Future Fintech Group Inc. (NASDAQ:FTFT)

XI'AN, China, June 9, 2017 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that it has changed its corporate name to Future FinTech Group Inc. The corporate name change reflects the Company's deeper e-commerce commitment that will drive the future of its agricultural value chain through financial technology solutions.

"Our corporate name change to Future FinTech Group Inc. more accurately reflects the Company's new business strategy and our future development plans," commented Hongke Xue, Chief Executive Officer of Future FinTech Group Inc. "We have broadened our corporate strategy with our recent business development and our new name represents a rebranding due to our evolving business identity and culture."

"We are very excited to be developing an innovative multi-purposed platform for our existing operating businesses as well as technology-driven synergies with our new business development to create an integrated value chain to uncover far-reaching opportunities for growth and profitability. We believe that our new corporate name, Future FinTech Group Inc., allows us to better represent our business to our customers and all of our stakeholders as it represents our new focus and capabilities," added Mr. Xue.

The corporate name change was approved by the Company's Board of Directors on March 30, 2017 and by shareholders holding a majority of the Company's issued and outstanding capital stock on March 31, 2017. On June 6, 2017, the Company filed a Certificate of Amendment (the "Certificate") with the Secretary of State for the State of Florida to amend and restate its articles of incorporation to change its name from SkyPeople Fruit Juice, Inc. to Future FinTech Group Inc., effective immediately. In addition, also effective as of June 6, 2017, the Company's amended its amended and restated bylaws to reflect the name change.

The Company anticipates that its common stock will cease trading under the ticker symbol "SPU" and will begin trading under the ticker symbol "FTFT" as of June 12, 2017. In connection with the name change, the Company's common stock will continue to trade on the Nasdaq Exchange and has been assigned a new CUSIP number of 36117V 105.

The Company has entered into several agreements, established a new subsidiary and made an acquisition to reflect its new business strategy:

On April 12, 2017, the Company announced that its indirect holding company, Xi'an Hedetang E-Commerce Co. Ltd., signed a one-year service agreement to market its products on the open platform Xunqin Mall with Zhenzhen Weipin Zhiyuan Information Technology Co., Ltd., one of whose shareholders is China Continental Insurance. The Company believes that joining Xunqin Mall will help generate regional sales for its Hedetang and Hede Jiachuan products and improve operating efficiencies.

On March 23, 2015, the Company announced the establishment of China Agricultural Commodity Trading Center ("CACTC"), a new company that has been formed to standardize and digitize agricultural products based on e-finance technology and market trading technology. CACTC will also develop an open platform pricing mechanism utilizing a fair market auction process to process market transactions. In addition, it is planned that various financial products will be developed to transact medium to long term commodities contracts of agricultural bulk products.

On March 17, 2017, the Company announced the acquisition of Shaanxi Quangoutong E-commerce Inc., ("Quangoutong") a peer-to-peer (P2P) company, in order to effectively enter the FinTech sector. Quangoutong owns certain permits and licenses from local governments in China to conduct certain on-line financial service business in China.

On March 15, 2017, the Company announced that it signed a one-year business agreement with the Jiangsu Nongmuren Agricultural Products ("Nongmuren") e-commerce platform.  The Company believes that cooperation with Nongmuren could attracts hundreds of thousands of registered users on the platform each month, and accelerate an update of its marketing channels.

On March 6, 2017, the Company signed a one-year business agreement with China Aigo O2O Technology Inc. (Beijing) and joined the latter's Aigo Integrity Alliance, which is a smart online-to-offline (O2O) platform and a unique marketing platform in the mobile Internet arena.

The Company intends to become the FinTech leader in the agriculture commodity industry in China by employing an innovative business model that integrates all of its growing and operating businesses. It is the Company's view that the performance of products sold through e-commerce will experience an increase in revenue as this platform has become a more efficient way to buy and sell products.

"As our name change indicates, in addition to growing our traditional businesses leveraging e-commerce and new technology platforms, the Company's goal is to build a regional agricultural products commodities trading market and to become a leader in agricultural finance technology. Our new corporate name, Future FinTech Group Inc., formalizes a shift in our corporate strategy that is synergistic in terms of our new businesses and more representative of our plans and goals," concluded Hongke Xue, Chief Executive Officer of Future FinTech Group Inc.

First Quarter 2017 Financial Results

• Revenue for the three months ended March 31, 2017 was $3.0 million, as compared to revenue of $5.4 million for the first three months of 2016.
• Net loss attributable to SkyPeople Fruit Juice shareholders for the three months ended March 31, 2017 was $2.6 million, as compared to net loss of $1.1 million for the same period of 2016. Diluted loss per share from continued operations was $0.62 for the first quarter of 2017 as compared to diluted earnings per share from continued operations of $0.30 for the same period of 2016.

"We recorded lower than expected operating results due to a decrease in sales from apple product segment which has been experiencing a severe contraction in supply and an erosion in market pricing which has forced us to limit production. A limited supply of available fresh fruit due to volatile weather conditions led to a difficult growing season for our other product categories. Also, online discounting has been disruptive to our normal retail distribution model for our fruit juice segment," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople.

"To address raw materials supply shortages, we are building a vertically integrated supply chain to help ensure a steady supply of fresh fruit. As major initiatives, we will be growing kiwi and oranges for processing through our acquisition and leasing of orchards in Mei County and Yidu, Hubei Province, respectively. The new orchards will help secure fresh fruit for our key kiwi product segment, diversify our product offerings and strengthen our competitive positioning. We will employ modern agricultural techniques to optimize our production output and look to enhance our margins through best practices commodities management," continued Mr. Hongke Xue.

"We are beginning to generate orders from several of the online e-commerce platforms where we are currently marketing with particular focus on our fruit juice beverage products. We plan to aggressively pursue this distribution channel to regain our market share and our previous volume metrics. We also expect important synergies to develop from our logistics trading center in Mei County that constitutes an important commercial and logistics complex for all of our operating businesses."

"We appreciate the support of our shareholders as we build our business into a dynamic world-class company with new capabilities that include e-commerce platforms, big data analytics, commodities trading, innovative finance, international trade, and industrial integration and management services. Our vision is to broaden and diversify our core business with high margin growth opportunities to generate a sustainable income stream for many years to come," Mr. Hongke Xue concluded.

XI'AN, China, Apr. 18, 2017 /PRNewswire/ -- 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, 2016.

Fiscal Year 2016 Summary:

• Total revenue was $34.4 million
• Gross profit was $9.2 million
• Gross profit margin was 27%
• Net loss attributable to SkyPeople Fruit Juice, Inc. stockholders was $5.5 million
• Cash, cash equivalents and restricted cash were $1.1 million as of December 31, 2016

"We have engaged in a rebuilding and a refocusing of our core businesses in fiscal 2016 as evidenced by our many strategic initiatives," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople. "However, we were still able to generate positive operating income before taxes for the year despite a challenging market environment due to unexpected weather conditions, difficulties in sourcing raw materials, volatility in selling prices and a shift in one of our core business segments."

"To help us to mitigate the risk associated with the sourcing of our raw materials, as well as to optimize the quality of our products, we entered into agreements to both purchase and lease orchards for kiwi and orange fruit production. We will seek to employ modern agricultural techniques to maximize our production output and secure abundant raw materials fruit for our new state-of-the-art processing facilities when they begin production. The new orchards will also help to shield us from occasional disruptions in our supply chain and ensure stronger competitive positioning so as to generate stable cash flow. We also expect important synergies to develop from our currently operational trading center in Mei County that contains all of the working elements needed for a successful agricultural enterprise, and in concert with the participation of local parties, forms a powerful agricultural center."

"We also expect important synergies from our recently acquired businesses that will augment our existing operations. This will enable us to be more customer-centric as we have added capabilities which include e-commerce platforms, big data analytics, commodities trading, innovative finance, international trade, industrial integration, management services and on-line marketing and sales. Our vision is to optimize our overall company performance and profitability utilizing a consumer distribution model where our integrated value chain generates a diversified and sustainable revenue stream for many years to come," Mr. Xue continued.

"In broadening and deepening our business model, we are pleased to welcome new partners to work with us on our corporate growth plans who we believe will bring both expertise and a commitment to succeed. We anticipate that these new stakeholders will help us to bridge traditional growing and distribution methods with new and high-tech means to uncover better profitability in our core business while creating new revenue sources."

"We are excited about our outlook for 2017 since we view the underlying demand for our products to be sound, driven by the continuing trends of urbanization, changing demographics, higher personal incomes and a transition towards healthy lifestyles. We view our new end-to-end business model as constituting a blueprint for today's modern agricultural enterprise as it will enable us to effectively compete and succeed in a world driven by online technology, manufacturing efficiencies, risk management and increasing consumer awareness. We appreciate the support of our shareholders as we engage in building a dynamic world-class company that can capitalize on today's opportunities while being positioned for tomorrow's growth," Mr. Hongke Xue concluded.

XI'AN, China, April 13, 2017 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (NasdaqGM: SPU) ("SkyPeople" or the "Company"), a Florida corporation, today announced that it has entered into a definitive agreement with institutional investors to purchase shares of common stock for aggregate gross proceeds of $2,672,500 in a registered direct offering. The closing of the offering is expected to take place on or before April 17, 2017, subject to the satisfaction of customary closing conditions.

In connection with the offering, the Company will issue 862,097 registered shares of common stock at a purchase price of $3.10 per share.  Concurrently in a private placement, for each share of common stock purchased by an investor, such investor will receive from the Company an unregistered warrant to purchase one share of common stock.  The warrants have an exercise price of $5.20 per share, and shall be initially exercisable six months following issuance and terminate five years following the initial exercise date.

XI'AN, China, March 17, 2017 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that on March 13, 2017, the Board of Directors approved Future World Trading (Hong Kong) Limited's, a wholly owned subsidiary of the company, acquisition of Shaanxi Quangoutong E-commerce Inc. ("Quangoutong"), an e-commerce company and a wholly owned subsidiary of SkyPeople International Holdings Group Limited, which is the major shareholder of the Company. The relevant agreement was signed on March 16, 2017. Quangoutong owns certain permits and licenses from local governments in China to conduct certain on-line financial service businesses in China. The purchase price for Quangoutong will be nominal as it has divested itself of several of its traditional businesses and all of its assets and debts. The FinTech industry is an emerging sector that utilizes computer programs and innovative technology to support the delivery of payment and financial services.

"The acquisition of Quangoutong is an important strategic move for the Company as it is based on the Company's development plan, which is to diversify our business to include lighter asset businesses in addition to our more capital intensive operations," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople. "We believe that a healthy flow of capital is essential to all modern enterprises, and our entry into the FinTech space is intended to strengthen our own business, reinforce and develop strong partnering collaborations and capitalize upon an emerging high technology sector."

The Company believes that the acquisition of Quangoutong will bring an innovative business development and sales model to SkyPeople, including a rewards points system that has cooperation agreements with other alliances. The reward points systems can be applied to SkyPeople's subsidiaries, including but not limited to Hedetang, its consumer fruit juice products business, and Hede Jiachuan, its food products concern. The Company also plans to use Quangoutong to apply online third party payment license with Chinese government to upgrade our distribution and sale system to better integrate internet and our traditional business.

SkyPeople also believes that it will benefit from Quangoutong's advanced sales model such as its large-scale product customization business, which is designed to facilitate strategic cooperation among companies and platforms, and in so doing, to boost sales. Meanwhile, the Company will continue to develop its risk control and operation standardization processes in the FinTech industry and will work to improve and advance its competitive positioning in the space.

XI'AN, China, March 15, 2017 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that on March 13, 2017, Hedetang Foods (China) Co., Ltd. ("Hedetang Foods"), a wholly-owned subsidiary of SkyPeople Fruit Juice, Inc., signed a one-year business agreement with the Jiangsu Nongmuren Agricultural Products ("Nongmuren") e-commerce Platform.  Earlier this month, Hedetang Foods joined the China Aigo O2O Technology Inc.'s Aigo Integrity Alliance and is receiving orders from that platform now.

"We are confident that this agreement will add to our dynamic e-commerce business model and it is consistent with our state-of-the-art agricultural operations," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople. "The current state of the food and beverage industry is highly complex and presents challenges as well as opportunities. As seen by our recent e-commerce announcements, we believe that working with cutting edge e-commerce platforms will help to crystallize our brand positioning which will be vital to our building a global Chinese fruit juice beverage brand."

The Company believes that cooperation with Nongmuren could attract hundreds of thousands of registered users on the platform each month, and accelerate an update of its marketing channels from traditional manufacturing and sales to 'manufacturing plus Internet' and 'traditional sales plus e-commerce'. By cooperating with Nongmuren, Hedetang could enjoy the benefits of its non-replicable food safety system, customized brand promotion strategy and reliable third-party logistics distribution services. The Company believes that cooperation between the two parties will help Hedetang become a first-class brand in the Chinese market, which is a vital long-term goal for the company.

XI'AN, China, March 6, 2017 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that on March 1, 2017, Hedetang Foods (China) Co., Ltd. ("Hedetang Foods"), a wholly-owned subsidiary of SkyPeople Fruit Juice, Inc., signed a one-year business agreement with China Aigo O2O Technology Inc. (Beijing) and joined the latter's Aigo Integrity Alliance.

The Aigo Integrity Alliance is a smart Online to Offline (O2O) platform owned by China Aigo O2O Technology (Beijing), which is the most valued subsidiary of the Aigo Network Technology Co. The Aigo Integrity Alliance has invested heavily to build an O2O platform and developed five unique, world-leading patented technologies in the Mobile Internet arena. The Aigo Integrity Alliance is assisting Chinese companies in all industries to form a win-win model by utilizing a reward system (Patriot Points), VIP meetings, micro-media communications and a resource sharing platform. Participating companies can cooperate in an anti-counterfeit alliance and can work together to compete fairly with oversea brands. With over six million currently registered users and hundreds of millions of members anticipated in the next three years, Aigo Integrity Alliance is considered to be the largest free integrity platform formed by Chinese enterprises.

XI'AN, China, Feb. 6, 2017 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that the Company has regained compliance with the listing requirements of the NASDAQ Stock Market ("Nasdaq").

On February 2, 2017, the Company received a letter from a Hearings Advisor of the Nasdaq Office of General Counsel confirming that the Company has regained compliance with Nasdaq's filing delinquency rule as required by the Nasdaq Hearing Panel's decision dated January 2, 2017. The Company is also in compliance with other applicable requirements as set forth in the decision as required for listing on the Nasdaq Global Market.

"We are pleased to be in compliance with Nasdaq's listing requirements as we have filed all of our SEC reports by the date required and are now current in our financial reporting," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople. "We appreciate the support and confidence of our shareholders during this time where we fell behind in our reporting due to unforeseen circumstances."

"We view this as an exciting time for the company as our vision is to be a fully-integrated company in the agricultural and food products industry. We are focused upon employing our first-class plantation technologies, innovative fruit processing capabilities and healthy products R&D to vertically integrate our businesses and secure a steady supply of raw materials," Mr. Xue continued.

"We will also continue to develop our fruit juice concentrates sector, gradually expand the end product sales of our Hedetang fruit juice beverage line and accelerate the development of our e-commerce marketing efforts.  We anticipate that our modernization and strategic growth initiatives will yield positive results which will result in our being a leader in our space," concluded Mr. Hongke Xue, Chief Executive Officer of SkyPeople.

InfoArb Alert

SPU seeks to terminate the Share Transfer Agreement which pumped the stock from less than $5 to a high of $20.95 in 2016.  See notes below from the subsequent events section of its 10-Q filing. 

Recap of events:

In our July 26, 2016 research note we stated:

SPU a producer of various concentrated fruit juices sold mainly in China, lit the candle. On July 13, 2016 SPU closed at $2.95 compared to its current price of around $13, after reaching a high of $20.95 in yesterday's trading session. The stock is pumping on a delayed reaction to an  8k released on June 21, 2017 . The filing disclosed that the company reached an agreement to sell 51% of one of its leading subsidiaries to Shaanxi New Silk Road Kiwifruit Group.

“On June 15, 2016, Hedetang Holdings Co., Ltd. (the “Hedetang”), a wholly owned subsidiary of SkyPeople Fruit Juice, Inc. (the "Company") entered into a Share Transfer Agreement (the “Agreement”) with Shaanxi New Silk Road Kiwifruit Group Inc. ( the  “NSR” ), a limited liability  corporation registered in China.

Pursuant to the Agreement, NSR will acquire 51% of the equity shares of Shaanxi Guoweiduomei Beverage Co,. Limited, a wholly owned subsidiary of Hedetang (the "Shares").

 

In our August 30, 2016 update, we stated:

Not Done Til The Fat Lady Sings

Please note that Investors also need to be aware that the closing of transaction is subject to conditions.

Pursuant to the Agreement, NSR will acquire 51% of the equity shares of Shaanxi Guoweiduomei Beverage Co,. Limited, a wholly owned subsidiary of Hedetang (the "Shares"). The tentative total transfer price for the Shares is 300 million RMB (approximately $46 million) and is subject to and will be settled according to the final price in the valuation report to be issued by an appraisal firm jointly engaged by both parties. NSR shall pay the total transfer price to Hedetang within six months of the effective date of the Agreement.

If NSR fails to pay the total transfer price within 6 months due to the delay of the approval process from the local authority, NSR can receive a payment extension for up to twelve months from the effective date of the Agreement upon the negotiation and agreement by the parties. Because NSR is a state-owned enterprise in China and its investment needs to be approved by a higher level administrative authority in China, NSR has the right to terminate the Agreement unilaterally if it fails to receive the approval from such administrative authority within one year from the date of this Agreement.

