Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 13, 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 | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 26,661,499 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 60,082,653 | $ 25,130,302 |
Restricted cash | 3,144,011 | 6,537,016 |
Accounts receivable, net of allowance of $32,678 and $837,200 as of September 30, 2015 and December 31, 2014, respectively | 17,381,778 | 66,570,314 |
Other receivables | 73,052 | 371,995 |
Inventories | 4,458,356 | 4,118,630 |
Deferred tax assets | 1,823,418 | 1,410,690 |
Advances to suppliers and other current assets | 7,462,187 | 472,578 |
TOTAL CURRENT ASSETS | 94,425,455 | 104,611,525 |
Property, plant and equipment, net | 98,462,921 | 96,279,068 |
Land use right, net | 6,142,756 | 6,502,420 |
Long term assets | 3,041,831 | 3,162,281 |
Deposits | 59,718,407 | 68,878,798 |
TOTAL ASSETS | 261,791,370 | 279,434,092 |
CURRENT LIABILITIES | ||
Accounts payable | 8,511,610 | 18,381,263 |
Accrued expenses | 10,070,942 | 10,085,152 |
Income tax payable | 29,488 | 1,457,258 |
Advances from customers | $ 499,626 | 469,007 |
Notes payable -bank | $ 8,171,270 | |
Short-term loan - related party | ||
Short-term bank loans | $ 35,524,185 | $ 28,243,373 |
Obligations under capital leases | 4,988,418 | 2,954,401 |
TOTAL CURRENT LIABILITIES | 59,624,269 | 69,761,724 |
NON-CURRENT LIABILITIES | ||
Long-term loan - related party | 7,960,699 | 7,959,143 |
Obligations under capital leases | $ 12,224,412 | $ 15,625,435 |
Long-term payable | ||
TOTAL NON-CURRENT LIABILITIES | $ 20,185,111 | $ 23,584,578 |
TOTAL LIABILITIES | $ 79,809,380 | $ 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 September 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 September 30, 2015 and December 31, 2014, respectively; | $ 26,661 | $ 26,661 |
Additional paid-in capital | 59,189,860 | 59,189,860 |
Retained earnings | 105,996,887 | 102,833,747 |
Accumulated other comprehensive income | 11,934,954 | 19,351,703 |
Total SkyPeople Fruit Juice, Inc. stockholders' equity | 177,148,362 | 181,401,971 |
Non-controlling interests | 4,833,628 | 4,685,819 |
TOTAL EQUITY | 181,981,990 | 186,087,790 |
TOTAL LIABILITIES AND EQUITY | $ 261,791,370 | $ 279,434,092 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivables, net of allowance | $ 32,678 | $ 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 (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 10,548,336 | $ 34,827,203 | $ 39,284,644 | $ 58,589,022 |
Cost of goods sold | 6,643,381 | 24,676,265 | 23,109,598 | 40,212,499 |
Gross profit | 3,904,955 | 10,150,938 | 16,175,046 | 18,376,523 |
Operating Expenses | ||||
General and administrative expenses | 1,462,677 | 1,317,546 | 4,720,805 | 3,506,497 |
Selling expenses | 984,512 | 1,628,415 | 3,308,393 | 3,877,904 |
Total operating expenses | 2,447,189 | 2,945,961 | 8,029,198 | 7,384,401 |
Income from operations | 1,457,766 | 7,204,977 | 8,145,848 | 10,992,122 |
Other income (expense) | ||||
Interest income | $ 47,377 | 75,809 | 311,403 | 387,682 |
Subsidy income | 91,362 | 238,187 | 562,333 | |
Interest expenses | $ (1,714,906) | (811,317) | (3,412,066) | (3,373,521) |
Consulting fee related to capital lease | (339) | (20,952) | (339) | (903,652) |
Total other expenses | (1,667,868) | (665,098) | (2,862,815) | (3,327,158) |
Income (loss) before income tax | (210,102) | 6,539,879 | 5,283,033 | 7,664,964 |
Income tax provision | 159,661 | 1,822,995 | 1,792,401 | 2,154,205 |
Net income (loss) | (369,763) | 4,716,884 | 3,490,632 | 5,510,759 |
Less: Net income attributable to non-controlling interests | (55,955) | (153,475) | (327,492) | (394,810) |
NET INCOME (LOSS) ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. | (425,718) | 4,563,409 | 3,163,140 | 5,115,949 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment | (8,172,082) | 8,747 | (7,596,432) | (1,708,333) |
Comprehensive income (loss) | (8,541,845) | 4,725,631 | (4,105,800) | 3,802,426 |
Comprehensive (income) expense attributable to non-controlling interests | 128,475 | (104,259) | (147,809) | (240,197) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. | $ (8,413,370) | $ 4,621,372 | $ (4,253,609) | $ 3,562,229 |
Earnings (loss) per share: | ||||
