Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Dec. 19, 2016 | |
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 | Mar. 31, 2016 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,061,090 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 60,060,777 | $ 50,006,914 |
Restricted cash | 6,190,800 | 3,079,956 |
Accounts receivable, net of allowance of $2,407,160 as of March 31, 2016 and December 31, 2015, respectively | 49,556,277 | 50,062,300 |
Other receivables | 519,665 | 265,079 |
Inventories | 4,307,529 | 3,444,740 |
Deferred tax assets | 2,337,860 | 2,326,194 |
Advances to suppliers and other current assets | 670,275 | 3,809,970 |
TOTAL CURRENT ASSETS | 123,643,183 | 112,995,153 |
PROPERTY, PLANT AND EQUIPMENT, NET | 82,462,660 | 82,947,233 |
LAND USE RIGHT, NET | 26,330,409 | 25,867,932 |
LONG TERM ASSETS | 21,328,190 | 2,979,857 |
DEPOSITS | 47,897,622 | 45,321,919 |
Related party receivables | 293,236 | 290,976 |
TOTAL ASSETS | 301,955,300 | 270,403,070 |
CURRENT LIABILITIES | ||
Accounts payable | 29,669,360 | 18,332,502 |
Accrued expenses | 9,061,849 | 17,356,081 |
Income tax payable | 1,153,194 | |
Advances from customers | 1,499,760 | 369,992 |
Short-term bank loans | 32,427,986 | 33,506,838 |
TOTAL CURRENT LIABILITIES | 72,658,955 | 70,718,607 |
NON-CURRENT LIABILITIES | ||
Obligations under capital leases | 15,561,335 | 16,720,307 |
TOTAL NON-CURRENT LIABILITIES | 15,561,335 | 16,720,307 |
TOTAL LIABILITIES | 88,220,290 | 87,443,786 |
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 March 31, 2016 and December 31, 2015, respectively | ||
Common stock, $0.001 par value; 8,333,333 shares authorized; 4,061,090 and 27,161,499* shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively | 4,061 | 27,161 |
Additional paid-in capital | 108,732,960 | 59,189,860 |
Retained earnings | 104,716,402 | 105,782,482 |
Accumulated other comprehensive income | (12,302,357) | 13,069,031 |
Total SkyPeople Fruit Juice, Inc. stockholders' equity | 201,151,066 | 178,068,534 |
Non-controlling interests | 12,583,944 | 4,895,622 |
TOTAL EQUITY | 213,735,010 | 182,964,156 |
TOTAL LIABILITIES AND EQUITY | $ 301,955,300 | $ 270,403,070 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | |
Statement of Financial Position [Abstract] | |||
Accounts receivables, net of allowance | $ 2,407,160 | $ 2,407,160 | |
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 | 8,333,333 | 8,333,333 | |
Common Stock, Shares, Issued | 4,061,090 | 27,161,499 | [1] |
Common Stock, Shares, Outstanding | 4,061,090 | 27,161,499 | [1] |
[1] | The amount of shares is given prior to the Company's 1-for-8 reverse stock split on March 10, 2016. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||
Revenue | $ 5,436,308 | $ 16,571,039 | |
Cost of goods sold | 5,393,484 | 9,411,678 | |
Gross profit | 42,824 | 7,159,361 | |
Operating Expenses | |||
General and administrative expenses | 679,944 | 2,984,482 | |
Selling expenses | 861,140 | 1,052,654 | |
Total operating expenses | 1,541,084 | 4,037,136 | |
Income (loss) from operations | (1,498,260) | 3,122,225 | |
Other income (expenses) | |||
Interest income | 131,024 | 33,553 | |
Subsidy income | 531,445 | 188,761 | |
Interest expenses | (208,665) | (1,099,070) | |
Consulting fee related to capital lease | (9,159) | ||
Total other income (expenses) | 444,645 | (876,756) | |
Income (loss) before income tax | (1,053,615) | 2,245,469 | |
Income tax provision | 562,569 | ||
Net income (loss) | (1,053,615) | 1,682,900 | |
Less: Net income attributable to non-controlling interests | (12,465) | (183,290) | |
NET INCOME (LOSS) ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. STOCKHOLDERS | (1,066,080) | 1,499,610 | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | 20,698,646 | (758,356) | |
Total comprehensive income | 19,645,031 | 924,544 | |
Comprehensive expenses attributable to non-controlling interests | (4,997,409) | (166,407) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. STOCKHOLDERS | $ 14,647,622 | $ 907,661 | |
Earnings(loss) per share: | |||
Basic and diluted earnings (loss) per share | $ (0.3) | $ 0.06 | |
Weighted average number of shares outstanding | |||
Basic and diluted | 3,548,183 | 26,661,499 | [1] |
[1] | The amount of shares is given prior to the Company's 1-for-8 reverse stock split on March 10, 2016. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (1,053,615) | $ 1,682,900 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 2,745,539 | 1,591,176 |