It is also unclear if NSR intends to complete the transaction by

• Paying $46 million cash (would likely need to obtain financing in China), or
• Paying for Guoweiduomei through $46 million worth of NSR stock

Obviously, investors will probably treat a cash transaction more favorably.

In its 10-Q filing filed on January 11, 2016, it seems SPU is looking to terinate the deal: 

On June 15, 2016, Hedetang Holdings Co., Ltd. (the “Hedetang”), a wholly owned subsidiary of the Company, entered into a Share Transfer Agreement (the “Agreement”) with Shaanxi New Silk Road Kiwifruit Group Inc. ( the “NSR”), a limited liability corporation registered in China.

Pursuant to the Agreement, NSR will acquire 51% of the equity shares of Shaanxi Guoweiduomei Beverage Co, Limited, a wholly owned subsidiary of Hedetang (the "Shares"). The tentative total transfer price for the Shares is 300 million RMB (approximately $46 million) and is subject to and will be settled according to the final price in the valuation report to be issued by an appraisal firm jointly engaged by both parties. NSR shall pay the total transfer price to Hedetang within six months of the effective date of the Agreement. If NSR fails to pay the total transfer price within six months due to the delay of the approval process from the local authority, NSR can receive a payment extension for up to twelve months from the effective date of the Agreement upon the negotiation and agreement by the parties. Because NSR is a state-owned enterprise in China and its investment needs to be approved by a higher level administrative authority in China, NSR has the right to terminate the Agreement unilaterally if it fails to receive the approval from such administrative authority within twelve months from the date of this Agreement. As of the date of this report, the local authority has not approved this transaction, and we have not yet received payment from NSR. The Company is now negotiating with NSR the potential terms to terminate this Agreement.

On August 3, 2016, Shaanxi Guoweimei Kiwi Deep Processing Company, an indirectly wholly-owned subsidiary of the Company, signed a lease agreement of 20,000 mu (approximately 3,300 square acres) of kiwifruits orchard located in Mei County, Shaanxi Province, with the Di'erpo Committe of Jinqu Village, Mei County, Shaanxi for 30 years, from August 5, 2016 to August 4, 2046.

XI'AN, China, Nov. 23, 2016 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that on November 18, 2016, the Company received an additional delisting determination letter from the Staff of the Listing Qualifications Department of The Nasdaq Stock Market LLC (the "Nasdaq Staff") stating the Company was not in compliance with NASDAQ Listing Rule 5250(c)(1), due to its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, and that this filing delinquency serves as an additional basis for delisting the Company's securities from the Nasdaq Stock Market.

Previously, on April 20, 2016, May 24, 2016, and August 17, 2016, Nasdaq Staff notified the Company that it did not comply with the Nasdaq Stock Market's filing requirements set forth in Listing Rule 5250(c)(1) (the "Rule") because it had not filed its Form 10-K for the period ended December 31, 2015 and its Forms 10-Q for the periods ended March 31, 2016 and June 30, 2016 (the "Reports").

On October 12, 2016, the Company received a delisting determination letter from the Nasdaq Staff because the Company had not filed the Reports by October 11, 2016, the deadline by which the Company was to file all the Reports in order to regain compliance with the Rule.

On October 19, 2016, the Company requested a hearing before the Nasdaq Hearings Panel (the "Panel") to appeal the delisting determination from the Nasdaq Staff.  On November 2, 2016, the Company was granted an extended stay as to the suspension of the Company's shares from trading by the Panel until the Company's scheduled hearing before the Panel on December 15, 2016 and issuance of a final Panel decision.

As a result of this additional delinquency of Form 10-Q, the Panel will consider this matter in rendering a determination regarding the Company's continued listing on The Nasdaq Global Market. Pursuant to Listing Rule 5810(d), the Company plans to present its views with respect to this additional deficiency at the hearing.

As disclosed previously, the Company is working assiduously to complete its delinquent filings with SEC and to regain compliance with the Rule as soon as possible.

XI'AN, China, Oct. 14, 2016 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that on October 12, 2016, the Company received a delisting determination letter (the "Determination Letter") from the staff of the Listing Qualifications Department of The NASDAQ Stock Market LLC ("NASDAQ"). The Determination Letter notified the Company that since it had not filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2016 and June 30, 2016, respectively, (together, the "Reports") by October 11, 2016, the deadline by which the Company was to file all Reports in order to regain compliance with NASDAQ Listing Rule 5250(c)(1), the Company's common stock is subject to delisting from The NASDAQ Global Market.

The Determination Letter further noted that unless the Company requested an appeal of the Staff's determination no later than 4:00 pm Eastern Time on October 19, 2016, trading of the Company's common stock on The NASDAQ Global Market will be suspended at the opening of business on October 21, 2016, and a Form 25-NSE would be filed with the Securities and Exchange Commission (the "SEC") removing the Company's securities from listing and registration on The NASDAQ Stock Market.

The Company intends to timely request a hearing before the NASDAQ Hearings Panel (the "Panel") under Listing Rule 5815(a) to present its plan to regain compliance with the rule, which request will automatically stay the delisting of the Company's securities for 15 calendar days from the deadline to request a hearing. In connection with its request for a hearing, the Company also intends to request a further stay of the suspension of trading and delisting of the Company's common stock while the appeals process is pending. The Panel will notify the Company of its decision if it will allow the Company's common stock to continue to trade on The NASDAQ Global Market pending the Panel's decision. The Panel may, at its discretion, determine to continue the Company's listing pursuant to an exception to Listing Rule 5815(a) for a maximum of 360 calendar days from the due date of the Form 10-K, which would be through April 9, 2017; however, there can be no assurance that the Panel will grant any or all of such exception.

As previously disclosed, on each of April 20, 2016, May 24, 2016 and August 17, 2016, the Company received a notification letter from the staff of the Listing Qualifications Department of NASDAQ indicating that the Company was not in compliance with NASDAQ's continued listing requirements because the Company was not in compliance with NASDAQ Listing Rule 5250(c)(1) with respect to the Form 10-K and Form 10-Q Reports.

XI'AN, China, Sept. 23, 2016 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that on September 19, 2016, the Company received a letter from Wei Wei & Co., LLP ("Wei Wei") stating that it would cease its services as the independent registered public accounting firm of the Company, effective from September 19, 2016.

The Company engaged Wei Wei during the period from April 12, 2016 to September 19, 2016 (the "Engagement Period").  During the Engagement Period, Wei Wei did not issue any reports on the Company's consolidated financial statements.

During the Engagement Period, there were (1) no disagreements between the Company and Wei Wei on matters of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Wei Wei, would have caused Wei Wei to make reference to the subject matter of the disagreement in its report on the consolidated financial statements, and (2) no "reportable events" as that term is defined in Item 304(a)(1)(v) of Regulation S-K.  Wei Wei issued no audit reports on the Company's consolidated financial statements.

On September 22, 2016, the Audit Committee of the Board of Directors of the Company (the "Audit Committee") approved the engagement of Jia Roger Qian Wang, CPA ("Roger Wang") as the Company's independent registered public accounting firm, effectively immediately. The Audit Committee also approved Roger Wang to act as the Company's independent registered public accounting firm for the fiscal years ending December 31, 2015 and 2016.

SPU (Halted) - Yesterday it was announced at 9:47AM that SPU was halted by NASDAQ while it seeks further information from the company. The release stated that the company will remain halted until it provides NASDAQ with the necessary information.

XI'AN, China, Sept. 6, 2016 /PRNewswire/ -- 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 that on September 2, 2016, the Company received a letter from the Nasdaq Listing Qualifications Staff (the "Nasdaq Staff").

The letter states that Nasdaq Staff has determined to continue the exception that the Company has been granted to file its annual report on Form 10-K for the period ended December, 31, 2015 (the "Form 10-K") and its quarterly report on Form 10-Q for the period ending March 31, 2016, to also include its quarterly report on Form 10-Q for the period ending June 30, 2016 (the "Forms 10-Q"). The terms of the exception are that on or before October 11, 2016, the Company must file the Form 10-K and Forms 10-Q so as to regain compliance with Nasdaq Rule 5250(c)(1). The letter was sent in response to the updated plan of compliance that the Company submitted to Nasdaq Staff.

In the event that the Company does not file its Form 10-K and Forms 10-Q on October 11, 2016, Nasdaq Staff has stated that it will provide written notification that the Company's securities will be delisted. At that time, the Company may appeal the Nasdaq Staff's determination to a Hearing Panel under Listing Rule 5815(a).

The Company expects to file its Form 10-K and Forms 10-Q on or before October 11, 2016.

XI'AN, China, Aug. 19, 2016 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced that on August 17, 2016, the Company received a letter from the Nasdaq Listing Qualifications Staff (the "Nasdaq Staff"). The letter states that the Company does not comply with Nasdaq's Listing Rules for continued listing due to its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.

Previously, Nasdaq Staff had granted the Company an exception until October 11, 2016 to file its delinquent Form 10-K for the year ended December 31, 2015 and Form 10-Q for the period ended March 31, 2016. This extension represents the full extent of the discretion afforded to Nasdaq Staff to Listing Rule 5810(c)(2)(F)(ii).

As a result of this additional delinquency, the Company must submit to Nasdaq Staff an update to its original plan to regain compliance with respect to the filing requirement on or before September 1, 2016. The update should include the Company's plans to file the Form 10-Q for the period ending June 30, 2016, and indicate the progress the Company has made towards implementing the plan submitted in connection with its delinquent filings.

The Nasdaq notification letter has no immediate effect on the listing of the Company's common stock on the Nasdaq Global Market.

XI'AN, China, Aug. 3, 2016 /PRNewswire/ -- 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 that Hedetang Farm Products Trading Market (Mei County) Co., Ltd  ("HDTM"), an indirectly wholly owned subsidiary of SkyPeople, and formerly known as Mei County kiwi fruit and fruit-related materials trading zone, today completed all its tenant program with 25 companies to open their offices in the market, including 12 courier service companies, 4 large logistics enterprises, 4 e-commerce enterprises, 2 packaging enterprises and 3 plant growing enterprises, including major companies like China Yunda Express, China STO Express, Qifeng Fruit, SF Express, Yuantong Express and JD.COM that all expanded their businesses at the market. At the same time, all departments of National (Mei County) Kiwi Industrial Park Management Committee are stationed at the industrial park.

"We are very pleased that the new trade market is now fully occupied by an array of diverse companies that are focused on the agricultural trade market," said Mr. Yongke Xue, Chief Executive Officer of SkyPeople. "We believe that the new market which will foster a high level of business activity that will the help with the growth of the company's core business while enabling us to leverage modern agricultural business techniques such as e-commerce and big data. In addition to creating a source of revenue for the company, we believe that the new trade market will foster an awareness of ideas and creativity so as to fully leverage the opportunities of the Mei County region and the company's business so as to optimize our growth and profitability."

HDTM's future revenues will come from: rents for the stores, rents for the refrigerated storage spaces, e-commerce incubator and personnel training fees, transaction commission fees from all the tenants, rents for logistics center warehouses, fees for agricultural products sorting and distribution, big data information services fees for agricultural products, advertising in the market and government subsidies. The multivariate revenues sources will maximize SkyPeople's income in the agricultural products trading sector.

HDTM has four business functions: Western agricultural products e-commerce incubator, Western agricultural products logistics center for e-commerce, Western agricultural products distribution and sorting center for e-commerce, and Western agricultural products big data center for e-commerce. National (Mei County) Agricultural Products Wholesale Market is a new engine of modern agriculture, a tangible platform with all elements for the modern agricultural industry and an important objective of modern agricultural development. The important development goals for HDTM are to accelerate Western agricultural e-commerce in China to integrate with HDTM, to push forward business transformation and upgrades for the Company, and to create new business in the agriculture industry.  E-commerce will help Hedetang products expand from the domestic market to the global market which will become a new growth engine for SkyPeople. The e-commerce incubator will play a more important role for the e-commerce to further foster the new economic force in the future, to create a "twin-engine" and to achieve "double goals".

Item 1.01 Entry into a Material Definitive Agreement

On June 15, 2016, Hedetang Holdings Co., Ltd. (the “Hedetang”), a wholly owned subsidiary of SkyPeople Fruit Juice, Inc. (the "Company") entered into a Share Transfer Agreement (the “Agreement”) with Shaanxi New Silk Road Kiwifruit Group Inc. ( the “NSR”), a limited liability corporation registered in China.

Pursuant to the Agreement, NSR will acquire 51% of the equity shares of Shaanxi Guoweiduomei Beverage Co,. Limited, a wholly owned subsidiary of Hedetang (the "Shares"). The tentative total transfer price for the Shares is 300 million RMB (approximately $46 million) and is subject to and will be settled according to the final price in the valuation report to be issued by an appraisal firm jointly engaged by both parties. NSR shall pay the total transfer price to Hedetang within six months of the effective date of the Agreement. If NSR fails to pay the total transfer price within 6 months due to the delay of the approval process from the local authority, NSR can receive a payment extension for up to twelve months from the effective date of the Agreement upon the negotiation and agreement by the parties. Because NSR is a state-owned enterprise in China and its investment needs to be approved by a higher level administrative authority in China, NSR has the right to terminate the Agreement unilaterally if it fails to receive the approval from such administrative authority within one year from the date of this Agreement.

The description contained herein of the terms of the Agreement does not purport to be complete and is qualified in its entirety by reference to the Share Transfer Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated by reference herein.

Item 2.01 Completion of Acquisition or Disposition of Assets

On May 31, 2016, SkyPeople Juice Group Co., Ltd. (“Skypeople China”), a 73.42% owned subsidiary of the Company transferred its wholly owned subsidiary Hedetang Holdings Co., Ltd. (the “Hedetang”) to Skypeople Foods (China) Co., Ltd., a wholly owned subsidiary of the Company (“Skypeople Foods China”) for 50 million RMB (approximately $7.69 million). SkyPeople Juice International Holding (HK) Ltd. a wholly owned subsidiary of the Company and a 73.42% shareholder of Skypeople China, Shenzhen TianShunDa Equity Investment Fund Management Co., Ltd., a 26.36% shareholder of SkyPeople China and Mr. Hongke Xue, a director of the Company and a 0.22% shareholder of SkyPeople China (the "Shareholders of Skypeople China") approved the transfer on May 21, 2016. The transfer of Hedetang from SkyPeople China to SkyPeople Foods China is a part of restructuring of the Company's business in China. After the transfer, Hedetang became a wholly owned subsidiary of Skypeople Foods China and the Company.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

On May 24, 2016, SkyPeople Fruit Juice, Inc. (the "Company") received a notification letter from the NASDAQ Listing Qualifications (“NASDAQ”) stating the Company was not in compliance with NASDAQ Listing Rule 5250(c)(1), due to its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (the “Form 10-Q”).

Previously, in a notification letter dated May 23, 2016, NASDAQ had granted the Company an exception until July 15, 2016 to file its delinquent Form 10-K for the period ended December 31, 2015 (the “Initial Delinquent Filing”) based upon the initial plan of compliance (the "Initial Plan of Compliance") submitted by the Company to NASDAQ on May 19, 2016. As a result of this additional delinquency of Form 10-Q, the Company is provided 30 days from the date of the notification or until June 23, 2016 to submit an update of the Initial Plan of Compliance to regain compliance with respect to the filing requirement.

If the updated plan is accepted, NASDAQ can grant an exception of up to 180 calendar days from the due date of the Initial Delinquent Filing, or until October 11, 2016, for the Company to regain compliance. The NASDAQ notification letter has no immediate effect on the listing of the Company’s common stock on the NASDAQ Global Market.

Item 3.01.    Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

On May 16, 2016, SkyPeople Fruit Juice, Inc. (the “Company”) received written notice from the NASDAQ Stock Market (“NASDAQ”) stating that the Company is not in compliance with the requirement of the minimum Market Value of Publicly Held Shares ("MVPHS") of $5,000,000 for continued listing on The NASDAQ Global Market, as set forth in NASDAQ Listing Rule 5450(b)(1)(C). The notice has no immediate effect on the listing of the Company's common stock, and its common stock will continue to trade on The NASDAQ Global Market under the symbol “SPU” at this time. In accordance with NASDAQ Listing Rule 5810(c)(3)(D), the Company has a grace period of 180 calendar days, or until November 14, 2016, to regain compliance with the minimum MVPHS requirement. To regain compliance, the minimum MVPHS of the Company's common stock must meet or exceed $5,000,000 for at least ten consecutive business days during this 180-day grace period.

If the Company does not regain compliance with the minimum MVPHS requirement by November 14, 2016, NASDAQ will provide written notification to the Company that its securities will be subject to delisting. Alternatively, the Company may consider applying to transfer the Company's securities to The NASDAQ Capital Market which has a minimum MVPHS requirement of $1,000,000.

The Company intends to monitor the MVPHS for its common stock between now and November 14, 2016 and will consider the various available options available to the Company if its common stock does not trade at a level that is likely to regain compliance.

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On April 20, 2016, SkyPeople Fruit Juice, Inc. (the "Company") received a notification letter from the NASDAQ Listing Qualifications (“NASDAQ”) stating the Company was not in compliance with NASDAQ Listing Rule 5250(c)(1), due to its failure to timely file its Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 10-K”). The NASDAQ notification letter provides the Company 30 days from the date of the notification, or until May 20, 2016, to submit a plan to NASDAQ to regain compliance with the NASDAQ’s continued listing requirements. If the plan is accepted, NASDAQ can grant an exception of up to 180 calendar days, or until October 11, 2016, for the Company to regain compliance. The Company may regain compliance at any time during this 180-day period upon filing its 2015 10-K, as well as all subsequent required periodic reports that are due within that period. If Nasdaq does not accept the Company’s compliance plan, the Company will have the opportunity to appeal that decision to a Hearing Panel under Listing Rule 5815(a). The NASDAQ notification letter has no immediate effect on the listing of the Company’s common stock on the NASDAQ Global Market.

