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Exhibition Serves Up Special Events for Seafood Professionals

For the first time this year, Seafood Expo Asia will deliver a dedicated programme for chefs.

HONG KONG, Aug. 21, 2014 /PRNewswire/ — With just two weeks to go, Seafood Expo Asia has confirmed its line-up of special events for seafood professionals planning to attend this year’s trade show taking place on September 2-4, 2014 at the Hong Kong Convention and Exhibition Centre.

For 2014, visitors can capitalize on an increased opportunity to expand their seafood knowledge, gastronomic skills and business networks through an ambitious schedule of events that includes a Master Class Series, culinary demonstrations, presentations and a competition for chefs, seminars on timely topics affecting the seafood industry, as well as a New Product Showcase.

"With over 14,000 food establishment and restaurants, Hong Kong is a dynamic culinary capital known for its diverse, high quality dining options and where people are passionate about their food," comments Ms. Terri Tsang, Show Director at Diversified Communications, the producers of Seafood Expo Asia.

According to Ms. Tsang, the increasing popularity of seafood on hotel and restaurant menus driven by rising middle-class incomes and an increasing desire for premium products, has prompted the exhibition to introduce for the first time a series of programmes exclusively designed for chefs.

On Day 1 of the event, the exposition’s producers in partnership with the Hong Kong Chefs Association will host Culinary Congress: Seafood of the World, whereby visiting chefs can network with peers while watching six culinary talents prepare a wide selection of the finest products from around the world. The audience will be asked to sample the dishes and vote for their favorite seafood preparation.

"We wish to enhance the experience for chefs by providing them with more opportunities to better understand the taste and quality of various species, seafood preparation techniques and new products from around the world," states Ms. Tsang whilst noting that a key benefit of attending the expo is the opportunity it provides for sourcing new products which both chefs and others in the food service industry can introduce to their respective establishments.

With the event serving to highlight the important role fish and seafood plays in world cuisine, a top attraction not only for chefs but all visitors to the show is Seafood Expo Asia’s Master Class Series.  These educational classes are presented by industry experts to help attendees gain an appreciation of how to source, select, handle, prepare and plate different seafood varieties.

As an effective platform for promoting quality seafood from all over the world, this year’s Master Class Series will include a special focus on Mediterranean Sea Bass and Sea Bream where esteemed experts from Greece will take to the stage to share best practices in the sourcing, selection and preparation of these popular species. Presenters from Australia will give attendees a deep dive into wild abalone, alpine trout, and king fish. Organizers of the Canadian pavilion will also showcase an assortment of products native to Canada, including sea urchin, organic mussels, and oysters.

Another show feature already generating a wealth of visitor interest is the exposition’s upcoming session on sustainability. With the ocean’s health and future of the industry dependent on responsibly caught and farmed seafood, specialists from across the region will partake in a Sustainability Panel to discuss the latest updates and trends in sustainable fishing.

The Sustainability Panel will be immediately followed by an announcement on the finalists of the 2014 Seafood Champion Awards for those in the industry who are being recognized for their exceptional efforts and outstanding leadership in promoting environmentally responsible seafood.

In addition, a further important theme being explored as part of Seafood Asia Expo’s knowledge-sharing series is a topic entitled ‘Entry to Asia.’  This particular seminar will address questions around the Asian seafood market with a view to providing delegates with a better understanding of how to enter, launch and market their products in the region, including valuable insight on transporting goods from point of source to their final regional destinations.

Visitors to Seafood Expo Asia are additionally invited to visit the trade show’s New Product Showcase which will display the latest packaged seafood products, culinary dishes and condiments recently launched in the Asian seafood marketplace. For 2014, over 70 new products will be launched during the three-day event.

"Seafood Expo Asia offers a unique experience for professional buyers and chefs to touch, taste and handle new products and to meet new and existing suppliers," concludes Ms. Tsang. "Visitors will be treated to the newest, finest fish and seafood from different regions of the world."

Co-located with Restaurant & Bar Hong Kong, Asia-Pacific’s leading fine dining and bar exhibition, Seafood Expo Asia is free to attend for qualified trade visitors in the seafood industry. To register, please visit http://www.seafoodexpo.com/asia/reg.

A full schedule of events with dates, timings and details is outlined below:

TUESDAY 2 SEPTEMBER 2014   (Exposition hours: 10:00-18:00)

  • 10:00-18:00      New Product Showcase: Discover the latest seafood products launching in Asia
  • 10:15-11:15      Lion Dance: Follow the customary lion dance through the exhibit floor
  • 12:30-13:10      Master Class: Wild Abalone (Australia)
  • 14:30-17:00      Culinary Congress: Seafood of the World, exclusive to chefs, exhibitors and media
  • 17:00-18:00      Welcome Reception: Celebrate with cocktails and hors d’oeuvres (open to all) 

WEDNESDAY 3 SEPTEMBER 2014   (Exposition hours: 10:00-18:00)

  • 10:00-18:00      New Product Showcase: Discover the latest seafood products launching in Asia
  • 10:30-11:15      Sustainability Panel: Get up to speed with the latest trends on sustainable seafood
  • 11:15-11:45      Seafood Champion Awards Finalists Announced: Meet the selected finalists
  • 12:30-13:10      Master Class: Alpine Trout & King Fish (Australia)
  • 14:00-14:40      Master Class: Mediterranean Sea Bass and Sea Bream (Greece)
  • 15:30-16:30      Master Class: Sea Urchin, Oysters, and Organic Mussels (Canada)

THURSDAY 4 SEPTEMBER 2014   (Exposition hours: 10:00-17:00)

  • 10:00-17:00      New Product Showcase: Discover the latest seafood products launching in Asia
  • 10:30-12:00      Entry to Asia: Learn how to enter the Asian seafood market

About Seafood Expo Asia

Formerly called the Asian Seafood Exposition, Seafood Expo Asia is a trade event where buyers and suppliers of seafood from around the world come together to network and conduct business in the lucrative Hong Kong and Asia Pacific markets.  The event’s fifth edition is scheduled to take place from September 2-4, 2014 at the Hong Kong Convention & Exhibition Centre in Wanchai, Hong Kong. SeafoodSource.com is the exposition’s official media. The exposition is produced by Diversified Communications and is co-located with Restaurant & Bar Hong Kong.  http://www.seafoodexpo.com/asia

About Diversified Communications

Based in Portland, Maine, USA, Diversified Communications provides information and market access through face-to-face events, publications, and eMedia. Diversified Communications serves several industries, including seafood, food service, natural and organic, commercial marine, healthcare, and business management. The company’s global seafood portfolio of expositions and media includes Seafood Expo North America/Seafood Processing North America, Seafood Expo Global/Seafood Processing Global, Seafood Expo Asia, Seafood Expo Southern Europe, and SeafoodSource.com. Diversified Communications, in partnership with SeaWeb, also produces the SeaWeb Seafood Summit, the world’s premier seafood conference on sustainability. The company operates divisions in Australia, Hong Kong, India, the UK, and Canada. http://www.divcom.com

Vietstock and Vietmeat 2014 Expo & Forum Gains Strong Support from CP Vietnam and the Vietnam Chamber of Commerce & Industry (VCCI)

HO CHI MINH CITY, Vietnam, Aug. 19, 2014 /PRNewswire/ — CP Vietnam Corporation, a major feed, livestock and meat producer in Vietnam, will participate in the Vietstock and Vietmeat 2014 Expo & Forum to share their experiences with other meat processors in the country and how the company maintains the high standards of quality and safety of its meat products from farm to table.

Mr. Sooksunt Jiumjaiswanglerg, President of CP Vietnam


Mr. Sooksunt Jiumjaiswanglerg, President of CP Vietnam
Dr Vu Tien Loc (second from left) posts with UBM Asia's team during a meeting at VCCI in Hanoi.


Dr Vu Tien Loc (second from left) posts with UBM Asia’s team during a meeting at VCCI in Hanoi.
VIETSTOCK AND VIETMEAT 2014 Expo & Forum Gains Strong Support From CP Vietnam And The Vietnam Chamber Of Commerce & Industry (VCCI)


VIETSTOCK AND VIETMEAT 2014 Expo & Forum Gains Strong Support From CP Vietnam And The Vietnam Chamber Of Commerce & Industry (VCCI)
VIETSTOCK AND VIETMEAT 2014 Expo & Forum Gains Strong Support From CP Vietnam And The Vietnam Chamber Of Commerce & Industry (VCCI)


VIETSTOCK AND VIETMEAT 2014 Expo & Forum Gains Strong Support From CP Vietnam And The Vietnam Chamber Of Commerce & Industry (VCCI)

Sooksunt Jiumjaiswanglerg, President of CP Vietnam, said he would appoint a senior executive of the company to speak on this topic at a meat conference to be held at the event. 

"Meat processors in Vietnam should collaborate with each other in order to set strong standards on quality and safety to ensure consumers are confident in our products. As we’ve been in the meat processing business for a long time, we’d like to share our experiences with our friends in the industry," he said.

Fully integrated, CP Vietnam operates from grain planting to feed milling, livestock farming, meat processing and retailing.

"A main goal of our business in Vietnam is to support livestock farmers. Therefore, we will continue to expand our farming business and produce safe and quality meat products for the nation," said Mr. Sooksunt.

He said CP Vietnam is also willing to be a business partner with fellow meat processors in Vietnam as a supplier of raw materials for them.