Deferred income tax assets | (11,666) | (710,208) |
Provisions provided for bad debt expenses | 1,452,096 | |
Inventory markdown | 32,629 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (1,852,548) | 12,389,382 |
Other receivable | (2,572,743) | 305,987 |
Advances to suppliers and other current assets | 3,135,265 | 225,142 |
Inventories | (836,764) | (1,364,810) |
Accounts payable | 4,200,224 | (5,774,160) |
Accrued expenses | (989,025) | (940,810) |
Income tax payable | (3,473,175) | (710,828) |
Advances from customers | 1,116,238 | (29,412) |
Net cash provided by operating activities | 407,730 | 8,149,084 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (2,527,423) | (1,984,556) |
Prepayment for other assets | (257,189) | |
Prepayments for deposit on equipment | (145,035) | |
Net cash used in investing activities | (2,784,612) | (2,129,591) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issue of common stock | 16,641,394 | |
Proceeds from short-term bank loans | 17,332,906 | |
Repayment of short-term bank loans | (1,233,968) | (9,213,508) |
Payment for capital lease | (11,391,267) | (39,212) |
Net cash provided by financing activities | 4,016,159 | 8,080,186 |
Effect of change in exchange rate | 5,814,354 | (74,212) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 10,053,863 | 14,025,467 |
Cash and cash equivalents, beginning of period | 50,006,914 | 25,130,302 |
Cash and cash equivalents, end of period | 60,060,777 | 39,155,769 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 208,665 | 1,099,070 |
Cash paid for income taxes | 1,259,559 | 1,645,954 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ||
Transferred from other assets to property, plant and equipment and construction in process | 2,342,127 | 6,894,428 |
Equipment acquired by capital lease | $ 1,682,900 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and the results of operations and cash flows for the periods ended March 31, 2016 and 2015. 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 months ended March 31, 2016 are not necessarily indicative of the results to be expected for any subsequent periods or for the entire year ending December 31, 2016. The balance sheet at December 31, 2015 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, 2015 as included in our Annual Report on Form 10-K. |
Business Description and Signif
Business Description and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 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 the 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 the 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. (“Kiwi Fruit & Farm Products”) was established on April 19, 2013. Its scope of business includes preliminary processing of agricultural and subsidiary products, establishment of trading market for agriculture products, and similar activities. (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, and similar products. (8) Xi’an Hedetang Fruit Juice Beverages Co., Ltd. (“Xi’an Hedetang”) was established on March 31, 2014. Its scope of business includes the 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 consulting, corporate imagine design and corporative marketing planning. (12) The Company acquired Huludao Wonder Co. Ltd. (“Huludao”) on June 10, 2008. Its scope of business mainly includes the manufacture and sale of concentrated fruit juice and fruit juice beverages. (13) The Company acquired Yingkou Trusty Fruits Co., Ltd. (“Yingkou”) on November 25, 2009. Its scope of business mainly includes the manufacture of concentrated fruit juice. 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), Shaanxi Qiyiwangguo, Huludao Wonder, Yingkou, Hedetang Juice Beverages, Orange Products, SkyPeople Suizhong, Kiwi Fruit & Farm Products, Guo Wei Mei, Xi’an Hedetang, Cornucopia, Fruitee Fun and Hedetang Holding, 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 $92,408 and $956,653 for the three months ended March 31, 2016 and 2015, 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. Earnings per share The Company adopted ASC Topic 215, Statement of Shareholder Equity Recent Accounting Pronouncements In January 2016, the FASB issued an amendment to its accounting guidance related to recognition and measurement of financial assets and financial liabilities. The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendment will be effective for us beginning in our first quarter of fiscal year 2019. We are evaluating the impact of adopting this amendment to our consolidated financial statements. In February 2016, the FASB issued a new standard on accounting for leases. