SkyPeople Fruit Juice, Inc. ("SkyPeople" or "the Company"), a processor and manufacturer of concentrated apple, kiwifruit, pear and other fruit juices and fruit products in the People's Republic of China, today announced that it has acquired 100% ownership of Yingkou Trusty Fruits Co., Ltd. located in Yingkou, Liaoning Province, for an aggregate purchase price of approximately US$3.3 million (RMB 22.7 million). This acquisition will expand SkyPeople's annual concentrated apple juice production capacity by approximately 10,000 tons to 20,000 tons.
As of June 30, 2009, SkyPeople had made an initial upfront cash payment of approximately US$2.9 million (RMB 20.0 million) pursuant to a letter of intent between Tianren and Dehao. SkyPeople will pay the remaining US$395,547 (RMB 2.7 million) in cash by November 25, 2009.
In 2009, SkyPeople began production of concentrated apple juice in August and by the end of the third quarter had reached its full capacity. In the third quarter of 2009, the total revenue from SkyPeople's apple-related products increased by 184% year-over-year to approximately $1.0 million.
Prior to the acquisition, Xi'an Dehao Investment & Consulting Co., Ltd (Dehao) held 100% ownership interest in Yingkou Trusty Fruits Co. On November 18, 2009, SkyPeople's wholly-owned subsidiary, Shaanxi Tianren Organic Food Co., Ltd (Shaanxi Tianren), entered into a stock purchase agreement with Dehao to purchase 100% ownership interest in Yingkou.
Mr. Yongke Xue, CEO of SkyPeople said, "We are ramping up our capacity to capitalize on potential apple juice concentrate opportunities. The completion of this acquisition puts us on track to secure additional revenue. We gain significant competitive advantage with expanded production facilities strategically located in Liaoning Province, which is known to produce the largest amount of high acidity apples in China, and we are well positioned to capture additional apple fruit juice concentrate market share."
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc. is a holding company of Shaanxi Tianren. Shaanxi Tianren is a company organized according to the laws of the People's Republic of China. Shaanxi Tianren's main products are concentrated apple, kiwifruit, pear and other fruit juices for domestic and international consumers. Its brand, HEDETANG, is positioned as a high quality, healthy and nutritious juice concentrate and clear juice product used both as an ingredient component in other products and an end-use juice concentrate product. We believe Shaanxi Tianren utilizes the largest kiwifruit plantation in China and is a leading producer of concentrated kiwifruit juice in Aisa. For more information, please visit http://www.skypeoplefruitjuice.com .
This press release contains certain "forward-looking statements" that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the actual results and future events could differ materially from management's current expectations. Such factors include, but are not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its products in new markets and to offer products at competitive pricing, to attract and retain management, and to integrate and maintain technical information and management information systems, political and economic factors in the People's Republic of China, compliance requirement of laws and regulations of the PRC, the effects of currency policies and fluctuations, general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.