Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 14, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | SkyPeople Fruit Juice, Inc | |
Entity Central Index Key | 1,066,923 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 26,661,499 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 60,370,972 | $ 25,130,302 |
Restricted cash | 3,271,395 | 6,537,016 |
Accounts receivable, net of allowance of $34,002 and $837,200 as of June 30, 2015 and December 31, 2014, respectively | 26,659,988 | 66,570,314 |
Other receivables | 67,458 | 371,995 |
Inventories | 4,484,889 | 4,118,630 |
Deferred tax assets | 1,671,563 | 1,410,690 |
Advances to suppliers and other current assets | 250,116 | 472,578 |
TOTAL CURRENT ASSETS | 96,776,381 | 104,611,525 |
Property, plant and equipment, net | 101,376,282 | 96,279,068 |
Land use right, net | 6,125,025 | 6,502,420 |
Long term assets | 3,165,075 | 3,162,281 |
Deposits | 62,137,972 | 68,878,798 |
TOTAL ASSETS | 269,580,735 | 279,434,092 |
CURRENT LIABILITIES | ||
Accounts payable | 10,885,535 | 18,381,263 |
Accrued expenses | 8,867,898 | 10,085,152 |
Income tax payable | 238,922 | 1,457,258 |
Advances from customers | $ 390,767 | 469,007 |
Notes payable -bank | 8,171,270 | |
Short-term bank loans | $ 32,144,782 | 28,243,373 |
Obligations under capital leases | 3,940,172 | 2,954,401 |
TOTAL CURRENT LIABILITIES | 56,468,076 | 69,761,724 |
NON-CURRENT LIABILITIES | ||
Long-term loan - related party | 7,959,107 | 7,959,143 |
Obligations under capital leases | 15,172,791 | 15,625,435 |
TOTAL NON-CURRENT LIABILITIES | 23,131,898 | 23,584,578 |
TOTAL LIABILITIES | $ 79,599,974 | $ 93,346,302 |
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, 2015 and December 31, 2014, respectively | ||
Common stock, $0.001 par value; 66,666,666 shares authorized; 26,661,499 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively | $ 26,661 | $ 26,661 |
Additional paid-in capital | 59,189,860 | 59,189,860 |
Retained earnings | 106,422,605 | 102,833,747 |
Accumulated other comprehensive income | 19,379,532 | 19,351,703 |
Total SkyPeople Fruit Juice, Inc. Stockholders' equity | 185,018,658 | 181,401,971 |
Non-controlling interests | 4,962,103 | 4,685,819 |
TOTAL EQUITY | 189,980,761 | 186,087,790 |
TOTAL LIABILITIES AND EQUITY | $ 269,580,735 | $ 279,434,092 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivables, net of allowance | $ 34,002 | $ 837,200 |
Preferred stock series B, par value per share | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 12,165,269 | $ 11,978,652 | $ 28,736,308 | $ 23,761,819 |
Cost of goods sold | 7,054,539 | 7,424,302 | 16,466,217 | 15,536,234 |
Gross profit | 5,110,730 | 4,554,350 | 12,270,091 | 8,225,585 |
Operating Expenses | ||||
General and administrative expenses | 273,646 | 995,830 | 3,258,128 | 2,188,951 |
Selling expenses | 1,271,227 | 1,384,991 | 2,323,881 | 2,249,489 |
Total operating expenses | 1,544,873 | 2,380,821 | 5,582,009 | 4,438,440 |
Income from operations | 3,565,857 | 2,173,529 | 6,688,082 | 3,787,145 |
Other income (expense) | ||||
Interest income | 230,473 | 238,212 | 264,026 | 311,873 |
Subsidy income | 49,426 | 37,374 | 238,187 | 470,971 |
Interest expenses | $ (598,090) | (1,749,783) | $ (1,697,160) | (2,562,204) |
Consulting fee related to capital lease | (439,908) | (882,700) | ||
Total other expenses | $ (318,191) | (1,914,105) | $ (1,194,947) | (2,662,060) |
Income before income tax | 3,247,666 | 259,424 | 5,493,135 | 1,125,085 |
Income tax provision | 1,070,171 | 102,608 | 1,632,740 | 331,210 |
Net income | 2,177,495 | 156,816 | 3,860,395 | 793,875 |
Less: Net income attributable to non-controlling interests | (88,247) | (107,948) | (271,537) | (241,335) |
NET INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. | 2,089,248 | 48,868 | 3,588,858 | 552,540 |
Other comprehensive income | ||||
Foreign currency translation adjustment | 1,334,006 | (11,592) | 575,650 | (1,717,080) |
Comprehensive income (loss) | 3,511,501 | 145,224 | 4,436,045 | (923,205) |
Comprehensive income (loss) attributable to non-controlling interests | (109,877) | (156,907) | (276,284) | (135,938) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. | $ 3,401,624 | $ (11,683) | $ 4,159,761 | $ (1,059,143) |
Earnings per share: | ||||
Basic and diluted net income per share | $ 0.08 | $ 0.13 | $ 0.02 | |
Weighted average number of shares outstanding | ||||
Basic and diluted | 26,661,499 | 26,661,499 | 26,661,499 | 26,661,499 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 3,860,395 | $ 793,875 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 3,180,201 | 1,572,175 |
Deferred income tax assets | (260,873) | $ (944,977) |