Basic and diluted earnings (loss) per share | $ (0.02) | $ 0.17 | $ 0.12 | $ 0.19 |
Weighted average number of shares outstanding | ||||
Basic and diluted | 26,661,499 | 26,661,499 | 26,661,499 | 26,661,499 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 3,490,632 | $ 5,510,759 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 4,701,533 | 3,031,314 |
Deferred income tax assets | (412,728) | $ (410,086) |
Bad debt provision | (804,524) | |
Changes in operating assets and liabilities | ||
Accounts receivable | 48,865,852 | $ (12,813,534) |
Other receivable | 293,422 | (627,449) |
Advances to suppliers and other current assets | (7,220,094) | 668,853 |
Inventories | (511,685) | 730,838 |
Accounts payable | (7,876,850) | 12,080,673 |
Accrued expenses | (951,496) | 5,305,632 |
Income tax payable | (1,413,939) | (608,156) |
Advances from customers | 49,956 | 60,930 |
Net cash provided by operating activities | $ 38,210,079 | 12,929,774 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Refund of purchase deposit | 7,498,389 | |
Additions to property, plant and equipment | $ (4,622,320) | (16,430,606) |
Prepayment for other assets | $ (28,184,348) | |
Prepayments for deposit on equipment | $ (142,774) | |
Net cash used in investing activities | $ (4,765,094) | $ (37,116,565) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividend paid to non-controlling interest | (4,410,222) | |
Decrease (Increased) in restricted cash | $ 3,239,496 | (11,635,476) |
(Repayment) Procceds from short-term notes | (8,098,740) | 12,123,678 |
Proceeds from short-term bank loans | (15,028,524) | 20,302,162 |
Repayment of short-term bank loans | $ 23,831,727 | (20,673,500) |
Payment for security deposit of capital lease | (3,148,902) | |
Payment for capital lease | $ (344) | (797,443) |
Repayment of related party loans | (374,913) | (24,970) |
Net cash (used in) provided by financing activities | 3,568,702 | (8,264,673) |
Effect of change in exchange rate | (2,061,336) | (558,140) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 34,952,351 | (33,009,604) |
Cash and cash equivalents, beginning of period | 25,130,302 | 66,888,954 |
Cash and cash equivalents, end of period | 60,082,653 | 33,879,350 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 3,412,066 | 2,553,422 |
Cash paid for income taxes | 1,636,409 | 3,172,447 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ||
Transferred from other assets to property, plant and equipment and construction in process | $ 6,878,117 | 1,324,438 |
Equipment acquired by capital lease | $ 20,992,677 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 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 September 30, 2015 and the results of operations and cash flows for the periods ended September 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 September 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 | 9 Months Ended |
Sep. 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 $759,663 and $765,911 for three months ended September 30, 2015 and 2014, respectively; and $2,652,868 and $1,560,062 for the nine months ended September 30, 2015 and 2014, respectively; are reported in the Consolidated Statements of Comprehensive Income as a component of selling expenses. Leases In January 2014, the Company entered into various five-year equipment leasing agreements with Cinda Financial Leasing Co., Ltd. (“Cinda”). The total cost of equipment under this lease agreement is RMB129 million (approximately $21 million). The total estimated lease payments will be approximately RMB 8 million per quarter (approximately $1.3 million). The Company has the right to purchase all 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) to Cinda for two years of consulting services and services fees of $414,492 (RMB 2,580,000) to Cinda, both of which were fully expensed in 2014. Earnings per share The diluted earnings per share calculation for the three and nine months ended September 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 | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories by major categories are summarized as follows: September 30, 2015 December 31, 2014 Raw materials and packaging $ 2,156,350 $ 1,249,599 Finished goods 2,302,006 2,869,031 Inventories $ 4,458,356 $ 