Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 14, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'SkyPeople Fruit Juice, Inc | ' |
Entity Central Index Key | '0001066923 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 26,661,499 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $79,723,955 | $66,888,954 |
Restricted cash | 20,072,162 | 7,216,782 |
Accounts receivables, net of allowance of $209,122 and $211,039 as of June 30, 2014 and December 31, 2013, respectively | 17,795,059 | 34,179,426 |
Other receivables | 921,484 | 575,040 |
Inventories | 5,813,692 | 4,381,900 |
Deferred tax assets | 1,480,690 | 535,713 |
Advances to suppliers and other current assets | 647,001 | 1,298,201 |
TOTAL CURRENT ASSETS | 126,454,043 | 115,076,016 |
PROPERTY, PLANT AND EQUIPMENT, NET | 91,067,126 | 61,907,175 |
LAND USE RIGHT, NET | 6,372,202 | 6,522,152 |
SECURITY DEPOSIT FOR CAPITAL LEASE | 3,144,910 | ' |
OTHER ASSETS | 40,370,408 | 49,614,200 |
TOTAL ASSETS | 267,408,689 | 233,119,543 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 5,337,527 | 3,572,968 |
Accrued expenses | 8,428,031 | 4,008,715 |
Income tax payable | 557,068 | 1,749,138 |
Advances from customers | 239,695 | 355,968 |
Notes payable -bank | 24,947,991 | 10,825,173 |
Short-term loan - related party | ' | 24,970 |
Short-term bank loans | 22,314,406 | 22,626,679 |
Obligations under capital leases - current | 3,831,441 | ' |
TOTAL CURRENT LIABILITIES | 65,656,159 | 43,163,611 |
NON-CURRENT LIABILITIES | ' | ' |
Long-term loan - related party | 8,000,000 | 8,000,000 |
Obligations under capital leases | 17,134,623 | ' |
TOTAL NON-CURRENT LIABILITIES | 25,134,623 | 8,000,000 |
TOTAL LIABILITIES | 90,790,782 | 51,163,611 |
SkyPeople Fruit Juice, Inc, Stockholders' equity | ' | ' |
Series B Preferred stock, $0.001 par value; 10,000,000 shares authorized; None issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | ' | ' |
Common stock, $0.001 par value; 66,666,666 shares authorized; 26,661,499 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | 26,661 | 26,661 |
Additional paid-in capital | 59,189,860 | 59,189,860 |
Retained earnings | 95,514,839 | 94,962,299 |
Accumulated other comprehensive income | 17,742,916 | 19,354,599 |
Total SkyPeople Fruit Juice, Inc. stockholders' equity | 172,474,276 | 173,533,419 |
Non-controlling interests | 4,143,631 | 8,422,513 |
TOTAL STOCKHOLDERS' EQUITY | 176,617,907 | 181,955,932 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $267,408,689 | $233,119,543 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Accounts receivables, net of allowance | $209,122 | $211,039 |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred Stock Series B, Par Value Per Share | $0.00 | $0.00 |
Preferred Stock Series B, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock Series B, Shares Issued | ' | ' |
Preferred Stock Series B, Shares Outstanding | ' | ' |
Common Stock, Par Value Per Share | $0.00 | $0.00 |
Common Stock, Shares Authorized | 66,666,666 | 66,666,666 |
Common Stock, Shares, Issued | 26,661,499 | 26,661,499 |
Common Stock, Shares, Outstanding | 26,661,499 | 26,661,499 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Revenue | $11,978,652 | $10,349,909 | $23,761,819 | $28,961,365 |
Cost of goods sold | 7,424,302 | 6,995,919 | 15,536,234 | 17,966,477 |
Gross profit | 4,554,350 | 3,353,990 | 8,225,585 | 10,994,888 |
Operating Expenses | ' | ' | ' | ' |
General and administrative expenses | 995,830 | 1,281,515 | 2,188,951 | 2,587,429 |
Selling expenses | 1,384,991 | 1,212,921 | 2,249,489 | 1,954,087 |
Research and development expenses | ' | -79,642 | ' | 18,980 |
Total operating expenses | 2,380,821 | 2,414,794 | 4,438,440 | 4,560,496 |
Income from operations | 2,173,529 | 939,196 | 3,787,145 | 6,434,392 |
Other income (expenses) | ' | ' | ' | ' |
Interest income | 238,212 | 82,941 | 311,873 | 154,520 |
Subsidy income | 37,374 | 435,839 | 470,971 | 786,813 |
Interest expenses | -1,749,783 | -351,033 | -2,562,204 | -628,056 |
Consulting fee related to capital lease | -439,908 | ' | -882,700 | ' |
Total other income (expenses) | -1,914,105 | 167,747 | -2,662,060 | 313,277 |
Income before income tax | 259,424 | 1,106,943 | 1,125,085 | 6,747,669 |
Income tax provision | 102,608 | 322,754 | 331,210 | 1,806,619 |
Net income | 156,816 | 784,189 | 793,875 | 4,941,050 |
Less: Net income attributable to non-controlling interests | 107,948 | 104,147 | 241,335 | 442,860 |
NET INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. | 48,868 | 680,042 | 552,540 | 4,498,190 |
Other comprehensive income (loss) | ' | ' | ' | ' |
Foreign currency translation adjustment | -11,592 | 2,518,720 | -1,717,080 | 2,929,951 |
Comprehensive income (loss) | 37,276 | 3,198,762 | -1,164,540 | 7,428,141 |
Other comprehensive income (loss) attributable to non-controlling interests | 48,959 | 227,957 | -105,397 | 265,176 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. | ($11,683) | $2,970,805 | ($1,059,143) | $7,162,965 |
Earnings per share: | ' | ' | ' | ' |
Basic earnings per share | ' | $0.03 | $0.02 | $0.17 |
Diluted earnings per share | ' | $0.03 | $0.02 | $0.17 |
Weighted average number of shares outstanding | ' | ' | ' | ' |
Basic | 26,661,499 | 26,661,499 | 26,661,499 | 26,661,499 |
Diluted | 26,661,499 | 26,661,499 | 26,661,499 | 26,661,499 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $793,875 | $4,941,050 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 1,572,175 | 1,510,091 |
Deferred income tax assets | -944,977 | -149,215 |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | 16,111,019 | 36,671,171 |
Other receivable | -352,389 | -470,281 |
Advances to suppliers and other current assets | 640,892 | -10,174 |
Inventories | -438,715 | 841,381 |
Accounts payable | 1,801,177 | -9,913,912 |
Accrued expenses | 4,461,534 | -270,092 |
Income tax payable | -1,178,899 | -2,919,124 |
Advances from customers | -113,301 | -414,816 |
Net cash provided by operating activities | 22,352,391 | 29,816,079 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Refund of purchase deposit | 7,506,207 | ' |
Additions to property, plant and equipment | -9,966,212 | -485,142 |
Prepayment for other assets | -18,652 | -38,000,669 |
Net cash used in investing activities | -2,478,657 | -38,485,811 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Dividend paid to non-controlling shareholder | -4,414,820 | ' |
Increased in restricted cash | -12,950,836 | ' |
Short-term notes payable | 14,254,064 | ' |
Proceeds from related party loan | ' | 8,000,000 |
Proceeds from short-term bank loans | 19,489,005 | 8,653,944 |
Repayment of short-term bank loans | -19,595,955 | -6,555,123 |
Payment for capital lease | -3,152,185 | ' |
Repayment of related party loans | -24,970 | ' |
Net cash provided by (used in) financing activities | -6,395,697 | 10,098,821 |
Effect of change in exchange rate | -643,036 | 1,323,994 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 12,835,001 | 2,753,083 |
Cash and cash equivalents, beginning of period | 66,888,954 | 77,560,278 |
Cash and cash equivalents, end of period | 79,723,955 | 80,313,361 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Cash paid for interest | 2,159,600 | 496,209 |
Cash paid for income taxes | 2,455,086 | 4,874,958 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ' | ' |
Transferred from other assets to property, plant and equipment and construction in process | 1,325,819 | 317,258 |
Properties acquired from capital lease | $21,014,564 | ' |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |
Jun. 30, 2014 | ||
Basis Of Presentation | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the unaudited financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position as of June 30, 2014 and the results of operations and cash flows for the periods ended June 30, 2014 and 2013. The financial data and other information disclosed in these notes to the interim financial statements related to these periods are unaudited. The results for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2014. The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date. | ||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to the Securities and Exchange Commission’s rules and regulations. These unaudited financial statements should be read in conjunction with our audited financial statements and notes thereto for the year ended December 31, 2013 as included in our Annual Report on Form 10-K. |
