SkyPeople Provides 2009 SAIC Submission Summary and Corporate Cash Balances
XI'AN, China, June 6, 2011 /PRNewswire-Asia/ -- SkyPeople Fruit Juice Inc (NASDAQ: SPU) ("SkyPeople" or the "Company"), a processor of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang and Qian Mei Duo branded fruit beverages, today provided supplementary financial information regarding the Company's operating subsidiaries in China for fiscal year 2009. The Company also provided an unaudited list of corporate deposit accounts identifying each corporate cash account and the balance and location of such account as of the end of fiscal years 2009 and 2010, respectively.
The Company is a holding company with two direct wholly owned subsidiaries: Pacific Industry Holding Group Co., Ltd., ("Pacific"), a company incorporated under the laws of the Republic of Vanuatu, and Harmony MN Inc., ("Harmony"), a company organized under the laws of Delaware. Pacific holds 99.78% of the equity interest of SkyPeople Juice Group Co., Ltd., ("SkyPeople (China)"), a company incorporated under the laws of the People's Republic of China ("PRC" or "China"). SkyPeople (China) has three direct subsidiaries, all limited liability companies organized under the laws of the PRC: (i) Shaanxi Qiyiwangguo Modern Organic Agriculture Co., Ltd., ("Shaanxi Qiyiwangguo"), (ii) Huludao Wonder Fruit Co., Ltd., ("Huludao Wonder"), and (iii) Yingkou Trusty Fruits Co., Ltd., ("Yingkou"). The Company acquired Huludao Wonder in June 2008, acquired Qiyiwangguo in May 2006 and acquired Yingkou in November 2009. Yingkou did not commence operating activities until the fourth quarter of 2010.
Set forth below (i) in column (a) of the chart, is a summary of the relevant financial information of the Company's operating subsidiaries in China for fiscal year 2009 as shown on the reports submitted to the State Administration of Industry and Commerce ("SAIC", and the reports submitted to SAIC in which the financial information was contained, collectively, the "SAIC Report") in China, which was on an unconsolidated basis, (ii) in column (b) of the chart, the corresponding information of the PRC subsidiaries as shown in column (a) of the chart on an consolidated basis derived from the SAIC Reports, (iii) in column (c) of the chart, the corresponding information on an consolidated basis as shown on the audited consolidated financial statements for fiscal year 2009 or as of December 31, 2009, as applicable, as shown in the Company's reports filed with the Securities and Exchange Commission (collectively, the "SEC Report"), and (iv) in column (d) of the chart, the differences between the data shown in column (b) and column (c), as follows:
(a) SAIC Report |
(b) SAIC Consolidated |
(c) SEC Report |
(d) |
|||||||
In Thousands |
SkyPeople (China) |
Qiyiwangguo |
Huludao |
Elimination Of |
Total |
Total |
||||
Income Statement |
RMB |
RMB |
RMB |
RMB |
RMB |
USD |
USD |
USD |
% |
|
Revenue |
154,256 |
265,010 |
34,251 |
(48,880) |
404,637 |
59,250 |
59,250 |
- |
0% |
|
Cost of sales |
91,126 |
161,268 |
28,164 |
(48,880) |
231,678 |
33,924 |
33,869 |
55 |
0% |
|
Expenses |
18,285 |
6,661 |
6,262 |
31,208 |
4,570 |
4,454 |
116 |
3% |
||
Operating income |
44,845 |
97,081 |
(175) |
141,751 |
20,756 |
20,926 |
(170) |
-1% |
||
Other income |
82,246 |
11,089 |
113 |
(73,885) |
19,563 |
2,865 |
1,503 |
1,362 |
91%* |
|
Income tax |
13,301 |
27,042 |
- |
40,343 |
5,907 |
6,025 |
(118) |
-2% |
||
Net income |
113,790 |
81,128 |
(62) |
120,971 |
17,714 |
16,404 |
1,310 |
8% |
||
Balance Sheet |
||||||||||
Cash |
65,354 |
23,927 |
3,710 |
92,991 |
13,623 |
14,405 |
(782) |
-5%** |
||
AR |
117,501 |
58,662 |
14,072 |
190,235 |
27,870 |
27,399 |
471 |
2% |
||
Inventory |
5,843 |
11,263 |
16,073 |
33,179 |
4,861 |
4,926 |
(65) |
-1% |
||
Total assets excluding intercompany investment and intercompany balance: |
287,327 |
134,794 |
113,824 |
535,945 |
78,516 |
83,662 |
(5,146) |
-6%*** |
||
Total liabilities excluding intercompany balance and warrants valuation liability: |
27,097 |
18,526 |
45,667 |
91,290 |
13,374 |
16,076 |
(2,702) |
-17%*** |
||
*The consolidated amount shown in the SEC Report reflected adjustments to the account pursuant to the U.S. GAAP.