"Our farmers implement strict standards on food safety and we process their chickens with the state-of-the-art technology. So, we can ensure that you’ll consistently get raw meat that is safe and of high quality for further processing," he said.

Mr. Sooksunt said meat processors in Vietnam should have a forum to discuss and tackle issues that could pose threats to the country’s meat processing industry.

He said the opening of markets among ASEAN nations under the ASEAN Economic Community (AEC) in 2015 could result in massive imports of meat products into Vietnam and seriously affect the local meat processing industry.

"It’s a good idea that meat processors in Vietnam set up an association of their own. The Vietmeat forum would be a good place to discuss on this issue and I’m glad to host the discussion by myself," said Mr. Sooksunt. 

The Vietnam Chamber of Commerce and Industry (VCCI) also agreed to support the Vietnam meat processing industry forum that will be held during Vietstock 2014 in Ho Chi Minh City, Vietnam.

Dr. Vu Tien Loc, VCCI’s Chairman and President, said Vietnam is a huge market for processed meat products. The forum, which will bring together CEOs of key meat processors in the country, will be a starting point for the industry to collaborate in developing their products and markets in the future.

Vietmeat is a one-stop forum focusing on the needs of the meat industry – from production, processing and packaging, right to the plate.

Organised by UBM Asia, the Vietmeat forum makes its debut in 2014 and will be co-located with Vietstock 2014 – Vietnam’s Premier International Feed, Livestock and Meat Industry Show. The events will be held from 15-17 October, 2014 at the Saigon Exhibition & Conference Centre (SECC) in Ho Chi Minh City, Vietnam.

Don’t miss the Vietstock & Vietmeat 2014 Expo & Forum. REGISTER TO VISIT TODAY at www.vietstock.org.

Notes to the Editor

About UBM Asia in ASEAN (www.ubmasean.com)

In ASEAN, we serve 13 market sectors with wholly-owned subsidiary companies and JV companies in seven offices in the major cities in ASEAN, including Bangkok, Hanoi, Ho Chi Minh City, Jakarta, Kuala Lumpur, Manila and Singapore. We provide over 60 products in various categories: trade fairs, conferences and publications. As the leading B2B event organiser in the region, we are the largest exhibition organiser in Malaysia.

Our products serve tens of thousands of exhibitors, visitors, conference delegates, advertisers, subscribers and corporations in the region and from all over the world with high value face-to-face business-matching events and quality conference programmes presented by top-notch industry leaders. We have over 130 staff in six countries.

CONTACTS:
Sufian Zahari, +60-3-2176-8788, sufian.zahari@ubm.com

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Seafood Expo Asia Set to Showcase Exciting New Products from Around the World

New Product Showcase to present a first-hand look at the latest seafood products, culinary dishes and condiments that are about to hit the region.

HONG KONG, Aug. 18, 2014 /PRNewswire/ — Seafood Expo Asia today announced that it will showcase over 70 new innovative brands and product lines when the annual exposition returns to the Hong Kong Convention and Exhibition Centre for its fifth edition from 2-4 September 2014.

Serving as one of the highlights of the show, the items will be displayed as part of the event’s popular New Product Showcase, a dedicated area on the exhibit floor featuring the latest seafood innovations, culinary dishes and condiments that are soon to be introduced to the market in Asia.

With many launches timed specifically to coincide with the event, Seafood Expo Asia’s Show Director, Ms. Terri Tsang expresses that the New Product Showcase is a must-see fixture where decision makers and buyers can enjoy an exclusive preview of ‘what is hot’ and ‘what is new,’ whilst gaining a valuable insight into international product introductions.

"The New Product Showcase provides an excellent opportunity for companies from around the world to effectively present and market their new seafood products," states Ms. Tsang whilst remarking that the exhibition has over the years launched and promoted hundreds of new international seafood items to the industry.

Ms. Tsang reiterates that for 2014, there will continue to be a special spotlight on premium species which is a reflection of the region’s healthy appetite for higher value seafood. The following is an exclusive preview of some of the new seafood products being introduced this year.

Live Southern Rock Lobster   (Ferguson Australia)
The Southern Rock Lobster is regarded as one of the highest quality and premium lobsters available in the world today. Its high percentage of meat recovery (meat to shell ratio) and longer growing period in the cold waters of the Southern Ocean ensures a firm texture and an exquisite sweet flavour.

Live Pacific Oysters   (Ferguson Australia)
The Pacific Oysters from South Australia are grown in some of the most pristine and unpolluted waters in the world delivering a natural product of the highest quality.

Sashimi Grade Japanese Sea Scallops   (Kanbe Company Limited)
These fresh, sashimi grade scallops are harvested from the northern seas surrounding Hokkaido, Japan. Shucked and frozen, these succulent, sweet scallops are extremely versatile and ideally suited to a variety of different cooking styles.

Frozen South Africa Wild Abalone   (Seafoodpex Limited)
Harvested in the waters off South Africa, these wild abalone are immediately processed, frozen and packaged to preserve their freshness and quality.

Prime-Cut Hokkigai   (Lian Ruey Enterprise Company Limited)
Praised for its natural sweetness, these wild-caught, frozen-at-sea hokkigai originating from Canada but processed in Taiwan, makes for a perfect sushi-top, cold dish or shabu-shabu.

Raw Shrimp, Peeled with Tail   (Schooner Company Limited Japan)
Originating from the clean waters of the North Atlantic around Greenland and Canada, these tail-on shrimps are great as a sushi-topping or sashimi, as well as for appetizers, hot meals, salads and prawn cocktails.

Frozen Prepared Eel   (Ping Roun Products Company Limited)
Tender and tasty, these pre-cooked, frozen Japanese eels are steamed, marinated and roasted to deliver a truly delicious delicacy.

Premium Sandfish Sea Cucumber
(William Koo Sea Product Processing Factory)
The ‘ginseng of the sea’, the sea cucumber has been used in cooking for over 1,000 years. It is a delicacy known to yield many medicinal qualities and health benefits.

To view a complete listing of the seafood products that will be featured in this year’s New Product Showcase, please visit http://www.seafoodexpo.com/asia/en/expo-highlights/new-product-showcase.

About Seafood Expo Asia

Formerly called the Asian Seafood Exposition, Seafood Expo Asia is a trade event where buyers and suppliers of seafood from around the world come together to network and conduct business in the lucrative Hong Kong and Asia Pacific markets.  The event’s fifth edition is scheduled to take place from September 2-4, 2014 at the Hong Kong Convention & Exhibition Centre in Wanchai, Hong Kong. SeafoodSource.com is the exposition’s official media. The exposition is produced by Diversified Communications and is co-located with Restaurant & Bar Hong Kong.  http://www.seafoodexpo.com/asia

About Diversified Communications

Based in Portland, Maine, USA, Diversified Communications provides information and market access through face-to-face events, publications, and eMedia. Diversified Communications serves several industries, including seafood, food service, natural and organic, commercial marine, healthcare, and business management. The company’s global seafood portfolio of expositions and media includes Seafood Expo North America/Seafood Processing North America, Seafood Expo Global/Seafood Processing Global, Seafood Expo Asia, Seafood Expo Southern Europe, and SeafoodSource.com. Diversified Communications, in partnership with SeaWeb, also produces the SeaWeb Seafood Summit, the world’s premier seafood conference on sustainability. The company operates divisions in Australia, Hong Kong, India, the UK, and Canada. http://www.divcom.com

 

China Fruits Corporation Reports Unaudited FY2014 Second Quarter Results

BEIJING, August 16, 2014 /PRNewswire-FirstCall/ — China Fruits Corporation (OTC: CHFR) (“China Fruits” or “the Company”), a distributor and producer of fresh tangerine and other fresh fruits in the People’s Republic of China, today announces financial results for the second quarter of 2014.

Second Quarter 2014 Highlights

  • Revenues for the six months ended June 30, 2014 were $10,551,692, a 562% increase from the corresponding period in 2013.
  • Operating income for the second quarter of 2014 was $430,249, compared to operating loss of $150,212 in the same period in 2013.
  • Gross margin was 29.80% in the second quarter of 2014, a 60% increase from the corresponding period in 2013.
  • Net income attributable to China Fruits’ shareholders was $315,656, a 1515% increase from the corresponding period in 2013. Fully diluted earnings per share were $0.01, compared to earnings per share of $0.0004 in the same period in 2013.

“We are very delighted to see that the company is continuously achieving organic growth in 2014. The number of our franchise retail stores is expanding to 19, and there will be more stores through direct setups and acquisitions. The profit margin is improving as we are managed to control costs and expenses efficiently,” said Mr. Quanlong Chen, Chairman and Chief Executive Officer of China Fruits Corporation, “and we are excited about the future of our fruit e-commerce business, because we believe that our retail stores can give us competitive edge of our unique O2O business model.”

Second Quarter 2014 Results

  • Revenues

China Fruits reported total revenue of $2,535,831 and $10,551,692 for the three and six months ended June 30, 2014, respectively, representing an increase of 197% and 562% from the corresponding period in 2013, primarily driven by the Company’s continuous efforts in developing overseas markets and in increasing franchise stores.

During the six months ended June 30, 2014, the revenues from Thailand were approximately $5,650,000, or 54% of total revenues, which were $0 during the same period in 2013, and the revenues from Dubai and other markets were approximately $620,000, or 6% of total revenues, which were $0 during the same period in 2013.

Revenues from franchise retail stores increased to approximately $2,280,000 for the six months ended June 30, 2014, primarily due to the increasing number of franchise stores. The Company had 19 franchise stores as of June 30, 2014.