Reverse of provision for bad debt | (803,200) | |
Changes in operating assets and liabilities | ||
Accounts receivable | 40,671,942 | $ 16,111,019 |
Other receivable | 304,109 | (352,389) |
Advances to suppliers and other current assets | 222,326 | 640,892 |
Inventories | (361,721) | (438,715) |
Accounts payable | (7,602,038) | 1,801,177 |
Accrued expenses | (1,258,368) | 4,461,534 |
Income tax payable | (1,216,599) | (1,178,899) |
Advances from customers | (78,459) | (113,301) |
Net cash provided by operating activities | $ 36,657,715 | 22,352,391 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Refund of purchase deposit | 7,506,207 | |
Additions to property, plant and equipment | $ (2,036,888) | (9,966,212) |
Prepayment for other assets | 296,959 | $ (18,652) |
Prepayments for deposit on equipment | (143,822) | |
Net cash used in investing activities | $ (1,883,751) | $ (2,478,657) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividend paid to non-controlling interest | (4,414,820) | |
Decrease (Increased) in restricted cash | $ 3,263,282 | (12,950,836) |
(Repayment) Proceeds from short-term notes | (8,158,204) | 14,254,064 |
Proceeds from short-term bank loans | 18,752,908 | 19,489,005 |
Repayment of short-term bank loans | $ (13,492,076) | (19,595,955) |
Payment for capital lease | (3,152,185) | |
Repayment of related party loans | (24,970) | |
Net cash provided (used in) by financing activities | $ 365,910 | (6,395,697) |
Effect of change in exchange rate | 100,796 | (643,036) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 35,240,670 | 12,835,001 |
Cash and cash equivalents, beginning of period | 25,130,302 | 66,888,954 |
Cash and cash equivalents, end of period | 60,370,972 | 79,723,955 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 1,697,160 | 2,159,600 |
Cash paid for income taxes | 1,648,425 | 2,455,086 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ||
Transferred from other assets to property, plant and equipment and construction in process | $ 6,928,619 | 1,325,819 |
Equipment acquired by capital lease | $ 21,014,564 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The unaudited condensed consolidated 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, 2015 and the results of operations and cash flows for the periods ended June 30, 2015 and 2014. 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 period ended June 30, 2015 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2015. The balance sheet at December 31, 2014 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, 2014 as included in our Annual Report on Form 10-K. |
Business Description and Signif
Business Description and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Business Description and Significant Accounting Policies [Abstract] | |
Business Description and Significant Accounting Policies | 2. Business Description and Significant Accounting Policies The principal activities of SkyPeople Fruit Juice, Inc. (together with our direct or indirect subsidiaries, “we,” “us,” “our” or “the Company”) consist of production and sales of fruit juice concentrates, fruit juice beverages, and other fruit-related products in the People’s Republic of China (“PRC”, or “China”), and overseas markets. All activities of the Company are principally conducted by subsidiaries operating in the PRC. Organizational Structure Please refer to “organizational structure” section of the Company’s quarterly report on Form 10-Q for periods ended March 31, 2015. 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 SkyPeople (China) and its 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 condensed 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 condensed 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, 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. 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 $936,414 and $437,756 for three months ended June 30, 2015 and 2014, respectively; and $1,893,067 and $794,151 for the six months ended June 30, 2015 and 2014, respectively; are reported in the Consolidated Statements of Income and Comprehensive Income (Loss) as a component of selling expenses. Leases In January 2014, the Company entered into various five years equipment leasing agreements with Xinda Financial Leasing Co., Ltd. (“Xinda”). 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. The Company has classified the leases as capital leases in accordance with ASC 840 “Leases”. The Company also agreed to pay consulting fees of $831,100 (RMB 5,160,000) for two-year consulting services and $414,492 (RMB 2,580,000) services fees to Xinda, both of which were fully expensed in 2014. Earnings per share The diluted earnings per share calculation for the three and six months ended June 30, 2015 did not include the warrants to purchase up to 175,000 shares of common stock, because their effect was anti-dilutive. Such warrants expired during fiscal 2014. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories by major categories are summarized as follows: June 30, 2015 December 31, Raw materials and packaging $ 2,178,014 $ 1,249,599 Finished goods 2,306,875 2,869,031 Inventories $ 4,484,889 $ 4,118,630 |