Business_Description_and_Signi
Business Description and Significant Accounting Policies | 6 Months Ended | ||
Jun. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Business Description and Significant Accounting Policies | ' | ||
2 | Business Description and Significant Accounting Policies | ||
The principal activities of the Company consist of production and sales of fruit juice concentrates, fruit juice beverages, and other fruit-related products in the PRC and overseas markets. All activities of the Company are principally conducted by subsidiaries operating in the PRC. | |||
Organizational Structure | |||
Current organizational structure is set forth in the diagram below: | |||
-1 | Xi’an Qinmei Food Co., Ltd., an entity not affiliated with the Company, owns the other 8.85% of the equity interest in Shaanxi Qiyiwangguo. | ||
-2 | Formerly known as Shaanxi Tianren Organic Food Co. Ltd. | ||
-3 | SkyPeople Juice Group Yidu Orange Products Co., Ltd. was established on March 13, 2012. Its scope of business includes deep processing and sales of oranges. | ||
-4 | Hedetang Fruit Juice Beverages (Yidu) Co., Ltd. was established on March 13, 2012. Its scope of business includes production and sales of fruit juice beverages. | ||
-5 | SkyPeople (Suizhong) Fruit and Vegetable Products Co., Ltd. was established on April 26, 2012. Its scope of business includes initial processing, quick-frozen and sales of agricultural products and related by-products. | ||
-6 | SkyPeople Juice Group (Mei County) Kiwi Fruit and Farm Products Trading Market Co., Ltd. was established on April 19, 2013. Its scope of business includes preliminary processing of agricultural and subsidiary products; establishment of trading market, etc. | ||
-7 | Shaanxi Guo Wei Mei Kiwi Deep Processing Co., Ltd. was established on April 19, 2013. Its scope of business includes producing kiwi fruit juice, kiwi puree and cider beverages, etc. | ||
-8 | Xi’an Hedetang Fruit Juice Beverages Co., Ltd. (“Xi’an Hedetang”) was established on March 31, 2014. Its scope of business includes production and sales of fruit juice beverages. | ||
-9 | Xi’an Cornucopia International Co., Ltd. (“Cornucopia”) was established on July 2, 2014. Its scope of business includes retail and wholesale of pre-packaged food. | ||
-10 | Shaanxi Fruitee Fun Co., Ltd. (“Fruitee Fun”) was established on July 3, 2014. Its scope of business includes retail and wholesale of pre-packaged food. | ||
-11 | Hedetang Holding Co., Ltd. (“Hedetang Holding”) was established on July 21, 2014. Its scope of business includes corporate investment consulting, corporate management at consulting, etc. | ||
Principles of Consolidation | |||
Our consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. | |||
The consolidated financial statements are prepared in accordance with U.S. GAAP. This basis differs from that used in the statutory accounts of the Company’s chinese subsidiaries which were prepared in accordance with the accounting principles and relevant financial regulations applicable to enterprises in the PRC. All necessary adjustments have been made to present the financial statements in accordance with U.S. GAAP. | |||
Uses of estimates in the preparation of financial statements | |||
The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, provision for staff benefit, valuation of change in fair value of warrant liability, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates. | |||
Impairment of long-lived assets | |||
In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, or it is reasonably possible that these assets could become impaired as a result of technological or other industrial changes. The determination of recoverability of assets to be held and used is made by comparing the carrying amount of an asset to future undiscounted cash flows to be generated by the assets. | |||
If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During the reporting periods there was no impairment loss of long-lived assets recognized. | |||
Inventories | |||
Inventories consist of raw materials, packaging materials (which include ingredients and supplies) and finished goods (which include finished juice in the bottling and canning operations). Inventories are valued at the lower of cost or market. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off. No inventory markdown was recorded for the three and six months ended June 30, 2014 and 2013, respectively. | |||
Revenue Recognition | |||
The Company recognizes revenue in accordance with ASC 605, Revenue Recognition. Revenue from sales of products is recognized upon shipment or delivery to customers, provided that persuasive evidence of sales arrangements exist, title and risk of loss have been transferred to the customers, the sales amounts are fixed and determinable and collection of the revenue is reasonably assured. Customers have no contractual right to return products. Historically, the Company has not had any returned products. Accordingly, no provision has been made for returnable goods. The Company is not required to rebate or credit a portion of the original fee if it subsequently reduces the price of its product and the distributor still has rights with respect to that product. | |||
Shipping and Handling Costs | |||
Shipping and handling amounts billed to customers in related sales transactions are included in sales revenues and shipping expenses incurred by the Company are reported as a component of selling expenses. The shipping and handling expenses of $437,756 and $399,492 for three months ended June 30, 2014 and 2013, respectively; and $794,151 and $705,641 for the six months ended June 30, 2014 and 2013, respectively; are reported in the Consolidated Statements of Comprehensive Income as a component of selling expenses. | |||
Leases | |||
Leases are reviewed and classified as capital or operating at their inception in accordance with ASC Topic 840, Accounting for Leases. For leases that contain rent escalations, the Company records monthly rent expense equal to the total amount of the payments due in the reporting period over the lease term. The difference between rent expense recorded and the amount paid is credited or charged to deferred rent account | |||
In January 2014, the Company entered into a five-year equipment leasing agreement with Cinda Financial Leasing Co., Ltd. (“Cinda”). The total cost of equipment under this lease agreement is RMB129 million (approximately $21 million). Estimated lease payment will be approximately RMB 8 million per quarter (approximately $1.3 million). The Company has the right to purchase the equipment for $161 at the end of the lease. During the second quarter of 2014, equipment under the lease agreements were received and the Company has paid and accrued interest on capital lease for approximately $478,000. The Company classified the lease as a capital lease in accordance with ASC 840 “Leases”. The Company also agreed to pay consulting fees of $831,100 (RMB 5,160,000) for consulting services and $414,492 (RMB 2,580,000) services fees to Cinda, which was amortized over service period. | |||
Foreign Currency and Other Comprehensive Income | |||
The financial statements of the Company’s foreign subsidiaries are measured using the local currency as the functional currency; however, the functional currency and the reporting currency of the Company are the United States dollar (“USD”). Assets and liabilities of the Company’s foreign subsidiaries have been translated into USD using the exchange rate at the balance sheet date while equity accounts are translated using the historical exchange rate. The average exchange rate for the period has been used to translate revenues and expenses. Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). | |||
Other comprehensive income for six months ended June 30, 2014 and 2013 represented foreign currency translation adjustments and were included in the consolidated statements of income and comprehensive income. | |||
Income Taxes | |||
We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. | |||
ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. | |||