  • Cost of Goods Sold

Cost of goods sold was $1,780,278 for the second quarter of 2014, an increase of 156% from $695,213 for the corresponding period in 2013.

Gross margin was 29.80% for the second quarter of 2014, compared to 18.64% for the corresponding period in 2013. The increased gross margin was contributed by strengthening the Company’s cost control procedure and efforts in collaboration with non-related suppliers.

  • Operating Expenses

Operating expenses for the second quarter of 2014 were $325,304, increased by 5%, compared to $309,552 from the corresponding period in 2013. The increase in operating expenses was due primarily to the increase in selling expenses.

  • Operating Income

Operating income for the second quarter of 2014 was $430,249, compared to operating loss of $150,212 in the same period in 2013.

  • Net Income and EPS

Net income attributable to China Fruits’ shareholders was $315,656, a 1515% increase from the corresponding period in 2013. Fully diluted earnings per share were $0.01, compared to earnings per share of $0.0004 in the same period in 2013. The net income during the second quarter of 2014 was due primarily to the increase in revenues. The Company also received a grant from the government in amount of $32,777, which was to encourage the Company’s contribution in modern agriculture.

  • Cash

As of June, 2014, China Fruits had cash and cash equivalents of $200,576, compared to $40,217 as of December 31, 2013. Cash flows used in operating activities were $275,469 for the second quarter of 2014. Cash flows used in investing activities were $177,380. Net cash provided by financing activities was $624,040.

Financial Guidance

The Company preliminarily plans to invest approximately $160,000 to develop its e-commerce business, as they believe e-commerce market will share the same significance as traditional markets in the near future.

The Company also expects the total number of franchise stores to be increased to around 64 by the end of 2014. The expansion will be accomplished via acquisitions, franchise sales and/or direct setups.

In June of 2014, the board of directors of the Company authorized and approved to setup a new subsidiary called US-China Fruits Company Limited (“US-China Fruits”) under the laws of British Virgin Islands, of which China Fruits has 99.99% ownership. The article of incorporation of US-China Fruits was filed on June 16, 2014 but the company had no activities as of June 30, 2014. The Company believes the new subsidiary will facilitate the process and increase the efficiency when they develop overseas markets.

About China Fruits Corporation

China Fruits Corporation (OTC: CHFR) is a U.S.-listed holding company, engaging in manufacturing, trading and distributing fresh tangerine and other fresh fruits in the People’s Republic of China. The Company wholly owns two subsidiaries: Taina International Fruits (Beijing) Co., Ltd., which is building and operating franchise retail stores, and Jiangxi Taina Nanfeng Orange Co., Ltd., which is operating a 782,765-square-foot manufacturing base in Jiangxi Province’s Nanfeng County. The Company owns a 98,505-square-foot Express Export Zone in Nanfeng, with air-adjusted and fresh-keeping warehouse, and advanced photoelectric fruit sorter. In Beijing, the Company possesses a 26,700-square-foot distribution center and nineteen franchise retail stores across the city. With the support from the international capital markets, the company is strengthening the branded franchise fruit retail stores and digging deeply in this niche. From the very beginning of its business, the Company has been awarded with “National Leading Enterprise of Agriculture Industrialization”, “China’s Most Influential Fruit Brand”, “Leading Fruit Enterprise”, and “Top Ten Most Trustable Enterprise” among other rewards. For more information, please visit the Company’s corporate website: www.taina.cn.

Forward Looking Statement

This press release contains “forward-looking information”, which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of China Fruits Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and China Fruits Corporation disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements

For More Information

Investor Relations
Dragon Gate Investment Partners
Email: taina@dgipl.com
Tel: +1 (646) 801-2803
Website: http://www.dgipl.com

China Fruits Corporation

Consolidated Balance Sheets

As of June 30, 2014 and December 31, 2013

Unaudited

(Stated in US Dollars)

(Audited)

ASSETS

6/30/2014

12/31/2013

Current Assets

Cash & cash equivalents

$

200,576

$

40,217

Accounts receivable, Net

1,768,795

4,075,765

Other receivable, Net

763,911

141,363

Advance to supplies

3,364,911

2,162,844

Inventories

78,790

1,566,556

Prepaid expense

154,947

67,862

Refundable tax

94,065

266,719

Related party receivable

162,464

TOTAL CURRENT ASSETS

6,588,459

8,321,326

Noncurrent Assets

Investment

162,464

Property, plant & equipment, bet

3,236,423

3,370,148

Construction in progress

1,137

1,146

Intangible assets, net

318,354

331,697

Other long-term asset and deposits

24,370

24,548

Long term amortization

2,779

4,479

TOTAL NON-CURRENT ASSETS

3,745,527

3,732,018

TOTAL ASSETS

$

10,333,986

$

12,053,344

CURRENT LIABILITIES

Accounts payable and Accrued Expenses

$

913,825

$

4,238,843

Short-term loans

2,713,153

2,479,379

Customer Deposit

1,530,277

493,164

Taxes Payable

312,552

261,286

Other Payables

92,829

657,952

Due to Related Parties

1,446,251

1,074,031

Accrued liabilities and Payroll Tax Liabilities

428,007

354,489

TOTAL CURRENT LIABILITIES

7,436,894

9,559,144

TOTAL LIABILITIES

$

7,436,894

$

9,559,144

STOCKHOLDERS’ EQUITY

Common stock, par value $.001, 100,000,000 shares authorized, 49,951,223 shares issued

and outstanding as of June 30, 2014 and December 31, 2013, respectively

$

49,941

$

49,951

Preferred stock, 200,000,000 shares authorized, designated as Series A and Series B.

Series A: par value $.001; 2,000,000 shares authorized, 13,150 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively

13

13

Series B; par value $0.001, voting; 50,000,000 shares authorized, 12,100,000 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively

12,100

12,100

Additional paid in capital

3,789,864

3,789,864

Statutory reserve

170,950

170,950

Accumulated deficits

(1,572,728)

(2,003,096)

Accumulated other comprehensive income

446,942

474,419

TOTAL STOCKHOLDERS’ EQUITY

2,897,092

2,494,201

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

10,333,986

$

12,053,344


China Fruits Corporation

Consolidated Statements of Income

For the three-month and six-month periods ended June 30, 2014 and 2013

Unaudited

(Stated in US Dollars)

Three Months Ended

Six Months Ended

REVENUES:

6/30/2014

6/30/2013

6/30/2014

6/30/2013

Sales

$

2,535,831

$

854,553

$

10,551,692

$

1,593,775

Cost of goods sold

(1,780,278)

695,213

(8,879,022)

1,319,288

GROSS PROFIT

755,553

159,340

1,672,670

274,487

OPERATING EXPENSES:

Selling expenses

96,438

100,701

692,908

262,348

General and administrative expenses

228,866

208,851

556,576

453,535

TOTAL OPERATING EXPENSES

325,304

309,552

1,249,484

715,883

INCOME (LOSS) FROM CONTINUING OPERATIONS

430,249

(150,212)

423,186

(441,396)

OTHER INCOME (EXPENSE):

Other income

14,224

(220)

28,532

5,606

Other expense

Interest income

59

Interest expense

(63,187)

(27,496)

(114,296)

(59,322)

Government grants

32,777

197,478

271,909

252,916

TOTAL OTHER INCOME (LOSS) & EXPENSE

(16,186)

169,762

186,204

199,200

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

414,063

19,550

609,390

(242,196)

Income tax expense

98,407

179,022

NET INCOME (LOSS)

$

315,656

$

19,550

$

430,368

$

(242,196)

Other compressive income

-Foreign currency translation gain (Loss)

3,717

34,945

(27,477)

41,194

COMPREHENSIVE INCOME (LOSS)

319,373

(54,495)

402,891

(201,002)

(Loss) per common share:

Basic and fully diluted

$

0.01

**

$

0.01

**

Weighted average number of common shares outstanding – Basic and fully diluted

49,951,223

49,951,223

49,951,223

49,951,223

China Fruits Corporation

Consolidated Statements of Stockholders’ Equity

As of June 30, 2014 and December 31, 2013

Unaudited

(Stated in US Dollars)

Common Stock (Shares)

Series “A” Preferred (Shares)

Series “B” Preferred (Shares)

Common Stock (Amount)

Series
“A” Preferred (Amount)

Series
“B” Preferred (Amount)

Additional paid in capital

Statutory Reserve

Accumulated other Comprehensive Income (Loss)

Accumulated Deficit

Total

Balance at January 1, 2013

49,951,223

13,150

12,100,000

$ 49,951

$ 13

$ 12,100

$ 3,789,864

$ 129,636

$ 389,607

$ (2,128,404)

$ 2,242,693

Net income

166,622

166,622

Appropriations to statutory reserves

41,314

(41,314)

Foreign currency translation adjustment

84,886

84,886

Balance at December 31, 2013

49,951,223

13,150

12,100,000

$ 49,951

$ 13

$ 12,100

$ 3,789,864

$ 170,950

$ 474,419

$ (2,003,096)

$ 2,494,201

Balance at January 1, 2014

49,951,223

13,150

12,100,000

$ 49,951

$ 13

$ 12,100

$ 3,789,864

$ 170,950

$ 474,419

$ (2,003,096)

$ 2,494,201

Net income

430,368

430,368

Foreign currency translation adjustment

(27,477)

(27,477)