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new standard will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of earnings. The new standard is required to be adopted using a modified retrospective method to each prior reporting period presented with various optional practical expedients. The new standard will be effective for us beginning in our first quarter of fiscal year 2020 with early adoption permitted. We are evaluating the impact of adopting this amendment to our consolidated financial statements. In March 2016, the FASB issued an amendment to its accounting guidance related to employee share-based payments. The amendment simplifies several aspects of the accounting for employee share-based payments including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The amendment will be effective for us beginning in our first quarter of fiscal year 2018 with early adoption permitted. We are evaluating the impact of adopting this amendment to our consolidated financial statements. There were no other recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 31, 2016 compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 that are of significance or potential significance to us. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventories [Abstract] | |
Inventories | 3. Inventories Inventories by major categories are summarized as follows: March 31, 2016 December 31, 2015 Raw materials and packaging $ 1,143,570 $ 944,812 Finished goods 3,163,959 2,499,928 Inventories $ 4,307,529 $ 3,444,740 |
Related Party Transaction
Related Party Transaction | 3 Months Ended |
Mar. 31, 2016 | |
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 $0 and $412,543 for the three months ended March 31, 2016 and 2015, respectively. The accounts receivable balances were approximately $366,081 and $441,253 as of March 31, 2016 and December 31, 2015, respectively. Fullmart is a company indirectly owned by a member of our Board of Directors (former Chairman and Chief Executive Officer), Mr. Yongke Xue. Long-term loan – related party There were no short-term loans to a related party as of March 31, 2016. The Company recorded interest expense on this loan in the amount of $116,073 for the three months ended March 31, 2015. On October 16, 2015, the Company entered into a Share Purchase Agreement with the Lender to sell 5,321,600 shares of the common stock of the Company at the price of $7,982,400, and which was paid by cancellation of the loan by the Lender. On March 10, 2016, the Lender canceled the loan and the shares were issued to the Lender. |
Concentrations
Concentrations | 3 Months Ended |
Mar. 31, 2016 | |
Concentrations [Abstract] | |
Concentrations | 5. Concentrations (1) Concentration of customers Sales to our five largest customers accounted for approximately 53% and 32% of our net sales during the three months ended March 31, 2016 and 2015, respectively. There were two customers each representing over 10% of total sales for the three months ended March 31, 2015, and there was no customer representing over 10% of total sales for the three months ended March 31, 2016. (2) Concentration of suppliers Two suppliers accounted for 97% and 13% of our purchases for the three months ended March 31, 2016 and March 31, 2015, respectively. Our top supplier accounted for 96% of our purchases for the three months ended March 31, 2016, and there was no other single supplier that accounted for over 10% of our purchases for the three months ended March 31, 2015. |
Share Split
Share Split | 3 Months Ended |
Mar. 31, 2016 | |
Share Split [Abstract] | |
Share split | 6. Share split On March 10, 2016, the Company filed with the Florida Secretary of State's office an amendment to its Articles of Incorporation. As a result of the Articles of Amendment, the Company authorized and approved an 1-for-8 reverse stock split of the Company’s authorized shares of common stock from 66,666,666 shares to 8,333,333 shares, accompanied by a corresponding decrease in the Company’s issued and outstanding shares of common stock (the "Reverse Stock Split"). The common stock remains a par value of $0.001. No changes were made to the number of authorized preferred shares of the Company, which remains as 10,000,000, none of which have been issued. The amendment to the Articles of Incorporation of the Company took effect on March 16, 2016. |