Earnings per share | |||
Under ASC 260-10, Earnings Per Share, basic EPS excludes dilution for Common Stock equivalents and is calculated by dividing net income available to common stockholders by the weighted-average number of Common Stock outstanding for the period. Our Series B Convertible Preferred Stock is a participating security. Consequently, the two-class method of income allocation is used in determining net income available to common stockholders. | |||
Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. | |||
The diluted earnings per share calculation for the three and six months ended June 30, 2014 and 2013 did not include the warrants to purchase up to 175,000 shares of common stock, because their effect was anti-dilutive. |
Inventories
Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
3 | Inventories | ||||||||
Inventories by major categories are summarized as follows: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials and packaging | $ | 2,641,544 | $ | 1,030,866 | |||||
Finished goods | 2,117,231 | 3,351,034 | |||||||
Working-in-process | 1,054,917 | - | |||||||
Inventories | $ | 5,813,692 | $ | 4,381,900 |
Shortterm_Bank_Loan
Short-term Bank Loan | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Short Term Bank Loans [Abstract] | ' | ||||||||
Short-term Bank Loans | ' | ||||||||
4 | Short-term Bank Loan | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Loan payable to Huludao Bank, Suizhong branch due on June 10, 2014, bearing interest at 9.225% per annum, collateralized by the buildings, machinery and land use rights of Huludao Wonder. | $ | - | $ | 5,461,793 | |||||
Loan payable to Huludao Bank, Suizhong branch due on June 14, 2015, bearing interest at 9.6% per annum, collateralized by the buildings, machinery and land use rights of Huludao Wonder. | 5,412,168 | - | |||||||
Loan payable to Shanghai Pudong Development Bank due on April 23, 2015, bearing interest at 6.6% per annum, collateralized by the buildings of SkyPeople (China). | 4,875,829 | 4,920,533 | |||||||
Loan payable to China Construction Bank due on May 25, 2015, bearing interest at 6% per annum, collateralized by the buildings of SkyPeople (China). | 2,129,112 | 2,148,633 | |||||||
Loan payable to Bank of Xi’an due on June 17, 2014, bearing interest at 7.8% per annum, guaranteed by a third party Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd and CEO, Mr. Hongke Xue. This loan was paid off on June 17, 2014. | - | 1,640,178 | |||||||
Loan payable to Bank of Beijing due on June 25, 2015, bearing interest at 7.8% per annum, collateralized by the buildings of a third party, Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd. | 4,875,830 | 4,920,533 | |||||||
Loan payable to China Construction Bank due on November 3, 2014, bearing interest at 6% per annum, collateralized by the buildings and land use rights of Yingkou. | 2,291,640 | 2,312,651 | |||||||
Loan payable to China Merchants Bank due on October 30, 2014, bearing interest at 8.4% per annum, guaranteed by a third party, Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd. and CEO, Hongke Xue. | 650,111 | 656,071 | |||||||
Loan payable to China Construction Bank due on March 19, 2014, bearing interest at 3.2% per annum, collateralized by certain accounts receivable of SkyPeople (China). This loan was paid off on March 19, 2014. | - | 291,693 | |||||||
Loan payable to China Construction Bank due on March 24, 2014, bearing interest at 3.2% per annum, collateralized by certain accounts receivable of SkyPeople (China). This loan was paid off on March 24, 2014. | - | 274,594 | |||||||
Loan payable to China Construction Bank due on September 5, 2014, bearing interest at 3.6% per annum, collateralized by certain accounts receivable of SkyPeople (China). | 137,372 | - | |||||||
Loan payable to China Merchants Bank due on February 24, 2015, bearing interest at 8.4% per annum, guaranteed by a third party, Shaanxi Culture Industry Financing Guarantee Co., Ltd. | 1,625,276 | - | |||||||
Loan payable to China Citic Bank due on September 2, 2014, bearing interest at 4.8225% per annum, collateralized by certain accounts receivable of SkyPeople (China). | 317,068 | - | |||||||
$ | 22,314,406 | $ | 22,626,679 | ||||||
Notes_Payable_Bank
Notes Payable - Bank | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Notes Payable - Bank [Abstract] | ' | ||||||||||||
Notes Payable - Bank | ' | ||||||||||||
5 | Notes Payable - Bank | ||||||||||||
Notes payable - bank consists of a series of bank notes and letter of credit from various banks, which are collateralized by restricted cash and assets of the Company. The following table sets forth the outstanding bank notes as of June 30, 2014: | |||||||||||||
30-Jun-14 | Restricted Cash | Due Date | |||||||||||
Bank of Xi’an | $ | 1,625,275 | $ | 812,638 | 4-Sep-14 | ||||||||
Shanghai Pudong Development Bank | 1,625,276 | 1,625,276 | 22-Oct-14 | ||||||||||
Shanghai Pudong Development Bank | 4,875,829 | 4,875,829 | 28-Apr-14 | ||||||||||
Shanghai Pudong Development Bank | 3,250,553 | 3,250,553 | 24-Dec-14 | ||||||||||
Shanghai Pudong Development Bank | 3,250,553 | 1,625,276 | 14-Oct-14 | ||||||||||
China Merchants Bank | 487,583 | 487,583 | 27-Aug-14 | ||||||||||
Bank of Ningxia | 4,875,829 | 2,437,914 | 19-Dec-14 | ||||||||||
China Construction Bank | 81,264 | 81,264 | 7-Nov-14 | ||||||||||
Bank of Beijing | 4,875,829 | 4,875,829 | 27-Dec-14 | ||||||||||
Total | $ | 24,947,991 | $ | 20,072,162 |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | ||
Jun. 30, 2014 | |||
Related Party Transactions [Abstract] | ' | ||
Related Party Transaction | ' | ||
6 | Related Party Transactions | ||
Sales to related party | |||
The company’s subsidiary sold fruit beverages to a related entity, Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. (“Fullmart”) for approximately $1,350,000 and $967,300 for the six months ended June 30, 2014 and 2013, respectively. The accounts receivable balances were approximately $1,050,000 and $731,000 as of June 30, 2014 and December 31, 2013, respectively. Fullmart is a company indirectly owned by our Chairman, Mr. Yongke Xue. | |||
Short-term loan – related party | |||
The Company borrowed $24,970 from Skypeople International Holdings Group Limited during the year ended December 31, 2013. The loan is non-interest bearing and due on demand. This balance was paid in full in January 2014. | |||
Long-term loan – related party | |||
On February 18, 2013, SkyPeople (China) entered into a loan agreement with SkyPeople International Holdings Group Limited (the “Lender”). The Lender indirectly holds 50.2% interest in the Company. Mr. Yongke Xue (“Y. K. Xue”), the Chairman of the board of directors of the Company (the “Board”), and Mr. Hongke Xue, the Chief Executive Officer of the Company and director of the Board, indirectly and beneficially own 80.0% and 9.4% of equity interest in the Lender, respectively. Pursuant to the Agreement, the Lender agrees to extend to the Company a one-year unsecured term loan with a principal amount of $8.0 million at an interest rate of 6% per annum. During 2013, the Company received $8.0 million from the Lender. In February 2014, both parties extended this loan for another two years. | |||
The Company recorded interest expense of $120,000 and $116,452 for the three months ended June 30, 2014 and 2013, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||
Jun. 30, 2014 | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ||
Commitments and Contingencies | ' | ||
7 | Commitments and Contingencies | ||