Balance at June 30, 2014

49,951,223

13,150

12,100,000

$ 49,951

$ 13

$ 12,100

$ 3,789,864

$ 170,950

$ 446,942

$ (1,572,728)

$ 2,897,092

China Fruits Corporation

Consolidated Statements of Cash Flows

For the six-month period ended June 30, 2014 and 2013

Unaudited

(Stated in US Dollars)

For the six-month period ended

Cash Flows from Operating Activities

6/30/2014

6/30/2013

Net Income/(loss)

$

430,368

$

(242,196)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

128,703

133,487

(Increase) decrease in operating assets:

Accounts receivable

2,307,270

323,103

Inventories

1,487,766

(77,261)

Prepaid expenses and other current assets

(1,738,868)

857,894

Related party receivable

(162,464)

Increase (decrease) in operating activities:

Accounts payable

(3,325,018)

309,669

Other payables and accrued liabilities

(491,605)

(27,047)

Tax payable

51,266

813

Customer deposit

1,037,113

Net cash (used in) provided by operating activities

$

(275,469)

$

1,278,462

Cash Flows from Investing Activities

Purchase of property and equipment

$

(14,916)

$

(22,760)

Investment

(162,464)

Net cash provided (used in) by investing activities

$

(177,380)

$

(22,760)

Cash Flows from Financing Activities

Proceeds from short-term loans

$

251,820

$

Advance from (to) a third party

3,653,821

(355,514)

Repayment of advance from (to) a third party

(3,366,259)

Proceeds from /(Payments on) Notes Payable

(945,345)

Due to stockholders

84,658

86,164

Net cash provided by (used in) Financing Activities

$

624,040

$

(1,214,695)

Foreign currency translation adjustment

(10,832)

1,056

Net increase/(decrease) in cash & cash equivalents for the periods

160,359

42,063

Cash & cash equivalents:

Beginning of period

$

40,217

$

47,399

End of period

$

200,576

$

89,462

Supplementary disclosures of cash flows information:

Interest received

$

793

$

Interest paid

$

87,797

$

58,261

Income taxes paid

$

13,030

$

Yili to Upgrade the Global Quality Management System Inviting Three Giants for “Excelsior”

BEIJING, August 15, 2014 /PRNewswire/ — Confronted with the global challenge of food safety, enterprises focusing on quality should keep improving their quality management system. Recently, Yili Group, ranked among the Top 10 global dairy enterprises, announced that Yili has entered into strategic cooperative partnership with SGS, LRQA and Intertek and has invited them to “make excelsior” in its quality management, which further upgraded the global quality management system well-known for completeness.

The three quality certification authorities chosen by Yili Group are famous in the global quality consultancy field, with a thorough understanding on every aspect of the world food quality management. SGS is the world’s largest certification authority, recognized as the standard for quality and credibility; LRQA is an international certification authority with a history of 250 years; Intertek has cooperated with Yili for more than one decade, with superior strength in quality and safety service.

Representatives of four companies celebrated the conclusion of strategic cooperation

Yili CEO, Zhang Jianqiu, stated, “We satisfy the consumers’ demands for products with global resources, and provide nutrition and health for consumers with internationalized R&D. The cooperation with top partners in global quality field aims to better satisfy the consumers’ expectation on food safety by upgrading the global quality management system of Yili Group.”

All three collaborated authorities recognized the “Quality-oriented Strategy” policy of Yili, and admire the existing complete processes and strict inspection in compliance with the international advanced standard. Relevant principal of SGS further stated that Yili SANTINE Organic Milk, Shuahua Milk, HOWARU, QQ Star Milk for children, PRO-KIDO infants and young children formula and AMBROSIAL ordinary temperature yogurt are popular among consumers due to their good quality. Zhang hoped they could help Yili realize further development.

Just as what the collaborated authorities have seen, Yili has established the “All employee, all process and all-round” quality management system and three-level food safety risk monitoring, prevention and control system covering “plant, division and group”. In addition, Yili also carried out the technical layout of quality safety and upgrade in Europe. At the end of this March, Yili and Wageningen University jointly built the first NetherlandsChina food safety guarantee system on the basis of European R&D Center, carrying out a series of cooperation in the improvement of quality of dairy products.

According to the analysis of experts in the industry, it is an important step of Yili in quality management internationalization following the internationalization of resources and R&D. Since 2013, Yili has completed the industrial layout in the global dairy highlands such as Oceania, North America and Europe, and realized the upgrade of product R&D by establishing European R&D Center. As one of the three key components of Yili’s internationalization strategy, the upgrade of global quality management system should be the stress in the following step.

Photo – http://photos.prnewswire.com/prnh/20140814/136154

Country Style Cooking Restaurant Chain Reports Unaudited Second Quarter 2014 Financial Results

2Q14 Revenues up 5.9% YoY to RMB345.0 Million

2Q14 Adjusted Net Income down 37.4% YoY to RMB7.7 Million

2Q14 Adjusted EBITDA down 20.3% to RMB22.5 Million

CHONGQING, China, August 15, 2014 /PRNewswire/ — Country Style Cooking Restaurant Chain Co., Ltd. (NYSE: CCSC) (“Country Style Cooking” “CSC” or the “Company”), a fast-growing quick service restaurant chain in China, today announced its unaudited financial results for the second quarter of 2014.

Second Quarter 2014 Financial Highlights

  • Revenues in the second quarter of 2014 were RMB345.0 million ($55.6 million), an increase of 5.9% from RMB325.8 million in the same quarter of 2013.
  • Comparable restaurant sales decreased by 4.1% from the same quarter of 2013. There were 220 restaurants in the comparison.
  • Restaurant level operating margin was 12.2%, a decrease of 170 basis points from the same quarter of 2013.
  • Adjusted EBITDA[1] was RMB22.5 million ($3.6 million) in the second quarter of 2014, a decrease of 20.3% from RMB28.2 million in the same quarter of 2013.
  • Net income for the second quarter of 2014 was RMB3.3 million ($536,000), a decrease of 56.0% from RMB7.5 million in the same quarter of 2013. Adjusted net income (non-GAAP), which excludes share-based compensation expenses, was RMB7.7 million ($1.2 million), a decrease of 37.4% from RMB12.3 million in the same quarter of 2013.
  • Diluted net income per American depositary share (“ADS”) was RMB0.12 ($0.02). Adjusted diluted net income per ADS (non-GAAP)[1], which excludes share-based compensation expenses, was RMB0.28 ($0.05). Each ADS represents four ordinary shares of the Company.
  • Total number of restaurants increased by a net total of 14 in the second quarter of 2014 to 317 restaurants as of June 30, 2014, covering 30 cities and up from 268 restaurants as of June 30, 2013. Among the total 317 restaurants, 64 are “Mr. Rice” branded restaurants.

[1] This release contains certain non-GAAP financial measures to provide supplemental information regarding the Company’s operating performance. For more information on these non-GAAP financial measures, please see the section captioned “Non-GAAP Disclosure” and the table captioned “Supplementary Metrics – Reconciliations of GAAP to non-GAAP Financial Measures” set forth at the end of this release.

Ms. Hong Li, Chairman and Chief Executive Officer of Country Style Cooking, commented, “We are pleased to have managed year-over-year growth in revenue for the second quarter of 2014 and remain on track with our restaurant expansion plan. Comparable restaurant sales saw a decline of 4.1% for the quarter, as customer traffic suffered in June stemming from higher levels of rainy and cooler days in Southwest China where the majority of our restaurants are located. This decline also impacted our profitability in the second quarter. We believe the weather impact was a unique factor in our business during the second quarter and as we enter our peak summer months, customer traffic is expected to gradually recover. During the second quarter, we opened 17 new restaurants and closed three restaurants, resulting in a total restaurant count of 317.”

Mr. Adam Zhao, Chief Financial Officer of Country Style Cooking, added, “Despite the unique weather impact, we saw encouraging signs from our Mr. Rice brand stores with a 93% revenue increase in the second quarter compared to the prior year period. We expect gradual improvement in our business enabling the execution of our new store expansion plan for the full year.”

Second Quarter 2014 Financial Performances

Revenues in the second quarter of 2014 increased by 5.9% to RMB345.0 million ($55.6 million) from RMB325.8 million in the same quarter of 2013. Revenue growth was primarily supported by the Company’s expanding restaurant network, partially offset by declined customer traffic in the last month of the reporting quarter. Among the revenue contributors, “Mr. Rice” branded restaurants contributed RMB49.8 million ($8.0 million), a significant 92.5% increase from RMB25.9 million in the same period last year. During the second quarter of 2014, Country Style Cooking added a total of 17 restaurants and closed three restaurants, bringing the total restaurant count to 317 as of June 30, 2014, compared to its total restaurant count of 268 as of June 30, 2013. Restaurants opened in the second quarter included ten “Mr. Rice” restaurants. Comparable restaurant sales decreased by 4.1% compared to the same quarter of 2013, because of rainy and cooler weather in the Southwest region of China in June which reduced restaurant customer traffic. There were 220 restaurants in the comparison.

Cost of food and paper increased by 3.9% to RMB157.0 million ($25.3 million) in the second quarter of 2014 from RMB151.1 million in the same quarter of 2013, primarily due to the expansion of the Company’s restaurant network. As a percentage of revenues, cost of food and paper was 45.5% in the second quarter of 2014, down from 46.4% in the prior year period.