Transfer of Shares
Transfer of Shares | 3 Months Ended |
Mar. 31, 2016 | |
Transfer of Shares [Abstract] | |
Transfer of shares | 7. Transfer of shares Skypeople HK incorporated Skypeople China in Shaanxi Province, China on March 13, 2012 and pursuant to the approval certificate and business license of Skypeople China, SkyPeople HK was required to contribute RMB 427,000,000 (approximately $65,698,308) and Hongke Xue, currently the Chairman of the Board of Directors of the Company and our Chief Executive Officer (“Xue”), was required to contribute RMB 1,000,000 (approximately $153,846) to Skypeople China, and Skypeople HK and Xue as a result would own 427,000,000 shares (99.78%) and 1,000,000 shares (0.22%) of Skypeople China, respectively. As of March 10, 2016, Skypeople HK had contributed RMB 314,190,900 (approximately $48,337,062) to Skypeople China but had not contributed the remaining RMB 112,809,100 (approximately $17,355,246) as the payment for 112,809,100 shares of Skypeople China. Pursuant to the Agreements, TSD shall acquire 112,809,100 shares of Skypeople China from Skypeople HK and shall make a total capital contribution RMB 131,761,028.80 (approximately $20,270,928) to Skypeople China, which is calculated based upon 8 times of Skypeople China’s net profit per share for 2014 (about RMB 0.146 per share) multiplied by 112,809,100 shares. RMB 112,809,100 out of the RMB 131,761,028.80 (the "Capital Contributions") shall be used as payment for outstanding capital contribution due to Skypeople China by Skypeople HK and the remaining RMB 18,951,928.80 (approximately $2,915,681) shall be used as additional capital contribution to Skypeople China and shall be deposited into Skypeople China’s capital surplus account. On March 18, 2016, TSD paid the full Capital Contributions to Skypeople China s and the shares were transferred, resulting in TSD owning 112,809,100 shares, or 26.36%, of Skypeople China. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 8. 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 March 31, 2016 (in thousands) Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits and vegetables Others Total Reportable segment revenue $ 10,473 $ 39 $ 310 $ 4 $ - - $ 10,830 Inter-segment loss (5,214 ) (23 ) (153 ) (2 ) - - (5,394 ) Revenue from external customers 5,259 16 157 2 2 - 5,436 Segment gross profit (loss) $ 45 $ (8 ) $ 4 $ 1 $ 1 - $ 43 For the Three Months Ended March 31, 2015 (in thousands) Concentrated apple juice and apple aroma Concentrated kiwifruit juice and kiwifruit puree Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 25 $ 3,560 $ 4,764 $ 22,013 $ - - $ 30,362 Inter-segment revenue - (1,672 ) (101 ) (12,018 ) - - (13,791 ) Revenue from external customers 25 1,888 4,663 9,995 - - 16,571 Segment gross profit $ 8 $ 686 $ 1,886 $ 4,579 $ - - $ 7,159 The following table reconciles reportable segment profit to the Company’s condensed consolidated income before income tax provision for the three months ended March 31, 2016 and 2015: 2016 2015 Segment profit $ 42,824 $ 7,159,361 Unallocated amounts: Operating expenses (1,541,084 ) (4,037,136 ) Other income (expenses) 444,645 (876,756 ) Income (loss) before tax provision $ (1,053,615 ) $ 2,245,469 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events On June 15, 2016, Hedetang Holdings Co., Ltd. (the “Hedetang”), a wholly owned subsidiary of SkyPeople Fruit Juice, Inc. (the "Company"), entered into a Share Transfer Agreement (the “Agreement”) with Shaanxi New Silk Road Kiwifruit Group Inc. ( the “NSR”), a limited liability corporation registered in China. Pursuant to the Agreement, NSR will acquire 51% of the equity shares of Shaanxi Guoweiduomei Beverage Co, Limited, a wholly owned subsidiary of Hedetang (the "Shares"). The tentative total transfer price for the Shares is 300 million RMB (approximately $46 million) and is subject to and will be settled according to the final price in the valuation report to be issued by an appraisal firm jointly engaged by both parties. NSR shall pay the total transfer price to Hedetang within six months of the effective date of the Agreement. If NSR fails to pay the total transfer