On April 20, 2011, plaintiff Paul Kubala (on behalf of his minor child N.K.) filed a securities fraud class action lawsuit in the United States District Court, Southern District of New York against the Company, certain of its individual officers and/or directors, and Rodman & Renshaw, LLC, the underwriter of the Company’s follow-on public offering consummated in August 2010, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder. On June 20, 2011, plaintiff Benjamin Padnos filed a securities fraud class action lawsuit in the United States District Court, Southern District of New York against the Company, certain of its current and former officers and/or directors, the Company’s former independent auditors Child Van Wagner & Bradshaw, PLLC and BDO Limited, and Rodman & Renshaw, LLC, the underwriter of the Company’s follow-on public offering consummated in August 2010, alleging violations of Sections10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. On August 30, 2011, the Court consolidated the foregoing two actions and appointed Zachary Lewy as lead plaintiff. On September 30, 2011, pursuant to the Court’s order, Lead Plaintiff filed a consolidated complaint, which names the Company, Rodman & Renshaw, LLC, BDO Limited, Child Van Wagoner & Bradshaw PLLC and certain of the Company’s current and former directors and/or officers and majority shareholders as defendants, and alleges violations of Sections 11, 12 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Exchange Act, and the rules promulgated thereunder. The Consolidated Complaint seeks, among other things, compensatory damages, and reasonable costs and expenses incurred in the action. On December 21, 2011, the Company and certain of the individual defendants filed a motion to dismiss the Consolidated Complaint. On May 3, 2012, Lead Plaintiff voluntarily dismissed the claims against BDO Limited and Child Van Wagoner & Bradshaw PLLC. On September 10, 2012, the Court granted in part and denied in part the Company’s motion to dismiss the Consolidated Complaint. On January 11, 2013, defendant Rodman & Renshaw LLC filed for Chapter 11 bankruptcy protection, and, on January 18, 2013 the court imposed an automatic stay on Plaintiffs claims against Rodman pursuant to Section 326(a) of the Bankruptcy Code. The parties settled this matter by the Company agreeing to contribute $2,200,000 into a settlement fund to pay class members (the “Settlement”). On October 4, 2013, the Company’s insurance company, Navigators Insurance Company, wired a total of $2,200,000 into the settlement escrow account, which was confirmed by the plaintiff counsel. On January 27, 2014, the Court entered an order approving the Settlement, certifying the class for settlement purposes and dismissing the suit with prejudice. | |||
On August 5, 2011, we received a shareholder demand letter from counsel for a purported shareholder. The letter was addressed to the Company’s Board of Directors and requested the Board of Directors to take a number of actions in order to repair the alleged “harm” caused to the Company by certain of its directors and officers, as well as its current and former auditors. No formal shareholder derivative complaint has been filed to date on behalf of the Company. The parties executed a settlement agreement on April 17, 2014. The settlement involves the Company paying $100,000 to plaintiff’s counsel, which is covered by the Company’s insurance, and the adoption by the Company of certain corporate governance measures. | |||
Other than the above, from time to time we may be a party to various litigation proceedings arising in the ordinary course of our business, none of which, in the opinion of management, is likely to have a material adverse effect on our financial condition or results of operations. |
Concentrations
Concentrations | 6 Months Ended | |
Jun. 30, 2014 | ||
Concentrations [Abstract] | ' | |
Concentrations | ' | |
8 | Concentrations | |
-1 | Concentration of customers | |
Sales to our five largest customers accounted for approximately 19% and 19% of our net sales during the six months ended June 30, 2014 and 2013, respectively. There was no single customer representing 10% of total sales for the six months ended June 30, 2014 and 2013, respectively. | ||
Sales to our five largest customers accounted for approximately 19% and 25% of our net sales during the three months ended June 30, 2014 and 2013, respectively. There was no single customer representing 10% of total sale for the three months ended June 30, 2014 and 2013, respectively. | ||
-2 | Concentration of suppliers | |
During six months ended June 30, 2014, three suppliers accounted for 18%, 15% and 10% of our purchases. During the six months ended June 30, 2013, two suppliers accounted for 28% and 11% of our purchases. There was no other single supplier representing 10% of purchase during both periods. | ||
During the three months ended June 30, 2014, three suppliers accounted for 18%, 13% and 13% of our purchases. During the three months ended June 30, 2013, three suppliers accounted for 29%, 15% and 14.7% of our purchases. There was no other single supplier representing 10% of purchase during both periods. |
Segment_Reporting
Segment Reporting | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Segment Reporting | ' | ||||||||||||||||||||||||||||
9 | Segment Reporting | ||||||||||||||||||||||||||||
The Company operates in six segments: concentrated apple juice and apple aroma, concentrated kiwifruit juice and kiwifruit puree, concentrated pear juice, fruit juice beverages, fresh fruits and vegetables, and others. Our concentrated apple juice and apple aroma is primarily produced by the Company’s Huludao Wonder factory; concentrated pear juice is primarily produced by the Company’s Jiangyang factory. However, the Company use the same production line to manufacture concentrated apple juice and concentrated pear juice. In addition, both Shaanxi Province, where the factory of Jianyang factory is located, and Liaoning Province, where the factory of Huludao Wonder is located, are rich in fresh apple and pear supplies, Jinagyang factory also produces concentrated apple juice and Huludao Wonder factory also produces concentrated pear juice when necessary. Concentrated kiwifruit juice and kiwifruit puree is primarily produced by the Company’s Qiyiwangguo factory, and fruit juice beverages is primarily produced by the Company’s Qiyiwangguo factory and Huludao Wonder factory. The Company’s other products include fructose, concentrated turnjujube juice, and other by products, such as kiwifruit seeds. | |||||||||||||||||||||||||||||
Concentrated fruit juice is used as a basic ingredient for manufacturing juice drinks and as an additive to fruit wine and fruit jam, cosmetics and medicines. The Company sells its concentrated fruit juice to domestic customers and exported directly or via distributors. The Company believes that its main export markets are the United States, the European Union, South Korea, Russia and the Middle East to North America, Europe, Russia, South Korea and the Middle East. The Company sells its Hedetang branded bottled fruit beverages domestically primarily to supermarkets in the PRC. The Company sells its fresh fruit and vegetables to supermarkets and whole sellers in the PRC. | |||||||||||||||||||||||||||||
Some of these product segments might never individually meet the quantitative thresholds for determining reportable segments and we determine the reportable segments based on the discrete financial information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments. Since there is an overlap of services provided and products manufactured between different subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating expenses and assets information by segment are not presented. Segment profit represents the gross profit of each reportable segment. | |||||||||||||||||||||||||||||
(Amount in thousands) | |||||||||||||||||||||||||||||
For the Three Months | Concentrated apple juice and apple aroma | Concentrated kiwifruit juice and kiwifruit puree | Concentrated pear juice | Fruit juice beverages | Fresh fruits and vegetables | Other | Total | ||||||||||||||||||||||
Ended June 30, 2014 | |||||||||||||||||||||||||||||
Reportable segment revenue | $ | 773 | $ | 5 | $ | 246 | $ | 11,079 | $ | - | $ | 20 | $ | 12,123 | |||||||||||||||
Inter-segment revenue | - | - | (56 | ) | (88 | ) | - | - | (144 | ) | |||||||||||||||||||
Revenue from external customers | 773 | 5 | 190 | 10,991 | - | 20 | 11,979 | ||||||||||||||||||||||
Segment gross profit | $ | 153 | $ | 1 | $ | 90 | $ | 4,302 | $ | - | $ | 8 | $ | 4,554 | |||||||||||||||
(Amount in thousands) | |||||||||||||||||||||||||||||
For the Three Months | Concentrated apple juice and apple aroma | Concentrated kiwifruit juice and kiwifruit puree | Concentrated pear juice | Fruit juice beverages | Fresh fruits and vegetables | Other | Total | ||||||||||||||||||||||
Ended June 30, 2013 | |||||||||||||||||||||||||||||
