SkyPeople Fruit Juice Acquires Yingkou Trusty Fruits Co. to Expand Production Capacity
November 25 2009 - 3:01PM
PR Newswire (US)
XI'AN, China, Nov. 25 /PRNewswire-Asia-FirstCall/ -- SkyPeople
Fruit Juice, Inc. (NYSE Amex: SPU) ("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/ .
Forward-Looking Statements 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. For more information, please contact:
SkyPeople Fruit Juice, Inc. Ms. Spring Liu, CFO Tel:
+1-818-390-1272 Email: DATASOURCE: SkyPeople Fruit Juice, Inc.
CONTACT: SkyPeople Fruit Juice, Inc., Ms. Spring Liu, CFO,
+1-818-390-1272, or Web site: http://www.skypeoplefruitjuice.com/
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