Restaurant wages and related expenses increased by 14.2% to RMB74.7 million ($12.0 million) in the second quarter of 2014 from RMB65.4 million in the same quarter of 2013. The increase was primarily due to increased wage levels and the Company’s overall expansion of its employee base. As a percentage of revenues, restaurant wages and related expenses increased to 21.6% in the second quarter of 2014 from 20.1% in the same quarter of 2013.

Restaurant rent expenses increased by 16.2% to RMB36.5 million ($5.9 million) in the second quarter of 2014 from RMB31.4 million in the same quarter of 2013. The increase was primarily due to the expansion of the Company’s restaurant network. As a percentage of revenues, restaurant rental expenses increased to 10.6% in the second quarter of 2014 from 9.6% in the second quarter of 2013.

Restaurant utility expenses increased by 5.3% to RMB20.9 million ($3.4 million) in the second quarter of 2014 from RMB19.9 million in the same quarter of 2013. As a percentage of revenues, restaurant utility expenses stood at 6.1%.

Other restaurant operating expenses increased by 7.4% to RMB13.8 million ($2.2 million) in the second quarter of 2014 from RMB12.8 million in the same quarter of 2013. As a percentage of revenues, other restaurant operating expenses increased slightly to 4.0% in the second quarter of 2014 from 3.9% in the second quarter of 2013.

Restaurant-level operating margin was 12.2% in the second quarter of 2014, a decrease of 170 basis points over the same quarter of 2013. The decline in restaurant-level operating margin was primarily due to weather impacted weaker sales and the CPI driving labor and raw material costs.

Selling, general and administrative (SG&A) expenses increased by 11.1% to RMB20.6 million ($3.3 million) in the second quarter of 2014 from RMB18.5 million in the same quarter of 2013. The increase was primarily due to an increase in share-based compensation expenses included in SG&A, an increase in disposal losses on leasehold improvements and equipment of closed stores, and an increase in miscellaneous expenses. As a percentage of revenues, SG&A expenses were 6.0% in the second quarter of 2014, compared to 5.7% in the second quarter of 2013.

Pre-opening expense for the second quarter of 2014 was RMB3.3 million ($539,000), representing an increase of 45.0% as compared to RMB2.3 million in the same quarter of 2013, primarily because of more new store openings compared to the prior year period. As a percentage of revenues, pre-opening expense increased slightly to 1.0% in the second quarter of 2014, compared to 0.7% in the same quarter of 2013.

Depreciation expense for the second quarter of 2014 was RMB19.3 million ($3.1 million), representing an increase of 13.8% as compared to RMB17.0 million in the same quarter of 2013, primarily because of the increase in total fixed assets as a result of restaurant network expansion and ongoing investment in the Company’s central kitchen facility. As a percentage of revenues, depreciation expense was 5.6% in the second quarter of 2014, compared to 5.2% in the same quarter of 2013.

Property and equipment impairment charges were RMB1.4 million ($226,000) in the second quarter of 2014, representing costs related to asset impairment of three restaurants, one of which the Company plans to close in the third quarter of 2014.

Loss from operations for the second quarter of 2014 was RMB2.6 million ($420,000), compared to operating income of RMB5.9 million in the same quarter of 2013.

Interest income for the second quarter of 2014 was RMB6.8 million ($1.1 million), representing a decrease of 7.2% from RMB7.3 million in the same quarter of 2013.

Foreign currency exchange gain for the second quarter of 2014 was RMB4,000 ($686), as compared to a loss of RMB1.4 million in the same quarter of 2013.

Other income for the second quarter of 2014 was RMB972,000 ($157,000), compared to a loss of RMB206,000 in the same quarter of 2013.

Income tax expense in the second quarter of 2014 was RMB1.8 million ($293,000), compared to RMB4.0 million in the same quarter of 2013.

Net income was RMB3.3 million ($536,000), representing a decrease of 56.0% from RMB7.5 million in the second quarter of 2013. Adjusted net income (non-GAAP), which excludes share-based compensation expenses, was RMB7.7 million ($1.2 million) in the second quarter of 2014, representing a decrease of 37.4% from RMB12.3 million in the second quarter of 2013.

Diluted net income per ADS in the second quarter of 2014 was RMB0.12 ($0.02), compared to RMB0.29 in the second quarter of 2013. Adjusted diluted net income per ADS (non-GAAP), which excludes share-based compensation expenses, was RMB0.28 ($0.05) in the second quarter of 2014, compared to RMB0.47 in the second quarter of 2013. The Company had approximately 27.0 million diluted weighted average ADSs outstanding during the quarter ended June 30, 2014.

EBITDA (non-GAAP), defined as net income before interest, income tax expense, depreciation and amortization, was RMB17.7 million ($2.9 million) in the second quarter of 2014, compared to RMB21.2 million from the same quarter of 2013. Adjusted EBITDA (non-GAAP), defined as EBITDA excluding foreign exchange gain or loss, other income or loss, property and equipment impairment charges, and share-based compensation expenses, was RMB22.5 million ($3.6 million) in the second quarter of 2014, representing a decrease of 20.3% from RMB28.2 million in the same quarter of 2013.

As of June 30, 2014, the Company had cash, cash equivalents and short-term investments of RMB587.7 million ($94.7 million), compared to RMB581.9 million as of December 31, 2013.

Net cash provided by operating activities was RMB72.5 million ($11.7 million) for the six months ended June 30, 2014, down from RMB84.3 million in the same period of 2013.

Outlook

For the third quarter of 2014, the Company currently estimates that revenues will be between RMB 400-420 million ($64.5-$67.7 million), representing a year-over-year growth of between approximately 2.4% and 7.5%. The Company remains on track to open approximately 60 new restaurants in 2014.

These forecasts reflect the Company’s current and preliminary view, which are subject to change.

Definitions

The following definitions apply to these terms used throughout this release:

Comparable restaurants are defined as restaurants that were open throughout the periods under comparison. A restaurant is included in the comparison once it has been in operation for 12 full months before the start of the quarter. Comparable restaurants exclude (i) restaurants whose operational area has increased or decreased by more than 5% during the periods under comparison (ii) restaurants that were closed for more than 5% of total days in any period under comparison.

Restaurant level operating margin represents total revenue less restaurant operating costs (including food and paper, restaurant wages and related expenses, restaurant rent expenses, restaurant utilities expenses and other restaurant operating expenses), expressed as a percentage of total revenues.

Basic net income per ADS are computed by dividing the net income by the weighted average number of ADS outstanding during the year. Diluted net income per ADS is computed using the more dilutive of the two-class method or the if-converted method.

Exchange Rate

This announcement contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars in this announcement were made at the noon buying rate of RMB6.2036 to US$1.00 on June 30, 2014 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.

Conference Call

The Company will host a conference call at 8:30 am, Eastern Time on August 15, 2014, which is 8:30 pm, Beijing Time on August 15, 2014, to discuss second quarter 2014 results and answer questions from investors. Listeners may access the call by dialing:

US:

1 877 870 4263

International:

1 412 317 0790

Hong Kong:

800 905 945

China:

400 120 1203

Passcode:

Country Style Cooking Restaurant Chain Co., Ltd

A telephone replay will be available one hour after the conclusion of the conference all through 9:30 am, Eastern Time on August 22, 2014. The dial-in details are:

US:

1 877 344 7529

International:

1 412 317 0088

Passcode:

10050778

A live and archived webcast of the conference call will be available at http://ir.csc100.com.

About Country Style Cooking Restaurant Chain Co., Ltd.

Country Style Cooking Restaurant Chain Co., Ltd. (NYSE: CCSC) (“Country Style Cooking”) is a fast-growing quick service restaurant chain in China, offering delicious, everyday Chinese food to customers who desire fast and affordable quality meals. Country Style Cooking directly operates all of its restaurants under brands of CSC and Mr. Rice and is the largest quick service restaurant chain in Chongqing municipality, home to Sichuan cuisine, one of the best-known Chinese regional cuisines. Additional information about Country Style Cooking can be found at http://ir.csc100.com.

Contact:

Country Style Cooking Restaurant Chain Co., Ltd.
Adam Zhao
Chief Financial Officer
Phone: +86-23-8866-8866
Email: ir@csc100.com

ICR Inc.
Bill Zima
Phone: +86-10-6583-7511 or +1-646-328-2520
E-mail: bill.zima@icrinc.com

Non-GAAP Disclosure

To supplement the unaudited consolidated financial information presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), the Company uses the following measures defined as non-GAAP measures under Regulation G and Item 10(e) of Regulation S-K of SEC: adjusted net income, adjusted diluted earnings per ADS, EBITDA and adjusted EBITDA. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. We define adjusted net income as net income excluding share-based compensation expenses and one-time tax levy/(benefit). We define adjusted diluted earnings per ADS as diluted earnings per ADS excluding share-based compensation expenses and one-time tax levy/(benefit). We define EBITDA as earnings before interest, income tax expense, depreciation and amortization. We define adjusted EBITDA as EBITDA excluding foreign exchange gain or loss, other income or expense, property and equipment impairment charges, goodwill impairment and share-based compensation expenses. For more information on these non-GAAP financial measures, please see the tables captioned “Supplementary Metrics – Reconciliations of GAAP to non-GAAP Financial Measures” set forth at the end of this release.

The Company believes that in conjunction with GAAP financial measures, these non-GAAP financial measures provide meaningful supplemental information regarding its operating performance and liquidity. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance and liquidity. Management uses both GAAP and non-GAAP information in evaluating and operating the business internally and therefore deems it important to provide all of these information to investors. Management also believes that these non-GAAP financial measures facilitate comparisons to the Company’s historical performance.