Reportable segment revenue | $ | 1,052 | $ | 17 | $ | 713 | $ | 8,721 | $ | 4 | 6 | $ | 10,513 | ||||||||||||||||
Inter-segment revenue | - | (7 | ) | (29 | ) | (127 | ) | - | - | (163 | ) | ||||||||||||||||||
Revenue from external customers | 1,052 | 10 | 684 | 8,594 | 4 | 6 | 10,350 | ||||||||||||||||||||||
Segment gross profit | $ | 77 | $ | 5 | $ | 121 | $ | 3,147 | $ | 3 | 1 | $ | 3,354 | ||||||||||||||||
(Amount in thousands) | |||||||||||||||||||||||||||||
For the Six Months | Concentrated apple juice and apple aroma | Concentrated kiwifruit juice and kiwifruit puree | Concentrated pear juice | Fruit juice beverages | Fresh fruits | Others | Total | ||||||||||||||||||||||
Ended June 30, 2014 | and vegetables | ||||||||||||||||||||||||||||
Reportable segment revenue | $ | 1,535 | $ | 1,861 | $ | 2,481 | $ | 18,567 | $ | 5 | $ | 83 | $ | 24,532 | |||||||||||||||
Inter-segment revenue | (488 | ) | (22 | ) | (78 | ) | (136 | ) | (1 | ) | (45 | ) | (770 | ) | |||||||||||||||
Revenue from external customers | 1,047 | 1,839 | 2,403 | 18,431 | 4 | 38 | 23,762 | ||||||||||||||||||||||
Segment gross profit | $ | 81 | $ | 754 | $ | 666 | $ | 6,719 | $ | 4 | $ | 2 | $ | 8,226 | |||||||||||||||
(Amount in thousands) | |||||||||||||||||||||||||||||
For the Six Months | Concentrated apple juice and apple aroma | Concentrated kiwifruit juice and kiwifruit puree | Concentrated pear juice | Fruit juice beverages | Fresh fruits and vegetables | Other | Total | ||||||||||||||||||||||
Ended June 30, 2013 | |||||||||||||||||||||||||||||
Reportable segment revenue | $ | 1,785 | $ | 3,490 | $ | 5,897 | $ | 17,368 | $ | 802 | $ | 6 | $ | 29,348 | |||||||||||||||
Inter-segment revenue | (97 | ) | (61 | ) | (40 | ) | (189 | ) | - | - | (387 | ) | |||||||||||||||||
Revenue from external customers | 1,688 | 3,429 | 5,857 | 17,179 | 802 | 6 | 28,961 | ||||||||||||||||||||||
Segment gross profit | $ | 108 | $ | 2,119 | $ | 1,720 | $ | 6,659 | $ | 388 | $ | 1 | $ | 10,995 | |||||||||||||||
The following table reconciles reportable segment profit to the Company’s consolidated income before income tax provision for the three and six months ended June 30, 2014 and 2013: | |||||||||||||||||||||||||||||
Three Months | |||||||||||||||||||||||||||||
ended | |||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Segment profit | $ | 4,554,350 | $ | 3,353,990 | |||||||||||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||||||||||
Operating expenses | (2,380,821 | ) | (2,414,794 | ) | |||||||||||||||||||||||||
Other (income)/expenses | (1,914,105 | ) | 167,747 | ||||||||||||||||||||||||||
Income before tax provision | $ | 259,424 | $ | 1,106,943 | |||||||||||||||||||||||||
Six Months | |||||||||||||||||||||||||||||
ended | |||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Segment profit | $ | 8,225,585 | $ | 10,994,888 | |||||||||||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||||||||||
Operating expenses | (4,438,440 | ) | (4,560,496 | ) | |||||||||||||||||||||||||
Other (income)/expenses | (2,662,060 | ) | 313,277 | ||||||||||||||||||||||||||
Income before tax provision | $ | 1,125,085 | $ | 6,747,669 | |||||||||||||||||||||||||
Dividend_Distribution_made_by_
Dividend Distribution made by Qiyiwangguo | 6 Months Ended | |
Jun. 30, 2014 | ||
Dividend Distribution made by Qiyiwangguo [Abstract] | ' | |
Dividend Distribution made by Qiyiwangguo | ' | |
10 | Dividend Distribution made by Qiyiwangguo | |
Pursuant to a resolution approved by Qiyiwangguo’s shareholders’ meeting held on March 7, 2014, 65% of the retained earnings of Qiyiwangguo as of December 31, 2013, approximately RMB 306 million (approximately $50 million) will be distributed to its two shareholders, SkyPeople (China), which owns 91.15% of Qiyiwangguo’s shares; and Xi’an Qinmei Food Co., Ltd, an entity not affiliated with the Company, owns the other 8.85% of the equity interest in Shaanxi Qiyiwangguo. The distribution to SkyPeople (China) was treated as inter-company transaction and the amount was eliminated during the consolidation. | ||
On April 10, 2014, approximately RMB 27 million (approximately $4.4 million) was wired from Qiyiwangguo to Xi’an Qinmei Food Co., Ltd. |
Subsequent_Events
Subsequent Events | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
11 | Subsequent Events | |
In accordance with ASC 855, “Subsequent Events,” the Company has evaluated subsequent events that have occurred through the date of issuance of these financial statements and has determined that there was no material event that occurred after the date of the balance sheets included in this report. |
Business_Description_and_Signi1
Business Description and Significant Accounting Policies (Policies) | 6 Months Ended | ||
Jun. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Organizational Structure | ' | ||
Organizational Structure | |||
Current organizational structure is set forth in the diagram below: | |||
-1 | Xi’an Qinmei Food Co., Ltd., an entity not affiliated with the Company, owns the other 8.85% of the equity interest in Shaanxi Qiyiwangguo. | ||
-2 | Formerly known as Shaanxi Tianren Organic Food Co. Ltd. | ||
-3 | SkyPeople Juice Group Yidu Orange Products Co., Ltd. was established on March 13, 2012. Its scope of business includes deep processing and sales of oranges. | ||
-4 | Hedetang Fruit Juice Beverages (Yidu) Co., Ltd. was established on March 13, 2012. Its scope of business includes production and sales of fruit juice beverages. | ||
-5 | SkyPeople (Suizhong) Fruit and Vegetable Products Co., Ltd. was established on April 26, 2012. Its scope of business includes initial processing, quick-frozen and sales of agricultural products and related by-products. | ||
-6 | SkyPeople Juice Group (Mei County) Kiwi Fruit and Farm Products Trading Market Co., Ltd. was established on April 19, 2013. Its scope of business includes preliminary processing of agricultural and subsidiary products; establishment of trading market, etc. | ||
-7 | Shaanxi Guo Wei Mei Kiwi Deep Processing Co., Ltd. was established on April 19, 2013. Its scope of business includes producing kiwi fruit juice, kiwi puree and cider beverages, etc. | ||
-8 | Xi’an Hedetang Fruit Juice Beverages Co., Ltd. (“Xi’an Hedetang”) was established on March 31, 2014. Its scope of business includes production and sales of fruit juice beverages. | ||
-9 | Xi’an Cornucopia International Co., Ltd. (“Cornucopia”) was established on July 2, 2014. Its scope of business includes retail and wholesale of pre-packaged food. | ||
-10 | Shaanxi Fruitee Fun Co., Ltd. (“Fruitee Fun”) was established on July 3, 2014. Its scope of business includes retail and wholesale of pre-packaged food. | ||
-11 | Hedetang Holding Co., Ltd. (“Hedetang Holding”) was established on July 21, 2014. Its scope of business includes corporate investment consulting, corporate management at consulting, etc. | ||
Principals of Consolidation | ' | ||
Principles of Consolidation | |||
Our consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. | |||
The consolidated financial statements are prepared in accordance with U.S. GAAP. This basis differs from that used in the statutory accounts of the Company’s chinese subsidiaries which were prepared in accordance with the accounting principles and relevant financial regulations applicable to enterprises in the PRC. All necessary adjustments have been made to present the financial statements in accordance with U.S. GAAP. | |||
Uses of estimates in the preparation of financial statements | ' | ||
Uses of estimates in the preparation of financial statements | |||
The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, provision for staff benefit, valuation of change in fair value of warrant liability, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates. | |||
Impairment of long-lived assets | ' | ||
Impairment of long-lived assets | |||
In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, or it is reasonably possible that these assets could become impaired as a result of technological or other industrial changes. The determination of recoverability of assets to be held and used is made by comparing the carrying amount of an asset to future undiscounted cash flows to be generated by the assets. | |||