XI'AN, China, March 16, 2016 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced  that on March 11, 2016, SkyPeople Juice International Holding (HK) Limited ("SkyPeople HK"), a wholly owned subsidiary of the Company and a 99.78% owner of SkyPeople Juice Group Co., Ltd. ("SkyPeople China") entered into a share transfer agreement and a capital contribution agreement with Shenzhen TianShunDa Equity Investment Fund Management Co., Ltd. ("TSD Investment Fund"), a limited liability corporation registered in China.

Pursuant to the approval certificate and business license requirements of Shaanxi Province, where SkyPeople China is registered to do business, SkyPeople HK was required to contribute RMB 427,000,000 (approximately $65,698,308), and Hongke Xue, a director of the Company was required to contribute RMB 1,000,000 (approximately $153,846), to SkyPeople China for this purpose.

However, as of March 10, 2016, SkyPeople HK had contributed only RMB 314,190,900 (approximately $48,337,062) to SkyPeople China, and not the remaining RMB 112,809,100 (approximately $17,355,246) as payment for the remaining 112,809,100 shares of SkyPeople China so as to fulfill the requirements of the Chinese regulations.

To address this capital shortage and comply with the requirements of local laws and regulations, SkyPeople HK entered into agreements with TSD Investment Fund whereby TSD Investment Fund will acquire 112,809,100 shares of SkyPeople China from SkyPeople HK, and in exchange, will make a capital contribution of RMB 131,761,028.80 (approximately $20,270,928) to SkyPeople China. The capital contribution by TSD Investment Fund, as approved by the Company's Board of Directors, was calculated as eight times SkyPeople China's net profit per share for fiscal 2014 (about RMB 0.146 per share) multiplied by 112,809,100 shares to equal a total capital contribution of RMB 131,761,028.80 (approximately $20,270,928).

Of the total capital contribution of RMB 131,761,028.80 (approximately $20,270,928) by TSD Investment Fund, RMB 112,809,100.00 (approximately $17,355,246) will be used as payment for the outstanding amount due to SkyPeople China by SkyPeople HK. The remaining RMB 18,951,928.80 (approximately $2,915,681) will be used as an additional capital contribution to SkyPeople China and deposited into SkyPeople China's capital surplus account. Upon the effectiveness of the agreements between SkyPeople HK and TSD Investment Group, on or about April 1, 2016, SkyPeople HK will own 314,190,900 shares, or 73.42%, of SkyPeople China, TSD Investment Group will own 112,809,100 shares, or 26.36%, of SkyPeople China and Mr. Hongke Xue will own 1,000,000 shares, or 0.22%, of SkyPeople China.

Item 1.01 Entry into a Material Definitive Agreement.

On March 11, 2016, Skypeople Juice International Holding (HK) Limited (the “Skypeople HK”), a wholly owned subsidiary of SkyPeople Fruit Juice, Inc. (the "Company") and a 99.78% owner of SkyPeople Juice Group Co., Ltd. (“Skypeople China”) entered into a Share Transfer Agreement and a Capital Contribution (the “Agreements”) with Shenzhen TianShunDa Equity Investment Fund Management Co., Ltd. ( the “TSD”), a limited liability corporation registered in China.

Skypeople HK incorporated Skypeople China in Shaanxi Province, China on March 13, 2012 and pursuant to the approval certificate and business license of Skypeople China, SkyPeople HK was required to contribute RMB 427,000,000 (approximately $65,698,308) and Hongke Xue, a director of the Company (“Xue”) was required to contribute RMB 1,000,000 (approximately $153,846) to Skypeople China, and Skypeople HK and Xue as a result would own 427,000,000 shares (99.78%) and 1,000,000 shares (0.22%) of Skypeople China, respectively. As of March 10, 2016, Skypeople HK had contributed RMB 314,190,900 (approximately $48,337,062) to Skypeople China but had not contributed the remaining RMB 112,809,100 (approximately $17,355,246) as the payment for 112, 809, 100 shares of Skypeople China.

Pursuant to the Agreements, TSD shall acquire 112, 809,100 shares of Skypeople China from Skypeople HK and shall make a total capital contribution RMB 131,761,028.80 (approximately $20,270,928) to Skypeople China, which is calculated based upon 8 times Skypeople China’s net profit per share for 2014 (about RMB 0.146 per share) then times 112, 809,100 shares. RMB 112,809,100 out of the RMB 131,761,028.80 (the "Capital Contributions") shall be used as payment for outstanding capital contribution due to Skypeople China by Skypeople HK and the remaining RMB 18,951,928.80 (approximately $2,915,681) shall be used as additional capital contribution to Skypeople China and shall be deposited into Skypeople China’s capital surplus account. TSD shall pay the full Capital Contributions to Skypeople China within 15 working days upon the effectiveness of the Agreements and the shares shall be transferred upon payment being completed, at which time TSD shall own 112,809,100 shares and 26.36% of Skypeople China.

Item 3.03 Material Modifications to Rights of Securities Holders.

The information contained in Item 5.03 of this Current Report on Form 8-K is incorporated herein by reference.

ITEM 5.03. AMENDMENTS TO ARTICLES OF INCORPORATION OR BYLAWS; CHANGE IN FISCAL YEAR

On March 10, 2016, SkyPeople Fruit Juice, Inc. (the "Company") filed with the Florida Secretary of State's office an amendment to its Articles of Incorporation. As a result of the Articles of Amendment, the Company has authorized and approved an 1-for-8 reverse stock split of the Company’s authorized shares of common stock from 66,666,666 shares to 8,333,333 shares, accompanied by a corresponding decrease in the Company’s issued and outstanding shares of common stock (the "Reverse Stock Split"). The common stock will continue to be $0.001 par value. The Company will round up to the next full share of the Company’s shares of common stock any fractional shares that result from the Reverse Stock Split and no fractional shares will be issued in connection with the Reverse Stock Split and no cash or other consideration will be paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split. No changes are being made to the number of preferred shares of the Company which remain as 10,000,000 preferred shares as authorized but not issued. The amendment to the Articles of Incorporation of the Company takes effect on March 16, 2016.

On February 29, 2016, the Board of Directors of the Company (the “Board”) authorized and approved the Reverse Stock Split and amendment to Articles of Incorporation without shareholders’ approval, pursuant to 607.10025 of the Florida Business Corporation Act of the State of Florida.

The Company’s shares of common stock will begin to trade on the NASDAQ Stock Market on the post-Reverse Stock Split basis under the symbol “SPU” on March 16, 2016. The new CUSIP number for the Company’s shares of common stock post-Reverse Stock Split is 83086T307.

Item 1.01 Entry into a Material Definitive Agreement.

On November 6, 2015, SkyPeople Juice Group Yidu Orange Products Co., Ltd. ("SkyPeople Yidu") , a 99.78% indirectly owned subsidiary of Skypeople Fruit Juice, Inc. (the "Company") entered into a Construction Project General Contractor Agreement (the “Agreement”) with China First Metallurgical Group Co., Ltd. ( the “First Metallurgical”), a limited liability company incorporated in Hubei Province, China.

Pursuant to the Agreement, the construction work to be provided by the First Metallurgical for SkyPeople Yidu’s orange comprehensive deep processing zone project to process oranges to produce juices and other orange products will include: bounding walls, earthwork, water drainage systems, civil engineering, steel structures, decorations, water line and electricity installation, roads, pipeline networks, purchase and installation of supplementary and standard equipment (the “Project”). The Project is expected to start in December 2015 and is tentatively scheduled to be completed in 730 days. The total price of the Agreement is RMB 220 million (approximately $35 million).

XI'AN, China, Dec. 1, 2015 /PRNewswire/ -- 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 that on November 23, 2015, a groundbreaking ceremony took place for the Yidu orange project in Yidu City, Hubei Province with Government representatives and SkyPeople Chairman and Chief Executive Officer Yongke Xue in attendance.

"We are excited to break ground on what is planned to be a state-of-the art operation for the comprehensive processing of oranges," said SkyPeople Chairman and CEO Yongke Xue. "The manufacturing facilities will incorporate advanced international processing technology which will create value-added in the production of a wide range of high margin orange products."

"Upon completion in 2017, the new facilities will become another major production base for SkyPeople in addition to those that the company currently has in Northeast China and Shaanxi Province. We are pleased to partner with the Yidu municipal government in this opportunity to create exceptional products for both domestic and international distribution as well as to further bolster the region's strong agricultural industrial zone known for its abundant orange production," concluded CEO Xue.

As previously announced, the total investment in the Yidu orange project will be approximately RMB 300 million ($48 million), which includes fixed assets and the purchase of land use rights. Pursuant to the Investment/Service Agreement entered into by the Company's subsidiary, SkyPeople Juice Group Co., Ltd. and the Yidu Municipal Government in Hubei Province, China, the project will be built on a parcel of land approximately 280 mu (46 acres) located in the city of Yidu, Hubei Province. The Company will develop a concentrated orange juice production line and other facilities, such as storage facilities, a sales and distribution center, and an R&D center. The Yidu Municipal People's Government will be responsible for the basic infrastructure surrounding the project land, such as the main water supply, main water drainage, main roads, natural gas provision and the communications network. Yidu Municipal People's Government completed the demolition of the buildings on the project's land.

The Company located its orange project in Yidu, Hubei Province, consistent with the its strategy to locate its manufacturing facilities near major fruit growing centers. Further, in this project as well as the kiwi project in Mei County, it is executing its strategy to vertically integrate its operations to ensure a steady supply of fresh fruit.

Hubei Province is one of the biggest citrus production provinces in China, with the city of Yidu also known as the "town of citrus."

Item 5.02 Departure of Directors or Certain officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On November 22, 2015, SkyPeople Fruit Juice, Inc., a Florida corporation (the “Company”) received a resignation letter from Mr. Oliver Xin Ma, Chief Financial Officer of the Company, effective immediately. Mr. Ma indicated that his resignation is for personal reasons.

On November 27, 2015, the Board of Directors of the Company (the “Board”) appointed Mr. Hanjun Zheng, age 43, as interim Chief Financial Officer (“CFO”) of the Company, effective November 27, 2015.

Since December, 2009, Mr. Zheng has been serving as the Chief Financial Officer of SkyPeople Juice Group Co., Ltd. a company organized under the laws of China and a 99.78% indirectly-owned subsidiary of the Company. Mr. Zheng was the deputy general manager at Jingyang Branch of SkyPeople Juice Group Co., Ltd. from March, 2006 to November 2009. From May, 1994 to February, 2006, Mr. Zheng was the Financial Accounting Manager at Shaanxi Provincial Fruit Juice Processing Factory, a state-owned enterprise in Shaanxi, China.

Mr. Zheng earned his bachelor degree in accounting by passing Chinese National Self-Examination in Financial Accounting in 1996. Mr. Zheng graduated from Shaanxi Technical College of Finance and Economics and received his junior college degree in Financial Accounting in 1994. Mr. Zheng received additional training in Advanced Business Management and Advanced Financial and Accounting Management at Jiaotong University in March, 2011 and July, 2012 , respectively.

Mr. Zheng currently receives compensation of RMB 6,000 (approximately $960) per month from SkyPeople Juice Group Co., Ltd. and he will not receive any additional compensation from the Company in his new role of the interim CFO.

Mr. Zheng was not selected pursuant to any arrangement or understanding between him and any other person. There are no family relationships between Mr. Zheng and any of the directors and executive officers of the Company.

SKYPEOPLE FRUIT JUICE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

Management Discussion and Analysis

Our gross revenue for the three months ended September 30, 2015 and 2014 was $10.5 million and $34.8 million, respectively. This decrease was primarily due to decrease in sales in all of our products lines. During the third quarter of 2015, due to unexpected change of temperature and excessive rain, among other unfavorable weather conditions caused raw material supplies lower than usual. The reduction of raw material supplies has led to decreased amount of revenue.

Sales from apple related products were $nil and $5.6 million during the third quarter of 2015 and 2014, respectively. During the three months ended September 30, 2015, the Company did not sell apple-related products due to relatively low gross profit margin of apple-related products. Historically, apple-related products had lowest gross profit margin among all of our product lines.

Sales from concentrated kiwifruit juice and kiwifruit puree were $0.004 million and $0.36 million for the third quarter of 2015 and 2014, representing a decrease of $0.35 million. During the three months ended September 30, 2015, the Company sold very limited amount of kiwi-related products mainly due to unexpectedly low amount of raw material supplies.

Sales of concentrated pear juice decreased to $2.5 million in the third quarter of 2015, a decrease of $8.0 million, or 76%, from $10.5 million in the same quarter of 2014. During the third quarter of 2015 and 2014, the Company sold 2,649 and 7,644 tons of concentrated pear juice, respectively. The decrease of revenue generated from concentrated pear juice was mainly due to decreased amount of concentrated pear juice sold. During the third quarter of 2015, unexpected weather conditions caused lower amount of raw material supplies. As a result, the squeezing season started later than usual.

Revenue from our fruit juice beverages during the third quarter of 2015 decreased to $8.0 million, a decrease of $6.5 million or 45%, from $14.5 million for the same period of 2014. The decline in revenues during the three months ended September 30, 2015, occurred as consumers increased their (fruit juice beverage) purchases through on-line home-delivery from our competitors and decreased in-store retail purchases of our products.

Revenue from our fresh fruits and vegetables in the PRC were $nil and $3.9 million for the third quarter of 2015 and 2014, respectively. During the current period, due to lower than expected raw material supplies, the Company did not sell fresh fruits and vegetables.

Revenue from other products were $nil and $0.01 million for the third quarter of 2015 and 2014, respectively. The amount of sales of other products is expected to be unstable and is generally not indicative of our future sales of other products.

Net Income (Loss) Attributable to SkyPeople Fruit Juice, Inc.

Net income attributable to the Company was $4,563,409 for the three months ended September 30, 2014; in contrast, during the same period of 2015, net loss attributable to the Company was $425,718 for the reasons described above.

XI'AN, China, October 16, 2015 /PRNewswire/ -- 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 that its Board of Directors has approved an agreement whereby its Chief Executive Officer, Mr. Yongke Xue, through an entity controlled by him, has agreed to purchase 5,321,600 shares of the Company's common stock at $1.50 per share for a total price of $7,982,400 to be paid for by the cancellation of the $8 million loan to SkyPeople Juice Group Co., Ltd. (a 99.78% indirectly owned operating subsidiary of the Company). The minority shareholder who owns 0.22% of SkyPeople Juice Group Co., Ltd. has paid $17,600 to Mr. Xue for the remaining portion of the loan's repayment.

"The Board's decision to convert the related party loan into equity strengthens the Company's balance sheet and provides for further financial flexibility," said SkyPeople Chairman and CEO Yongke Xue. "The Company's Board of Directors is intent upon creating timely operating and financial strategies to optimize SkyPeople's growth opportunities," Mr. Xue concluded.

As background, the loan from Chief Executive Officer Xue through an entity controlled by him and his brother to the Company was dated February 18, 2013, and was renewed again on February 18, 2014 under the original terms of the agreement. The unsecured term loan had a principal amount of $8 million at an interest rate of 6% per annum.

Item 1.01 Entry into a Material Definitive Agreement.

On October 16, 2015, SkyPeople Fruit Juice, Inc. (the “Company”) entered into a Share Purchase Agreement (the “Agreement”) with SkyPeople International Holdings Group Limited (the “Buyer”), a Cayman Islands Company. The Buyer indirectly holds 50.2% of the equity of the Company and Mr. Yongke Xue ("Y. K. Xue"), Chairman and Chief Executive Officer of the Company and Mr. Hongke Xue, a member of the Board of Directors (the "Board") of the Company, indirectly and beneficially own 80.0% and 9.4%, respectively, of the equity of the Buyer.

Pursuant to the Agreement, the Company shall issue and sell to the Buyer, and the Buyer shall purchase from the Company 5,321,600 shares of common stock (the "Shares") of the Company (the "Transaction"). The purchase price for the Shares is $1.50 per share (the "Purchase Price"), and if the closing price for the common stock of the Company quoted on the NASDAQ Global Market is higher than $1.50 per share on the third business day after the public release of the Company's quarterly results for the quarter ended September 30, 2015, counting the day of the release as the first business day, the Purchase Price shall be adjusted to such closing price per share (the "Adjusted Price"), and the Buyer shall pay an additional amount for the Shares according to the Adjusted Price, and if the closing price for the common stock of the Company quoted on the NASDAQ Global Market is lower than $1.50 per share on the third business day after the public release of the Company's quarterly results for the quarter ended September 30, 2015, counting the day of the release as the first business day, no adjustment for the Purchase Price shall be made.

The total purchase price of the Shares is $7,982,400 and shall be paid by cancellation of the loan from the Buyer to SkyPeople Juice Group Co., Ltd. (a 99.78% indirectly owned subsidiary of the Company and the "Borrower") under a loan agreement dated on February 18, 2013, disclosed in the Form 8-K filed with SEC on February 19, 2013 and renewed on February 18, 2014 (the "Loan") in its principal amount. The shareholder who owns the remaining 0.22 % of the Borrower has paid $17,600 in cash to the Buyer as a part of repayment of the Loan. The unpaid interest on the Loan will remain an outstanding obligation of the Borrower. The Shares shall be issued and delivered within fifteen business days upon the consummation of the Transaction.