One of the limitations of using adjusted net income, adjusted diluted earnings per ADS, EBITDA and adjusted EBITDA is that they do not include all items that impact the Company’s net income for the relevant periods. They exclude certain items including share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in our business. In addition, the Company’s EBITDA and adjusted EBITDA may not be comparable to EBITDA, adjusted EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA and adjusted EBITDA in the same manner as the Company does. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook for the third quarter 2014, quotations from management in this announcement, as well as Country Style Cooking’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: uncertainties regarding our ability to open and profitably operate new restaurants and manage our growth effectively and efficiently; risks associated with changing consumer taste and discretionary spending; uncertainties regarding our ability to maintain and enhance the attractiveness of our restaurants and our brand and image; risks related to instances of food-borne illnesses, health epidemics and other outbreaks; uncertainties regarding our ability to respond to competitive pressures; and uncertainties associated with factors typically affecting the consumer food services industry in general. Further information regarding these and other risks is included in the Company’s reports filed with, or furnished to the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and Country Style Cooking undertakes no duty to update such information, except as required under applicable law.

Condensed Consolidated Balance Sheets

(Amounts in thousands, except shares data)

(Unaudited)

As of December 31,

As of June 30,

2013

2014

RMB

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

372,493

320,859

51,721

Short-term investments

209,381

266,798

43,007

Due from related parties

58

93

15

Inventories

52,579

53,715

8,659

Prepaid rent

14,336

12,900

2,079

Prepaid expenses and other current assets

22,714

25,644

4,134

Deferred tax assets-current

1,879

1,879

303

Total current assets

673,440

681,888

109,918

Property and equipment, net

398,555

420,936

67,854

Goodwill

5,563

5,563

897

Deferred tax assets – non current

7,592

7,592

1,224

Deposits for leases – non current

21,286

30,390

4,899

Total assets

1,106,436

1,146,369

184,792

Current liabilities:

Accounts payable

54,176

59,455

9,584

Deferred revenue

6,410

12,836

2,069

Accrued payroll

27,631

28,469

4,589

Income taxes payable

7,911

3,053

492

Other current liabilities

51,240

52,001

8,383

Total current liabilities

147,368

155,814

25,117

Deferred rent – non current

23,897

27,194

4,384

Prepaid subscription – non current

12

Advanced receipts from depositary bank

2,702

2,493

402

Total liabilities

173,979

185,501

29,903

Equity:

Ordinary shares ($0.001 par value, 1,000,000,000
shares authorized, 106,296,674 and
106,621,026 shares issued and outstanding as of
December 31, 2013 and June 30, 2014,
respectively)

756

758

122

Additional paid-in capital

743,219

756,373

121,925

Retained earnings

197,618

212,576

34,267

Accumulated other comprehensive loss

(9,136)

(8,839)

(1,425)

Total equity

932,457

960,868

154,889

Total liabilities and equity

1,106,436

1,146,369

184,792

Condensed Consolidated Statements of Income

(Amounts in thousands, except percentages, shares, per share and per ADS data)

(Unaudited)

For the three months ended June 30,

2013

2014

RMB

%

RMB

%

US$

Revenue – restaurant sales

325,844

100.0

344,992

100.0

55,612

Costs and expenses:

Restaurant expenses:

Food and paper expense

151,095

46.4

157,011

45.5

25,310

Restaurant wages and related expenses1

65,432

20.1

74,723

21.6

12,045

Restaurant rent expense

31,399

9.6

36,492

10.6

5,882

Restaurant utilities expense

19,896

6.1

20,946

6.1

3,376

Other restaurant operating expenses

12,821

3.9

13,771

4.0

2,220

Selling, general and administrative expenses1

18,535

5.7

20,597

6.0

3,320

Pre-opening expense

2,306

0.7

3,343

1.0

539

Depreciation

16,978

5.2

19,318

5.6

3,114

Property and equipment impairment charges

1,470

0.5

1,404

0.4

226

Total operating expenses

319,932

98.2

347,605

100.8

56,032

Income/(loss) from operations

5,912

1.8

(2,613)

(0.8)

(420)

Interest income

7,293

2.2

6,770

2.0

1,091

Foreign exchange gain/(loss)

(1,440)

(0.4)

4

0.0

1

Other income / (expense)

(206)

(0.1)

972

0.3

157

Income before income taxes

11,559

3.5

5,133

1.5

829

Income tax expense

4,025

1.2

1,816

0.5

293

Net income

7,534

2.3

3,317

1.0

536

Basic net income per share

0.07

0.03

0.005

Diluted net income per share

0.07

0.03

0.005

Basic net income per ADS

0.29

0.12

0.02

Diluted net income per ADS

0.29

0.12

0.02

Basic weighted average ordinary shares
outstanding

104,630,867

106,553,488

106,553,488

Diluted weighted average ordinary shares
outstanding

105,569,206

108,002,156

108,002,156

1 Includes share-based compensation expenses of RMB3.9 million and RMB4.4 million ($0.7 million) for the three months ended June 30, 2013 and 2014, respectively.

Consolidated Statements of Comprehensive Income

(Amounts in thousands)

(Unaudited)

For the three months ended June 30,

2013

2014

RMB

RMB

US$

Net income

7,534

3,317

536

Other comprehensive income/(loss), net of tax:

Foreign currency translation adjustments

(385)

5

1

Comprehensive income

7,149

3,322

537

Condensed Consolidated Cash Flow Statements

(Amounts in thousands)

(Unaudited)

For the six months ended June 30,

2013

2014

RMB

RMB

US$

Operating activities:

Net income

9,529

14,958

2,411

Adjustments to reconcile net income to net cash
provided by operating activities:

Loss on disposals of property and equipment

2,983

1,603

258

Property and equipment impairment charges

5,451

2,776

447

Depreciation

34,509

38,326

6,178

Deferred income tax

(2,050)

Share based compensation

7,729

11,707

1,887

Changes in operating assets and liabilities:

Due from related parties

(282)

(35)

(6)

Inventories

541

1,589

256

Prepaid rent

(219)

1,436

231

Prepaid expenses and other current assets

(2,119)

(2,930)

(472)

Deposits for leases

(529)

(9,104)

(1,468)

Accounts payable

16,855

5,279

851

Deferred revenue

4,526

6,427

1,036

Due to related parties

(25)

Accrued payroll

2,365

838

135

Income taxes payable

(1,600)

(4,857)

(783)

Deferred rent

2,377

3,521

568

Other liabilities

4,297

941

153

Net cash provided by operating activities

84,338

72,475

11,682

Investing activities:

Purchase of property and equipment

(39,896)

(68,578)

(11,055)

Proceeds from disposals of property and equipment

129

210

34

Purchase of short-term investment

(308,178)

(584,748)

(94,259)

Withdrawal of short-term investment

290,576

527,331

85,004

Net cash used in investing activities

(57,369)

(125,785)

(20,276)

Financing activity:

Proceeds from exercise of employee stock options

1,090

1,377

222

Net cash provided by financing activity:

1,090

1,377

222

Effect of exchange rate

(473)

299

48

Net increase / (decrease) in cash and cash equivalents

27,586

(51,634)

(8,324)

Cash and cash equivalents, beginning of year

229,367

372,493

60,045

Cash and cash equivalents, end of year

256,953

320,859

51,721

Supplementary Metrics – Reconciliations of GAAP to non-GAAP Financial Measures

(Amounts in thousands, except ADSs and per ADS data)

Three months ended June 30,

2013

2014

RMB

RMB

US$

Net income

7,534

3,317

536

Share-based compensation expenses:

Restaurant wages and related expenses

1,087

1,131

182

Selling, general and administrative expenses

2,767

3,237

522

Exceptional tax expense

898

Adjusted net income (non-GAAP)

12,286

7,685

1,240

Diluted net income per ADS

0.29

0.12

0.02

Adjusted diluted net income per ADS (non-GAAP)

0.47

0.28

0.05

Diluted weighted average ADSs outstanding

26,392,302

27,000,539

27,000,539

Three months ended June 30,

2013

2014

RMB

RMB

US$

Net income

7,534

3,317

536

Income tax expense

4,025

1,816

293

Interest income

(7,293)

(6,770)

(1,091)

Depreciation and amortization

16,978

19,318

3,114

EBITDA (non-GAAP)

21,244

17,681

2,852

EBITDA (non-GAAP)

21,244

17,681

2,852

Foreign exchange loss/(gain)

1,440

(4)

(1)

Other expense / (income)

206

(972)

(157)

Property and equipment impairment charges

1,470

1,404

226

Share-based compensation expenses

Restaurant wages and related expenses

1,087

1,131

182

Selling, general and administrative expenses

2,767

3,237

522

Adjusted EBITDA (non-GAAP)

28,214

22,477

3,624

SkyPeople Fruit Juice Reports Second Quarter 2014 Financial Results

XI’AN , China, August 14, 2014 /PRNewswire/ — SkyPeople Fruit Juice, Inc. (NASDAQ: SPUNews) (“SkyPeople” or “the Company”), a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, today announced its financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Summary:

  • Revenue was $12.0 million, an increase of 16% year-over-year
  • Gross profit was $4.6 million, an increase of 37% year-over-year
  • Gross profit margin was 38% as compared to 32% for the same period of 2013
  • Income from operations was $2.2 million, an increase of 131% year-over-year
  • Net income was $0.2 million as compared to $0.8 million for the same period of 2013
  • Cash and cash equivalents were $79.7 million as of June 30, 2014

“We are pleased to report a 16% increase in our top-line results in the second quarter of 2014 from the year-ago quarter. Our fruit juice beverage segment grew 28% as compared to the second quarter a year ago which offset the limited revenue contributions from our other product segments due to the scarcity of raw materials and finished products in inventory,” said Mr. Hongke Xue, Chief Executive Officer of SkyPeople. “Although our revenue compared positively to that of the year-ago quarter, a capital lease obligation undertaken early this year for our major project initiatives impeded our bottom line results for the quarter.

