SkyPeople Fruit Juice Reports First Quarter 2013 Financial Results

      SkyPeople Fruit Juice Reports First Quarter 2013 Financial Results

PR Newswire

XI'AN, China, May 14, 2013

XI'AN, China, May 14, 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 first quarter ended March 31, 2013.

First Quarter 2013 Highlights:

  oRevenue was $18.6 million, an increase of 24% year-over-year
  oGross profit was $7.6 million, an increase of 60% year-over-year
  oGross profit margin was 41% as compared to 32% for the same period of
    2012.
  oIncome from operations was $5.5 million, an increase of 108%
    year-over-year
  oNet income attributable to the Company was $3.8 million, an increase of
    99% year-over-year
  oRevenue from the fruit juice beverage segment was $8.6 million, an
    increase of 155% year-over-year
  oCash and cash equivalents were $91.3 million as of March 31, 2013

"We are very pleased to report strong financial results for the first quarter
of 2013 as revenue grew 24% from the comparable year-ago quarter and net
income almost doubled as our margins improved. The quarter was highlighted by
the growth of our fruit juice beverages segment primarily in China. We
anticipate further growth for this segment as we expand our domestic footprint
and market to more highly populated Chinese cities. We currently sell our
fruit beverages to more than 20,000 retail stores in approximately 20
provinces," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople.

"Also, as recently announced we entered into an agreement with the Managing
Committee of Mei County National Kiwi Fruit Wholesale Trading Center, which
has been authorized by the People's Government of Mei County to be in charge
of the construction and administration of the Mei County National Kiwi Fruit
Wholesale Trading Center (the "Trading Center") to establish kiwi processing
facilities which we believe has excellent potential and will strengthen our
competitive positioning in this important product segment. As announced in the
fourth quarter of last year, we entered into an agreement to develop orange
products in Hubei Province since we believe that there is a shortage of such
products in the market. We believe that these two initiatives augment our
existing product platform with the potential of driving additional revenue
while mitigating both the regional and seasonal cyclicality of our products,"
Mr. Hongke Xue concluded.

First Quarter 2013 Financial Results

Revenue for the three months ended March 31, 2013 was $18.6 million, an
increase of 24% as compared to $15.0 million for the same period in 2012. This
increase was primarily due to an increase in sales of fruit juice beverages,
concentrated pear juice and fresh fruits and vegetables, which was partially
offset by a decrease in revenue generated from sales of the apple-related
products and kiwi-related products. The revenue attributable to the fruit
beverages segment, in particular, was $8.6 million for the first quarter of
2013, an increase of 155% as compared to $3.4 million for the same period of
2012. The fruit juice beverages segment comprised 46% of total Company revenue
for the first quarter for 2013 as compared to 22% for the same period of 2012,
and so was a large factor in the increase in revenue for the first quarter of
2013 as compared to the same period in 2012.

First Quarter 2013 Revenue by Segment (in thousands)

                                     Three Months ended March 31,
                                     2013              2012        % of change
Concentrated apple juice and apple   636               2,508       (75)%
aroma
Concentrated kiwifruit juice and     3,419             3,761       (9)%
kiwi puree
Concentrated pear juice              5,173             4,767       9%
Fruit juice beverages                8,585             3,370       155%
Fresh fruits and vegetables          798               588         36%
Total                                18,611            14,994      24%

First Quarter 2013 Gross Profit by Segment (in thousands)

Gross profit was $7.6 million in the first quarter of 2013, an increase of 60%
from $4.8 million for the same period in 2012. The Company's total gross
profit margin was 41% in the first quarter of 2013 as compared to 32% for the
same period of 2012, primarily due to an adjustment of product mix. The fruit
juice beverages segment's gross profit margin increased to 41% in the first
quarter of 2013 from 25% for the same period of 2012. This had the effect of
increasing the total gross profit levels and gross profit margin for the first
quarter of 2013 as compared to the same period of 2012.