If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During the reporting periods there was no impairment loss of long-lived assets recognized. | |||
Inventories | ' | ||
Inventories | |||
Inventories consist of raw materials, packaging materials (which include ingredients and supplies) and finished goods (which include finished juice in the bottling and canning operations). Inventories are valued at the lower of cost or market. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off. No inventory markdown was recorded for the three and six months ended June 30, 2014 and 2013, respectively. | |||
Revenue Recognition | ' | ||
Revenue Recognition | |||
The Company recognizes revenue in accordance with ASC 605, Revenue Recognition. Revenue from sales of products is recognized upon shipment or delivery to customers, provided that persuasive evidence of sales arrangements exist, title and risk of loss have been transferred to the customers, the sales amounts are fixed and determinable and collection of the revenue is reasonably assured. Customers have no contractual right to return products. Historically, the Company has not had any returned products. Accordingly, no provision has been made for returnable goods. The Company is not required to rebate or credit a portion of the original fee if it subsequently reduces the price of its product and the distributor still has rights with respect to that product. | |||
Shipping and Handling Costs | ' | ||
Shipping and Handling Costs | |||
Shipping and handling amounts billed to customers in related sales transactions are included in sales revenues and shipping expenses incurred by the Company are reported as a component of selling expenses. The shipping and handling expenses of $437,756 and $399,492 for three months ended June 30, 2014 and 2013, respectively; and $794,151 and $705,641 for the six months ended June 30, 2014 and 2013, respectively; are reported in the Consolidated Statements of Comprehensive Income as a component of selling expenses. | |||
Leases | ' | ||
Leases | |||
Leases are reviewed and classified as capital or operating at their inception in accordance with ASC Topic 840, Accounting for Leases. For leases that contain rent escalations, the Company records monthly rent expense equal to the total amount of the payments due in the reporting period over the lease term. The difference between rent expense recorded and the amount paid is credited or charged to deferred rent account | |||
In January 2014, the Company entered into a five-year equipment leasing agreement with Cinda Financial Leasing Co., Ltd. (“Cinda”). The total cost of equipment under this lease agreement is RMB129 million (approximately $21 million). Estimated lease payment will be approximately RMB 8 million per quarter (approximately $1.3 million). The Company has the right to purchase the equipment for $161 at the end of the lease. During the second quarter of 2014, equipment under the lease agreements were received and the Company has paid and accrued interest on capital lease for approximately $478,000. The Company classified the lease as a capital lease in accordance with ASC 840 “Leases”. The Company also agreed to pay consulting fees of $831,100 (RMB 5,160,000) for consulting services and $414,492 (RMB 2,580,000) services fees to Cinda, which was amortized over service period. | |||
Foreign Currency and Other Comprehensive Income | ' | ||
Foreign Currency and Other Comprehensive Income | |||
The financial statements of the Company’s foreign subsidiaries are measured using the local currency as the functional currency; however, the functional currency and the reporting currency of the Company are the United States dollar (“USD”). Assets and liabilities of the Company’s foreign subsidiaries have been translated into USD using the exchange rate at the balance sheet date while equity accounts are translated using the historical exchange rate. The average exchange rate for the period has been used to translate revenues and expenses. Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). | |||
Other comprehensive income for six months ended June 30, 2014 and 2013 represented foreign currency translation adjustments and were included in the consolidated statements of income and comprehensive income. | |||
Income Taxes | ' | ||
Income Taxes | |||
We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. | |||
ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. | |||
Earnings Per Share | ' | ||
Earnings per share | |||
Under ASC 260-10, Earnings Per Share, basic EPS excludes dilution for Common Stock equivalents and is calculated by dividing net income available to common stockholders by the weighted-average number of Common Stock outstanding for the period. Our Series B Convertible Preferred Stock is a participating security. Consequently, the two-class method of income allocation is used in determining net income available to common stockholders. | |||
Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. | |||
The diluted earnings per share calculation for the three and six months ended June 30, 2014 and 2013 did not include the warrants to purchase up to 175,000 shares of common stock, because their effect was anti-dilutive. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials and packaging | $ | 2,641,544 | $ | 1,030,866 | |||||
Finished goods | 2,117,231 | 3,351,034 | |||||||
Working-in-process | 1,054,917 | - | |||||||
Inventories | $ | 5,813,692 | $ | 4,381,900 |
Shortterm_Bank_Loan_Tables
Short-term Bank Loan (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Short Term Bank Loans [Abstract] | ' | ||||||||
Short Term Bank Loans | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Loan payable to Huludao Bank, Suizhong branch due on June 10, 2014, bearing interest at 9.225% per annum, collateralized by the buildings, machinery and land use rights of Huludao Wonder. | $ | - | $ | 5,461,793 | |||||
Loan payable to Huludao Bank, Suizhong branch due on June 14, 2015, bearing interest at 9.6% per annum, collateralized by the buildings, machinery and land use rights of Huludao Wonder. | 5,412,168 | - | |||||||
Loan payable to Shanghai Pudong Development Bank due on April 23, 2015, bearing interest at 6.6% per annum, collateralized by the buildings of SkyPeople (China). | 4,875,829 | 4,920,533 | |||||||
Loan payable to China Construction Bank due on May 25, 2015, bearing interest at 6% per annum, collateralized by the buildings of SkyPeople (China). | 2,129,112 | 2,148,633 | |||||||
Loan payable to Bank of Xi’an due on June 17, 2014, bearing interest at 7.8% per annum, guaranteed by a third party Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd and CEO, Mr. Hongke Xue. This loan was paid off on June 17, 2014. | - | 1,640,178 | |||||||
Loan payable to Bank of Beijing due on June 25, 2015, bearing interest at 7.8% per annum, collateralized by the buildings of a third party, Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd. | 4,875,830 | 4,920,533 | |||||||
Loan payable to China Construction Bank due on November 3, 2014, bearing interest at 6% per annum, collateralized by the buildings and land use rights of Yingkou. | 2,291,640 | 2,312,651 | |||||||
Loan payable to China Merchants Bank due on October 30, 2014, bearing interest at 8.4% per annum, guaranteed by a third party, Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd. and CEO, Hongke Xue. | 650,111 | 656,071 | |||||||
Loan payable to China Construction Bank due on March 19, 2014, bearing interest at 3.2% per annum, collateralized by certain accounts receivable of SkyPeople (China). This loan was paid off on March 19, 2014. | - | 291,693 | |||||||
Loan payable to China Construction Bank due on March 24, 2014, bearing interest at 3.2% per annum, collateralized by certain accounts receivable of SkyPeople (China). This loan was paid off on March 24, 2014. | - | 274,594 | |||||||
Loan payable to China Construction Bank due on September 5, 2014, bearing interest at 3.6% per annum, collateralized by certain accounts receivable of SkyPeople (China). | 137,372 | - | |||||||
Loan payable to China Merchants Bank due on February 24, 2015, bearing interest at 8.4% per annum, guaranteed by a third party, Shaanxi Culture Industry Financing Guarantee Co., Ltd. | 1,625,276 | - | |||||||