The Company shall file a registration statement for the registration of the Shares for the Buyer within 180 days from the effective date of this Agreement.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

On October 6, 2015, SkyPeople Fruit Juice, Inc.(the “Company”) received written notice from the NASDAQ Stock Market (“NASDAQ”) stating that the Company is not in compliance with the $1.00 minimum closing bid price requirement for continued listing on The NASDAQ Global Market, as set forth in NASDAQ Listing Rule 5450(a)(1). The notice has no immediate effect on the listing of the Company's common stock, and its common stock will continue to trade on The NASDAQ Global Market under the symbol “SPU” at this time. In accordance with NASDAQ Listing Rule 5810(c)(3)(A), the Company has a grace period of 180 calendar days, or until April 4, 2016, to regain compliance with the minimum closing bid price requirement. To regain compliance, the closing bid price of the Company's common stock must meet or exceed $1.00 per share for at least ten consecutive business days during this 180-day grace period.

If the Company does not regain compliance with the minimum closing bid price requirement by April 4, 2016, NASDAQ may provide written notification to the Company that its securities will be subject to delisting. At that time, the Company may have alternatives to obtain an extension and/or avoid a delisting, including an appeal of NASDAQ’s delisting determination to the NASDAQ Listing Qualifications Panel, or, alternatively, an additional grace period of 180 days in connection with a listing transfer to The NASDAQ Capital Market provided that the Company meets the applicable market value of publicly held shares requirement for continued listing and all other applicable requirements for initial listing on the NASDAQ Capital Market (except for the bid price requirement) and notifies NASDAQ of its intent to cure this deficiency.

The Company intends to monitor the closing bid price for its common stock between now and April 4, 2016 and will consider the various available options available to the Company if its common stock does not trade at a level that is likely to regain compliance.

XI'AN, China, Sept. 1, 2015 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU - News) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, is pleased to announce that its Board of Directors has approved and authorized its management to start the preparatory work for the listing of SPU's PRC operating subsidiary, SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"), on the National Equities Exchange and Quotations (the "NEEQ") in Beijing, China.

The NEEQ is a new-style, over-the-counter stock market which was approved by The State Council of the PRC and established in January, 2013. The main purpose of establishing the NEEQ financing platform was to resolve the needs of a certain small and medium-sized enterprises which cannot meet the listing standards of the Shanghai Stock Exchange (the "SSE") or the Shenzhen Stock Exchange (the "SZSE") and thus, cannot raise capital on those markets. Compared to the SSE and SZSE, the supervision and transaction rules of the NEEQ are less restrictive.

Since the NEEQ was established in 2013, it has developed quickly. As of August 1, 2015, there were almost three thousand listed companies on the NEEQ.  The total number of listed enterprises on the SSE and SZSE was only approximately two thousand eight hundred. Because of the open and flexible conditions for listing on the NEEQ, this new market has attracted many high quality companies.

As an example, on April 3, 2015, SynTheAll Pharmaceutical Co. Ltd ("STA"), the wholly owned subsidiary of WuXi PharmaTech (Cayman) Inc. ("WuXi"), listed on the NEEQ successfully.  WuXi is listed on the NYSE (stock symbol: WX). STA created a model for overseas-listed Chinese companies to enter the PRC capital markets. SkyPeople believes that it is widely accepted that the method adopted by STA could enable more companies to take advantages of PRC and overseas capital markets, thus opening a new channel for broadening companies' sources of financing.

In addition to STA, other companies listed on NEEQ include: JD Capital, Uwaysoft and Blue Mountains Technology Co., Ltd., to name a few.

The management of SkyPeople is now actively preparing a plan for listing SkyPeople (China) on the NEEQ, but, at the present time, the Board of Directors of SkyPeople has not authorized a capital financing for SkyPeople (China) on the NEEQ. The purpose of the Board of Directors approval and authorization of SkyPeople (China)'s listing on the NEEQ is to take full advantage of the rapid developments in the PRC capital markets which can bring opportunities to enterprises such as SkyPeople (China) and help them realize the realistic valuations in the stock market, and open a potential channel of financing from the public capital markets within China.

Although the Board of Directors has authorized SPU's management to start the preparatory work of the listing of SkyPeople (China) on the NEEQ, the Board of Directors and SPU's management cannot guarantee that SkyPeople (China) will be able to list on the NEEQ successfully. There also cannot be any assurances as to whether SkyPeople (China) can be successful in raising new capital on the NEEQ in the future.

XI'AN, China, Aug. 14, 2015 /PRNewswire/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company" -News), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced the filing of two registration statements with the Securities and Exchange Commission ("SEC").

The Company filed a registration statement on Form S-3 for an as yet undetermined offering of common stock, preferred stock, debt securities, warrants, rights and units, in the same or separate offerings and in any combination, up to an aggregate amount of $100 million. The Company also filed a registration statement for one million shares of common stock on Form S-8, pursuant to its employee and non-employee Director stock incentive plan.

Second Quarter 2015 Financial Results:

• Total revenue was $12.2 million, an increase of 2% year-over-year
• Net income attributable to SkyPeople Fruit Juice for the second quarter of 2015 was $2.1 million as compared to $0.05 million for the same period of 2014, while earnings per share was $0.08 in the current quarter as compared to nil for the same period of 2014.

"We are pleased to report a robust increase in profitability in the second quarter of 2015 from the year-ago quarter attributable to lower raw material costs, better operating efficiencies and prudent financial management," said Mr. Yongke Xue, Chief Executive Officer of SkyPeople. "Our fruit juice beverage segment continues to the major segment contributor to both revenue and profitability which offset the constrained contributions from other product segments due to the scarcity of raw materials required for processing attributable to extended seasonality issues."

"In our view, China's rising incomes and the challenges of urban living are speeding the transition in consumer tastes towards healthier living. Our strategic plan is to widen our fruit juice beverage distribution efforts so as to further penetrate China's urban markets. Our fruit juice beverages products are sold via over 100 distributors in more than 20,000 retail stores in China. We also look forward to a new growing season to provide ample raw materials for processing so as to better balance the components of our revenue.

"We are making steady progress with our new projects that will better integrate our operations and ensure a more secure supply of fresh fruit raw materials. In particular, the project in Mei County to manufacture and trade kiwi products will undergo trial production later this year which is an important milestone for us. Our goal is to strengthen our product mix and reduce volatility that can occur with our current supply chain."

"We continue to view China's urbanization, changing demographics and the trend towards healthier lifestyles as key drivers of continued long-term growth. We are confident about the sustained marketability of our products even during times of an economic slowdown as nutrition and healthy living are gaining more traction as an emerging phenomenon across all of China," Chief Executive Officer Yongke Xue concluded.

CALCULATION OF REGISTRATION FEE

XI'AN, China, March 31, 2015 /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, 2014.

Fiscal Year 2014 Summary:

• Total revenue was $99.1 million, an increase of 25% year-over-year
• Gross profit was $29.3 million, an increase of 6% year-over-year
• Gross profit margin was 30% in 2014 as compared to 35% in 2013
• Net income attributable to SkyPeople Fruit Juice, Inc. stockholders was $7.9 million, a decrease of 35% year-over-year
• Cash, cash equivalents and restricted cash were $31.7 million as of December 31, 2014

"We reported strong top line results for fiscal year 2014 as we experienced a better balance of contributions from our major operating segments. In particular, our apple-related products segment rebounded strongly in fiscal 2014 as revenue more than doubled from the previous fiscal year," said Mr. Yongke Xue, Chief Executive Officer of SkyPeople. "However, generally higher raw material costs and increased financing costs associated with our major projects under development impeded our profitability for the year.

"We are pleased to report that our fruit juice beverages segment had a record year as our investment in bottling infrastructure and an expanded sales and marketing team is generating stellar returns. Our fruit juice beverages compete directly with a variety of beverages in China but they are increasingly the beverage of choice among young people who value healthy lifestyles and improved nutrition. Our fruit juice beverages products are sold via over 100 distributors in more than 20,000 retail stores in China.

"The project in Mei County to manufacture kiwi products and the orange development project in Yidu is consistent with our diversified product strategy. This strategy enables us to shift our manufacturing to product segments that have better growing seasons and redirect marketing to products that evidence rising customer demand. It will also help to shield us from occasional disruptions in our supply chain, ensure stronger competitive positioning and generate stable cash flow.

"Our outlook for 2015 is positive since we believe that the underlying fundamentals of demand for our products continue to be sound. We believe that continued urbanization, changing demographics, higher personal incomes and a further transition towards healthy lifestyles will lead to growth in our business," CEO Yongke Xue concluded.

Item 4.01 Changes in Registrant’s Certifying Accountant.

On December 30, 2014, SkyPeople Fruit Juice, Inc. (the “Company”) dismissed its independent registered public accounting firm, Paritz & Company, P.A. (“Paritz”), from its engagement with the Company with immediate effect. The decision to dismiss Paritz as the Company’s independent registered public accounting firm was recommended by the audit committee of the board of directors of the Company (the “Audit Committee”), and approved by the board of directors of the Company (the “Board of Directors”) on December 30, 2014. During the Company's three most recent fiscal years ended December 31, 2013, 2012 and 2011 and the subsequent periods through the effective date of the dismissal of Paritz, there were no disagreements on any matter of accounting principles or practices, financial statement disclosure or auditing scope of procedure, which disagreement, if not resolved to the satisfaction of Paritz, would have caused Paritz to make reference thereto in its reports on the Company’s consolidated financial statements for such periods. There have been no reportable events as provided in Item 304(a)(1)(v) of Regulation S-K during the Company’s fiscal years ended December 31, 2013, 2012 and 2011 and any subsequent interim period, including the interim period up to and including the effective date of the dismissal of Paritz.
The Company provided Paritz with a copy of the disclosure set forth in this report on Form 8-K, and requested that Paritz furnish a letter addressed to the Securities and Exchange Commission (the “SEC”) stating whether they agree with the disclosures contained in this 8-K. A copy of Paritz’s letter to the SEC dated December 31, 2014 is filed hereto as Exhibit 16.1. On December 31, 2014, the Company engaged Armanino LLP (“Armanino”) to serve as its independent registered public accounting firm with immediate effect. The decision to engage Armanino as the Company’s independent registered public accounting firm was recommended by the Audit Committee and approved by the Board of Directors on December 30, 2014.

Item 5.02  Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On December 23, 2014, Norman Ko and John Smagula resigned as members of the Board of Directors of SkyPeople Fruit Juice, Inc. (the “Company”). To the knowledge of the Company’s executive officers, the resignations of Messrs. Ko and Smagula are not the result of any disagreement with the Company on any matter related to the Company’s operations, policies or practices.

On December 23, 2014, the Board appointed Johnson Lau as a member of the Board of Directors of the Company and also the Chairman of Audit committee. Mr. Lau is entitled for US$25,000 per annum as compensation for his service as director of SkyPeople.

Mr. Lau is the Chief Financial Officer of SGOCO Group, Ltd. (NASDAQ: “SGOC”). Mr. Lau is a Certified Public Accountant of the Hong Kong Institute of Certified Public Accountants and CPA Australia. Mr. Lau has over 17 years of experience in the accounting profession. Mr. Lau started his career in Deloitte in Hong Kong and Beijing from 1997 to 2004. Prior to joining SGOCO in July 2013, Mr. Lau worked in various public companies in the United States and England as Director of Finance and CFO for nine years. He holds a bachelor degree in commerce from Monash University, Australia.

On December 24, 2014, Hongke Xue, the Chief Executive Officer and a member of the Board of directors of the Company, resigned from his position as the Chief Executive Officer of the Company. His decision to resign was not a result of any disagreement with the Company or its management on any matter relating to the Company's operations, policies or practices. After his resignation as the Company's Chief Executive Officer, Hongke Xue will remain as the Company's director.

On December 24, 2014, the Board appointed Yongke Xue to serve as the Chief Executive Officer of the Company, effective immediately, to fill the vacancy created by the resignation of Mr. Hongke Xue.

Third Quarter 2014 Financial Results

• Revenue was $34.8 million, an increase of 79% year-over-year
• EPS Basic and diluted earnings per share $0.17 vs. last years same quarter of $0.11.

"We are very pleased to report these strong financial results, highlighted by a balanced contribution to revenue among our core products due to the general availability of fresh fruit raw materials during the quarter," said Mr. Hongke Xue, chief executive officer of SkyPeople. "These quarterly results confirm our strategy for procuring sufficient quantities of fresh fruit by locating our production facilities near fruit growing centers in large fruit producing provinces.

"In terms of our major project initiatives, our project to develop a manufacturing base for kiwi products in Mei County has shown progress with the construction of a kiwi fruit and fruit-related materials trading zone now mostly completed. Our orange development project in Hubei Province is also making progress with the goal of these two projects to meaningfully expand our processing capabilities.

"SkyPeople now sells its fruit juice beverages to more than 20,000 retail stores in some 20 provinces in China," said Mr. Xue, and he expects these figures to continue to improve in the quarters ahead.

"China's rising incomes, we believe, are speeding the transition in consumer tastes towards healthy living, including the increased consumption of high-quality fruit juice beverages. We are therefore well positioned to capitalize on this trend and to continue to capture additional market share," said Mr. Xue.

• Revenue was $12.0 million, an increase of 16% year-over-year
• Earnings per share attributable to SkyPeople Fruit Juice for the second quarter of 2014 was nil as compared to $0.03 for the same period of 2013.

"We are pleased to report a 16% increase in our top-line results in the second quarter of 2014 from the year-ago quarter. Our fruit juice beverage segment grew 28% as compared to the second quarter a year ago which offset the limited revenue contributions from our other product segments due to the scarcity of raw materials and finished products in inventory," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople. "Although our revenue compared positively to that of the year-ago quarter, a capital lease obligation undertaken early this year for our major project initiatives impeded our bottom line results for the quarter.

"We view our branded fruit juice beverages as a key growth segment that fits China's growth profile very well. We currently sell our fruit juice beverages to more than 20,000 retail stores in approximately 20 provinces and see the potential for further geographical expansion throughout China. In particular, we plan to expand our glass bottle production line to target consumers in more populated Chinese cities. We also look forward to a new growing season that could provide ample raw materials required for processing so as to better balance our product segment contributions to revenue.

"We continue to make progress with our new projects that are intended to provide us with a more secure supply chain so that we will have greater control of our raw materials. Our project to develop a manufacturing base for kiwi products in Mei County is on schedule and we anticipate beginning trial production runs in the second half of this year. This project, in addition to our orange development project in Hubei Province, should enable us to further diversify our product mix and reduce volatility that can occur with our supply chain.

"We view China's urbanization trend to be especially important as it will enable us to further drive sales of our nutritious fruit juice beverages and leverage upon the growing need for healthy urban lifestyles. Given the relatively low consumption rate of fruit juice beverages in China, we believe that the growth of healthy beverages is a long-term trend that will benefit from urbanization, growing incomes and changing demographics," Mr. Hongke Xue concluded.

XI'AN, China, March 31, 2014 /PRNewswire/ -- 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, 2013.

Full Year 2013 Summary:

• Total revenue was $79.0 million, a decrease of 23% year-over-year
• Gross profit was $27.6 million, a decrease of 17% year-over-year
• Gross profit margin was 35% as compared to 32% year-over-year
• Net income attributable to SkyPeople Fruit Juice, Inc. decreased 33% year-over-year to $12.2 million
• Revenue from the fruit juice beverage segment was $39.5 million, an increase of 46% year-over-year
• Cash, cash equivalents and restricted cash were $74.1 million as of December 31, 2013

"We recorded less than expected financial results for fiscal year 2013 as several of our operating segments were hampered by a limited supply of fresh fruit for most of the year," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople. "Although our first quarter's performance showed promise, a difficult squeezing season for several of our raw material fruit products, particularly apples, reduced the production of our core products for the remainder of the year.

"On the bright side, our fruit juice beverages segment had a record year as our investment in bottling infrastructure and an expanded sales and marketing team is generating solid returns. Our fruit juice beverages products are sold via over 100 distributors in more than 20,000 retail stores in approximately 30 provinces in China.

"We are also making substantial progress with our new project growth initiatives intended to develop a more secure supply chain so that we might have greater control of our raw materials. We believe that our projects to produce kiwis in Mei County and oranges in Yidu, Hubei Province will give us a competitive advantage and generate substantial returns for our shareholders. A deeper product platform will enable us to further diversify our product mix, reduce the volatility of supply and generate stable cash flow.

"We continue to see China as a tremendous growth market as higher incomes, urbanization and changing demographics will lead to healthier lifestyles and improved nutrition. Our outlook for 2014 is positive as we are optimistic that our diversified product line will see a turnaround from the difficult squeezing seasons experienced in 2013, our branded fruit juice beverages business will gain further traction and our new projects will continue to make important progress," CEO Hongke Xue concluded.

Second Quarter 2013 Results

• Revenue for the three months ended June 30, 2013 was $10.4 million, a decrease of 19% as compared to $12.8 million for the same period in 2012.
• Net income attributable to SkyPeople Fruit Juice was $0.7 million for the second quarter of 2013, a decrease of 72% as compared to $2.4 million for the same period in 2012, while diluted earnings per share was $0.03 as compared to $0.09 for the same period in 2012.

"We recorded lower than expected financial results for the second quarter of 2013 attributable to reduced demand among our customers. However, we typically increase production of our concentrated fruit juice products in the third quarter which could potentially lead to improved sequential performance," said Mr. Hongke Xue, Chief Executive Officer of SkyPeople. "A bright spot in the second quarter was the continued strong performance of our fruit juice beverages segment, a key growth area in which we have invested substantially. For the quarter, the fruit juice beverages segment grew 35% year over year which helped to offset decreases in other of our key product segments. We currently sell our fruit juice beverages to more than 20,000 retail stores in approximately 26 provinces."