4,118,630 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4. Related Party Transactions The Company’s subsidiary sold fruit beverages to a related entity, Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. ("Fullmart") for approximately $1,006,000 and $2,020,900 for the nine months ended September 30, 2015 and 2014, respectively. The accounts receivable balances were approximately $183,000 and $1,546,000 as of September 30, 2015 and December 31, 2014, respectively. Fullmart is a company indirectly owned by our Chairman and Chief Executive Officer, Mr. Yongke Xue. Transactions between the Company and its related party use the same pricing model as used for other external customers. Long-term loan – related party On February 18, 2013, SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)") (a 99.78% indirectly owned subsidiary of the Company) entered into a loan agreement ("Loan Agreement") with SkyPeople International Holdings Group Limited, a Cayman Islands Company (the "SP International"). SP International indirectly holds a 50.2% equity 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 of the Company, and Mr. Hongke Xue, a member of the Board, indirectly and beneficially own 80.0% and 9.4% of equity interest in SP International, respectively. Pursuant to the Loan Agreement, SP International 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 (the "Loan"). During 2013, the Company received $8.0 million from SP International under the Loan. In February 2014, both parties extended the Loan for another two years under the original terms of the Loan Agreement. As reported by the Company on Form 8-K filed on October 16, 2015, Company entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with SP International. Pursuant to the Share Purchase Agreement, the Company will issue and sell to SP International, and SP International will purchase from the Company 5,321,600 shares of common stock (the "Shares") of the Company (the "Transaction"). The purchase price for the Shares is $1.50 per share (the "Purchase Price"), and if the closing price for the common stock of the Company quoted on the NASDAQ Global Market is higher than $1.50 per share on the third business day after the public release of the Company's quarterly results for the quarter ended September 30, 2015, counting the day of the release as the first business day, the Purchase Price shall be adjusted to such closing price per share (the "Adjusted Price"), and SP International shall pay an additional amount for the Shares according to the Adjusted Price, and if the closing price for the common stock of the Company quoted on the NASDAQ Global Market is lower than $1.50 per share on the third business day after the public release of the Company's quarterly results for the quarter ended September 30, 2015, counting the day of the release as the first business day, no adjustment for the Purchase Price shall be made. The total purchase price of the Shares is $7,982,400 and will be paid by cancellation of the Loan as and disclosed in the Form 8-K filed with SEC on February 19, 2013 and renewed on February 18, 2014. The shareholder who owns the remaining 0.22% of SkyPeople (China)has paid $17,600 in cash to SP International as a part of repayment of the Loan. The unpaid interest on the Loan will remain an outstanding obligation of SkyPeople (China). The Shares have not been issued to SP International. For more information, please refer to Note 8 Subsequent Events. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies From time to time we may be a party to various litigation proceedings arising in the ordinary course of 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 | 9 Months Ended |
Sep. 30, 2015 | |
Concentrations [Abstract] | |