                                 Three months ended March 31,
                                 2013            2012
                                 Gross   Gross   Gross   Gross
                                 profit  margin  profit  margin
Concentrated apple juice and     31      5%      414     16%
apple aroma
Concentrated kiwifruit juice and 2,114   62%     1,687   45%
kiwi puree
Concentrated pear juice          1,599   31%     1,534   32%
Fruit juice beverages            3,512   41%     855     25%
Fresh fruits and vegetables      385     48%     296     50%
Total                            7,641   41%     4,786   32%

Operating expenses for the first quarter of fiscal 2013 was $2.1 million, or
12% of sales, which were at the same level for that of the same period of
2012, where operating expenses represented 15% of sales. General and
administrative expenses decreased 12% to $1.3 million in the first quarter of
2013 as compared to $1.5 million for the same period of 2012, mainly due to
the continued decrease in legal fees related to currently pending
litigations.Selling expenses increased 41% to $0.7 million as compared to
$0.5 million the same period of 2012, mainly due to an increase in the
headcount of the Company's sales force. Research and development expenses
decreased 31% to $0.1 million in the first quarter of 2013 as compared to
$0.14 million for the same period of 2012 as former research and development
agreements the Company had with various institutions expired in January of
2013. During the first quarter of 2013, the Company renewed/entered into
several new research and development agreements with outside research
institutions. Currently, the Company has four research and development
agreements that are in effect.

Income from operations was $5.5 million for the first quarter of 2013, an
increase of 108% as compared to $2.6 million for the same period in 2012.

Net income attributable to SkyPeople Fruit Juice was $3.8 million for the
first quarter of 2013, an increase of 99% as compared to $1.9 million for the
same period in 2012, while diluted earnings per share was $0.14, an increase
of 100% as compared to $0.07 for the same period in 2012.

Financial Condition

As of March 31, 2013, the Company had $91.3 million in cash and cash
equivalents, up from $77.6 million as of fiscal year end 2012. The Company's
working capital was $108.1 million. As of March 31, 2013, the Company had
total liabilities of $22.6 million, which included $8.5 million in short-term
bank loans and a $4.0 million short-term loan to a related party. As of March
31, 2013, shareholders' equity attributable to SkyPeople Fruit Juice was
$160.7 million as compared to $156.5 million as of fiscal year end of 2012.

For the first quarter ended March 31, 2013, the Company's operating activities
generated a net cash inflow of $13.2 million, as compared to $14.8 million for
the same period in 2012. Net cash used in investing activities were $0.4
million for the quarter ended March 31, 2013 as compared to $1.3 million for
the same period in 2012. For the first quarter ended March 31, 2013, cash flow
generated from financing activities totaled $0.8 million as compared to $2.0
million for the same period in 2012. Historically, the Company has financed
its capital expenditures and other operating expenses through cash on hand,
operating cash flows and bank loans.

During the first quarter of 2013, the Company entered into a loan agreement
with SkyPeople International Holdings Group Limited ("SkyPeople
International"), which indirectly holds a 50.2% interest in the Company. Mr.
Yongke Xue, the Chairman of the Board and Mr. Hongke Xue, its Chief Executive
Officer and a director, indirectly and beneficially own 80.0% and 9.4% of
equity interest in SkyPeople International, respectively. This entity has
extended to the Company a one-year unsecured term loan of $8.0 million at an
interest rate of 6% per year; during first quarter of 2013, the Company
received $4.0 million of this amount.

Recent Developments

On April 3, 2013, SkyPeople (China) entered into an investment agreement with
the Managing Committee of Mei County National Kiwi Fruit Wholesale Trading
Center, which has been authorized by the People's Government of Mei County to
be in charge of the construction and administration of the Mei County National
Kiwi Fruit Wholesale Trading.