Related Party Transaction
Related Party Transaction | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transaction [Abstract] | |
Related Party Transaction | 4. Related Party Transaction 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 $790,500 and $1,350,000 for the six months ended June 30, 2015 and 2014, respectively. The accounts receivable balances were approximately $548,900 and $1,546,000 as of June 30, 2015 and December 31, 2014, respectively. Fullmart is a company indirectly owned by our Chairman and Chief Executive Officer, Mr. Yongke Xue. 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 also the Chief Executive Officer, and Mr. Hongke Xue, 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 agreed 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 under the original terms of the agreement. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2015 | |
Concentrations [Abstract] | |
Concentrations | 5. Concentrations (1) Concentration of customers Sales to five largest customers accounted for approximately 29% and 19% of our net sales during the six months ended June 30, 2015 and 2014, respectively. There was no single customer represented over 10% of total sales for the six months ended June 30, 2015 and 2014, respectively. Sales to our five largest customers accounted for approximately 27% and 19% of our net sales during the three months ended June 30, 2015 and 2014, respectively. There was no single customer representing 10% of total sale for the three months ended June 30, 2015 and 2014, respectively. (2) Concentration of suppliers Two suppliers accounted for 13% and 11% of our purchase for six months ended June 30, 2015, no other single supplier accounted for over 10% of our purchase. During six months ended June 30, 2014, three suppliers accounted for 18%, 15% and 10% of our purchases. There was no other single supplier representing 10% of purchase during both periods. During the three months ended June 30, 2015, two suppliers accounted for 13% and 11% of our purchases. During the three months ended June 30, 2014, three suppliers accounted for 18%, 13% and 13% 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, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 6. 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, as the Company uses 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. 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. For the Three Months Ended June 30, 2015 (Dollars in 000’s) Concentrated apple juice Concentrated Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 63 $ 41 $ 988 $ 28,424 $ - 1 $ 29,517 Inter-segment revenue (13) - - (17,339 ) - - (17,352 ) Revenue from external customers 50 41 988 11,085 - 1 12,165 Segment gross profit $ - $ 11 $ 324 $ 4,797 $ - 1 $ 5,111 For the Three Months Ended June 30, 2014 (Dollars in 000’s) Concentrated apple juice Concentrated Concentrated pear juice Fruit juice beverages Fresh fruits Others Total 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 For the Six Months Ended June 30, 2015 (Dollars in 000’s) Concentrated Concentrated Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 88 $ 3,603 $ 5,752 $ 50,455 $ - 1 $ 59,899 Inter-segment revenue (13) (1,674 ) (101 ) (29,375 ) - - (31,163 ) Revenue from external customers 75 1,929 5,651 21,080 - 1 28,736 Segment gross profit $ 8 $ 675 $ 2,210 $ 9,376 $ - 1 $ 12,270 For the Six Months Ended June 30, 2014 (Dollars in 000’s) Concentrated Concentrated Concentrated pear juice Fruit juice beverages Fresh fruits Others Total 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 The following table reconciles reportable segment profit to the Company’s condensed consolidated income before income tax provision for the six months ended June 30, 2015 and 2014: 2015 2014 Segment profit $ 12,270,091 $ 8,225,585 Unallocated amounts: Operating expenses (5,582,008 ) (4,438,440 ) Other expenses (1,194,947 ) (2,662,060 ) Income before tax provision $ 5,493,136 $ 1,125,085 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 7. Subsequent Events |
Business Description and Sign13