Concentrations | 6. Concentrations Concentration of customers Sales to our five largest customers accounted for approximately 24% and 38% of our net sales during the three months ended September 30, 2015 and 2014, respectively. The two largest customers accounted for 7% and 6% of net sales during the third quarter of 2015. The two largest customers accounted for 13% and 10.3% of net sales during the third quarter of 2014. Concentration of suppliers During the three months ended September 30, 2015, two supplier accounted for 14% and 11% of our purchases. During the three months ended September 30, 2014, one supplier accounted for 59% of our purchases. There was no other single supplier representing 10% of purchase during both periods. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | 7. 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. 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. The Company uses the same production line to manufacture concentrated apple juice and concentrated pear juice. Concentrated kiwifruit juice and kiwifruit puree is primarily produced by the Company’s Qiyiwangguo factory, and fruit juice beverages are 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 is exported directly or via distributors. The Company believes that its main export markets are 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 wholesalers 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 Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh Other Total Reportable segment revenue $ 12 $ 4 $ 2,519 $ 25,238 $ - $ - $ 27,773 Inter-segment revenue (12 ) - - (17,213 ) - - (17,225 ) Revenue from external customers - 4 2,519 8,025 - - 10,548 Segment gross profit $ - $ 1 $ 851 $ 3,055 $ - $ - $ 3,905 (Amount in thousands) For the Three Months Concentrated Concentrated Concentrated Fruit juice Fresh Other Total Reportable segment revenue $ 5,673 $ 357 $ 10,506 $ 37,322 $ 3,862 $ 15 $ 57,735 Inter-segment revenue (56 ) - - (22,847 ) - (5 ) (22,908 ) Revenue from external customers 5,617 357 10,506 14,475 3,862 10 34,827 Segment gross profit $ 103 $ (23 ) $ 2,605 $ 6,346 $ 1,121 $ (1 ) $ 10,151 (Amount in thousands) For the Nine Months Concentrated Concentrated Concentrated Fruit juice Fresh Other Total Reportable segment revenue $ 87 $ 3,595 $ 8,270 $ 58,266 $ - $ 1 $ 70,219 Inter-segment revenue (12 ) (1,662 ) (100 ) (29,161 ) - - (30,935 ) Revenue from external customers 75 1,933 8,170 29,105 - 1 39,284 Segment gross profit $ 8 $ 674 $ 3,061 $ 12,431 $ - $ 1 $ 16,175 (Amount in thousands) For the Nine Months Concentrated Concentrated Concentrated Fruit juice Fresh Other Total Reportable segment revenue $ 7,208 $ 2,218 $ 12,987 $ 55,889 $ 3,867 $ 98 $ 82,267 Inter-segment revenue (544 ) (22 ) (78 ) (22,983 ) (1 ) (50 ) (23,678 ) Revenue from external customers 6,664 2,196 12,909 32,906 3,866 48 58,589 Segment gross profit $ 184 $ 731 $ 3,271 $ 13,065 $ 1,125 $ 1 $ 18,377 The following table reconciles reportable segment profit to the Company’s condensed consolidated income before income tax provision for the three months ended September 30, 2015 and 2014: Nine months ended 2015 2014 Segment profit $ 16,175,046 $ 18,376,523 Unallocated amounts: Operating expenses (8,029,198 ) (7,384,401 ) Other (income)/expenses (2,862,815 ) (3,327,158 ) Income before tax provision $ 5,283,033 $ 7,664,964 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 8. Subsequent Events See discussion of Share Purchase Agreement set forth under Note 4 above, under the heading "Long-term loan-related party". Also, for more information, please refer to Current Report on Form 8-K filed by the Company with the SEC on October 16, 2015. |
Business Description and Sign14
Business Description and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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 $759,663 and $765,911 for three months ended September 30, 2015 and 2014, respectively; and $2,652,868 and $1,560,062 for the nine months ended September 30, 2015 and 2014, respectively; are reported in the Consolidated Statements of Comprehensive Income as a component of selling expenses. |
Leases | Leases In January 2014, the Company entered into various five-year equipment leasing agreements with Cinda Financial Leasing Co., Ltd. (“Cinda”). The total cost of equipment under this lease agreement is RMB129 million (approximately $21 million). The total estimated lease payments will be approximately RMB 8 million per quarter (approximately $1.3 million). The Company has the right to purchase all 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) to Cinda for two years of consulting services and services fees of $414,492 (RMB 2,580,000) to Cinda, both of which were fully expensed in 2014. |