Under the investment agreement, the parties agreed to invest and establish a
kiwi fruit comprehensive deep processing zone and kiwi fruit and fruit-related
materials trading zone in Yangjia Village, Changxing Town of Mei County with a
total planned area of total planned area of 286 mu (approximately 47 acres).

Pursuant to the investment agreement, the Company will be responsible for
construction and financing with a total investment of RMB 445.6 million
(approximately $71.9 million) in buildings and equipment.In addition, the
Company agreed to pay a fee of RMB 0.3 million per mu for the land use
rights.

Conference Call

The Company will hold a conference call on Thursday, May 16, 2013 at 9:00 am
Eastern Time to discuss its financial results for the first quarter ended
March 31, 2013. The Company's Chairman, Mr. Yongke Xue, and Chief Financial
Officer, 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:                                              Thursday, May 16, 2013
Time:                                              9:00 am Eastern Time, US
Conference Line Dial-In:              +1-855-880-8437
International Dial-In:                             +1-931-229-4159
Conference Pass Code:                              68990185

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 68990185
for the replay. The replay will be available on May 16, 2013 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.

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/



-Financial Tables Follow-



SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED BALANCE SHEETS
                                           March 31, 2013    December 31, 2012
                                               (Unaudited)
ASSETS
CURRENT ASSETS
 Cash and cash equivalents              $   91,320,803    $   77,560,278
 Accounts receivables, net of
allowance of 
 $46,766 and $46,643 as of March 31,        31,083,435        49,435,961
2013 and
 December 31, 2012, respectively
 Other receivables                          465,725           201,417
 Inventories                                7,582,226         7,278,191
 Deferred tax assets                        147,126           90,576
 Advances to suppliers and other            141,158           71,536
current assets
TOTAL CURRENT ASSETS                           130,740,473       134,637,959
PROPERTY, PLANT AND EQUIPMENT, NET             51,851,976        52,180,097
LAND USE RIGHT, NET                            7,693,256         7,718,363
OTHER ASSETS                                   378,137           682,592
TOTAL ASSETS                               $   190,663,842   $   195,219,011
LIABILITIES
CURRENT LIABILITIES
 Accounts payable                       $   7,127,984     $   14,399,282
 Accrued expenses                           1,540,894         2,050,675
 Income tax payable                         1,347,111         3,127,245
 Advances from customers                    127,861           530,437
 Short-term loan - related party            4,000,000         -
 Short-term bank loans                      8,502,289         11,661,761
TOTAL CURRENT LIABILITIES                  $   22,646,139    $   31,769,400
SHAREHOLDERS' EQUITY
SkyPeople Fruit Juice, Inc,
Stockholders' equity
 Series B Preferred stock, $0.001 par
value,
10,000,000 shares authorized, Nil shares
issued and                                     -                 -
outstanding as of March 31, 2013 and
December 31,
2012, respectively
 Common stock, $0.001 par value;
66,666,666
 shares authorized; 26,661,499 shares
and
 26,661,499 shares issued and               26,661            26,661
outstanding as of,
 March 31, 2013 and December 31,
2012,
 respectively
 Additional paid-in capital                 59,189,860        59,189,860
 Retained earnings                          86,611,733        82,793,585
 Accumulated other comprehensive            14,874,872        14,500,860
income
 Total SkyPeople Fruit Juice, Inc.
stockholders'                                  160,703,126       156,510,966
 equity
 Non-controlling interests                  7,314,577         6,938,645
TOTAL STOCKHOLDERS' EQUITY                     168,017,703       163,449,611
TOTAL LIABILITIES AND STOCKHOLDERS'        $   190,663,842   $   195,219,011
EQUITY
The notes in the Company's 10-Q are an integral part of these consolidated
financial statements.



SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
                                          For the Three Months Ended March 31,
                                        2013                2012
Revenue                                 $ 18,611,456        $    14,993,500
Cost of goods sold                        10,970,558             10,207,501
Gross profit                              7,640,898              4,785,999
Operating Expenses
 General and administrative            1,305,914              1,477,604
expenses
 Selling expenses                      741,166                525,334
 Research and development expenses     98,622                 142,685
Total operating expenses                  2,145,702              2,145,623
Income from operations                    5,495,196              2,640,376
Other income (expenses)
 Interest income                       71,579                 69,689
 Subsidy income                        350,974                433,504
 Interest expenses                     (277,023)              (154,812)
 Others expenses                       -                      (968)
Total other income                        145,530                347,413
Income before income tax                  5,640,726              2,987,789
 Income tax provision                  1,483,865              928,380
Net income                                4,156,861              2,059,409
Less: Net income attributable to
non-controlling                           338,713                140,251
interests
NET INCOME ATTRIBUTABLE TO              $ 3,818,148         $    1,919,158
SKYPEOPLE FRUIT JUICE, INC.
Earnings per share:
 Basic earnings per share            $ 0.14              $    0.07
 Diluted earnings per share          $ 0.14              $    0.07
Weighted average number of shares
outstanding
 Basic                                 26,661,499             25,690,402
 Diluted                               26,661,499             26,661,499
Comprehensive Income
Net income                              $ 4,156,861         $    2,059,409
Foreign currency translation              411,231                156,571
adjustment
Total Comprehensive income              $ 4,568,092         $    2,215,980
Comprehensive income attributable to      375,932                146,732
non-controlling interests
Comprehensive income attributable to    $ 4,192,160         $    2,069,248
SkyPeople Fruit Juice, Inc.
The notes in the Company's 10-Q are an integral part of these consolidated
financial statements.



SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                          For the Three Months Ended March 31,
                                          2013                 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                $   4,156,861        $  2,059,409
Adjustments to reconcile net income to
net cash provided
by operating activities
 Depreciation and amortization             863,343             706,064
 Deferred income tax assets                (56,550)            60,515
Changes in operating assets and
liabilities
 Accounts receivable                       18,455,170          14,225,403
 Other receivable                          (263,398)           2,009
 Advances to suppliers and other           (69,496)            (109,276)
current assets
 Inventories                               107,472             1,163,961
 Accounts payable                          (7,298,251)         (875,022)
 Accrued expenses                          (513,157)           (1,233,484)
 Income tax payable                        (1,785,680)         (1,055,393)
 Advances from customers                   (403,363)           (178,673)
Net cash provided by operating                13,192,951          14,765,513
activities
CASH FLOWS FROM INVESTING ACTIVITIES
 Additions to property, plant and          (428,692)           (1,320,608)
equipment
 Prepayment for other assets               (9,600)             (13,621)
Net cash used in investing activities         (438,292)           (1,334,229)
CASH FLOWS FROM FINANCING ACTIVITIES
 Increase in restricted cash               -                   284,361
 Short-term notes payable                  -                   (284,361)
 Proceeds from related party loan          4,000,000           -
 Proceeds from short-term bank loans       -                   3,170,879
 Repayment of short-term bank loans        (3,185,474)         (1,139,578)
Net cash provided by (used in) financing      814,526             2,031,301
activities
Effect of change in exchange rate             191,340             96,897
NET INCREASE (DECREASE) IN CASH AND CASH      13,760,525          15,559,482
EQUIVALENTS
 Cash and cash equivalents, beginning      77,560,278          61,154,007
of year
 Cash and cash equivalents, end of         91,320,803          76,713,489
year
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
 Cash paid for interest                    250,722             154,812
 Cash paid for income taxes                3,326,095           1,923,258
SUPPLEMENTARY DISCLOSURE OF
SIGNIFICANT NON-CASH TRANSACTION
 Change in fair value of warrant
liability
 Transferred from other assets to
property, plant and                           315,394             5,158,425
equipment and construction in process
The notes in the Company's 10-Q are an integral part of these consolidated
financial statements.

SOURCE SkyPeople Fruit Juice, Inc.

Website: http://www.skypeoplefruitjuice.com
 
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