Loan payable to China Citic Bank due on September 2, 2014, bearing interest at 4.8225% per annum, collateralized by certain accounts receivable of SkyPeople (China). | 317,068 | - | |||||||
$ | 22,314,406 | $ | 22,626,679 |
Note_Payable_Bank_Table
Note Payable - Bank (Table) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Notes Payable - Bank [Abstract] | ' | ||||||||||||
Following table sets forth the outstanding bank notes | ' | ||||||||||||
30-Jun-14 | Restricted Cash | Due Date | |||||||||||
Bank of Xi’an | $ | 1,625,275 | $ | 812,638 | 4-Sep-14 | ||||||||
Shanghai Pudong Development Bank | 1,625,276 | 1,625,276 | 22-Oct-14 | ||||||||||
Shanghai Pudong Development Bank | 4,875,829 | 4,875,829 | 28-Apr-14 | ||||||||||
Shanghai Pudong Development Bank | 3,250,553 | 3,250,553 | 24-Dec-14 | ||||||||||
Shanghai Pudong Development Bank | 3,250,553 | 1,625,276 | 14-Oct-14 | ||||||||||
China Merchants Bank | 487,583 | 487,583 | 27-Aug-14 | ||||||||||
Bank of Ningxia | 4,875,829 | 2,437,914 | 19-Dec-14 | ||||||||||
China Construction Bank | 81,264 | 81,264 | 7-Nov-14 | ||||||||||
Bank of Beijing | 4,875,829 | 4,875,829 | 27-Dec-14 | ||||||||||
Total | $ | 24,947,991 | $ | 20,072,162 | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Segment Reporting | ' | ||||||||||||||||||||||||||||
(Amount in thousands) | |||||||||||||||||||||||||||||
For the Three Months | Concentrated apple juice and apple aroma | Concentrated kiwifruit juice and kiwifruit puree | Concentrated pear juice | Fruit juice beverages | Fresh fruits and vegetables | Other | Total | ||||||||||||||||||||||
Ended June 30, 2014 | |||||||||||||||||||||||||||||
Reportable segment revenue | $ | 773 | $ | 5 | $ | 246 | $ | 11,079 | $ | - | $ | 20 | $ | 12,123 | |||||||||||||||
Inter-segment revenue | - | - | (56 | ) | (88 | ) | - | - | (144 | ) | |||||||||||||||||||
Revenue from external customers | 773 | 5 | 190 | 10,991 | - | 20 | 11,979 | ||||||||||||||||||||||
Segment gross profit | $ | 153 | $ | 1 | $ | 90 | $ | 4,302 | $ | - | $ | 8 | $ | 4,554 | |||||||||||||||
(Amount in thousands) | |||||||||||||||||||||||||||||
For the Three Months | Concentrated apple juice and apple aroma | Concentrated kiwifruit juice and kiwifruit puree | Concentrated pear juice | Fruit juice beverages | Fresh fruits and vegetables | Other | Total | ||||||||||||||||||||||
Ended June 30, 2013 | |||||||||||||||||||||||||||||
Reportable segment revenue | $ | 1,052 | $ | 17 | $ | 713 | $ | 8,721 | $ | 4 | 6 | $ | 10,513 | ||||||||||||||||
Inter-segment revenue | - | (7 | ) | (29 | ) | (127 | ) | - | - | (163 | ) | ||||||||||||||||||
Revenue from external customers | 1,052 | 10 | 684 | 8,594 | 4 | 6 | 10,350 | ||||||||||||||||||||||
Segment gross profit | $ | 77 | $ | 5 | $ | 121 | $ | 3,147 | $ | 3 | 1 | $ | 3,354 | ||||||||||||||||
(Amount in thousands) | |||||||||||||||||||||||||||||
For the Six Months | Concentrated apple juice and apple aroma | Concentrated kiwifruit juice and kiwifruit puree | Concentrated pear juice | Fruit juice beverages | Fresh fruits | Others | Total | ||||||||||||||||||||||
Ended June 30, 2014 | and vegetables | ||||||||||||||||||||||||||||
Reportable segment revenue | $ | 1,535 | $ | 1,861 | $ | 2,481 | $ | 18,567 | $ | 5 | $ | 83 | $ | 24,532 | |||||||||||||||
Inter-segment revenue | (488 | ) | (22 | ) | (78 | ) | (136 | ) | (1 | ) | (45 | ) | (770 | ) | |||||||||||||||
Revenue from external customers | 1,047 | 1,839 | 2,403 | 18,431 | 4 | 38 | 23,762 | ||||||||||||||||||||||
Segment gross profit | $ | 81 | $ | 754 | $ | 666 | $ | 6,719 | $ | 4 | $ | 2 | $ | 8,226 | |||||||||||||||
(Amount in thousands) | |||||||||||||||||||||||||||||
For the Six Months | Concentrated apple juice and apple aroma | Concentrated kiwifruit juice and kiwifruit puree | Concentrated pear juice | Fruit juice beverages | Fresh fruits and vegetables | Other | Total | ||||||||||||||||||||||
Ended June 30, 2013 | |||||||||||||||||||||||||||||
Reportable segment revenue | $ | 1,785 | $ | 3,490 | $ | 5,897 | $ | 17,368 | $ | 802 | $ | 6 | $ | 29,348 | |||||||||||||||
Inter-segment revenue | (97 | ) | (61 | ) | (40 | ) | (189 | ) | - | - | (387 | ) | |||||||||||||||||
Revenue from external customers | 1,688 | 3,429 | 5,857 | 17,179 | 802 | 6 | 28,961 | ||||||||||||||||||||||
Segment gross profit | $ | 108 | $ | 2,119 | $ | 1,720 | $ | 6,659 | $ | 388 | $ | 1 | $ | 10,995 | |||||||||||||||
Reportable segment profit | ' | ||||||||||||||||||||||||||||
Three Months | |||||||||||||||||||||||||||||
ended | |||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Segment profit | $ | 4,554,350 | $ | 3,353,990 | |||||||||||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||||||||||
Operating expenses | (2,380,821 | ) | (2,414,794 | ) | |||||||||||||||||||||||||
Other (income)/expenses | (1,914,105 | ) | 167,747 | ||||||||||||||||||||||||||
Income before tax provision | $ | 259,424 | $ | 1,106,943 | |||||||||||||||||||||||||
Six Months | |||||||||||||||||||||||||||||
ended | |||||||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Segment profit | $ | 8,225,585 | $ | 10,994,888 | |||||||||||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||||||||||
Operating expenses | (4,438,440 | ) | (4,560,496 | ) | |||||||||||||||||||||||||
Other (income)/expenses | (2,662,060 | ) | 313,277 | ||||||||||||||||||||||||||
Income before tax provision | $ | 1,125,085 | $ | 6,747,669 |
Business_Description_and_Signi2
Business Description and Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | 6 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | Cinda [Member] | Cinda [Member] | |
USD ($) | CNY | |||||||
Schedule Of Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shipping and handling expenses | $437,756 | $399,492 | $794,151 | ' | $705,641 | ' | ' | ' |
Anti-dilutive warrants | ' | ' | 175,000 | 175,000 | 175,000 | ' | ' | ' |
Cost of equipment under lease agreement | ' | ' | 21,000,000 | 129,000,000 | ' | ' | ' | ' |
Estimated lease payment | ' | ' | 1,300,000 | 8,000,000 | ' | ' | ' | ' |
Consulting services | ' | ' | ' | ' | ' | ' | 831,100 | 5,160,000 |
Right to purchase the equipment at the end of the lease | 161 | ' | 161 | ' | ' | ' | ' | ' |
Payment of capital lease agreement | 3,831,441 | ' | 3,831,441 | ' | ' | ' | ' | ' |
Accrued interest on capital lease | 478,000 | ' | 478,000 | ' | ' | ' | ' | ' |
Servicing fees | ' | ' | ' | ' | ' | ' | $414,492 | 2,580,000 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Summarized for Inventories by major categories [Line Items] | ' | ' |
Raw materials and packaging | $2,641,544 | $1,030,866 |
Finished goods | 2,117,231 | 3,351,034 |
Working-in-process | 1,054,917 | ' |
Inventories | $5,813,692 | $4,381,900 |
Shortterm_Bank_Loan_Details
Short-term Bank Loan (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Short-term Bank Loans | ' | ' |
Loans payable | $22,314,406 | $22,626,679 |
Huludao Bank, Suizhong branch due on June 10, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | ' | 5,461,793 |
Interest rate per annum | ' | 9.23% |
Huludao Bank, Suizhong branch due on June 14, 2015 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 5,412,168 | ' |
Interest rate per annum | 9.60% | ' |
Shanghai Pudong Development Bank due on April 23, 2015 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 4,875,829 | 4,920,533 |
Interest rate per annum | 6.60% | 6.60% |
China Construction Bank due on May 25, 2015 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 2,129,112 | 2,148,633 |
Interest rate per annum | 6.00% | 6.00% |
Bank of Xi'an due on June 17, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | ' | 1,640,178 |
Interest rate per annum | ' | 7.80% |
Bank of Beijing due on Julne 25, 2015 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 4,875,830 | 4,920,533 |
Interest rate per annum | 7.80% | 7.80% |
China Construction Bank due on November 3, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 2,291,640 | 2,312,651 |
Interest rate per annum | 6.00% | 6.00% |
China Merchants Bank due on October 30, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 650,111 | 656,071 |
Interest rate per annum | 8.40% | 8.40% |
China Construction Bank due on March 19, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | ' | 291,693 |
Interest rate per annum | ' | 3.20% |