Earnings per share | Earnings per share The diluted earnings per share calculation for the three and nine months ended September 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) | 9 Months Ended |
Sep. 30, 2015 | |
Inventories [Abstract] | |
Schedule of inventories | September 30, 2015 December 31, 2014 Raw materials and packaging $ 2,156,350 $ 1,249,599 Finished goods 2,302,006 2,869,031 Inventories $ 4,458,356 $ 4,118,630 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Shedule of segment reporting | (Amount in thousands) For the Three Months Concentrated Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh Other Total Reportable segment revenue $ 12 $ 4 $ 2,519 $ 25,238 $ - $ - $ 27,773 Inter-segment revenue (12 ) - - (17,213 ) - - (17,225 ) Revenue from external customers - 4 2,519 8,025 - - 10,548 Segment gross profit $ - $ 1 $ 851 $ 3,055 $ - $ - $ 3,905 (Amount in thousands) For the Three Months Concentrated Concentrated Concentrated Fruit juice Fresh Other Total Reportable segment revenue $ 5,673 $ 357 $ 10,506 $ 37,322 $ 3,862 $ 15 $ 57,735 Inter-segment revenue (56 ) - - (22,847 ) - (5 ) (22,908 ) Revenue from external customers 5,617 357 10,506 14,475 3,862 10 34,827 Segment gross profit $ 103 $ (23 ) $ 2,605 $ 6,346 $ 1,121 $ (1 ) $ 10,151 (Amount in thousands) For the Nine Months Concentrated Concentrated Concentrated Fruit juice Fresh Other Total Reportable segment revenue $ 87 $ 3,595 $ 8,270 $ 58,266 $ - $ 1 $ 70,219 Inter-segment revenue (12 ) (1,662 ) (100 ) (29,161 ) - - (30,935 ) Revenue from external customers 75 1,933 8,170 29,105 - 1 39,284 Segment gross profit $ 8 $ 674 $ 3,061 $ 12,431 $ - $ 1 $ 16,175 (Amount in thousands) For the Nine Months Concentrated Concentrated Concentrated Fruit juice Fresh Other Total Reportable segment revenue $ 7,208 $ 2,218 $ 12,987 $ 55,889 $ 3,867 $ 98 $ 82,267 Inter-segment revenue (544 ) (22 ) (78 ) (22,983 ) (1 ) (50 ) (23,678 ) Revenue from external customers 6,664 2,196 12,909 32,906 3,866 48 58,589 Segment gross profit $ 184 $ 731 $ 3,271 $ 13,065 $ 1,125 $ 1 $ 18,377 |
Shedule of reportable segment profit | Nine months ended 2015 2014 Segment profit $ 16,175,046 $ 18,376,523 Unallocated amounts: Operating expenses (8,029,198 ) (7,384,401 ) Other (income)/expenses (2,862,815 ) (3,327,158 ) Income before tax provision $ 5,283,033 $ 7,664,964 |
Business Description and Sign17
Business Description and Significant Accounting Policies (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2014USD ($) | Jan. 31, 2014CNY (¥) | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | |
Business Description and Significant Accounting Policies (Textual) | ||||||
Shipping and handling expenses | $ 759,663 | $ 765,911 | $ 2,652,868 | $ 1,560,062 | ||
Anti-dilutive warrants | shares | 175,000 | 175,000 | ||||
Cinda [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 ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Raw materials and packaging | $ 2,156,350 | $ 1,249,599 |
Finished goods | 2,302,006 | 2,869,031 |
Inventories | $ 4,458,356 | $ 4,118,630 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Feb. 18, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
Related Party Transactions (Textual) | |||||
Accounts receivable for related party transactions | $ 183,000 | $ 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 the Loan for another two years under the original terms of the Loan Agreement. | ||||
Share Purchase Agreement [Member] | |||||
Related Party Transactions (Textual) | |||||
Shares of common stock | 5,321,600 | ||||
Purchase price, Shares | $ 1.50 | ||||
Description of transaction | The NASDAQ Global Market is higher than $1.50 per share on the third business day after the public release of the Company's quarterly results for the quarter ended September 30, 2015, counting the day of the release as the first business day, the Purchase Price shall be adjusted to such closing price per share (the "Adjusted Price"), and SP International shall pay an additional amount for the Shares according to the Adjusted Price, and if the closing price for the common stock of the Company quoted on the NASDAQ Global Market is lower than $1.50 per share on the third business day after the public release of the Company's quarterly results for the quarter ended September 30, 2015, counting the day of the release as the first business day, no adjustment for the Purchase Price shall be made. | ||||
