SkyPeople Fruit Juice Reports Full Year 2012 Financial Results

        SkyPeople Fruit Juice Reports Full Year 2012 Financial Results

PR Newswire

XI'AN , China, March 29, 2013

XI'AN , China, March 29, 2013 /PRNewswire-FirstCall/ -- SkyPeople Fruit Juice,
Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice
concentrates, fruit juice beverages and other fruit-related products, today
announced its financial results for the fiscal year ended December 31, 2012.

Full Year 2012 Highlights:

  oTotal revenue was $102.4 million, an increase of 22% year-over-year
  oRevenue from the concentrated pear juice segment increased 116% to $28.9
    million year-over-year
  oRevenue of the fruit juice beverage segment increased 29% to $27.1 million
    year-over-year
  oNet income attributable to SkyPeople Fruit Juice, Inc. increased 38% to
    $18.2 million year-over-year
  oCash flow from operations for fiscal year 2012 was $19.4 million
  oCash and cash equivalents were $77.6 million as of December 31, 2012

"We are very pleased to report robust financial results for the fiscal year
2012 even as we explore new market opportunities and initiatives. The year was
driven by the outstanding commitment of our employees across a wide variety of
activities which led to superior performance in two of our key product
segments, concentrated pear juice and fruit juice beverages," said Mr. Hongke
Xue, Chief Executive Officer of SkyPeople. "We believe that our diversified
product mix is a key to our success as it provides us with flexibility to
shift our manufacturing towards fruit products that have better growing
seasons as well as those with better market receptivity which, in turn,
maximizes our performance."

CEO Hongke Xue continued, "I am also pleased to report that the financial
condition of the company is sound and that SkyPeople has excellent growth
opportunities available to it. As announced last year, we entered into an
agreement with the government of Hubei Province, one of the largest citrus
production provinces in China, to invest approximately $61 million to develop
facilities to produce a range of orange products. We believe that this project
fits our diversification strategy as it is complements our existing product
platform, enhances our competitive advantages and further mitigates both the
regional and seasonal cyclicality of our fruit segments."

"We continue to see China as a tremendous growth market as the country's
unprecedented economic development and rising incomes are causing a transition
in consumer tastes towards healthier lifestyles and improved nutrition. Our
diversified range of fruit product offerings and branded fruit juice beverages
with its downstream integration and unique delivery systems are all in place
for SkyPeople to enjoy a successful and profitable year in 2013," CEO Hongke
Xue concluded.

Full Year 2012 Financial Results

Revenue for the twelve months ended December 31, 2012 was $102.4 million, an
increase of 22%, as compared to $84.0 million for the same period in 2011.
This increase was primarily due to an increase in sales of concentrated pear
juice, fruit juice beverages and fresh fruit and vegetables which was
partially offset by a decrease in the sales of concentrated kiwifruit juice
and kiwifruit puree and concentrated apple juice and apple aroma.

Fiscal Year Revenue by Segment (in thousands)

                                            Year ended December 31,
                                            2012           2011      % of
                                                                     change
Concentrated apple juice and apple aroma    22,887         24,837    (8)%
Concentrated kiwifruit juice and kiwi puree 9,152          15,544    (41)%
Concentrated pear juice                     28,925         13,421    116%
Fruit juice beverages                       27,137         20,974    29%
Fresh fruits and vegetables                 8,417          7,880     7%
Other                                       5,838          1,365     328%
Total                                       102,356        84,021    22%

Gross profit was $33.1 million in fiscal 2012, an increase of 20% from $27.5
million in fiscal 2011. Gross profit margin was 32% as compared to 33% for
the same period of 2011. The slight year-over-year decrease in gross margin
was attributable to a decrease in gross margin in our fruit juice beverages
segment partially offset by gross margin increases in our apple products,
kiwifruit products, concentrated pear juice and fresh fruit and vegetables
segments.

                                            2012            2011
                                            Gross   Gross   Gross   Gross
                                            profit  margin  profit  margin
Concentrated apple juice and apple aroma    4,640   20%     4,412   18%
Concentrated kiwifruit juice and kiwi puree 4,535   50%     7,661   49%
Concentrated pear juice                     8,507   29%     3,182   24%
Fruit juice beverages                       9,288   34%     7,905   38%
Fresh fruits and vegetables                 4,663   55%     3,746   48%
Other                                       1,440   25%     567     42%
Total                                       33,073  32%     27,473  33%

Operating expenses for fiscal 2012 decreased by 6% to $7.9 million, or 8% of
sales, compared to $8.4 million, or 10% of sales for the same period of 2011.
General and administrative expenses decreased 14% to $4.4 million, mainly due
to decreases in legal fees related to currently pending litigations.Selling
expenses increased 7% to $2.9 million, which was mainly due to an increase in
the headcount of the Company's sales force. Research and development expenses
increased 2% to $0.57 million in fiscal 2012 from $0.56 million in fiscal
2011.