price within six months due to the delay of the approval process from the local authority, NSR can receive a payment extension for up to twelve months from the effective date of the Agreement upon the negotiation and agreement by the parties. Because NSR is a state-owned enterprise in China and its investment needs to be approved by a higher level administrative authority in China, NSR has the right to terminate the Agreement unilaterally if it fails to receive the approval from such administrative authority within twelve months from the date of this Agreement. As of the date of this report, the local authority has not approved this transaction, and we have not yet received payment from NSR. The Company is now negotiating with NSR the potential terms to terminate this Agreement. |
Business Description and Sign15
Business Description and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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), Shaanxi Qiyiwangguo, Huludao Wonder, Yingkou, Hedetang Juice Beverages, Orange Products, SkyPeople Suizhong, Kiwi Fruit & Farm Products, Guo Wei Mei, Xi’an Hedetang, Cornucopia, Fruitee Fun and Hedetang Holding, 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 $92,408 and $956,653 for the three months ended March 31, 2016 and 2015, 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. |
Earnings per Share | Earnings per share The Company adopted ASC Topic 215, Statement of Shareholder Equity |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2016, the FASB issued an amendment to its accounting guidance related to recognition and measurement of financial assets and financial liabilities. The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The amendment will be effective for us beginning in our first quarter of fiscal year 2019. We are evaluating the impact of adopting this amendment to our consolidated financial statements. In February 2016, the FASB issued a new standard on accounting for leases. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. The new standard will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of earnings. The new standard is required to be adopted using a modified retrospective method to each prior reporting period presented with various optional practical expedients. The new standard will be effective for us beginning in our first quarter of fiscal year 2020 with early adoption permitted. We are evaluating the impact of adopting this amendment to our consolidated financial statements. In March 2016, the FASB issued an amendment to its accounting guidance related to employee share-based payments. The amendment simplifies several aspects of the accounting for employee share-based payments including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The amendment will be effective for us beginning in our first quarter of fiscal year 2018 with early adoption permitted. We are evaluating the impact of adopting this amendment to our consolidated financial statements. There were no other recent accounting pronouncements or changes in accounting pronouncements during the three months ended March 31, 2016 compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 that are of significance or potential significance to us. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventories [Abstract] | |
Summary of inventories by major categories | March 31, 2016 December 31, 2015 Raw materials and packaging $ 1,143,570 $ 944,812 Finished goods 3,163,959 2,499,928 Inventories $ 4,307,529 $ 3,444,740 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment profit represents the gross profit | Concentrated apple juice and apple aroma Concentrated kiwifruit Concentrated pear juice Fruit juice beverages Fresh fruits and vegetables Others Total Reportable segment revenue $ 10,473 $ 39 $ 310 $ 4 $ - - $ 10,830 Inter-segment loss (5,214 ) (23 ) (153 ) (2 ) - - (5,394 ) Revenue from external customers 5,259 16 157 2 2 - 5,436 Segment gross profit (loss) $ 45 $ (8 ) $ 4 $ 1 $ 1 - $ 43 Concentrated apple juice and apple aroma Concentrated kiwifruit juice and kiwifruit puree Concentrated pear juice Fruit juice beverages Fresh fruits Others Total Reportable segment revenue $ 25 $ 3,560 $ 4,764 $ 22,013 $ - - $ 30,362 Inter-segment revenue - (1,672 ) (101 ) (12,018 ) - - (13,791 ) Revenue from external customers 25 1,888 4,663 9,995 - - 16,571 Segment gross profit $ 8 $ 686 $ 1,886 $ 4,579 $ - - $ 7,159 |
