104,943,337 and 81,648,554 issued
and outstanding as of September 30, 2009 and December 31, 2008
104,943 81,649 Common stock to be issued, 33,333.33 shares to be
issued, par value $0.001 per share as of September 30, 2009 33 -
Additional Paid-in capital 8,434,733 5,419,351 Other comprehensive
income 915,988 1,075,973 Retained earnings 12,711,412 9,463,134
---------- --------- Total shareholders' equity 22,168,109
16,040,107 ---------- ---------- Total Liabilities and
Stockholders' Equity $ 23,636,319 $ 18,069,406 ==========
========== CONSOLIDATED STATEMENTS OF INCOME AND OTHER
COMPREHENSIVE INCOME FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER
30, 2009 AND 2008 (UNAUDITED) Three Months Ended Nine Months Ended
September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ----
Net sales $31,153,814 $27,656,309 $71,460,013 $57,667,879 Cost of
goods sold 27,677,662 24,903,236 63,474,265 51,344,940 ----------
---------- ---------- ---------- Gross profit 3,476,152 2,753,073
7,985,748 6,322,939 --------- --------- --------- ---------
Operating expenses Selling expenses 886,079 501,805 2,123,930
1,028,279 General and administrative expenses 562,766 179,077
1,872,246 807,295 Total operating expenses 1,448,845 680,883
3,996,177 1,835,574 --------- ------- --------- --------- Operating
income 2,027,307 2,072,190 3,989,571 4,487,365 --------- ---------
--------- --------- Other income(expense) Interest income
(expenses), net (453,293) (38,608) (475,793) (40,258) Beneficial
conversion feature expense (153,425) (275,048) (153,425) (275,048)
Others, net (2,195) 19,541 (2,122) 19,088 ------ ------ ------
------ Total other income (608,912) (294,115) (631,340) (296,218)
-------- -------- -------- -------- Net income 1,418,394 1,778,075
3,358,231 4,191,146 Dividend required for preferred stockholders
109,952 109,952 Net income available to common shareholders
1,308,442 1,778,075 3,248,279 4,191,146 Other comprehensive income
(loss) Foreign currency Translation gain (loss) 7,243 710,922
(159,985) 833,427 ----- ------- -------- ------- Comprehensive
income $1,315,685 $2,488,996 $3,088,294 $5,024,573 =========
========= ========= ========= Net income per share Basic $0.013
$0.022 $0.038 $0.051 ===== ===== ===== ===== Diluted $0.011 $0.022
$0.030 $0.051 ===== ===== ===== ===== Weighted average number of
shares outstanding Basic 98,610,694 81,648,554 84,644,460
81,648,554 ========== ========== ========== ========== Diluted
125,388,131 81,648,554 111,515,489 81,648,554 ===========
========== =========== ========== CONSOLIDATED STATEMENTS OF CASH
FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008|
(UNAUDITED) SEPTEMBER 30, 2009 2008 ---- ---- Cash flows from
operating activities Net income $3,358,231 $4,191,147 Adjustments
to reconcile net income to net cash provided by operating
activities Depreciation 60,647 58,625 Bad debt expense recovery -
(47,586) Amortization 633,734 382,212 Expense warrants 290,091 -
Amortization of the stock award for director 9,633 - Stock award to
be issued to director 33 - Beneficial conversion feature 153,425
275,048 Decrease / (Increase) in current assets Accounts receivable
16,301 38,690 Other receivable (322,291) - Inventories 3,355 28,733
Other current assets 544 11,979 Increase in current liabilities
Accounts payable & accrued expense (463,324) 151,959 Advances
from customer (7,651) (14,780) Tax payables 318 - Other payables
(52,466) - ------- --- Net cash provided by operating activities
3,680,580 5,076,026 Cash flows from investing activities
Acquisation of plant, property, and equipment - (4,207) Advances
for contruction (1,935,079) (20,553) Due from related parties -
(51,661) Increase in long-term prepaid expense (3,373,918)
(5,413,252) ---------- ---------- Net cash used in investing
activities (5,308,997) (5,489,672) Cash flows from financing
activities Proceeds from (payments to) issuance of convertible
notes (502,684) 293,101 Proceeds from issuance of preferred stock
1,000 - Proceeds from issuance of common stock 2,629,000 - Due to
related parties 480,484 - ------- --- Net cash provided by
financing activities 2,607,800 293,101 Effect of exchange rate
change on cash and cash equivalents (234,945) (24,088) --------
------- Net increase in cash and cash equivalents 744,437 (144,633)
Cash and cash equivalents, beginning balance 544,860 443,046
------- ------- Cash and cash equivalents, ending balance
$1,289,297 $298,413 ========== ======== Supplement disclosure of
cash flow information Interest expense paid $105,069 $ - ========
=== Income taxes paid $3,619 $ - ====== === Contact: Crescendo
Communications, LLC David Waldman or Klea Theoharis Tel:
212-671-1020 E-mail: DATASOURCE: Sino Green Land Corporation
CONTACT: David Waldman or Klea Theoharis of Crescendo
Communications, LLC, +1-212-671-1020,
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