Mr. Yongke Xue [Member] | |||||
Related Party Transactions (Textual) | |||||
Equity interest, ownership percentage | 80.00% | ||||
Mr. Hongke Xue [Member] | |||||
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% | ||||
Purchase price, Value | $ 7,982,400 | ||||
Percentage of remaining ownership | 0.22% | ||||
Repayment of loan | $ 17,600 | ||||
Skypeople International Holdings Group [Member] | Subsidiaries [Member] | |||||
Related Party Transactions (Textual) | |||||
Equity interest, ownership percentage | 99.78% | ||||
Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. [Member] | |||||
Related Party Transactions (Textual) | |||||
Fruit beverage sales | $ 1,006,000 | $ 2,020,900 |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015CustomersSupplier | Sep. 30, 2014CustomersSupplier | Sep. 30, 2015Customers | Sep. 30, 2014Customers | |
Concentration of Customer [Member] | ||||
Concentrations (Textual) | ||||
Sales to our largest customers of net sales | 24.00% | 38.00% | ||
Number of customers | 5 | 5 | ||
Concentration of Customer [Member] | Customer One [Member] | ||||
Concentrations (Textual) | ||||
Sales to our largest customers of net sales | 7.00% | 13.00% | ||
Number of customers | 2 | 2 | ||
Concentration of Customer [Member] | Customer Two [Member] | ||||
Concentrations (Textual) | ||||
Sales to our largest customers of net sales | 6.00% | 10.30% | ||
Number of customers | 2 | 2 | ||
Supplier One [Member] | ||||
Concentrations (Textual) | ||||
Sales to our largest customers of net sales | 59.00% | 14.00% | ||
Concentration of suppliers | No other single supplier representing 10% of purchase. | No other single supplier representing 10% of purchase. | ||
Number of suppliers | Supplier | 2 | 1 | ||
Supplier Two [Memebr] | ||||
Concentrations (Textual) | ||||
Sales to our largest customers of net sales | 11.00% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reportable segment revenue | $ 27,773 | $ 57,735 | $ 70,219 | $ 82,267 |
Inter-segment revenue | (17,225) | (22,908) | (30,935) | (23,678) |
Revenue from external customers | 10,548 | 34,827 | 39,284 | 58,589 |
Segment gross profit | 3,905 | 10,151 | 16,175 | 18,377 |
Concentrated apple juice and apple aroma [Member] | ||||
Reportable segment revenue | 12 | 5,673 | 87 | 7,208 |
Inter-segment revenue | $ (12) | (56) | (12) | (544) |
Revenue from external customers | 5,617 | 75 | 6,664 | |
Segment gross profit | 103 | 8 | 184 | |
Concentrated kiwifruit juice and kiwifruit puree [Member] | ||||
Reportable segment revenue | $ 4 | $ 357 | 3,595 | 2,218 |
Inter-segment revenue | (1,662) | (22) | ||
Revenue from external customers | $ 4 | $ 357 | 1,933 | 2,196 |
Segment gross profit | 1 | (23) | 674 | 731 |
Concentrated pear juice [Member] | ||||
Reportable segment revenue | $ 2,519 | $ 10,506 | 8,270 | 12,987 |
Inter-segment revenue | (100) | (78) | ||
Revenue from external customers | $ 2,519 | $ 10,506 | 8,170 | 12,909 |
Segment gross profit | 851 | 2,605 | 3,061 | 3,271 |
Fruit juice beverages [Member] | ||||
Reportable segment revenue | 25,238 | 37,322 | 58,266 | 55,889 |
Inter-segment revenue | (17,213) | (22,847) | (29,161) | (22,983) |
Revenue from external customers | 8,025 | 14,475 | 29,105 | 32,906 |
Segment gross profit | $ 3,055 | 6,346 | $ 12,431 | 13,065 |
Fresh fruits and vegetables [Member] | ||||
Reportable segment revenue | $ 3,862 | 3,867 | ||
Inter-segment revenue | (1) | |||
Revenue from external customers | $ 3,862 | 3,866 | ||
Segment gross profit | 1,121 | 1,125 | ||
Other [Member] | ||||
Reportable segment revenue | 15 | $ 1 | 98 | |
Inter-segment revenue | (5) | (50) | ||
Revenue from external customers | 10 | $ 1 | 48 | |
Segment gross profit | $ (1) | $ 1 | $ 1 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information | ||||
Segment profit | $ 3,904,955 | $ 10,150,938 | $ 16,175,046 | $ 18,376,523 |
Unallocated amounts: | ||||
Operating Expenses | (2,447,189) | (2,945,961) | (8,029,198) | (7,384,401) |
Other (income)/expenses | (1,667,868) | (665,098) | (2,862,815) | (3,327,158) |
Income before tax provision | $ (210,102) | $ 6,539,879 | $ 5,283,033 | $ 7,664,964 |