Business Description and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Business Description and Significant Accounting Policies [Abstract] | |
Principles 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 SkyPeople (China) and its 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 condensed 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 condensed 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, 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. |
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 $936,414 and $437,756 for three months ended June 30, 2015 and 2014, respectively; and $1,893,067 and $794,151 for the six months ended June 30, 2015 and 2014, respectively; are reported in the Consolidated Statements of Income and Comprehensive Income (Loss) as a component of selling expenses. |
Leases | Leases In January 2014, the Company entered into various five years equipment leasing agreements with Xinda Financial Leasing Co., Ltd. (“Xinda”). 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. The Company has classified the leases as capital leases in accordance with ASC 840 “Leases”. The Company also agreed to pay consulting fees of $831,100 (RMB 5,160,000) for two-year consulting services and $414,492 (RMB 2,580,000) services fees to Xinda, both of which were fully expensed in 2014. |
Earnings per share | Earnings per share The diluted earnings per share calculation for the three and six months ended June 30, 2015 did not include the warrants to purchase up to 175,000 shares of common stock, because their effect was anti-dilutive. Such warrants expired during fiscal 2014. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Schedule of inventories | June 30, 2015 December 31, Raw materials and packaging $ 2,178,014 $ 1,249,599 Finished goods 2,306,875 2,869,031 Inventories $ 4,484,889 $ 4,118,630 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Shedule of segment reporting | Concentrated apple juice Concentrated Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 63 $ 41 $ 988 $ 28,424 $ - 1 $ 29,517 Inter-segment revenue (13) - - (17,339 ) - - (17,352 ) Revenue from external customers 50 41 988 11,085 - 1 12,165 Segment gross profit $ - $ 11 $ 324 $ 4,797 $ - 1 $ 5,111 Concentrated apple juice Concentrated Concentrated pear juice Fruit juice beverages Fresh fruits Others Total 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 Concentrated Concentrated Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 88 $ 3,603 $ 5,752 $ 50,455 $ - 1 $ 59,899 Inter-segment revenue (13) (1,674 ) (101 ) (29,375 ) - - (31,163 ) Revenue from external customers 75 1,929 5,651 21,080 - 1 28,736 Segment gross profit $ 8 $ 675 $ 2,210 $ 9,376 $ - 1 $ 12,270 Concentrated Concentrated Concentrated pear juice Fruit juice beverages Fresh fruits Others Total 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 |
Shedule of reportable segment profit | 2015 2014 Segment profit $ 12,270,091 $ 8,225,585 Unallocated amounts: Operating expenses (5,582,008 ) (4,438,440 ) Other expenses (1,194,947 ) (2,662,060 ) Income before tax provision $ 5,493,136 $ 1,125,085 |
Business Description and Sign16
Business Description and Significant Accounting Policies (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2014USD ($) | Jan. 31, 2014CNY (¥) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | |
Business Description and Significant Accounting Policies (Textual) | ||||||
Shipping and handling expenses | $ 936,414 | $ 437,756 | $ 1,893,067 | $ 794,151 | ||
Anti-dilutive warrants | shares | 175,000 | 175,000 | ||||
Xinda [Member] | ||||||
Business Description and Significant Accounting Policies (Textual) | ||||||
Cost of equipment under lease agreement | $ 21,000,000 | ¥ 129,000,000 | ||||
Estimated payments of lease | 1,300,000 | 8,000,000 | ||||
Right to purchase equipment | 161 | |||||
Consulting fees | 831,100 | 5,160,000 | ||||
Servicing fees | $ 414,492 | ¥ 2,580,000 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials and packaging | $ 2,178,014 | $ 1,249,599 |
Finished goods | 2,306,875 | 2,869,031 |
Inventories | $ 4,484,889 | $ 4,118,630 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Feb. 18, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
Related Party Transactions (Textual) | |||||||
Accounts receivable for related party transactions | $ 548,900 | $ 548,900 | $ 1,546,000 | ||||
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 | $ 120,000 | 240,000 | $ 240,000 | |||
Mr. Yongke Xue | |||||||
Related Party Transactions (Textual) | |||||||
Equity interest, ownership percentage | 80.00% | ||||||
Mr. Hongke Xue | |||||||
Related Party Transactions (Textual) | |||||||
Equity interest, ownership percentage | 9.40% | ||||||