"During the second quarter of 2013, we decided to build our internal research and development team as we believe this is the best way to realize our commitment of creating new products with high margins to supplement our current product offerings. Therefore, we suspended four R&D contracts that were in effect in the quarter and will focus instead upon strengthening and expanding our current R&D team."

"We announced early in the second quarter that we entered into an agreement with Managing Committee of Mei County National Kiwi Fruit Wholesale Trading Center to establish kiwi processing facilities which we believe has excellent potential and will strengthen our competitive positioning in this important product segment. Our growth initiatives, including our project to develop orange products in Hubei Province, are a key element of our strategic plan is to further diversify our product platform in order to mitigate both the regional and seasonal cyclicality of our products."

"We continue to believe that China's economic growth and rising incomes are causing a transition in consumer tastes towards healthier lifestyles and improved nutrition. We see this as a long-term phenomenon that will stimulate further demand for our products. We believe that our diversified range of fruit products and branded fruit juice beverages are well positioned to meet this still emergent market environment," Mr. Hongke Xue concluded.

First Quarter 2013 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.
  
• 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.

"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

XI'AN, China, October 26, 2012 /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 that it was granted four new patents, each with a statutory patent period of 20 years, by the State Intellectual Property Office of the People's Republic of China ("SIPO") in September 2012. Each of such patents is related to the Company's innovative production methods and techniques that can help more effectively produce a variety of fruit juice products. The Company received the patent certificates for these four patents in September 2012.

The Company received the following two patent certificates on September 12, 2012:

• A Kiwifruit cider beverage and its production method (Patent No. ZL 2009 1 0022739.1)
• A production technology for strawberry juice concentrates (Patent No. ZL 2010 1 0209900.9)

The Company received the following additional two patent certificates on September 26, 2012:

• A production technology for turnjujube juice concentrates (Patent No. ZL 2010 1 0108318.3)
• A production technology for cherry juice concentrates (Patent No. ZL 2010 1 0209899.X)

The Company filed the patent applications with respect to the above patents in 2009 and 2010 which were followed by a comprehensive review by SIPO. Upon being granted of the new patents, the Company expects to secure market exclusivity for these innovative production methods and techniques for a period of 20 years. Including the foregoing four new patents, the Company now holds six active patents and has several patent applications in process.

"We are pleased to obtain these patents which reflects our capability to develop proprietary and innovative production techniques that continuously increase operational efficiency and product quality," said Chief Executive Officer, Mr. Yongke Xue. "Our continued efforts to obtain new patents via our commitment to research and development, are part of a long-term growth strategy that we believe will ultimately benefit our business performance in the future."

XI'AN, China, August 29, 2012 /PRNewswire-Asia-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 that it is initiating financial guidance for the fiscal year 2012.

Based on the current business outlook, the Company forecasts revenue to be in the range of $90 million to $110 million, net income attributable to SkyPeople Fruit Juice, Inc. 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.

"Sustained customer demand across a range of our processed fresh fruit product lines should enable us to achieve our guidance expectations for the year 2012," said Chief Executive Officer, Mr. Yongke Xue.

The Company assesses its financial guidance using a variety of factors that include the current macroeconomic environment in China, the industry in which the Company competes, and detailed analysis of a large number of operational factors. These factors are subject to change. In particular, exogenous factors such as weather and its effect on fresh fruit growing seasons play a large role in the Company's achievement of its operating objectives. Although the Company's current planning and guidance expectations are consistent with management's long-term operating and business objectives, management reserves its right to reassess its guidance from time to time based on the changing factors that impact the Company's business and operation.

Second Quarter 2012 Results

• Total revenue was $12.8 million, an increase of 5.1% year-over-year
• Revenue of concentrated pear juice increased 97.5% to $3.7 million year-over-year
• Revenue of fruit juice beverages increased 17.2% to $6.4 million year-over-year
• Cash flow from operations was $25.1 million 
• Cash and cash equivalents were $87.7 million as of June 30, 2012 
• Earnings per share of $0.09 vs $0.06 in prior year quarter

"We are pleased to report that the Company generated sound financial results for the quarter as the diversification of our product mix has continued to help offset the volatility associated with specific product growing seasons." Mr. Yongke Xue, Chief Executive Officer of SkyPeople, commented. "We were able to generate healthy growth and margins in our pear juice segment, in particular, and continue to seek additional product categories where we can leverage our core competencies and secure growing and stable cash flow."

CEO Xue continued, "During the quarter, we implemented a variety of new marketing strategies for our fruit juice beverage segment in order to heighten the segment's profile and increase sales. This resulted in strong sales momentum which saw strong sequential gains aided by our new 6,000 bottle per hour fruit juice production line which also began its operation in the quarter. We foresee continued favorable results as this downstream integration of our business further diversifies our product mix and capitalizes on the trend toward healthy nutrition in the market place," CEO Xue stated.

XI'AN, China, June 22, 2012 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) (together with its direct and indirect subsidiaries, "SkyPeople" or the "Company"), a producer of fruit juice concentrates, fruit beverages and other fruit related products, in the People's Republic of China ("PRC" or "China"), and Absaroka Capital Management, LLC, a private investment management firm, and its principal Kevin Barnes (together, "Absaroka") (together with the Company, the "Parties") today announced that they reached an out-of-court settlement of litigation in the U.S. District Court for the District of Wyoming. On July 7, 2011 the Company filed suit against Absaroka alleging that a June 1, 2011 report published by Absaroka (the "Report") contained several false accusations against the Company rendering it defamatory. On November 14, 2011, Absaroka filed a counterclaim alleging that the Company's June 2, 2011 press release in response to the Absaroka Article was defamatory and the Company's suit was an abuse of process. The settlement includes a dismissal of all claims and counterclaims filed by the Parties, with neither party admitting any wrongdoing or liability.

As part of the settlement agreement, Absaroka has agreed to remove the Report from its website, undertake best efforts to remove the Report from third-party sites, and refrain from issuing any further articles, public statements, or research reports concerning SkyPeople. Absaroka reaffirms that the Report was based upon its views as of the original publication date, which were, accordingly, subject to change. In this regard, after an exhaustive internal investigation, SkyPeople has raised serious questions regarding the accuracy of information provided to Absaroka by Qingdao Inter-Credit, including, but not limited to, the State Administration of Industry and Commerce ("SAIC") annual inspection reports relied upon by Absaroka in preparing the Report. Absaroka has agreed to remove the Report from its website to avoid further litigation concerning SkyPeople's contentions concerning inaccuracies in the Report.

XI'AN, China, June 4, 2012 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU - News) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced the introduction of Hedetang-branded fruit juice beverages into 24 Shaanxi Dongdongbao restaurant chain stores through automatic fruit juice dispensing machines. Dongdongbao is a restaurant chain with most of its stores located throughout Xi'an, Shaanxi province of China.

The use of automatic fruit juice dispensing machines for our Hedetang-branded fruit juice beverages is a relatively novel marketing approach for fruit juices since it mixes fruit juice syrup with water in accordance with a pre-set formula. The Company has found that customers prefer fruit juice beverages produced and dispensed this way since it has an excellent flavor. In addition, there is an element of freshness to the process and there is a sense that the juice it is made especially for them. There are four flavors of Hedetang-branded fruit juice beverages made by automatic fruit juice dispensing machines currently available to customers, including kiwi, pear, mulberry and orange.

The Company expects automatic fruit juice dispensing machines in restaurant chain stores to bolster the presence of Hedetang-branded fruit juice beverages in the local market of Xi'an, and plans on gradually spreading this fruit juice beverage dispensing method for our fruit juice beverages to other provincial capital cities of China.

"The introduction of our fruit juice beverages dispensed through automatic fruit juice dispensing machines placed in restaurant chains is expected to help boost the brand awareness of our Hedetang-branded fruit juice beverages among customers," commented by Mr. Yongke Xue, CEO of SkyPeople. "This platform represents just one component of our strategy to both heighten the profile and increase the volume of our fruit juice beverages in the marketplace so as to meet the growing demand for healthy fruit juices by Chinese consumers."

First Quarter 2012 Summary:

• Total revenue was $15.0 million, a decrease of 23% year-over-year
• Sales revenue of concentrated kiwi juice and kiwi puree increased 26% to $3.8 million
• Sales revenue of concentrated pear juice increased 19% to $4.8 million
• Cash generated from operations was $14.8 million
• Cash and cash equivalents were $76.7 million as of March 31, 2012

Yongke Xue, Chief Executive Officer of SkyPeople, commented, "We continue to be challenged by unpredictable market conditions and rising raw material costs due to the volatile pricing of fresh fruits. We understand that these factors are beyond our control, and have been working to further diversify our segment mix to offset, to the extent possible, the effect of seasonality. Nonetheless, we were able to generate healthy margins in two key product lines. We are also pleased to report solid cash flows generated from operating activities, further strengthening our cash position which enables us to execute our comprehensive growth strategy."

"During the quarter we achieved the following important developments which I would like to highlight. First of all, our cash balances had been independently verified, which substantiated our integrity and reassured investors as to our credibility. Secondly, we had commenced operation of a new fruit juice beverage production line in our Huludao Wonder subsidiary, which was expected to help us take advantage of economies of scale and focus on producing high margin fruit juice beverages. Thirdly, we appointed Mr. Xin Ma as our new Chief Financial Officer with confidence that his experience with U.S. publicly traded Chinese companies is an excellent fit to our needs. These developments reflected our management's commitment to focus on enhanced financial transparency, sound investor communications and an operational focus on high margin products. Our top priority continues to be generating solid returns on our investment so as to create long-term value for our shareholders," CEO Xue stated.

XI'AN, China, May 2, 2012 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit beverages and other fruit-related products, today announced that its Board of Directors has approved the appointment of Mr. Xin Ma as the Company's new Chief Financial Officer, effective April 30, 2012, replacing Ms. Cunxia Xie, who resigned from the Chief Financial Officer position for personal reasons, effective April 30, 2012 as well.

"We are pleased to add Mr. Ma to our leadership team. We believe his experience with the U.S. publicly traded Chinese companies is a great fit to our needs," said Mr. Yongke Xue, SkyPeople's CEO. "Mr. Ma brings a very strong skill set and extensive experiences in U.S. GAAP accounting, finance, capital markets, as well as managerial experience. We look forward to Mr. Ma playing an important role in helping us drive sustainable business results and create long-term value for our shareholders."

Mr. Ma, 35, joined SkyPeople in December 2011 and had previously served as the Company's Vice President, Finance, responsible for the financial and accounting management of the Company. From March 2011 to December 2011, Mr. Ma served as the Chief Financial Officer of Universal Solar Technology, Inc., a U.S. reporting company based in China. From January 2006 to March 2011, Mr. Ma served as the Vice President of Kiwa Bio-Tech Products Group Corporation, a U.S. reporting company based in China. Mr. Ma received a MSc. in Management in 2005 and a MSc. in Finance in 2006 from the University of Leicester in England. There is no family relationship between Mr. Ma and any of the Company's directors and officers.

Ms. Cunxia Xie's resignation is not in connection with any disagreement with the Company regarding financial, accounting, or other practices.

XI'AN, China, April 20, 2012 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a producer of fruit juice concentrates, fruit beverages and other fruit-related products, today provided supplementary information regarding the Company's cash balances as of its 2011 fiscal year end .

In response to a Nasdaq cash verification request, the Company's independent registered public accounting firm (the "Audit Firm"), Paritz & Company, P.A. ("Paritz"), from January 5 to January 9, 2012, independently verified the Company's cash balances held in financial institutions in China in which the Company and its subsidiaries maintain bank accounts (the "Accounts"). "Independently verified" means that an audit firm visited in person each of the institutions and physically observed bank employees printing or otherwise preparing or completing documentation which substantiated the cash balance for the Accounts. It does not mean that an audit firm relied solely on documentation completed and returned by bank personnel by mail or facsimile.

Based on the Audit Firm's independent verification, the verified cash balances of the Accounts in aggregate represent substantially all of the cash, cash equivalents and restricted cash amounts as stated in the Company's 2011 financial statements as reported in the Company's recent 10-K filing.

Paritz had reported its findings and the procedures it employed to the Nasdaq on January 25, 2012. On April 19, 2012, the Company was informed that Nasdaq has reviewed the cash balance submitted and has no further comments.

"At a time when there is speculation as to the credibility of certain Chinese companies, SkyPeople investors can be reassured that our cash balances have been independently verified and that we employ of a high degree of financial integrity in terms of our financial management systems," said Mr. Yongke Xue, SkyPeople's CEO. "Investors can have confidence in the strength of our balance sheet that enables us to take advantage of the growth opportunities available to us in our sector."

Full Year 2011 Results

• otal revenue was $84.0 million, a decrease of 10% year-over-year
• Concentrated apple juice and apple aroma segment sales revenue increased 6% to $24.8 million 
• Concentrated pear juice segment sales revenue increased 6% to $13.4 million 
• Cash inflow generated from operations was $26.0 million 
• Cash and cash equivalents of $61.2 million as of December 31, 2011 
• Added another concentrated pear juice production line in the Company's Jingyang factory in Shaanxi province
• A new beverage production line that will produce a variety of fruit juice beverages has been substantially completed and the trial operation has commenced in the fourth quarter of 2011

Yongke Xue, Chief Executive Officer of SkyPeople, commented, "Despite the unexpected weather conditions that prevailed throughout the harvest season of the year, we were able to generate year-to-year increases in two important product lines for the year as well as a reasonable level of revenue and strong cash flow from all of our business segments. We experienced an increase in our raw material costs due to the highly volatile pricing of fresh fruit. However, we are confident in our ability to manage the business during difficult times, and to develop new products with higher margins that may offset some of these operating concerns in the future."

"We continue to be optimistic about the long-term future of our Company. We are implementing a strategy to cut the prices of our fruit juice beverages in order to expand our market share. We remain confident about the sector given relatively low current domestic consumption and potentially escalating consumer adoption as rising incomes lead to healthier lifestyles. A new production line for concentrated pear juice and a new fruit juice production line were both implemented in the fourth quarter of 2011. Our strategic growth plan for additional storage, processing and production capacity is in motion that we believe augurs a promising future for the Company," CEO Xue stated.

XI'AN, China, December 28, 2011 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU -News) ("SkyPeople" or "the Company"), a processor and manufacturer of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang- and Qian Mei Duo-branded fruit beverages in the People's Republic of China ("PRC" or "China"), today announced that it added another concentrated pear juice line in the Company's Jingyang factory in Shaanxi province.

The new line, which was put into production on December 26, 2011, can process 20 tons of pears per hour. With its ISO9001, HACCP and KOSHER certified quality control system, the new production line meets the standards of exporting to major fruit juice consuming countries including the U.S., Canada and European Union. The capital expenditures associated with this project was approximately $7.4 million. The new line augments SkyPeople's existing capacity of processing 20 tons of pears per hour.

"We believe that the new line production will provide us with additional capacity to meet our expectation for growth in demand for this juice product and further strengthen our leading position in the concentrated pear juice segment," commented Yongke Xue , Chief Executive Officer of SkyPeople Fruit Juice.

Third Quarter 2011 Results

Second Quarter 2011 summary:

• Total revenue decreased 9% to $12.2 million year-over-year
• Apple concentrate sales increased 110% to $2.4 million due to higher pricing
• Fresh juice beverage sales increased 12% to $5.4 million 
• Cash flows from operations increased was $27.5 million in first half of 2011; $76.1 million cash and cash equivalents at June 30, 2011

Yongke Xue, Chief Executive Officer of SkyPeople Fruit Juice explained, "Sales of our Hedetang and Qian Mei Duo beverages grew significantly in the quarter and were the single largest revenue stream for the Company. Our branded beverages are now sold in over 100 retail stores in approximately 13 cities including Xi'an, Beijing and now, Tianjin. During our seasonally slowest quarter, we improved apple juice and pear concentrate sales despite weather effects on the harvest seasons over the last six months. This was offset by a measured decrease in kiwifruit sales as the second quarter in 2010 had abnormally strong harvests. We remain committed to capitalizing on the growth potential for our branded beverages and the continued growth of our concentrate business in China and international markets."

XI'AN, China, July 21, 2011 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ:SPU - News) (together with is direct and indirect subsidiaries, "SkyPeople" or the "Company"), a processor and manufacturer of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang and Qin Mei Duo-branded fruit beverages in the People's Republic of China ("PRC" or "China"), today announced that it signed a Letter of Intent with the People's Government of Suizhong County, Liaoning Province, to establish a fruit and vegetable industry chain and further processing demonstration zone in Suizhong County, Liaoning Province (the "Suizhong project"). The Suizhong project is one of the projects promoted by Liaoning government in its efforts to further develop the agricultural product processing industry in Liaoning.

XI'AN, China, July 8, 2011 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) (together with is direct and indirect subsidiaries, "SkyPeople" or the "Company"), a processor and manufacturer of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang and Qin Mei Duo-branded fruit beverages in the People's Republic of China ("PRC" or "China"), today announced the filing of a defamation lawsuit against Absaroka Capital Management LLC ("Absaroka Capital") and its analyst, Kevin Barnes.

On June 1, 2011, an entity identifying itself as "Absaroka Capital Management LLC", a short seller of the Company's securities, published an article containing several false allegations and accusations against the Company (the "Article").

