SkyPeople Fruit Juice Reports First Quarter 2012 Financial Results

Press Release

Financial Tables Follow -

SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED BALANCE SHEETS
		March 31,			December 31,
		2012			2011
ASSETS		(Unaudited)
CURRENT ASSETS
Cash and cash equivalents		$	76,713,489		$	61,154,007
Restricted cash			31,775			316,396
Accounts receivables, net of allowance of $46,577         and $46,529 as of March 31, 2012 and December 31, 2011, respectively			21,782,597			35,999,858
Other receivables			190,210			192,032
Inventories			5,335,964			6,126,376
Deferred tax assets			113,770			174,285
Advances to suppliers and other current assets			175,832			66,528
TOTAL CURRENT ASSETS			104,343,637			104,029,482
PROPERTY, PLANT AND EQUIPMENT, NET			49,784,454			44,277,228
LAND USE RIGHT, NET			6,635,133			6,673,496
OTHER ASSETS			173,233			5,323,162
TOTAL ASSETS		$	160,936,457		$	160,303,368
LIABILITIES
CURRENT LIABILITIES
Accounts payable		$	2,099,190		$	2,972,916
Accrued expenses			3,468,696			4,701,054
Income tax payable			855,217			1,910,779
Advances from customers			-			178,857
Short-term bank loans			8,467,979			6,425,713
Short-term notes payable			-			284,654
TOTAL CURRENT LIABILITIES			14,891,082			16,473,973
SHAREHOLDERS' EQUITY
SkyPeople Fruit Juice, Inc, Stockholders' equity
Series B Preferred stock, $0.001 par value;         10,000,000 shares authorized; 1,456,647         issued and outstanding as of March 31,         2012 and December 31, 2011			1,457			1,457
Common stock, $0.001 par value; 66,666,666         shares authorized; 25,690,402 shares         issued and outstanding as of March 31,         2012 and  December 31, 2011			25,690			25,690
Additional paid-in capital			59,189,374			59,189,374
Retained earnings			66,542,611			64,623,453
Accumulated other comprehensive income			14,236,710			14,086,620
Total SkyPeople Fruit Juice, Inc. stockholders'         equity			139,995,842			137,926,594
Non-controlling interests			6,049,533			5,902,801
TOTAL EQUITY			146,045,375			143,829,395
TOTAL LIABILITIES AND EQUITY		$	160,936,457		$	160,303,368

SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
		For the Three month Ended March 31,
		2012			2011
Revenue		$	14,993,500		$	19,414,915
Cost of goods sold			10,207,501			10,809,357
Gross profit			4,785,999			8,605,558
Operating Expenses
General and administrative expenses			1,477,604			816,160
Selling expenses			525,334			454,674
Research and development expenses			142,685			136,467
Total operating expenses			2,145,623			1,407,301
Income from operations			2,640,376			7,198,257
Other income (expenses)
Interest income			69,689			76,312
Subsidy income			433,504			483,067
Interest expenses			(154,812)			(163,795)
Others			(968)			(3,033)
Total other income (expenses)			347,413			392,551
Income before income tax			2,987,789			7,590,808
Income tax provision			928,380			1,929,808
Net income			2,059,409			5,661,000
Less: Net income attributable to non-controlling interests			140,251			368,824
NET INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC.		$	1,919,158		$	5,292,176
Earnings per share:
Basic earnings per share		$	0.07		$	0.20
Diluted earnings per share		$	0.07		$	0.20
Weighted average number of shares outstanding
Basic			25,690,402			25,690,402
Diluted			26,661,500			26,662,599
Comprehensive Income
Net income		$	2,059,409		$	5,661,000
Foreign currency translation adjustment			156,571			1,141,578
Total Comprehensive income		$	2,215,980		$	6,802,578
Comprehensive income attributable to non-controlling interests			146,732			413,802
Comprehensive income attributable to SkyPeople Fruit Juice, Inc.		$	2,069,248		$	6,388,776
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.

General and administrative expenses increased by 81% to $1.5 million, mainly due to an increase in legal fees related to the Company's current pending litigations, payroll and related expenses as a result of an increase in employees to handle the increased general and administrative work.

Short seller actions cost money, besides that............ what's the company going to do with their huge cash position. Sitting ducks will be shot, because shareholders don't like the idea of restless money.  

The company has potential but I will wait for a better opportunity. For me the trigger would be a turnaround in financial results or a clever acquisition.