Schedule of reconciles reportable segment profit | 2016 2015 Segment profit $ 42,824 $ 7,159,361 Unallocated amounts: Operating expenses (1,541,084 ) (4,037,136 ) Other income (expenses) 444,645 (876,756 ) Income (loss) before tax provision $ (1,053,615 ) $ 2,245,469 |
Business Description and Sign18
Business Description and Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Description and Significant Accounting Policies (Textual) | ||
Shipping and handling expenses | $ 92,408 | $ 956,653 |
Xi'an Qinmei Food Co., Ltd. [Member] | ||
Business Description and Significant Accounting Policies (Textual) | ||
Equity interest, ownership percentage | 8.85% |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Inventories [Abstract] | ||
Raw materials and packaging | $ 1,143,570 | $ 944,812 |
Finished goods | 3,163,959 | 2,499,928 |
Inventories | $ 4,307,529 | $ 3,444,740 |
Related Party Transaction (Deta
Related Party Transaction (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 16, 2015 | Feb. 18, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2015 | |
Related Party Transaction (Textual) | ||||||
Accounts receivable for related party transactions | $ 366,081 | $ 441,253 | ||||
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 | $ 116,073 | |||||
Common stock shares price related share purchase agreement | $ 7,982,400 | |||||
Common stock shares related share purchase agreement | 5,321,600 | |||||
Mr. Yongke Xue [Member] | ||||||
Related Party Transaction (Textual) | ||||||
Equity interest, ownership percentage | 80.00% | |||||
Mr. Hongke Xue [Member] | ||||||
Related Party Transaction (Textual) | ||||||
Equity interest, ownership percentage | 9.40% | |||||
SkyPeople International Holdings Group [Member] | ||||||
Related Party Transaction (Textual) | ||||||
Equity interest, ownership percentage | 50.20% | |||||
Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. [Member] | ||||||
Related Party Transaction (Textual) | ||||||
Fruit beverage sales | $ 0 | $ 412,543 |
Concentrations (Details)
Concentrations (Details) | 3 Months Ended | ||
Mar. 31, 2016CustomersSupplier | Mar. 31, 2015CustomersSupplier | Mar. 31, 2014Customers | |
Sales [Member] | |||
Concentrations (Textual) | |||
Concentrations risk percentage | 10.00% | ||
Number of customers | 0 | ||
Purchases [Member] | |||
Concentrations (Textual) | |||
Concentrations risk percentage | 96.00% | 10.00% | |
Number of suppliers | Supplier | 0 | ||
Five Customers [Member] | Sales [Member] | |||
Concentrations (Textual) | |||
Concentrations risk percentage | 53.00% | 32.00% | |
Number of customers | 5 | 5 | |
Two Customers [Member] | Sales [Member] | |||
Concentrations (Textual) | |||
Concentrations risk percentage | 10.00% | ||
Number of customers | 2 | ||
Two Suppliers [Memebr] | Purchases [Member] | |||
Concentrations (Textual) | |||
Concentrations risk percentage | 97.00% | 13.00% | |
Number of suppliers | Supplier | 2 | 2 |
Share Split (Details)
Share Split (Details) - $ / shares | Mar. 10, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Share Split (Textual) | |||
Reverse stock split, description | The Company authorized and approved an 1-for-8 reverse stock split. | ||
Common stock, shares authorized | 66,666,666 | 8,333,333 | 8,333,333 |
Common stock, par value per share | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred shares issued |
Transfer of Shares (Details)
Transfer of Shares (Details) | Mar. 10, 2016USD ($)shares | Mar. 10, 2016CNY (¥)shares | Mar. 13, 2012USD ($)shares | Mar. 31, 2016USD ($)shares | Mar. 31, 2016CNY (¥)shares | Mar. 18, 2016USD ($) | Mar. 11, 2016 | Mar. 10, 2016CNY (¥) | Feb. 18, 2013 | Mar. 13, 2012CNY (¥) |
Hongke Xue [Member] | ||||||||||
Transfer of Shares (Textual) | ||||||||||
Equity interest, ownership percentage | 99.78% | 80.00% | 99.78% | |||||||
Contribute to related party | $ 153,846 | ¥ 1,000,000 | ||||||||
Contribute to related party, Share | 427,000,000 | |||||||||
Skypeople HK [Member] | ||||||||||
Transfer of Shares (Textual) | ||||||||||
Equity interest, ownership percentage | 99.78% | 99.78% | 99.78% | |||||||
Contribute to related party | $ 48,337,062 | $ 65,698,308 | ¥ 314,190,900 | ¥ 427,000,000 | ||||||
Contribute to related party, Share | 427,000,000 | |||||||||
Skypeople China [Member] | ||||||||||
Transfer of Shares (Textual) | ||||||||||
Equity interest, ownership percentage | 0.22% | 0.22% | ||||||||