Income from operations for fiscal 2012 increased 33% to $25.2 million as
compared to $19.0 million for fiscal 2011.

Total other income was $0.9 million for the fiscal year 2012, as compared to
total other income of $0.2 million in 2011. The increase in other income was
primarily due to an increase in the subsidy income to $1.9 million in fiscal
2012 as a result of the value-added tax rebates provided on the Company's
exports, which significantly increased in 2012 from 2011.

Net income attributable to common SkyPeople Fruit Juice shareholders for the
fiscal year 2012 increased 38% to $18.2 million from $13.2 million in the
fiscal year 2011, while diluted earnings per share was $0.68 for the fiscal
year 2012 as compared to $0.50 for fiscal year 2011.

Financial Condition

As of December 31, 2012, the Company had $77.6 million in cash and cash
equivalents, up from $61.2 million as of fiscal year end 2011. The Company's
working capital was $102.9 million. As of December 31, 2012, the Company had
total liabilities of $31.8 million, which included $11.7 million in short-term
bank loans. Shareholders' equity attributable to SkyPeople Fruit Juice was
$156.5 million as of fiscal year end 2012 as compared to $137.9 million as of
fiscal year end 2011.

During 2012, the Company's operating activities generated net cash inflow of
$19.4 million, a decrease of 25% as compared to $26.0 million in 2011. The
decrease was mainly due to a 37% increase in accounts receivable year over
year. Net cash used in investing activities were $8.8 million for fiscal 2012
versus $12.9 million in fiscal 2011. Cash flow generated from financing
activities totaled $5.5 million in fiscal 2012, versus a net outflow of $4.0
million in fiscal 2011. Historically, the Company has financed its capital
expenditures and other operating expenses through operating cash flows and
bank loans.

Financial Guidance

The Company has previously provided financial guidance for the fiscal year
2012. Based on the business outlook in August 2012, the Company forecasted
revenue to be in the range of $90 million to $110 million, net income
attributable to SkyPeople Fruit Juice to be in the range of $16.2 million to
$22.0 million, and fully diluted earnings per share to be in the range of
$0.61 to $0.83. For fiscal year 2012, the Company's actual financial results
for these three income statement metrics were within the ranges forecasted.
The Company plans upon providing financial guidance for fiscal year 2013 once
it has further visibility into the operating and business conditions for the
year.

Conference Call

The Company will hold a conference call on Tuesday, April 2, 2012 at 9:00 a.m.
Eastern Time to discuss its financial results for the fourth quarter and
fiscal year ended December 31, 2012.

The Company's Chairman, Mr. Yongke Xue, and CFO, Mr. Xin Ma, will host the
call.

To attend the live conference call, please dial in at least 10 minutes before
the call to ensure timely participation. Please use the dial-in information
below. When prompted by the operator, mention the conference Pass Code.

Date:                                              Tuesday, April 2, 2013
Time:                                              9:00 a.m. Eastern Time, US
Conference Line Dial-In:              +1-855-880-8437
International Dial-In:                             +1-931-229-4159
Conference Pass Code:                              28286940

To access the replay, please dial 1-855-859-2056 within the United States or
1-404-537-3406 when dialing internationally, and enter the pass code 28286940
for the replay. The replay will be available on April 2 at 12:00 pm.

About SkyPeople Fruit Juice, Inc.

SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned
subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a Vanuatu
company, and SkyPeople Juice International Holding (HK) Ltd., a company
organized under the laws of Hong Kong Special Administrative Region of the
People's Republic of China and a wholly owned subsidiary of Pacific, holds
99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople
(China)"). SkyPeople (China), together with its operating subsidiaries in
China, is engaged in the production and sales of fruit juice concentrates,
fruit beverages, and other fruit related products in the PRC and overseas
markets. Its fruit juice concentrates are sold to domestic customers and
exported directly or via distributors. Fruit juice concentrates are used as a
basic ingredient component in the food industry. Its brands, "Hedetang" and
"SkyPeople," which are registered trademarks in the PRC, are positioned as
high quality, healthy and nutritious end-use juice beverages. For more
information, please visit http://www.skypeoplefruitjuice.com.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking
statements" within the meaning and protections of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended, or the Exchange Act. Forward-looking statements
include statements with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and other
factors, which may be beyond our control, and which may cause the actual
results, performance, capital, ownership or achievements of the Company to be
materially different from future results, performance or achievements
expressed or implied by such forward-looking statements. All statements other
than statements of historical fact are statements that could be
forward-looking statements. You can identify these forward-looking statements
through our use of words such as "may," "will," "anticipate," "assume,"
"should," "indicate," "would," "believe," "contemplate," "expect," "estimate,"
"continue," "plan," "point to," "project," "could," "intend," "target" and
other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are
expressly qualified in their entirety by this cautionary notice, including,
without limitation, those risks and uncertainties described in our annual
report on Form 10-K for the year ended December 31, 2012 and otherwise in our
SEC reports and filings, including the final prospectus for our offering. Such
reports are available upon request from the Company, or from the Securities
and Exchange Commission, including through the SEC's Internet website at
http://www.sec.gov. We have no obligation and do not undertake to update,
revise or correct any of the forward-looking statements after the date hereof,
or after the respective dates on which any such statements otherwise are made.

-Financial Tables Follow-

SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED BALANCE SHEETS
(Audited)
                                             December 31,       December 31,
                                         2012               2011
ASSETS
CURRENT ASSETS
 Cash and cash equivalents            $   77,560,278     $   61,154,007
 Restricted cash                          -                  316,396
 Accounts receivables, net of
allowance of
 $46,643 and $46,529 as of December     49,435,961         35,999,858
31,
 2012 and December 31, 2011,
respectively
 Other receivables                        201,417            192,032
 Inventories                              7,278,191          6,126,376
 Deferred tax assets                      90,576             174,285
 Advances to suppliers and other          71,536             66,528
current assets
TOTAL CURRENT ASSETS                         134,637,959        104,029,482
PROPERTY, PLANT AND EQUIPMENT, NET           52,180,097         44,277,228
LAND USE RIGHT, NET                          7,718,363          6,673,496
OTHER ASSETS                                 682,592            5,323,162
TOTAL ASSETS                             $   195,219,011    $   160,303,368
LIABILITIES
CURRENT LIABILITIES
 Accounts payable                     $   14,399,282     $   2,972,916
 Accrued expenses                         2,050,675          4,701,054
 Income tax payable                       3,127,245          1,910,779
 Advances from customers                  530,437            178,857
 Short-term bank loans                    11,661,761         6,425,713
 Short-term notes payable                 -                  284,654
TOTAL CURRENT LIABILITIES                    31,769,400         16,473,973
SHAREHOLDERS' EQUITY
SkyPeople Fruit Juice, Inc,
Stockholders' equity
 Series B Preferred stock, $0.001 par
value;
 10,000,000 shares authorized; Nil
shares
 and 1,456,647 shares issued and       -                  1,457
outstanding
 as of, December 31, 2012 and
2011,
 respectively.
 Common stock, $0.001 par value;
66,666,666
 shares authorized; 26,661,499
shares and
 25,690,402 shares issued and         26,661             25,690
outstanding
 as of, December 31, 2012 and
2011,
 respectively
 Additional paid-in capital               59,189,860         59,189,374
 Retained earnings                        82,793,585         64,623,453
 Accumulated other comprehensive          14,500,860         14,086,620
income
 Total SkyPeople Fruit Juice, Inc.
stockholders'                                156,510,966        137,926,594
 equity
 Non-controlling interests                6,938,645          5,902,801
TOTAL EQUITY                                 163,449,611        143,829,395
TOTAL LIABILITIES AND EQUITY             $   195,219,011    $   160,303,368
The notes in the Company's 10-K are an integral part of these consolidated
financial statements.



SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Audited)
                                               For the Year Ended December 31,
                                               2012           2011
Revenue                                      $ 102,356,001    $  84,021,429
Cost of goods sold                             69,283,010        56,548,845
Gross profit                                   33,072,991        27,472,584
Operating Expenses
 General and administrative expenses        4,409,055         5,138,388
 Selling expenses                           2,899,141         2,728,129
 Research and development expenses          570,278           557,361
Total operating expenses                       7,878,474         8,423,878
Income from operations                         25,194,517        19,048,706
Other income (expenses)
 Interest income                            314,628           277,458
 Subsidy income                             1,908,802         893,241
 Interest expenses                          (888,574)         (849,743)
 Others incomes                             -                 (149,015)
 Settlement relating to prior               (475,248)         -
acquisition
Total other income (expenses)                  859,608           171,941
Income before income tax                       26,054,125        19,220,647
 Income tax provision                       6,871,238         5,089,285
Net income                                     19,182,887        14,131,362
Less: Net income attributable to               1,012,755         926,192
non-controlling interests
NET INCOME ATTRIBUTABLE TO                   $ 18,170,132     $  13,205,170
SKYPEOPLE FRUIT JUICE, INC.
Earnings per share:
 Basic earnings per share                 $ 0.68           $  0.51
 Diluted earnings per share               $ 0.68           $  0.50
Weighted average number of shares outstanding
 Basic                                      26,107,264        25,690,402
 Diluted                                    26,661,500        26,661,500
Comprehensive Income
Net income                                   $ 19,182,887     $  14,131,362
Foreign currency translation adjustment        437,329           6,511,990
Total Comprehensive income                   $ 19,620,216     $  20,643,352
Comprehensive income attributable to           1,035,844         1,175,529
non-controlling interests
Comprehensive income attributable to         $ 18,584,372     $  19,467,823
SkyPeople Fruit Juice, Inc.
The notes in the Company's 10-K are an integral part of these consolidated
financial statements.



SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Audited)
                                          For the Year Ended Dec 31,
                                          2012               2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                $  19,182,887      $  14,131,362
Adjustments to reconcile net income to
net cash
provided by operating activities
 Depreciation and amortization            4,596,276          3,552,740
 Loss on disposal of properties and       -                  142,380
equipment
 Deferred tax assets                      83,709             (174,285)
Changes in operating assets and
liabilities
 Accounts receivable                      (13,290,808)       11,932,885
 Other receivable                         (8,900)            1,113,111
 Advances to suppliers and other          (4,861)            (34,243)
current assets
 Inventories                              (1,131,943)        (419,708)
 Accounts payable                         11,370,240         (623,141)
 Accrued expenses                         (2,648,963)        (382,650)
 Short-term notes payable                 (284,131)          (239,119)
 Income tax payable                       1,206,559          (2,609,659)
 Advances from customers                  349,640            (411,869)
Net cash provided by operating               19,419,705         25,977,804
activities
CASH FLOWS FROM INVESTING ACTIVITIES
 Additions to property, plant and         (6,954,476)        (7,791,997)
equipment
 Additions to land use right              (1,205,038)        -
 Prepayment for other assets              (591,518)          (5,147,903)
Net cash used in investing activities        (8,751,032)        (12,939,900)
CASH FLOWS FROM FINANCING ACTIVITIES
 Changes in restricted cash               315,814            208,154
 Proceeds from short-term bank loans      6,336,634          4,235,865
 Repayment of short-term bank loans       (1,138,658)        (8,433,584)
Net cash provided by (used in)               5,513,790          (3,989,565)
financing activities
Effect of change in exchange rate            223,808            2,755,283
NET INCREASE (DECREASE) IN CASH AND          16,406,271         11,803,622
CASH EQUIVALENTS
 Cash and cash equivalents,               61,154,007         49,350,385
beginning of year
 Cash and cash equivalents, end of        77,560,278         61,154,007
year
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
 Cash paid for interest                   888,574            849,743
 Cash paid for income taxes               5,556,241          7,853,661
SUPPLEMENTARY DISCLOSURE OF
SIGNIFICANT NON-CASH TRANSACTION
 Change in fair value of warrant
liability
 Transferred from other assets to
property, plant                              5,221,925          1,687,012
and equipment and construction in
process
The notes in the Company's 10-K are an integral part of these consolidated
financial statements.

For more information, please contact:

COMPANY                                    INVESTOR RELATIONS
Xin Ma, Chief Financial Officer            David Rudnick, Account Manager
SkyPeople Fruit Juice, Inc.                CCG Investor Relations
Tel: China + 86 - 29-8837-7161           Tel: US +1- 646-626-4172
Email: oliver.x.ma@skypeoplefruitjuice.com Email: david.rudnick@ccgir.com 
Web: http://www.skypeoplefruitjuice.com   Web: http://www.ccgir.com



SOURCE SkyPeople Fruit Juice, Inc.

Website: http://www.skypeoplefruitjuice.com
 
Press spacebar to pause and continue. Press esc to stop.