** The cash as shown in the SEC Report included cash balance of accounts for Yingkou, Pacific and SkyPeople, which were not included in the SAIC Report. Yingkou did not commence operation until the forth quarter of 2010. Both SkyPeople, a Florida corporation, and Pacific, a Vanuatu corporation, were not required to submit financial information to SAIC.
***The differences were mainly due to the financial conditions of Yingkou which were not reflected in the SAIC Report.
"In light of investors' heightened concerns over the financial integrity and corporate governance practices of Chinese companies listed in the United States, we have decided to proactively disclose additional information to further demonstrate our financial strength as well as our dedication to transparency," said Yongke Xue, Chairman and Chief Executive Officer of SkyPeople. "We understand investors' need for increased disclosures and we welcome the opportunity to increase their understanding and trust in our Company."
Management has summarized below its cash balances as of December 31, 2010 and December 31, 2009. The finance department of SkyPeople conducts monthly checks and balances on each of its bank statements.
(U.S. dollars, in thousands) |
December 31, 2010 |
December 31, 2009 |
|
Bank of Xi'an Co., Ltd., Xi'an, PRC |
303 |
542 |
|
China Construction Bank, Xi'an, PRC |
4,615 |
177 |
|
Agricultural Bank of China, Xian Yang City, PRC |
4,133 |
2,729 |
|
Agricultural Bank of China, Xi'an, PRC |
38,753 |
9,543 |
|
China Industrial and Commercial Bank, Xi'an, PRC |
37 |
5 |
|
China Citic Bank, Xi'an, PRC |
506 |
- |
|
Bank of Communications of China, Xi'an, PRC |
- |
4 |
|
Huludao Merchants Bank, Huludao City, PRC |
1,125 |
- |
|
Huludao Bank, Huludao City, PRC |
- |
525 |
|
China Construction Bank, Huludao City, PRC |
- |
16 |
|
Agricultural Bank of China, Gai Zhou City, PRC |
63 |
- |
|
Standard Chartered Bank (China) Limited, Beijing, PRC |
19 |
21 |
|
China Merchant Bank, Xi'an, PRC |
244 |
- |
|
Bank of America, Los Angeles, U.S. A. |
4 |
753 |
|
Total Cash in Banks |
49,847 |
14,315 |
|
Total Cash and Cash Equivalent Reported in SEC Report |
49,856* |
14,405* |
|
*The difference in cash in banks and cash and cash equivalent reported in the Company's Form 10-K report is due to the cash on hands and different bank reconciliation items, such as deposits in transit.
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd., a Vanuatu company, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China) is engaged in the production and sales of fruit juice concentrates (including fruit purees, fruit puree concentrates, and clear fruit juice concentrates), fruit beverages (including fruit juice beverages and fruit cider beverages), and other fruit related products (including primarily organic and non-organic fresh fruits, kiwifruit seeds and apple aroma) in and from the PRC. 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, Qian Mei Duo, which are registered trademark in the PRC, is positioned as a high quality, healthy and nutritious end-use juice beverage. For more information, please visit http://www.SkyPeoplefruitjuice.com.
Safe Harbor Statement
This release may contain certain "forward-looking statements" relating to the business of SkyPeople and its subsidiary companies. Forward looking statements can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, and concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. SkyPeople is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
For more information, please contact:
COMPANY
SkyPeople Fruit Juice, Inc.
Ms. Spring Liu, CFO
Tel: US +1-818-390-1272
Email: [email protected]
Web: www.SkyPeoplefruitjuice.com
INVESTOR RELATIONS:
John Mattio, SVP
HC International, Inc.
Tel: US +1-212-301-7130
Email: [email protected]
Web: http://www.hcinternational.net
SOURCE SkyPeople Fruit Juice, Inc.
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