Contribute to related party, Share | 1,000,000 | |||||||||
Due to related party not contributed | $ 17,355,246 | ¥ 112,809,100 | ||||||||
Due to related party not contributed, Share | 112,809,100 | 112,809,100 | ||||||||
TSD [Member] | ||||||||||
Transfer of Shares (Textual) | ||||||||||
Equity interest, ownership percentage | 26.36% | |||||||||
Contribute to related party | $ | $ 112,809,100 | |||||||||
Acquisitions of shares | 112,809,100 | 112,809,100 | ||||||||
Acquisitions of value | $ 20,270,928 | ¥ 131,761,028.80 | ||||||||
Related party acquisition, Description | TSD shall acquire 112,809,100 shares of Skypeople China from Skypeople HK and shall make a total capital contribution RMB 131,761,028.80 (approximately $20,270,928) to Skypeople China, which is calculated based upon 8 times of Skypeople China's net profit per share for 2014 (about RMB 0.146 per share) multiplied by 112,809,100 shares. RMB 112,809,100 out of the RMB 131,761,028.80 (the "Capital Contributions") shall be used as payment for outstanding capital contribution due to Skypeople China by Skypeople HK and the remaining RMB 18,951,928.80 (approximately $2,915,681) shall be used as additional capital contribution to Skypeople China and shall be deposited into Skypeople China's capital surplus account. On March 18, 2016, TSD paid the full Capital Contributions to Skypeople China s and the shares were transferred, resulting in TSD owning 112,809,100 shares, or 26.36%, of Skypeople China. | TSD shall acquire 112,809,100 shares of Skypeople China from Skypeople HK and shall make a total capital contribution RMB 131,761,028.80 (approximately $20,270,928) to Skypeople China, which is calculated based upon 8 times of Skypeople China's net profit per share for 2014 (about RMB 0.146 per share) multiplied by 112,809,100 shares. RMB 112,809,100 out of the RMB 131,761,028.80 (the "Capital Contributions") shall be used as payment for outstanding capital contribution due to Skypeople China by Skypeople HK and the remaining RMB 18,951,928.80 (approximately $2,915,681) shall be used as additional capital contribution to Skypeople China and shall be deposited into Skypeople China's capital surplus account. On March 18, 2016, TSD paid the full Capital Contributions to Skypeople China s and the shares were transferred, resulting in TSD owning 112,809,100 shares, or 26.36%, of Skypeople China. |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reportable segment revenue | $ 10,830 | $ 30,362 |
Inter-segment loss | (5,394) | (13,791) |
Revenue from external customers | 5,436 | 16,571 |
Segment gross profit (loss) | 43 | 7,159 |
Concentrated apple juice and apple aroma [Member] | ||
Reportable segment revenue | 10,473 | 25 |
Inter-segment loss | (5,214) | |
Revenue from external customers | 5,259 | 25 |
Segment gross profit (loss) | 45 | 8 |
Concentrated kiwifruit juice and kiwifruit puree [Member] | ||
Reportable segment revenue | 39 | 3,560 |
Inter-segment loss | (23) | (1,672) |
Revenue from external customers | 16 | 1,888 |
Segment gross profit (loss) | (8) | 686 |
Concentrated pear juice [Member] | ||
Reportable segment revenue | 310 | 4,764 |
Inter-segment loss | (153) | (101) |
Revenue from external customers | 157 | 4,663 |
Segment gross profit (loss) | 4 | 1,886 |
Fruit juice beverages [Member] | ||
Reportable segment revenue | 4 | 22,013 |
Inter-segment loss | (2) | (12,018) |
Revenue from external customers | 2 | 9,995 |
Segment gross profit (loss) | 1 | 4,579 |
Fresh fruits and vegetables [Member] | ||
Reportable segment revenue | ||
Inter-segment loss | ||
Revenue from external customers | 2 | |
Segment gross profit (loss) | 1 | |
Others [Member] | ||
Reportable segment revenue | ||
Inter-segment loss | ||
Revenue from external customers | ||
Segment gross profit (loss) |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information | ||
Segment profit | $ 42,824 | $ 7,159,361 |
Unallocated amounts: | ||
Operating expenses | (1,541,084) | (4,037,136) |
Other income (expenses) | 444,645 | (876,756) |
Income (loss) before tax provision | $ (1,053,615) | $ 2,245,469 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - NSR [Member] ¥ in Millions, $ in Millions | 1 Months Ended | |
Jun. 15, 2016USD ($) | Jun. 15, 2016CNY (¥) | |
Subsequent Event [Line Items] | ||
Acquisition, Percentage | 51.00% | 51.00% |
Related party transaction amount | $ 46 | ¥ 300 |