On June 10, 2011, the Company requested that Absaroka Capital and Kevin Barnes retract the inaccurate statements contained in the Article. Absaroka Capital did not comply with the Company's request, and, subsequently, the Company filed a civil action against Absaroka Capital and Kevin Barns for libel and tortuous interference with existing and prospective economic advantages in the United States District Court for the District of Wyoming, where Absaroka Capital is based.

Complete details of the lawsuit were attached as exhibits to a Current Report on Form 8-K filed with the Securities and Exchange Commission on the date hereof.

Originally available on June 6, 2011 to Premium Members

Skypeople Fruit Juice (SPU) is yet another ChinaHybrid that has been caught in the cross hairs of fraud allegations. A notable observation we have made is that SPU originates from the same geographic area in China as CBEH, CHNG and SCEI, companies that are currently dealing with varying levels of controversy.

As the GeoTeam continues to make its own inspections into the ChinaHybrid financial information, the following update comes on the heels of a research report written by another firm questioning the legitimacy of SPU's SAIC filings.

On June 1, 2011, Absaroka Capital Management, LLC published an article outlining why it believed,

Part of Absaroka's thesis centered on SPU's SAIC filings that it claims to possess - filings which portrayed 2009 revenues and net income that were much less than figures contained in SEC filings.

SPU management swiftly offered a rebuttal to Absaroka's SAIC claims:

Fortunately, the GeoTeam had recently obtained its own set of SPU's SAIC filings. We currently only possess the filings of two out of four SPU�s subsidiaries. Although we have not confirmed that we pulled these filings from a different source than Absaroka's , it turns out that the data contained within them match the SAIC information disclosed by Absaroka right down to the auditor CHOP.

Specifically, we obtained the exactly the same SAIC financial information of Skypeople Juice Group Co., Ltd. for the financial year of 2009 with the same CPA firm's chop. Furthermore, we also obtained the SAIC financial year information of 2008. The SAIC file of Skypeople Juice Group Co., Ltd. we obtained is enclosed.

We found the following SPU comments particularly revealing:

Why should SPU use the word "appear" if they are trying to convey a level of confidence in arguing their case? Rendering an opinion of 'YES' should be fairly easy for a company that is 100% confident about its position. Is it safe to assume that SPU does not want to make a definitive statement, possibly to protect itself from future self-incriminating comments?

Investors need to know that some ChinaHybrids are beginning to amend SAIC filings without disclosing such moves to the financial markets. We also believe that savvy investor relations firms know about such actions. Furthermore, amended SAIC filings are often not audited by the same local PRC accounting firm and in the case of FIE's there are likely no joint inspections by the SAT agency regarding the amended SAIC filings.

In fact, this morning SPU released its English version of 2009 SAIC filings that are materially similar to SEC documents (they have not released any Chinese version so far). 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.

SPU is now asking investors to "believe their paper." We ask why is the company providing unaudited information for years that have already been audited? Are they telling us that certain 2009 and 2010 corporate accounts were not audited? Why didn't SPU provide their official SPU SAIC document with relevant CHOPS? Are they in the process of amending SAIC filings?

Plea to the SEC: ChinaHybrids companies should be required to submit an 8K informing investors that they have amended SAIC filings, just as is the case when dealing with amendments to 10Q and 10K filings.

SPU would be better served to explain to investors why it appears that SAIC filings obtained by Absaroka are divergent from SEC documents. Is it possible that SPU may have fabricated margins or engaged in tax avoidance practices? Can differences be tied to differences between U.S. and PRC GAAP accounting standards? In order to gain investor trust, companies need to just start coming clean. The charade is over

Furthermore, our investigator recently visited two facilities of SPU at Jingyang County, Shaanxi province (Skypeople facility) and Zhouzhi county, Shaanxi province (Qiyiwangguo facility). So far, our investigator did not visit Huludao Wonder facility and Yingkou Trust facility.

Our visitation of Skypeople facility and Qiyiwangguo facility has essential similar findings of Absaroka. Our key findings are as follows:

1. SPU may not have the largest kiwifruit plantation in Asia and its factory (Skypeople facility in Zhouzhi County) may need to purchase kiwifruit from local farmers. Zhouzhi County has several hundred thousand mu (Chinese acre/666 square meter) kiwifruit farms which may provide enough kiwifruit for SPU's production.
2. Qiyiwangguo facility in Zhouzhi county may have produced around 800 ton kiwifruit concentrate in 2010 and some kiwifruit juice from the concentrate (we do not know the quantity of the kiwifruit juice).
3. Skypeople facility in Jingyang County may have produced around 2,500 ton pear concentrate in 2010.
4. The pictures of Skypeople facility in Zhouzhi county and Qiyiwangguo facility in Jingyang county taken by our investigator are enclosed with this letter.

Disclosure: We intend to establish a short position in SPU shares, realizing that support may be found at $1.43, which is the cash per share value taking into account the $38.0 million the company received from U.S. equity investors through three equity offerings since 2009. Of course, this price assumes that U.S. investors have a claim to this cash.

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XI'AN, China, June 6, 2011 /PRNewswire-Asia/ -- SkyPeople Fruit Juice Inc 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 GeoTeam will have more on this story later.

XI'AN, China, June 3, 2011 /PRNewswire-Asia/ -- SkyPeople Fruit Juice, Inc. (NASDAQ: SPU) (together with is direct and indirect subsidiaries, "SkyPeople" or the "Company"), a processor and manufacturer of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang-branded fruit beverages in the People's Republic of China ("PRC" or "China"), today released the following statements:

SkyPeople has learned that, on June 1, 2011, an entity identified itself as "Absaroka Capital Management" (the "Author") and a short seller of the Company's securities, published an article on an investor website making various allegations and accusations against the Company (the "Article"). The Company believes that the Article contains many materially false and inaccurate claims, including without limitation, claims relating to the Company's operations, retail and sales channels, production, financials, and industry performance.

In particular, it appears that the author based much of its assumptions, analysis and conclusions in the Article on information and reports allegedly to have been filed by the Company with the PRC State Administration of Industry and Commerce ("SAIC"). However, upon review of the reports contained in the Article that the Author alleges to have been filed by the Company with SAIC, it appears that such so-called SAIC reports are entirely fabricated reports which contain materially false information about the Company's financial conditions and results of operations. The "auditor" of the so-called SAIC reports contained in the Article as shown on its company stamp did not appear to be the same auditor that actually audited the financial statements of the Company's PRC subsidiaries.

The Company believes that it is important to alert its shareholders and the general public that material false information contained in the Article which has been widely disseminated has caused material and irreparable harm to Sky People Fruit Juice, Inc. and its investors.

The Company is currently weighing appropriate legal remedies against the Author and the individuals that the Company believes to be behind this malicious attack.

Yonkue Xue, Chief Executive Officer of SkyPeople Fruit Juice explained, "Our diversified product portfolio produced respectable growth in the first quarter despite weather effects on the harvest seasons for apple and pear over the last six months. Sales of our Hedetang and Qian Mei Duo beverages grew significantly in the quarter and were the single largest revenue stream for the Company. Our branded beverages are now sold in over 100 retail stores in approximately 13 cities including Xi'an, Beijing and now, Tianjin. We are excited about the growth potential for this market and the continued growth of our concentrate business in China and international markets."

2010 Year End Conference Call Q&A:

Operator:    Thank you, ma’am.  Ladies and gentlemen, at this time we will now begin the question and answer session.  As a reminder, if you have a question, please press the star followed by the one on your touchtone phone.  If you’d like to withdraw your question, press the star followed by the two.  If you’re on a speakerphone, you’ll need to pick up the handset before making your selection.  One moment, please.

Our first question comes from the line of Howard Jhou with Ralph Ross Partners.  Please go ahead.

Howard Zhou:    Hello, good evening everyone.  Good quarter, and just a couple questions.  First on the margin, gross margin for your apple concentrate juice, things improved significantly from 22% in the third quarter to 30% in the fourth quarter.  So just wondering if you think this product margin will sustain going forward into 2011?

Spring Liu:    Yes, they do—this year the increase in gross margin of concentrated apple juice is mainly due to an increase in price of concentrated apple juice in international markets, which we believe is because of the shortage in concentrated apple juice supply in the international market.  At the same time, we also see an increase in price of fresh apples in the Chinese domestic market, so that actually partially offset that increase in gross margin which is driven by the increase in price of concentrated apple juice.  And basically, the higher margin will continue in 2011 because we believe the high price of concentrated apple juice will continue in 2011 compared with the price of 2009 or 2008.  So that will help us to improve our margin of concentrated apple juice.

Howard Zhou:    Okay.  And actually I understand your beverage product will be a major growth engine going forward of [audio interference].  So could you provide some insight in terms of your advertising and marketing plans in 2011, and how much you think you will spend on the promotions and advertising, those kinds of events?  
 
Spring Liu:        Currently our products are mainly sold in Xi’an and cities around it, and also Beijing and Tianjin.  So we don’t plan to do national advertising at the current stage.  And our future marketing and advertising expenses will be based on the percentage to our revenues.  In 2011, our beverages line in the Huludao Wonder factory will start operation.  That will help us to focus more on the east coast of China, which includes new markets such as Shanghai, Shenyang.  So we do have plans to get into this market.  At the same time, we may also incur some marketing and advertising expenses, but as I mentioned that will be based on the percentage of the revenue increase.  So far, we don’t have an expected number forecast on the marketing and sales expenses because we are also reviewing several advertising or special projects companies from Hong Kong and other companies in China; so once we finish these market research and interviews, we can provide a better picture on expenses of marketing or advertising.
 
Howard Jhou:    Okay.  That’s helpful.  Thank you for answering my questions.

Spring Liu:    You’re welcome.  Thank you.

Operator:    Thank you, and our next question comes from the line of Jerry Melrose with King Capital.  Please go ahead.

Jerry Melrose:    Hey guys, good morning.  (Audio interference)—overall gross margins, EBITDA margins move lower?

Spring Liu:    Oh, I’m sorry, because your phone line is cut off and I did not hear you clearly.  I’m sorry, did operator hear him clearly, or can you repeat?

Jerry Melrose:    I can go ahead and repeat.

Spring Liu:    Okay.

Jerry Melrose:    Considering the change in business mix, the increased focus on apple juice concentrate, you know, that being a lower margin business, I was wondering if you were expecting to increase apple juice production capacity to result in lower overall gross margins over EBITDA margins moving forward.

Spring Liu:    Okay, I got you.  For us actually, just as you mentioned, we will increase our capacity of apple and pear juice in 2011 which have a lower margin compared with concentrated kiwi fruit juice, so that will decrease our gross margin forecast for 2011.  But simultaneously, we expect to see a great increase in revenue from our own beverages; and you know, our beverages also enjoy a higher margin compared with our concentrated fruit juice. So we believe an increase in sales from our beverages will balance the decrease in margin because of the increase in revenue from apple or pear concentrates.  So we forecast that the margin of 2011 will still be in the range of our gross margin in the past three years.

Jerry Melrose:    Okay.  And then also looking at the competition—your competition, the Chinese apple juice concentrate market, the margins are slightly—your gross margins, EBITDA margins are significantly higher, so basically trying to figure out—how is that?  What is your edge, or what do you see your advantage as being over your competitors as you do—what that margin (unintelligible)?

Spring Liu:    Of our higher margin—overall gross margin compared with our competitors is mainly because we are focusing on specialty fruit juice, which provides us a higher margin.  We do think a lot of competition in concentrated apple juice area, that’s a reason our apple juice margin ranges widely from 20% to 28% in the past, but we do have a competitive advantage in concentrated apple juice.  Our two factories which produce concentrated apple juice are all located in Liaoning Province, and Lioaning Province is famous for highly acidic apple.  And apple juice made from acidic apples provides a higher margin compared with other concentrated apple juice producers.  In addition, we think apple juice is a very important factor for us because apple juice is the second most popular fruit juice in international markets, and we think with the increase in capacity of apple juice it can help us to increase our revenue and also expand our customer base.

Jerry Melrose:    Okay.  And another question, if that’s okay – in terms of, I guess, future capital expenditures, are you anticipating any issue share offerings or increased debt load, or what’s the story there?

Spring Liu:    Our capital expenditure plan for 2011 is roughly about $20 million to $21 million, so the money we just raised in August 2010 and operating cash flow will be enough for our production needs or capacity needs for 2011.  In addition, we have short-term loans from China Construction Bank and China Commerce Bank and some other big banks in China.  That could provide us the cash needed for working capital, so we don’t expect to do any equity  financing in the near future.

Jerry Melrose:    Okay.  And one more question for me, please.  There’s been some discussion in the investment community regarding the SEC filings of Chinese-based U.S. listed companies in comparison to the filings you file in China, the SAIC filings.

Spring Liu:    I’m sorry, I could not hear you.

Jerry Melrose:    Okay, there’s been discussion in the investment community regarding discrepancies between numbers reported in SEC filings versus numbers reported in SAIC filings.  And could you sort of speak to that, or what the issue is there?  I’m sure it’s something you’ve heard of.

Spring Liu:    I do hear that some Chinese companies have such issues from articles published on the Internet, but our auditor, BDO Hong Kong, they actually have visited the local SAIC in Shaanxi Province and they did not see much discrepancy of the financial results we reported to SEC and compared with the financial results we reported to Chinese government.  So our company does not have such issues.

Jerry Melrose:    Okay, so basically,  BDO Limited verified the numbers (unintelligible) filed and (unintelligible) SEC filings?

Spring Liu:    Oh, I’m sorry. I did not hear that.

Jerry Melrose:    I’m sorry.  Your response was that BDO Limited visited the SAIC office and couldn’t find any large discrepancies between your SAIC filings and the SEC filings.  Correct?

Spring Liu:    Yes, exactly.

Jerry Melrose:    Okay.  Right, that’s about it for me.  Thanks very much.

Spring Liu:    You’re welcome.

Operator:    Thank you, and our next comes from the line of Robert Dyas with RHD Capital Management.  Please go ahead.

Robert Dyas :  Hi, thank you for taking my call.  Back to dilution in share offerings, you just said that you don’t see any financings or share offerings in the near future.  Could you be a little bit more clear on that?  So, no financings, no additional dilution in 2011?  And also to include 2012, or are you leaving that open for future dilution?

Spring Liu:    So far according to our current conditions and current market opportunity, we don’t see any need to do equity financing.  So we have clearly communicated to our investors that we don’t have any plans to do equity financing in the near future.  But marketing conditions may change or opportunities may appear in the next two years, so according to the current conditions we don’t have such plans at all.

Robert Dyas:    Would there be any chance of going in the opposite direction – buybacks, or is that something that’s been contemplated as the share price is down?  Any time in the next—I know you just did an offering, but any views towards reversing that and going into the direction with a buyback over the next year or two, or three?

Spring Liu:    I’m sorry, I did not catch your question very well.

Robert Dyas:    Even though you just did a recent offering, do you foresee doing any buybacks over the next couple of years if your share price remains depressed?

Spring Liu:    Yes, we are considering that.  That is a part of our plan, so we are still seriously considering that and discuss with our attorneys on that.  We believe our shares are seriously undervalued.

Robert Dyas:    Okay.  But no announcement now or in the foreseeable future regarding that?

Spring Liu:    Once we confirm that with the company’s legal counsel, we will reevaluate the cash need for the next one or two years. Once that is confirmed and approved by the Board, we will keep our investors posted.

Robert Dyas:    Okay.  If I could briefly with another question – on your branded fruit juice, were you supply constrained or demand constrained in 2010?  Could you have sold more if you had produced more, or is it just a matter of you had the production capacity for additional branded juice but you could not sell it into the market?

Spring Liu:    It’s demand constrained.  Actually, as many of you know, China is a country with a large population.  But per capita juice consumption in China is only one-tenth of the world average, 1/40th of developed nations’ average.  So with the expansion of the Chinese middle class, the increase in consumption of fruit juice beverages has increased in China in the past 10 years.  So we see a huge market demand for fruit juice beverages, so that’s the reason we want to focus more on this market.  And also, currently we still focus on our kiwi flavor, mulberry flavor.  We recently added pear flavor, apple flavor and pomegranate flavor, some of them are still in the category of specialty fruit juice.  And because of its high nutrition value, it’s welcomed by Chinese consumers.  We just recently began the sale of our Qian Mei Duo product, which contains high fiber in the beverages.  We received a lot of positive market feedback and we are very confident in growing our market from our beverages.

Robert Dyas:    Okay.  And you’re not providing any guidance yet for 2011?

Spring Liu:    Not yet, because we have so many projects going on and also as I mentioned, we plan to get into different markets in the eastern part of China, so all these can seriously impact our revenue for 2011.  So when we have a better picture of 2011, we will for sure keep our investors posted.

Robert Dyas:    Okay, thank you.  That’s it for me.

Spring Liu:    Thank you.

Operator:    Thank you, and the next question comes from the line of Kevin Wood with Barron Partners.  Please go ahead.

Kevin Wood:    Hi.  I think many of my questions have been answered, but I just wanted to go back to the guidance idea.  Can you give us any sort of general flavor for your growth expectations?  With all the plans for expansion, new products, new production and so forth, are you anticipating an acceleration of growth rates over what we’ve seen over the last year or two?

Spring Liu:    Actually our growth rate is roughly 30% in the past few years; and for 2011, because Yingkou factory commenced operation in November 2010, it will contribute to the full year squeezing season for 2011.  So we believe once capacity of apple juice doubled, it can greatly improve our revenue in 2011.  In addition, our capacity for pear juice will also double in 2011, so that also contributes to the increase in revenue of 2011.  And as mentioned previously, we see very good feedback of our new beverages from Chinese consumers and actually we just attended Rodman conference in Shanghai.  A lot of our U.S. investors also like the flavor of our beverages.  So we do have a lot of confidence in our beverages sales as well, so although we cannot forecast the exact number or exact increase in revenue in 2011, management is very optimistic for the revenue and the net income of 2011.