China Construction Bank due on March 24, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | ' | 274,594 |
Interest rate per annum | ' | 3.20% |
China Construction Bank due on September 5, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 137,372 | ' |
Interest rate per annum | 3.60% | ' |
China Merchants Bank due on February 24, 2015 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 1,625,276 | ' |
Interest rate per annum | 8.40% | ' |
China Citic Bank due on September 2, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | $317,068 | ' |
Interest rate per annum | 4.82% | ' |
Notes_Payable_Bank_Details
Notes Payable - Bank (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | $24,947,991 | $10,825,173 |
Restricted cash | 20,072,162 | 7,216,782 |
Bank of Xi'an due date September 4, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 1,625,275 | ' |
Restricted cash | 812,638 | ' |
Shanghai Pudong Development Bank due date October 22, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 1,625,276 | ' |
Restricted cash | 1,625,276 | ' |
Shanghai Pudong Development Bank due date April 28, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 4,875,829 | ' |
Restricted cash | 4,875,829 | ' |
Shanghai Pudong Development Bank due date December 24, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 3,250,553 | ' |
Restricted cash | 3,250,553 | ' |
Shanghai Pudong Development Bank due date October 14, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 3,250,553 | ' |
Restricted cash | 1,625,276 | ' |
China Merchants Bank due date August 27, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 487,583 | ' |
Restricted cash | 487,583 | ' |
Bank of Ningxia due date December 19, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 4,875,829 | ' |
Restricted cash | 2,437,914 | ' |
China Construction Bank due date November 7, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 81,264 | ' |
Restricted cash | 81,264 | ' |
Bank Of Beijing due date December 27, 2014 [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Notes payable -bank | 4,875,829 | ' |
Restricted cash | $4,875,829 | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Feb. 18, 2013 | Feb. 18, 2013 | Feb. 18, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Mr. Yongke Xue | Mr. Hongke Xue | Skypeople International Holdings Group [Member] | Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. [Member] | Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. [Member] | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Fruit beverage sales | ' | ' | ' | ' | ' | ' | $1,350,000 | $967,300 |
Accounts receivable for related party transactions | 1,050,000 | ' | 731,000 | ' | ' | ' | ' | ' |
Equity interest, ownership percentage | ' | ' | ' | 80.00% | 9.40% | 50.20% | ' | ' |
Principal amount for unsecured term loan | 8,000,000 | ' | ' | ' | ' | ' | ' | ' |
Interest rate for unsecured term loan | 6.00% | ' | ' | ' | ' | ' | ' | ' |
Amount received from lender | ' | ' | 8,000,000 | ' | ' | ' | ' | ' |
Description for loan agreement | ' | ' | 'In February 2014, both parties extended this loan for another two years | ' | ' | ' | ' | ' |
Interest expense, related party | 120,000 | 116,452 | ' | ' | ' | ' | ' | ' |
Short-term loan - related party | ' | ' | $24,970 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Oct. 04, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Proceeds from Legal Settlements | $2,200,000 | ' |
Proceeds from insurance settlement | 100,000 | ' |
Escrow settlement account | ' | $2,200,000 |
Concentration_Details
Concentration (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Customer | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concertration of customers | 'No single customer representing 10% of total sales. | 'No single customer representing 10% of total sales. | 'No single customer representing 10% of total sales. | 'No single customer representing 10% of total sales. |
Sales to our largest customers of net sales | 19.00% | 25.00% | 19.00% | 19.00% |
Supplier One | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concertration of customers | 'No other single supplier representing 10% of purchase. | 'No other single supplier representing 10% of purchase. | 'No other single supplier representing 10% of purchase. | 'No other single supplier representing 10% of purchase. |
Sales to our largest customers of net sales | 18.00% | 29.00% | 18.00% | 28.00% |
Supplier Two | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concertration of customers | 'No other single supplier representing 10% of purchase. | 'No other single supplier representing 10% of purchase. | 'No other single supplier representing 10% of purchase. | 'No other single supplier representing 10% of purchase. |
Sales to our largest customers of net sales | 13.00% | 15.00% | 15.00% | 11.00% |
Supplier Three | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' |
Concertration of customers | 'No other single supplier representing 10% of purchase. | 'No other single supplier representing 10% of purchase. | 'No other single supplier representing 10% of purchase. | ' |
Sales to our largest customers of net sales | 13.00% | 14.70% | 10.00% | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reportable segment revenue | $12,123 | $10,513 | $24,532 | $29,348 |
Inter-segment revenue | -144 | -163 | -770 | -387 |
Revenue from external customers | 11,979 | 10,350 | 23,762 | 28,961 |
Segment gross profit | 4,554 | 3,354 | 8,226 | 10,995 |
Concentrated apple juice and apple aroma [Member] | ' | ' | ' | ' |
Reportable segment revenue | 773 | 1,052 | 1,535 | 1,785 |
Inter-segment revenue | ' | ' | -488 | -97 |
Revenue from external customers | 773 | 1,052 | 1,047 | 1,688 |
Segment gross profit | 153 | 77 | 81 | 108 |
Concentrated kiwifruit juice and kiwifruit puree [Member] | ' | ' | ' | ' |
Reportable segment revenue | 5 | 17 | 1,861 | 3,490 |
Inter-segment revenue | ' | -7 | -22 | -61 |
Revenue from external customers | 5 | 10 | 1,839 | 3,429 |
Segment gross profit | 1 | 5 | 754 | 2,119 |
Concentrated pear juice [Member] | ' | ' | ' | ' |
Reportable segment revenue | 246 | 713 | 2,481 | 5,897 |
Inter-segment revenue | -56 | -29 | -78 | -40 |
Revenue from external customers | 190 | 684 | 2,403 | 5,857 |
Segment gross profit | 90 | 121 | 666 | 1,720 |
Fruit juice beverages [Member] | ' | ' | ' | ' |
Reportable segment revenue | 11,079 | 8,721 | 18,567 | 17,368 |
Inter-segment revenue | -88 | -127 | -136 | -189 |
Revenue from external customers | 10,991 | 8,594 | 18,431 | 17,179 |
Segment gross profit | 4,302 | 3,147 | 6,719 | 6,659 |
Fresh fruit and vegetables [Member] | ' | ' | ' | ' |
Reportable segment revenue | ' | 4 | 5 | 802 |
Inter-segment revenue | ' | ' | -1 | ' |
Revenue from external customers | ' | 4 | 4 | 802 |
Segment gross profit | ' | 3 | 4 | 388 |
Other [Member] | ' | ' | ' | ' |
Reportable segment revenue | 20 | 6 | 83 | 6 |
Inter-segment revenue | ' | ' | -45 | ' |
Revenue from external customers | 20 | 6 | 38 | 6 |
Segment gross profit | $8 | $1 | $2 | $1 |
Segment_Reporting_Details_1
Segment Reporting (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Segment Reporting Information | ' | ' | ' | ' |
Segment profit | $4,554,350 | $3,353,990 | $8,225,585 | $10,994,888 |
Unallocated amounts: | ' | ' | ' | ' |
Operating expenses | -2,380,821 | -2,414,794 | -4,438,440 | -4,560,496 |
Other income/(expenses) | -1,914,105 | 167,747 | -2,662,060 | 313,277 |
Income before tax provision | $259,424 | $1,106,943 | $1,125,085 | $6,747,669 |
Dividend_Distribution_made_by_1
Dividend Distribution made by Qiyiwangguo (Details) | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 07, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 10, 2014 | Apr. 10, 2014 | Dec. 31, 2013 |
USD ($) | USD ($) | Qiyiwangguo [Member] | Qiyiwangguo [Member] | Qiyiwangguo [Member] | Xi'an Qinmei Food Co., Ltd [Member] | Xi'an Qinmei Food Co., Ltd [Member] | Shaanxi Qiyiwangguo [Member] | |
USD ($) | CNY | USD ($) | CNY | |||||
Schedule Of Dividend Description [Textuals] | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest, ownership percentage | ' | ' | 65.00% | 91.15% | 91.15% | ' | ' | 8.85% |
Retained earnings | $95,514,839 | $94,962,299 | ' | $50,000,000 | 360,000,000 | ' | ' | ' |
Wired transaction amount | ' | ' | ' | ' | ' | $4,400,000 | 27,000,000 | ' |