“We view our branded fruit juice beverages as a key growth segment that fits China’s growth profile very well. We currently sell our fruit juice beverages to more than 20,000 retail stores in approximately 20 provinces and see the potential for further geographical expansion throughout China. In particular, we plan to expand our glass bottle production line to target consumers in more populated Chinese cities. We also look forward to a new growing season that could provide ample raw materials required for processing so as to better balance our product segment contributions to revenue.

“We continue to make progress with our new projects that are intended to provide us with a more secure supply chain so that we will have greater control of our raw materials. Our project to develop a manufacturing base for kiwi products in Mei County is on schedule and we anticipate beginning trial production runs in the second half of this year. This project, in addition to our orange development project in Hubei Province, should enable us to further diversify our product mix and reduce volatility that can occur with our supply chain.

“We view China’s urbanization trend to be especially important as it will enable us to further drive sales of our nutritious fruit juice beverages and leverage upon the growing need for healthy urban lifestyles. Given the relatively low consumption rate of fruit juice beverages in China, we believe that the growth of healthy beverages is a long-term trend that will benefit from urbanization, growing incomes and changing demographics,” Mr. Hongke Xue concluded.

Second Quarter 2014 Financial Results

Revenue. Revenue for the three months ended June 30, 2014 was $12.0 million, an increase of 16% as compared to $10.4 million for the same period of 2013. This increase was primarily due to a rise in sales in the Company’s fruit juice beverages segment. The fruit juice beverage segment constituted 92% of total Company revenue for the second quarter of 2014 as compared to 83% for the same period of 2013. This offset a decline in all of the other of the Company’s core product segments.

Second Quarter 2014 Revenue by Product Segment

(in $000’s except %)

Three Months ended June 30,

2014

2013

% of change

Concentrated apple juice and apple aroma

773

1,052

(27%)

Concentrated kiwifruit juice and kiwi puree

5

10

(50%)

Concentrated pear juice

190

684

(72%)

Fruit juice beverages

10,991

8,594

28%

Fresh fruits and vegetables

4

(100%)

Other

20

6

233%

Total

11,979

10,350

16%

Revenue by Segment. Sales from apple related products were $0.8 million for the three months ended June 30, 2013, a decrease from sales of $1.1 million for the same period of 2013. During the second quarter of 2014, the Company sold approximately 480 tons of concentrated apple juice, a decrease from the approximately 615 tons of concentrated apple juice sold in the same period of 2013. The decrease of revenue generated from concentrated apple juice was mainly caused by the decrease of unit price and amounts sold.

Sales from concentrated kiwifruit juice and kiwifruit puree were $0.005 million for the second quarter of 2014, a decrease from sales $0.01 million for the same period of 2013 primarily due to a decrease in both the amount sold and unit price. During the three months ended June 30, 2014, the Company sold approximately 2.7 tons of kiwi-related products.

Sales of concentrated pear juice were $0.2 million in the second quarter of 2014, a decrease from sales of $0.7 million in the same period of 2013. During the second quarter of 2014, the Company sold 100 tons of concentrated pear juice as compared to 527 tons of concentrated pear juice sold in the same period of 2013. The decrease in revenue was mainly due to the reduced amount of concentrated pear juice sold.

Revenue from fruit juice beverages were $11.0 million in the second quarter of 2014, an increase from sales of $8.6 million for the same period of 2013. The increase in revenue is primarily due to bigger market share gained from our continuous efforts of expanding sales channel.

Revenue from our fresh fruits and vegetables were $0.004 million in the second quarter of 2013 and nil for the same period of 2014.

Revenue from other products were $0.02 million in the second quarter of 2014, an increase from sales of $0.006 million for the same period of 2013. The amount of sales of other products is expected to be unstable and is generally not indicative of our future sales of other products.

Second Quarter 2014 Gross Profit by Product Segment

Gross profit was $4.6 million in the second quarter of 2014, an increase of 37% from $3.4 million for the same period in 2013. The Company’s total gross profit margin was 38% in the second quarter of 2014 as compared to 32% for the same period of 2013, primarily due to an increase in the gross profit margin of the fruit beverages segment to 39% in the second quarter of 2014 as compared to 37% for the same period of 2013.

(In $000’s except %)

Three months ended June 30,

2014

2013

Gross
profit

Gross
margin

Gross
profit

Gross
margin

Concentrated apple juice and apple aroma

153

20%

77

7%

Concentrated kiwifruit juice and kiwi puree

1

20%

5

50%

Concentrated pear juice

90

47%

121

18%

Fruit juice beverages

4,302

39%

3,147

37%

Fresh fruits and vegetables

3

75%

Other

8

40

1

17%

Total

4,554

38%

3,354

32%

Operating Expenses. Operating expenses for the second quarter of 2014 was $2.4 million, or 20% of sales, as compared to $2.4 million, or 23% of sales for the same period of 2013. General and administrative expenses decreased 22% to $1.0 million in the second quarter of 2014 as compared to $1.3 million for the same period of 2013, mainly due to the continued decrease in legal fees related to currently pending litigation. Selling expenses increased 14% in the second quarter of 2014 to $1.4 million as compared to $1.2 million for the same period of 2013, mainly due to an increase in headcount to handle the increased sales work.

Income from Operations. Income from operations was $2.2 million for the second quarter of 2014, an increase of 131% as compared to $0.9 million for the same period of 2013.

Net Income and Earnings Per Share. Net income for the second quarter of 2014 was $0.2 million as compared to $0.8 million for the same period of 2013, mainly due to an increase in interest expense attributable to a capital lease. Earnings per share attributable to SkyPeople Fruit Juice for the second quarter of 2014 was nil as compared to $0.03 for the same period of 2013.

Six Months 2014 Financial Results

Revenue for the six months ended June 30, 2014 was $23.8 million, a decrease of 18% as compared to $29.0 million for the same period of 2013. Gross profit was $8.3 million, a decrease of 25% as compared to $11.0 million for the same period of 2013. Gross margin for the six months ended June 30, 2014 was 35% compared to 38% in the same period of 2013. Operating expenses for the first six months of 2014 were $4.4 million, or 19% of sales, as compared to $4.6 million, or 16% of sales for the same period of 2013. General and administrative expenses were $2.2 million a decrease of 15% as compared to $2.6 million for the same period of 2013. Income from operations for the six months ended June 30, 2014 was $3.8 million, a decrease of 41% as compared to $6.4 million for the same period of 2013. Net income attributable to SkyPeople Fruit Juice for the first six months ended June 30, 2014 was $0.6 million as compared to $4.5 million for the same period of 2013.

Second Quarter 2014 Financial Condition

As of June 30, 2014, the Company had $99.8 million in cash, cash equivalents and restricted cash, up from $74.1 million as of fiscal year end 2013. The Company’s restricted cash of $20.1 million consists of cash equivalents used as collateral to secure short-term notes payable. The Company’s working capital was $60.8 million. As of June 30, 2014, the Company had total liabilities of $90.8 million which included $47.3 million in short-term bank loans and bank notes payable, an $8.0 million long-term loan to a related party and $21.0 million in capital lease obligations. As of June 30, 2014, shareholders’ equity attributable to SkyPeople Fruit Juice was $172.5 million as compared to $173.5 million as of fiscal year end 2013.

Liquidity and Capital Resources

For the first half of 2014, the Company’s operating activities generated a net cash inflow of $22.4 million as compared to $29.8 million for the same period of 2013. Net cash used in investing activities was $2.5 million for the quarter ended June 30, 2014 as compared to $38.5 million for the same period of 2013. For the first half 2014, cash flow used in financing activities totaled $6.4 million as compared to cash flow provided by financing activities of $10.1 million for the same period of 2013. Historically, the Company has financed its capital expenditures and other operating expenses through cash on hand, operating cash flow and bank loans.

Project Updates

The Company is developing a fruit and vegetable industry chain and processing zone in Suizhong County, Liaoning Province, China, pursuant to its Letter of Intent with the People’s Government of Suizhong County. The Suizhong project may include the construction and operation of fruit juice production lines, a vegetable and fruit flash freeze facility, a refrigeration storage facility and warehouse, a world-class food safety testing center and a fruit and vegetable finished products processing center, among other facilities. The estimated capital expenditure for the project is expected to be $4.6 million. During 2013, the Company finished the feasibility study of the project and submitted a detailed project proposal to the local government with the result that both parties decided to continue with the project. The Company has made partial payment to acquire the land use right from the local government purchase equipment and build facilities.

The Company is developing an orange processing and distribution center pursuant to its investment/service agreement with the Yidu Municipal People’s Government in Hubei Province, China. Pursuant to the agreement, the Company will be responsible for an investment amount of approximately $48 million. The Yidu Municipal People’s Government is in the process of demolition of buildings on the project land and the Company is actively working with various bodies of the local government to make preparations for the start of the project.

The Company is developing a kiwi processing and trading center pursuant to its investment agreement with the Managing Committee of Mei County National Kiwi Fruit Wholesale Trading Center, which has been authorized by the People’s Government of Mei County, China. Pursuant to the agreement, the Company will be responsible for construction and financing with an investment amount of approximately $72 million. As an update, the Company is in the process of building facilities and purchasing equipment for the project, and it is expected that trial production has been delayed until the second half of 2014.

Conference Call

The Company will hold a conference call on Friday, August 15, 2014 at 9:00 am Eastern Time to discuss its financial results for the second quarter ended June 30, 2014. The Company’s Chairman, Mr. Yongke Xue, and Chief Financial Officer, Mr. Xin Ma, will host the call.

To attend the live conference call, please dial in at least 10 minutes before the call to ensure timely participation. Please use the dial-in information below. When prompted by the operator, mention the conference Pass Code.

Date:

Friday, August 15, 2014

Time:

9:00 am Eastern Time, US

Conference Line Dial-In:

+1-877-407-8031

International Dial-In:

+1-201-689-8031

To access the replay, please dial 1-877-660-6853 within the United States or 1-201-612-7415 when dialing internationally. The pass code for the replay is 13582913 and it will be available from August 15, 2014 at 12:00 pm through August 22, 2014.

About SkyPeople Fruit Juice, Inc.

SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group Co., Ltd. (“Pacific”), a Vanuatu company, and SkyPeople Juice International Holding (HK) Ltd., a company organized under the laws of Hong Kong Special Administrative Region of the People’s Republic of China and a wholly owned subsidiary of Pacific, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. (“SkyPeople (China)”). SkyPeople (China), together with its operating subsidiaries in China, is engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are used as a basic ingredient component in the food industry. Its brands, “Hedetang” and “SkyPeople,” which are registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For more information, please visit http://www.skypeoplefruitjuice.com.

Safe Harbor Statement

Certain of the statements made in this press release are “forward-looking statements” within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target” and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2013 and otherwise in our SEC reports and filings, including the final prospectus for our offering. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC’s Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

-Financial Tables Follow-

SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED BALANCE SHEETS

June 30,

December 31,

2014

2013

(Unaudited)

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

79,723,955

$

66,888,954

Restricted cash

20,072,162

7,216,782

Accounts receivables, net of allowance of $209,122 and $211,039 as of June 30, 2014 and December 31, 2013, respectively

17,795,059

34,179,426

Other receivables

921,484

575,040

Inventories

5,813,692

4,381,900

Deferred tax assets

1,480,690

535,713

Advances to suppliers and other current assets

647,001

1,298,201

TOTAL CURRENT ASSETS

126,454,043

115,076,016

PROPERTY, PLANT AND EQUIPMENT, NET

91,067,126

61,907,175

LAND USE RIGHT, NET

6,372,202

6,522,152

SECURITY DEPOSIT FOR CAPITAL LEASE

3,144,910

OTHER ASSETS

40,370,408

49,614,200

TOTAL ASSETS

$

267,408,689

$

233,119,543

LIABILITIES

CURRENT LIABILITIES

Accounts payable

$

5,337,527

$

3,572,968

Accrued expenses

8,428,031

4,008,715

Income tax payable

557,068

1,749,138

Advances from customers

239,695

355,968

Notes payable -bank

24,947,991

10,825,173

Short-term loan – related party

24,970

Short-term bank loans

22,314,406

22,626,679

Obligations under capital leases – current

3,831,441

TOTAL CURRENT LIABILITIES

65,656,159

43,163,611

NON-CURRENT LIABILITIES

Long-term loan – related party

8,000,000

8,000,000

Obligations under capital leases

17,134,623

TOTAL NON-CURRENT LIABILITIES

25,134,623

8,000,000

TOTAL LIABILITIES

90,790,782

51,163,611

STOCKHOLDER’ EQUITY

SkyPeople Fruit Juice, Inc, Stockholders’ equity

Series B Preferred stock, $0.001 par value; 10,000,000 shares authorized; None issued and outstanding as of June 30, 2014 and December 31, 2013, respectively

Common stock, $0.001 par value; 66,666,666 shares authorized; 26,661,499 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively

26,661

26,661

Additional paid-in capital

59,189,860

59,189,860

Retained earnings

95,514,839

94,962,299

Accumulated other comprehensive income

17,742,916

19,354,599

Total SkyPeople Fruit Juice, Inc. stockholders’ equity

172,474,276

173,533,419

Non-controlling interests

4,143,631

8,422,513

TOTAL STOCKHOLDERS’ EQUITY

176,617,907

181,955,932

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

267,408,689

$

233,119,543

The accompanying notes in the Company’s 10-Q are an integral part of these consolidated financial statements.

SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

For the
Three months
Ended
June 30,

For the
Six months
Ended
June 30,

2014

2013

2014

2013

Revenue

$

11,978,652

$

10,349,909

$

23,761,819

$

28,961,365

Cost of goods sold

7,424,302

6,995,919

15,536,234

17,966,477

Gross profit

4,554,350

3,353,990

8,225,585

10,994,888

Operating Expenses

General and administrative expenses

995,830

1,281,515

2,188,951

2,587,429

Selling expenses

1,384,991

1,212,921

2,249,489

1,954,087

Research and development expenses

(79,642)

18,980

Total operating expenses

2,380,821

2,414,794

4,438,440

4,560,496

Income from operations

2,173,529

939,196

3,787,145

6,434,392

Other income (expenses)

Interest income

238,212

82,941

311,873

154,520

Subsidy income

37,374

435,839

470,971

786,813

Interest expenses

(1,749,783)

(351,033)

(2,562,204)

(628,056)

Consulting fee related to capital lease

(439,908)

(882,700)

Total other income (expenses)

(1,914,105)

167,747

(2,662,060)

313,277

Income before income tax

259,424

1,106,943

1,125,085

6,747,669

Income tax provision

102,608

322,754

331,210

1,806,619

Net income

156,816

784,189

793,875

4,941,050

Less: Net income attributable to non-controlling interests

107,948

104,147

241,335

442,860

NET INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC.

$

48,868

$

680,042

552,540

4,498,190

Other comprehensive income (loss)

Foreign currency translation adjustment

(11,592)

2,518,720

(1,717,080)

2,929,951

Comprehensive income (loss)

37,276

3,198,762

(1,164,540)

7,428,141

Other comprehensive income (loss) attributable to non-controlling interests

48,959

227,957

(105,397)

265,176

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC.

$

(11,683)

$

2,970,805

(1,059,143)

7,162,965

Earnings per share:

Basic earnings per share

$

$

0.03

$

0.02

$

0.17

Diluted earnings per share

$

$

0.03

$

0.02

$

0.17

Weighted average number of shares outstanding

Basic

26,661,499

26,661,499

26,661,499

26,661,499

Diluted

26,661,499

26,661,499

26,661,499

26,661,499

The accompanying notes in the Company’s 10-Q are an integral part of these consolidated financial statements.

SKYPEOPLE FRUIT JUICE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months
ended June 30,

2014

2013

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$

793,875

$

4,941,050

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization

1,572,175

1,510,091

Deferred income tax assets

(944,977)

(149,215)

Changes in operating assets and liabilities

Accounts receivable

16,111,019

36,671,171

Other receivable

(352,389)

(470,281)

Advances to suppliers and other current assets

640,892

(10,174)

Inventories

(438,715)

841,381

Accounts payable

1,801,177

(9,913,912)

Accrued expenses

4,461,534

(270,092)

Income tax payable

(1,178,899)

(2,919,124)

Advances from customers

(113,301)

(414,816)

Net cash provided by operating activities

22,352,391

29,816,079

CASH FLOWS FROM INVESTING ACTIVITIES

Refund of purchase deposit

7,506,207

Additions to property, plant and equipment

(9,966,212)

(485,142)

Prepayment for other assets

(18,652)

(38,000,669)

Net cash used in investing activities

(2,478,657)

(38,485,811)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid to non-controlling shareholder

(4,414,820)

Increase in restricted cash

(12,950,836)

Short-term notes payable

14,254,064

Proceeds from related party loan

8,000,000

Proceeds from short-term bank loans

19,489,005

8,653,944

Repayment of short-term bank loans

(19,595,955)

(6,555,123)

Payment for security deposit of capital lease

(3,152,185)

Repayment of related party loans

(24,970)

Net cash provided by (used in) financing activities

(6,395,697)

10,098,821

Effect of change in exchange rate

(643,036)

1,323,994

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

12,835,001

2,753,083

Cash and cash equivalents, beginning of period

66,888,954

77,560,278

Cash and cash equivalents, end of period

$

79,723,955

$

80,313,361

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid for interest

$

2,159,600

$

496,209

Cash paid for income taxes

$

2,455,086

$

4,874,958

SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION

Transferred from other assets to property, plant and equipment and
construction in process

$

1,325,819

$

317,258

Properties acquired from capital lease

21,014,564

$

The accompanying notes in the Company’s 10-Q are an integral part of these consolidated financial statements.

For more information, please contact:

COMPANY

INVESTOR RELATIONS

Xin Ma, Chief Financial Officer

David Rudnick, Account Manager

SkyPeople Fruit Juice, Inc.

Precept Investor Relations

Tel: China + 86 – 29-8837-7161

Tel: US +1 917-864-8849

Email: oliver.x.ma@skypeoplefruitjuice.com

Email: david.rudnick@preceptir.com

Web: http://www.skypeoplefruitjuice.com