Kevin Wood:    Okay, well that’s helpful.  That sounds pretty exciting all the way around.  Just to touch back to what you’d previously said about margins, is it fair to say that—I know there’s a lot of moving parts and changes, but overall the increase in lower margin products like the apple concentrate, you do expect to be offset at least by the beverages, particularly so that it’d be reasonable to expect for the full year you’ll probably be in the same range as last year?  Would that be fair to say?

Spring Liu:    Yes, we believe that our margin will still be around at least 35%.  It will still be within that range, which is our historical gross margin range.

Kevin Wood:    I see.  Okay, that’s good.  That’s very helpful.  Okay.  Then—just again to circle back to another topic that’s already been touched on, with respect to shareholder value, you know, we all see a lot more value than what the market reflects.  Certainly the more you can continue to do to increase transparency and credibility will help over time.  Are you also considering besides the potential buyback the idea of paying a dividend, or are you—do you anticipate perhaps seeing any of the management insiders doing any purchases on their own?

Spring Liu:    Actually, we do discuss these plans with our attorneys.  We do have our insider trading policy, so if management can really purchase our stock during what is called non-quiet period, and—but we are discussing that with our attorneys, trying to make these procedures more detailed. Once we finalize this policy, management does have plans to buy our shares personally.  And also, the Company also has discussed the buyback plan with our attorneys and we are seriously considering it as we believe our shares are really undervalued.  But we believe it’s temporary stuff.  We believe with our continued effort in communicating with our shareholders, with more transparency to our shareholders, and with the strong growth performance in the next few years, we believe finally our shares will be given a higher price.
 
Kevin Wood:    I see, okay.  Well that’s helpful.  So just to make sure I heard correctly, once you complete a review of the policies with your attorneys, the management group does intend to do—be buyers of the stock, assuming the price doesn’t double or something before then?

Spring Liu:    Yes, we do have such intention.

Kevin Wood:    Okay, great.

Spring Liu:    And we have already discussed with our attorney about this plan.

Kevin Wood:    Okay.  Okay, well I think that covers everything for me.  It sounds like everything is exciting there and going well.  We appreciate all your comments and extensive answers to the questions.  Thanks.

Spring Liu:    You’re welcome.

Operator:    Thank you, and our next question comes from the line of Jeff Roney with Roney Capital Partners.  Please go ahead.

Jeff Roney:    Congratulations on a good quarter.  I’d like to circle back and talk about the kiwi stockpiling that occurred in the fourth quarter in preparation for the Spring Festival.  Given that and the impact that it had negatively on 2010 sales, do you expect to—once the Spring Festival, that you can see some increase in kiwi sales in the first quarter of 2011 to recoup some of those—the missed opportunities?

Spring Liu:    Yes, you are right because this year, the price of kiwi fruit increased a lot during the fourth quarter, and a lot of farmers they stock up their fresh fruit in they want to sell at a higher price during Spring Festival.  So our capacity decreased in the fourth quarter of 2010 compared with 2009.  That is the main reason for the decrease in sales of kiwi concentrates.  But in the first quarter, we were able to purchase more fresh foods from farmers, so we are confident in increase in our capacity of kiwi juice in the first quarter of 2011.

Jeff Roney:    Okay, very well.  Second question – in regard to your capex commitment in expanding your bottling line that you’ve outlined in great detail, I understand the advertising given the concentration in Tianjin, Beijing of not doing national advertising.  But I think what U.S. investors would like to see is a commitment from management to bring on a credible beverage individual that can really give you the strategic marketing issue to really roll out your bottling line—you know, your bottling units into the retail establishments.  And I wonder if you have any plans to bring in a bottling executive that understands retail distribution in China?

Spring Liu:    Actually, in the fourth quarter of 2010, we changed our strategy in distribution of our beverages.  Previously, in Xi’an we mainly sell directly to retail stores in Xi’an and some cities around it.  In Beijing, we sell our beverages through a distributor.  But in the fourth quarter of 2010, there is a very experienced sales manager joined our team who has been in this beverages business for about 10 years.  So he actually suggested us to change that strategy.  He increased our indirect sales to supermarkets through distributors in Xi’an and some cities around it.  That’s the reason in the 10-K report that you can see we are selling to a lot of national supermarket chains that include Wal-Mart, Lotus, and these are top-level supermarkets in China.  So we see a positive feedback from market and we see an increase in revenue for beverages in the first quarter as well, so we do think this strategy works well.  But as I mentioned previously, we are still in interviews with different strategy groups which can give better advertising—better advise on distribution of our beverages and also on the marketing of our beverages.  That’s the reason we cannot forecast the advertising or marketing cost for now.  But once we finish this interviewing, then maybe we can have a better picture of that.

But national advertising in China is really very expensive, so we don’t want to be too risky and we don’t think it works to do a national advertising now because the geographic coverage is not much at the current state.  But in the next three years once we have national coverage, we will think about the national advertising; and as I mentioned previously, our advertising and marketing expenses will be based on the percentage of revenue from beverages.

Jeff Roney:    Do you have any strategic plan to move into Shanghai market, maybe selling into Lianhua Supermarket Holdings or Bailian, or the Fulian Supermarket?

Spring Liu:    Yes, we do have such plans, because before we only have one beverage line in Xi’an, so it means we have to ship our beverages from long distance to Beijing or Shanghai.  But in 2011, once our beverage line in Huludao Wonder operates, it can help us to focus more on eastern coast of China.  And also, you know, northeastern part of China is quite cold during winter time, so fruit juice beverages are quite popular there.  So our Huludao Wonder beverages line will help us to get into some big cities in northeastern part of China, including Shenyang, so the Company—we do have such plans to expand our geographic coverage, especially around east coast of China.

Jeff Roney:    Okay. Another question – given the U.S. investors’ view of Chinese stocks that’s been sort of—that people have alluded to on this call, does management—or do you have a plan to move to a top four auditor like a Coopers or a Price Waterhouse to alleviate investor concern and add credibility to your operations, since you have significant working capital, sales and obviously a great net income line.  You know, moving to a top four auditor would obviously increase your credibility in the investment community.

Spring Liu:    We do understand the concerns from our investors and we are working very hard to increase our transparency and make our financial statement or our SEC reports more credible.  In the past, we’ve hired internationally recognized consultant to help us to comply with SOX 404.  That’s one of our projects on that.  And I do think BDO Hong Kong did a very good job this year; and as I mentioned, this year they even go to different local SAIC and they checked the documents and the financial results we reported to the local government.  They compared with our SEC reporting and when they see even a small discrepancy, they ask us to explain for that.  And they did about almost four weeks field work and they checked all the records for the whole year, so I believe they did a very good job.  But I do understand the concern of investors, so we will consider that; but just as I mentioned, we think BDO Hong Kong did a good job as well.

Jeff Roney:    Well, they did.  One final question – you mentioned spending more time in the United States.  Do you have any dates—preliminary dates that we can expect to see you here in the United States?

Spring Liu:    Yes, yearly Mr. Xue and I do some—at least about one road show, Mr. Xue and I plan to go to the U.S. maybe this May or June, and once we have made our trip plan we will notice our IR firm, and then they will notify the investor groups in advance.

Jeff Roney:    Okay.  Well congratulations again on a good quarter and a great fiscal year.

Spring Liu:    Thank you.  Thank you.

Operator:    Thank you.  Ladies and gentlemen, if there are any additional questions, please press the star followed by the one on your touchtone phone.  If you’re on a speakerphone, you will need to pick up the handset before making your selection.

And our next question comes from the line of Chang Qui with Sansar Capital.  Please go ahead.

Chang Qui:    Yes, good evening and congratulations on a very good result.

Spring Liu:    Thank you.

Chang Qui:    Yes, my question is regarding the kiwi juice and kiwi fresh fruit sales.  Can you give us a full-year outlook—it looks like last year had some impact, and my understanding is the local government actually is encouraging the growth for the whole—you know, farmers to grow more of this kiwi fruit.

Spring Liu:    Yes, kiwi fruit is a very important economic crop in Shaanxi Province, and there are two companies in Shaanxi Province produce kiwi.  One of them is Zhouzhi county. Zhouzhi actually is called hometown of kiwi.  And the output of kiwi in Shaanxi Province accounts approximately 70% of China’s total output and 30% of the world output.  And it helped improve life standard of the local farmers.  So the Chinese government actually announced about one year ago that they will support the increase in growth of kiwi and they give subsidy to farmers to increase their plantation of kiwi area, and this subsidy will continue until 2015.  And at same time, we also received subsidy related with our kiwi production, so we believe once there is an increase in output of kiwi fruit, we will be able to increase our capacity of kiwi and that will help us to increase our production and revenue in kiwi fruits.

Chang Qui:    But for year 2011, I mean for this year, can we have, I believe, the flattish sales in terms to the kiwi concentrate and the fresh fruit?\

Spring Liu:    Actually we already reached almost full capacity during the squeezing season of kiwi fruits, and the price of kiwi fruits was quite stable in the past.  You know, the price of apple or pear juice fluctuating in international markets, but because of our leading position in kiwi fruits, you can see the price of kiwi was quite stable.  So we don’t expect a big increase in sales of kiwi fruits in 2011, but we do see an increase—there is a potential for increase in sales of fresh kiwi because recently we have already expand our wholesale of kiwi fruits in some cities along eastern coast, so we expect to see an increase in revenue from fresh kiwi sales.

Chang Qui:    Okay, and by the fruit—the juice side is more flattish?

Spring Liu:    It will fluctuate based on the price of concentrated kiwi in the market.

Chang Qui:    Okay.  All right, thanks.

Spring Liu:    You’re welcome.

Operator:    Thank you.  Ladies and gentlemen, at this time I’d like to give participants a final opportunity to ask any final questions.  If you do have a question, please press the star followed by the one on your touchtone phone.  To withdraw that question, press the star followed by the two.  One moment, please.

And I’m showing there’s no further questions in the queue.  I’ll turn the call back over to management for closing comments.

Spring Liu:    Thank you for everyone, and once again we welcome you to visit our facility, and we hope to see you again in U.S.  Thank you.

Operator:    Thank you.  Ladies and gentlemen, that does conclude today’s SkyPeople Fruit Juice Inc. Fourth Quarter and Fiscal Year 2010 conference call.  Thank you for your participation.  You may now disconnect.

Fourth Quarter Results:

• A record with revenue of $43.9 million, up 22.6% from 4Q 2009
• Apple concentrates and Hedetang fruit beverages increased 359% and 417%, respectively
•  Net income was $11.2 million, up 9.8% year-over-year, also a record
•  Diluted EPS showed a decrease to $0.47 for 4Q 2010 based on 23.1 million shares versus $0.56 per share in 4Q 2009 based on 18.6 million shares

"The fourth quarter is traditionally our strongest and was an appropriate ending to a successful year in which we demonstrated the significant growth in both apple concentrates and our branded Hedetang fruit beverages," started Yonkue Xue, Chief Executive Officer of SkyPeople Fruit Juice. "Due to seasonality, we normally witness kiwifruit concentrates and fresh fruits as the dominant contributor to revenues in the quarter. This year, however, we witnessed triple digit growth from our apple concentrates and production. I am especially proud of the 4 fold increase in fruit beverage sales, which was driven by a broader distribution footprint, the addition of new retail locations, and reorders from existing customers. Our Hedetang-branded beverages are currently sold through over 84 distributors and over 100 retail stores in approximately 17 cities. As the market continues to embrace these unique flavors, we are pursuing a significant growth opportunity in this segment and commercialized a new fruit juice line, Qian Mei Duo in January 2011 to target one of the fastest growing markets in China, the active, health-conscious female 18-29 years old."

As of December 31, 2010, we have completed the infrastructure construction work for the fruit juice beverage production line and have ordered the machinery for this new beverage production line. We expect to install and test the new beverage production line in the second quarter and start operating the production line in the third quarter of 2011. The environmental project mainly consists of a wastewater processing facility that is required in our production of fruit juice concentrates. Our increasing need for an additional wastewater processing facility is a result of our expansion in the production of concentrated apple juice. We expect to complete this project in the third quarter of 2011.

In the first quarter of 2011, we halted all construction work because of the cold weather in Huludao, which had regularly suffered sub-zero daytime temperatures. We expect to recommence the infrastructure construction work in April 2011 when the weather becomes more suitable for construction. We currently expect to complete all such infrastructure construction work by the end of the second quarter of 2011 and thereafter start installation and testing of the machinery. We expect to complete the installation of the concentrated apple production line in the fourth quarter of 2011 or early 2012. We plan to start the construction of the refrigeration storage unit for the storage of concentrated fruit juices and fresh fruits and vegetables and a concentrated fruit juice-mixing center in the second quarter of 2011. We expect to complete this project in the fourth quarter of 2011 or early 2012. As of December 31, 2010, we have spent $1.0 million of the net proceeds from the offering on the construction work of Huludao Wonder. We have not signed any contracts for the purchase of the machinery or the equipment for the refrigeration storage unit and concentrated apple juice production line yet. We are in the process of negotiating with different suppliers and we expect to order this machinery and equipment in the third and fourth quarters of 2011.

Rodman and Renshaw on SPU                02/07/2011

"The strong financial performance we delivered in the third quarter reflects the underlying demand for our concentrates globally and domestic demand for our juices and beverages in China," began Yongke Xue, CEO of SkyPeople Fruit Juice. "With plans underway to expand our capacity by 100% in concentrated apple juice in 2010, we are optimistic in our ability to meet the growing demand, which continues to expand in China. In fruit beverages, we will continue to increase distribution at a measured pace. The new, branded beverages we are introducing in the fourth quarter are the first step of our multi-year plan to make our Hedetang juice beverages a category leader. Based on the strong momentum through the first nine months of 2010, we remain confident in meeting our full year revenue, adjusted net income and adjusted EPS guidance as we enter our strongest quarters during the harvest seasons. We are also pleased that our fructose line is now up and running and we anticipate fructose revenues contributing to revenues for the year." Xue concluded.

GeoTeam® Note:  SPU has finally joined the growing number of ChinaHybrid compnies that are willing to issue guidance, helping to subdue fears of near-term dilutive equity raises.  although comments in the 2010 third quarter filing does not rule out a potential raise. 

We believe that projected cash flows from operations, anticipated cash receipts, cash on hand, and trade credit will provide the necessary capital to meet our projected operating cash requirements for at least the next 12 months, which does not take into account any potential expenditures related to the potential expansion of our current production capacity.

2010 Guidance:

As of June 30, 2010, we had cash and cash equivalents of $26.6 million, an increase of $12.2 million, or 84.7%, from $14.4 million as of December 31, 2009. We believe that projected cash flows from operations, anticipated cash receipts, cash on hand, and trade credit will provide the necessary capital to meet our projected operating cash requirements for at least the next 12 months, which does not take into account any potential expenditures related to the potential expansion of our current production capacity.

GeoTeam® September 2010 Rodman & Renshaw notes:

Skypeople Fruit Juice (NASDAQ:SPU)

• New pear fructose production line began operating in September. Will produce up to 10,000 tons @ $800 or $8 million revenue potential with 35%-45% margins.
• Will double apple processing capacity from 10,000 to 20,000 tons @ $1,000 or $10 million incremental revenue with 20%-28% margins.
• Growth strategy also focused on beverages, with a longer term target for beverages to account for 50% of revenues. Beverage revenues will make the overall business less seasonal.
• Five new series of beverage products to hit market in 4^th quarter.
• Pear fructose should double in revenue in 2011, adding about $6 million in revenue. Apple products could add $10 million to revenue this year and possibly $25 million next year.
• Only company in China that can produce concentrated kiwi juice at large scale to meet production needs. 45% to 55% margin on kiwi products.
• Have enough working capital for next two years.

When discussing SAIC, SAT and SEC filings, CFO said SPU's chairman observed that you can tell a good Chinese company by official government certifications, government financial support and the ability to get bank loans. "We have all of these."

GeoTeam Observations:

• Investors should exclude income from government subsidies when applying valuation models.
• We are still perplexed that SPU completed an offering after essentially implying that they wanted to wait for market conditions to improve and believed that the stock was undervalued. They offered stock near where they did about year ago. Balance sheet and cash position are strong. Why not do a combo of equity and internal cash or some debt to put forth a respectable growth plan?

Company Response:

SPU is in a highly competitive business. SPU needs to have an aggressive growth strategy to keep its position in the industry. The loans from banks are only for working purposes, and it is difficult to obtain loans for capital purpose. SPU's total capital expenditures are expected to be in the range of $60 million for 2010 and 2011, and it plans to get its expansion projects ready for the squeezing season of 2011, so that they can contribute to the revenue and net income of 2011. The timing of the offering is very crucial for the Company. The Company has postponed its offering twice due to the market conditions. If the Company postponed the offering a third time, it may miss the good opportunities that the Company currently has.

SkyPeople Fruit Juice, Inc 2010 third quarter Conference Call Notes

• New pear fructose production line began operating in September. Will produce up to 10,000 tons @ $800 or $8 million revenue potential with 35%-45% margins.
• Will double apple processing capacity from 10,000 to 20,000 tons @ $1,000 or $10 million incremental revenue with 20%-28% margins.
• Growth strategy also focused on beverages, with a longer term target for beverages to account for 50% of revenues. Beverage revenues will make the overall business less seasonal.
• Five new series of beverage products to hit market in 4^th quarter.
• Pear fructose should double in revenue in 2011, adding about $6 million in revenue. Apple products could add $10 million to revenue this year and possibly $25 million next year.
• Only company in China that can produce concentrated kiwi juice at large scale to meet production needs. 45% to 55% margin on kiwi products.
• Have enough working capital for next two years.