Skypeople International Holdings Group [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Equity interest, ownership percentage | 50.20% | ||||||
Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Fruit beverage sales | $ 790,500 | $ 1,350,000 |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015CustomersSupplier | Jun. 30, 2014CustomersSupplier | Jun. 30, 2015CustomersSupplier | Jun. 30, 2014CustomersSupplier | |
Concentration of Customer [Member] | ||||
Concentrations (Textual) | ||||
Concentration of customers | There was no single customer represented over 10% of total sales. | There was no single customer represented over 10% of total sales. | There was no single customer represented over 10% of total sales. | There was no single customer represented over 10% of total sales. |
Sales to our largest customers of net sales | 27.00% | 19.00% | 29.00% | 19.00% |
Number of customers | Customers | 5 | 5 | 5 | 5 |
Supplier One [Member] | ||||
Concentrations (Textual) | ||||
Sales to our largest customers of net sales | 13.00% | 18.00% | 13.00% | 18.00% |
Concentration of suppliers | No other single supplier accounted for over 10% of our purchase. | No other single supplier accounted for over 10% of our purchase. | No other single supplier accounted for over 10% of our purchase | No other single supplier accounted for over 10% of our purchase. |
Number of suppliers | 2 | 3 | 2 | 3 |
Supplier Two [Memebr] | ||||
Concentrations (Textual) | ||||
Sales to our largest customers of net sales | 11.00% | 13.00% | 11.00% | 15.00% |
Concentration of suppliers | No other single supplier accounted for over 10% of our purchase. | No other single supplier accounted for over 10% of our purchase. | No other single supplier accounted for over 10% of our purchase | No other single supplier accounted for over 10% of our purchase. |
Number of suppliers | 2 | 3 | 2 | 3 |
Supplier Three [Member] | ||||
Concentrations (Textual) | ||||
Sales to our largest customers of net sales | 13.00% | 10.00% | ||
Concentration of suppliers | No other single supplier accounted for over 10% of our purchase. | No other single supplier accounted for over 10% of our purchase. | ||
Number of suppliers | 3 | 3 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reportable segment revenue | $ 29,517 | $ 12,123 | $ 59,899 | $ 24,532 |
Inter-segment revenue | (17,352) | (144) | (31,163) | (770) |
Revenue from external customers | 12,165 | 11,979 | 28,736 | 23,762 |
Segment gross profit | 5,111 | 4,554 | 12,270 | 8,226 |
Concentrated apple juice and apple aroma [Member] | ||||
Reportable segment revenue | 63 | $ 773 | 88 | 1,535 |
Inter-segment revenue | (13) | (13) | (488) | |
Revenue from external customers | $ 50 | $ 773 | 75 | 1,047 |
Segment gross profit | 153 | 8 | 81 | |
Concentrated kiwifruit juice and kiwifruit puree [Member] | ||||
Reportable segment revenue | $ 41 | $ 5 | 3,603 | 1,861 |
Inter-segment revenue | (1,674) | (22) | ||
Revenue from external customers | $ 41 | $ 5 | 1,929 | 1,839 |
Segment gross profit | 11 | 1 | 675 | 754 |
Concentrated pear juice [Member] | ||||
Reportable segment revenue | $ 988 | 246 | 5,752 | 2,481 |
Inter-segment revenue | (56) | (101) | (78) | |
Revenue from external customers | $ 988 | 190 | 5,651 | 2,403 |
Segment gross profit | 324 | 90 | 2,210 | 666 |
Fruit juice beverages [Member] | ||||
Reportable segment revenue | 28,424 | 11,079 | 50,455 | 18,567 |
Inter-segment revenue | (17,339) | (88) | (29,375) | (136) |
Revenue from external customers | 11,085 | 10,991 | 21,080 | 18,431 |
Segment gross profit | $ 4,797 | $ 4,302 | $ 9,376 | 6,719 |
Fresh fruits and vegetables [Member] | ||||
Reportable segment revenue | 5 | |||
Inter-segment revenue | (1) | |||
Revenue from external customers | 4 | |||
Segment gross profit | 4 | |||
Others [Member] | ||||
Reportable segment revenue | $ 1 | $ 20 | $ 1 | 83 |
Inter-segment revenue | (45) | |||
Revenue from external customers | $ 1 | $ 20 | $ 1 | 38 |
Segment gross profit | $ 1 | $ 8 | $ 1 | $ 2 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information | ||||
Segment profit | $ 5,110,730 | $ 4,554,350 | $ 12,270,091 | $ 8,225,585 |
Unallocated amounts: | ||||
Operating expenses | (1,544,873) | (2,380,821) | (5,582,009) | (4,438,440) |
Other expenses | (318,191) | (1,914,105) | (1,194,947) | (2,662,060) |
Income before tax provision | $ 3,247,666 | $ 259,424 | $ 5,493,135 | $ 1,125,085 |
Subsequent Events (Details)
Subsequent Events (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Foreign currency translation, description | The Chinese currency ("Yuan") weakened from RMB6.2097 to USD1 to RMB6.3080 to USD1 |