When discussing SAIC, SAT and SEC filings, CFO said SPU�s chairman observed that the way to tell who the good Chinese companies are is to look for official government certifications, government financial support and companies that are able to get bank loans. SPU has all of these.

GeoTeam Notes:

• Investors should exclude income from government subsidies when applying valuation models.
• We are still perplexed that SPU completed an offering after essentially implying that they wanted to wait for market conditions to improve and believed that the stock was undervalued. They offered stock near where they did about year ago. Balance sheet and cash position are strong. Why not do a combo of equity and internal cash or some debt to put forth a respectable growth plan?

SPU is in a highly competitive business. SPU needs to have an aggressive growth strategy to keep its position in the industry. The loans from banks are only for working purposes, and it is difficult to obtain loans for capital purpose. SPU�s total capital expenditures are expected to be in the range of $60 million for 2010 and 2011, and it plans to get its expansion projects ready for the squeezing season of 2011, so that they can contribute to the revenue and net income of 2011. The timing of the offering is very crucial for the Company. The Company has postponed its offering twice due to the market conditions. If the Company postponed the offering a third time, it may miss the good opportunities that the Company currently has.

Skypeople Fruit Juice may have surprised investors the morning with the announcement of a public offering of stock of about five million shares, priced at $5.00.  The offering will result in about 25.0% dilution. Those who follow this story knew this event was coming at some point. But commentary in its 2010 second quarter 10Q implied that the company would use internally generated funds until markets stabilized.

You be the judge.  Have markets stabilized?

While the company certainly needs to begin construction of new product lines now in order to stay on schedule to meet anticipated demand before the next squeezing season, a greater portrayal of confidence would have been instilled to the street if management could have at least:

• Used some of its cash on hand or
• Embarked on a smaller scale expansion strategy

On the positive side, it important to note that SPU has been able to deliver EPS growth since the last offering of stock they completed in 2009.

Excerpt from 2010 Second Quarter filing:

In the second quarter of 2010, we filed a registration statement to register for the sale of 5,300,000 shares of our Common Stock. We intend to use the net proceeds from the offering primarily for capital expenditure purposes.

Our capital expenditures for 2010 and 2011 are expected to be approximately $62 million, which includes a

• Beverage production line.
• 50 ton/hour concentrated apple juice production line.
• Refrigeration storage with a capacity of 15,000 tons.
• Concentrated fruit juice mixing center with a capacity of 10,000 tons.
• Related construction and an environmental project in Huludao Wonder factory
• PET bottle blowing machine system.
• 24,000 PET bottle/hour fruit juice beverage aseptic cold-filling line.
• 10 ton/hour concentrated pomegranate production line.
• Fructose production line.
• One refrigeration storage.
• Kiwifruit Quality and Safety Testing Center in Shaanxi Qiyiwangguo factory.
• 20 tons/hour concentrated pear juice production line in the Jingyang facility. 
•  20 tons/hour concentrated apple juice production line in the Yingkou facility.

To the extent our proceeds from the offering cannot adequately cover the total capital expenditures of the above projects, we plan to finance the rest of the capital expenditures primarily through operating cash flows income from government subsidies and bank loans. We currently consider the foregoing projects our priority projects and intend to use the proceeds from the offering first and primarily for such projects. However, depending on the changing needs of our business and market opportunities, we may instead use a portion of the net proceeds from the offering to acquire or license products, technologies or businesses we believe to be complementary to our business, should we determine that our business will benefit more from such expenditures. We currently have no agreements, commitments or understandings relating to any material acquisitions or licenses.

We plan to postpone some of our capital expenditure plans if we cannot complete the offering that we planned due to the unstable stock market condition. We plan to continue to invest in our business though our operating cash flow and short term loans from banks in order to continue growing our business.

GeoTeam note:

We found it interesting that SPU would not take questions on its 2010 second quarter conference call.   Companies sometimes follow this procedure when they are in a quiet period.

   Second Quarter 2010 Results:

                             2Q 2010           2Q 2009           CHANGE

    Net Sales            $ 13.4 million  $ 6.2 million      + 116.1%
    Gross Profit         $ 6.4 million    $1.9 million       + 236.8%
    Net Income         $ 4.8 million    $ 1.7 million      + 182.4%
    EPS (Diluted)       $0.22             $0.09                + 144.4%

"In the second quarter of 2010, sales of our concentrates and Hedetang juices experienced double digit growth exceeding management's expectations for the quarter," began Yongke Xue, CEO of SkyPeople Fruit Juice. "Continued growth in our domestic sales is a testament to our strategy to increase market share for our core concentrates of kiwifruit and pear in China while expanding our geographic footprint for our proprietary brand of juices. In the second quarter, we were also pleased to see continued orders from our international customer base, which we believe will support overall growth for the balance of the year. Our new product turnjujube concentrate, also contributed to the second quarter and we expect incremental growth going forward. " Xue concluded.

2010 Guidance

For the calendar year ended December 31, 2010, SkyPeople has provided $92.0-$100.0 million in revenue guidance and $19.0 to $21.0 in net income. The Company expects revenue and earnings growth to continue through the second half of the year, as it enters its most profitable selling period during the third and fourth quarter harvest and squeezing seasons.

GeoTeam note: We subtracted subsidy income from the financial results to attain a more accurate EPS picture. Doing this yields:

2010 second quarter EPS: $0.14
2009 second quarter EPS: $0.04

Our intent over the short-term is to build a check list to assess the risk position of firms in the ChinaHybrid space. For the time being this will consist of the following: (this list is likely to grow substantially)

Today, Skypeople Fruit Juice confirmed our suspicion that it would need to offer shares before July. Reference the S1/A filing.

The good news is that the funds will likely be put to use for growth initiatives:

"Use of proceeds We intend to use the net proceeds to us from this offering for capital expenditures, working capital and other general corporate purposes. We expect our capital expenditures to primarily include improvements to the Huludao Wonder and Qiyiwangguo facilities . We may also use a portion of the net proceeds to us from this offering to acquire or license products, technologies or businesses we believe to be complementary, but we currently have no agreements, commitments or understandings relating to any material acquisitions or licenses." 

We will reach out to the company to determine how fast funds will be deployed.   

"In the first quarter of 2010, we built upon the growth we reported during 2009 and significantly increased all key financial metrics compared to the year ago period," began Yongke Xue, CEO of SkyPeople Fruit Juice. "Sales of our concentrates represented a majority of our revenues as we witnessed a number of our export markets rebound this year. Domestic sales of concentrates and our Hedetang(TM) branded juice also showed strong growth during the first quarter. Each of our core segments produced revenue and profit growth which is evidence of execution on both our product and customer strategies in 2010," Xue concluded.

SPU reported strong first quarter financial results for its 2010 first quarter:

EPS increased 157% to $0.18 and exceeded analyst estimates of $0.11. Investors should recall our references from our initial article on December 28, 2009, where we discussed the possibility that SPU would have to raise funds before before the next 2010 squeezing season (July 2010) to maintain growth. Thus, we may have to mindful of dilution depending on how fast the company would implement funds. Also, the next two quarters are the company's seasonality weakest quarters. Thus, short term investors may look elsewhere.

We are listening the conference call this morning for further input into the 2010 outlook

On January 19th, SkyPeople supported is sales and marketing strategies for the Hedetang(R) fruit juice and cider product lines by providing 2010 revenue guidance of $92.0 to $102.0 million, and net income guidance of $19.0 to $21.0 million. Growth is expected to be driven by enhanced distribution of its high- margin Hedetang(R) juices, leveraging its capacity expansion during is 2010 harvest seasons and increased orders from domestic and international customers of concentrates in China and from international markets as they continue to rebound.

Source: PR Newswire (March 31, 2010)

On December 16, 2009 we coded Skypeople Fruit Juice (NYSE AMEX:SPU) as a GeoSpecial. We subsequently conducted an interview with Spring Liu, CFO of Skypeople, to gain an understanding of the company’s growth path. The SPU growth formula is similar to many China firms we have followed; gain a leading market position, increase manufacturing capacity to meet demand, expand product offering, obtain better province coverage. Skypeople is hopeful that these factors will lead to an increase in earnings per share and the maximization of shareholder value.

The simplicity of company’s business plan of marketing and manufacturing juice products was the trigger for us to look further into its story.

The impetus for its branded line arose from a crafty management decision in 2008 which was made in response to declining concentrate sales during the global crisis. Normally, Skypeople would sell the majority of its raw material supply to its customers, but the global recession softened this demand. In an effort to maximize its concentrate production capacity, the company embarked on a strategic move to process excess supply into its own branded products. The move has paid off, paving the way for product diversification, new customer channels and fresh market opportunity.

There is an aspect to the company that we are not particularly enthused about. Historically, the company experience seasonality in its first and fourth quarters which tend to be dramatically stronger than the others. This stems from the limited ability of the company to build its supply inventory only during the months of July through April, referred to as the squeezing season. Due to capacity constraints and strong demand for its concentrate line during this period, Skypeople has less inventory to carry over into non-peak periods, essentially limiting its ability to generate additional concentrate or branded product sales.

We addressed this topic with Ms. Lui by expressing our opinion that smoothing out seasonality may result in increased stock valuation multiples. She understood our sentiment and briefly outlined several points to the company’s growth strategy.

“The main thrust of our growth strategy is to increase our concentrate capacity, enabling us to accomplish several things. First, increasing our raw material supply will enable us to more fully satisfy current customers’ demands as well as solicit new customers.”

Secondly, we can increase branded beverage production, where we experience higher margins, especially in our new cider beverages lines, which was introduced to Chinese market in the first quarter of 2009. Our goal is to expand this line domestically, which is currently only available in one province and consists of two categories (kiwi & mulberry). The opportunity to achieve substantial gains exists if the company can penetrate more provinces.

Third, Increasing capacity will help smooth out seasonality by allowing us to build up inventory to sell past the squeezing season (concentrate has a two year shelf life). ”

We also asked Ms. Liu if Skypeople would emphasize any particular product line. She indicated that the company will increase the production of kiwi products domestically and internationally, due to a competitive advantage it has with respect to its production technique, access to the largest kiwi plantation in Asia and its high profit margins. Skypeople holds two patents in the kiwi processing technique. Lui continued,

“In conjunction with this goal we recently doubled our apple juice capacity to 20,000 tons. Globally, apple juice is the second largest demanded juice product. We are planning to attract more customers, through our apple juice offerings, who we can eventually introduce to our KIWI product line. Additionally, as the Chinese standard of living rises we will increase our focus on higher quality branded juice products.”

Overall, we are intrigued by the SPU story especially since the stock has a trailing P/E of just 9.37 and book value of $2.30. The reason we have not coded the stock as GeoBargain is largely due the seasonality issue. We would like Skypeople to address seasonality as well as grow earnings 30% consistently. In order to increase capacity we anticipate that the company may have to tap the capital markets before the next 2010 squeezing season, which the company hopes will be accretive to EPS.

Below is a brief Q&A conducted by the GeoTeam with Skypeople.

Q: As demand for pear juice is lower than many other juices why did you also choose to recently expand your pear juice capacity?

A: Pear juice is a one kind of specialty fruit juice. Specialty fruit juices are squeezed from fruits that are grown in a relatively low quantity.

Pear is easy to get oxidized. To keep the nutrition value of the pear juice, special manufacturing techniques are employed to keep the nutrition value of the pear juice and prevent it from oxidizing. We are one of the few companies which can produce high quality pear juice. Our special manufacturing techniques not only keep the clear color of the pear juice, but also keep the nutrition value of it. As the competition in pear juice is mild, we enjoy a higher margin on pear juice. That is the main reason for the expansion of pear juice capacity.

Q: Please give us some history on your Mulberry product line?

A: We are one of the first companies to initiate large-scale production of concentrated mulberry juice in China. As the concentrated mulberry juice are processed from dried mulberry, it does not meet the requirement from the international customers, who require it be processed from fresh mulberry. All the concentrated mulberry juice made by us is further processed to our own branded beverages.

Mulberries are widely regarded as one of the most nutritionally substantive fruits available to consumers. They possess rich active proteins, vitamins, amino acids, carotenes, and a variety of essential minerals. Compared with other fruits, the concentration of nutrients in mulberries is six times greater than that of apples and over four times greater than that of grapes.

As the harvest season for mulberries is only between April and May, and the quantity of mulberry produced in Shaanxi Province is not sufficient for our production needs, we produce mulberry juice from dried mulberries. Skypeople is capable of storing mulberries for at least 12 months, allowing for year round manufacturing.

Mulberries are mainly produced in the south part of Shaanxi Province and Sichuan Province. We are planning to transport our processing machines to these areas during its squeezing season and increase our production of concentrated mulberry juice and also meet the requirement of international customers.

'Our sales in the second quarter were largely impacted by a drop in consumer spending in the international market based on the current global economic climate,' Mr. Yongke Xue, CEO of SkyPeople. 'Despite the decline in total revenue, we saw a 72% year-over-year increase in sales for our fruit juice beverages to $3.0 million, as well as achieved a $690,000 sequential-quarter increase for sales of our fruit vinegar beverages, which we introduced to the Chinese market in the 2009 first quarter. We plan to continue to grow our business and focus on introducing new and higher margin products to capture additional fruit juice market share.

Source: PR Newswire (August 14, 2009)

Mr. Yongke Xue, Chief Executive Officer of SkyPeople, stated, 'Our strong gains in gross profit margin, operating income and net income for the first quarter demonstrate our ability to successfully develop and bring to market high quality, healthy and nutritious fruit juice products that satisfy accelerating consumer demand and preference for healthier fruit-based juice drinks. Interest in small breed fruit products such as our specialty kiwifruit and mulberry products continues to escalate worldwide due to the nutritional advantages and unique taste of these specialty fruits, which are not as widely available as more traditional juice flavors. We also began sales of high margin kiwifruit and mulberry vinegar products during the first quarter. Sales in each of these product categories offset part of our planned decrease in apple and pear juice product sales as we seek to build a larger volume of higher margin product sales into our mix.

Mr. Xue continued, 'One of our goals is to increase our production capacity of kiwifruit juice and kiwifruit puree from 10,000 tons to 22,500 tons by the third quarter of 2009. We will also continue to invest in upgrading our existing facilities to improve our operational efficiency and productivity. As the fruit juice market continues to evolve, we are confident in our ability to meet growing consumer demand both domestically and internationally for unique and high quality juice products.'

Source: See Release

As of March 31, 2010, we had cash and cash equivalents of $30.0 million, an increase of $15.6 million or 108.3%, from $14.4 million as of December 31, 2009. We believe that projected cash flows from operations, anticipated cash receipts, cash on hand, and trade credit will provide the necessary capital to meet our projected operating cash requirements for at least the next 12 months, which does not take into account any potential expenditures related to the potential expansion of our current production capacity.

Our working capital has historically been generated from our operating cash flow, advances from our customers and loans from bank facilities.  Our working capital was $39.5 million as of March 31, 2010, an increase of $10.8 million or 37.2%, compared to working capital of $29.0 million as of December 31, 2009, mainly due to an increase in cash and a decrease in income tax payables. The most significant sources of increase in working capital for the three months ended March 31, 2010 were $6.1 million from operating activities, proceeds of $3.0 million from the issue of 1,160,451 shares of our Common Stock from the exercise of warrants and $6.9 million from new short term loans. The most significant use of working capital during the three months ended March 31, 2010 was the payment of income tax of $2.6 million.

For our long term planned expenditures for equipment and land, we will likely need to seek additional debt or equity financing.  We believe that any such financing could come in the form of debt or the issuance of our common stock in a private placement or public offering.   However, there are no assurances that such financing will be available on terms acceptable to us, if at all.  To the extent that we require additional financing in the future and are unable to obtain such additional financing, we may not be able to fully implement our growth strategy.

The majority of our capital expenditures are for the expansion of our production capacity.  In the past two years, our annual capital expenditures ranged from $3.9 million to $4.9 million.  We financed our capital expenditures and other operating expenses through operating cash flows and bank loans.  As of March 31, 2010, the balance of short term loans totaled RMB 83.8 million, or $12.3 million based on the exchange rate of March 31, 2010, with interest rates ranging from 4.86% to 9.03% per annum. These loans were collateralized by land usage rights and buildings and will be due from June 2010 to February 2011.

We expect to expend approximately $60 million on capital improvements and the acquisition or license of technology or other companies in 2010 and 2011.  We plan to improve and expand our Huludao and Qiyiwangguo facilities. We currently expect such improvements to include the set up of a 50-ton/hour concentrated apple juice production line, a 10-ton/hour concentrated pomegranate production line, one fructose production line and two fruit beverage production lines

Mr. Xue stated, "We enter 2009 with a growing product line, increasing market share, and strong momentum overall. We will continue to upgrade our existing facilities to improve our operational efficiency and productivity, as well as look for targeted acquisition candidates to expand our position in the domestic and international fruit juice market."

Source: PR Newswire (March 31, 2009) 

*In 2007 the company satisfied it's target as it reported pre-tax income of RMB 68,939,855 ($9,066,064)

**The GeoTeam®  used current exchange rates. The make good targets do not apply to Dollars.  The dollar conversion is only shown for informational purposes.

Source: SEC Form 424B3 (February 6, 2009)

GeoTeam® Adjustment: