Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 28, 2014 | Jun. 28, 2013 |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'SkyPeople Fruit Juice, Inc | ' | ' |
Entity Central Index Key | '0001066923 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity a Well-known Seasoned Issuer | 'No | ' | ' |
Entity a Voluntary Filer | 'No | ' | ' |
Entity's Reporting Status Current | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Public Float | ' | ' | $26.90 |
Entity Common Stock, Shares Outstanding | ' | 26,661,499 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and cash equivalents | $66,888,954 | $77,560,278 |
Restricted cash | 7,216,782 | ' |
Accounts receivables, net of allowance of $211,039 and $46,643 as of December 31, 2013 and December 31, 2012, respectively | 34,179,426 | 49,435,961 |
Other receivables | 575,040 | 201,417 |
Inventories | 4,381,900 | 7,278,191 |
Deferred tax assets | 535,713 | 90,576 |
Advances to suppliers and other current assets | 1,298,201 | 71,536 |
TOTAL CURRENT ASSETS | 115,076,016 | 134,637,959 |
PROPERTY, PLANT AND EQUIPMENT, NET | 61,907,175 | 52,294,255 |
LAND USE RIGHT, NET | 6,522,152 | 6,508,149 |
OTHER ASSETS | 49,614,200 | 1,778,648 |
TOTAL ASSETS | 233,119,543 | 195,219,011 |
LIABILITIES | ' | ' |
Accounts payable | 3,572,968 | 14,399,282 |
Accrued expenses and other payables | 4,008,715 | 2,050,675 |
Income tax payable | 1,749,138 | 3,127,245 |
Advances from customers | 355,968 | 530,437 |
Notes payable -bank | 10,825,173 | ' |
Short-term loan - related party | 24,970 | ' |
Short-term bank loans | 22,626,679 | 11,661,761 |
TOTAL CURRENT LIABILITIES | 43,163,611 | 31,769,400 |
NON-CURRENT LIABILITIES | ' | ' |
Long-term loan - related party | 8,000,000 | ' |
TOTAL LIABILITIES | 51,163,611 | 31,769,400 |
STOCKHOLDER' EQUITY | ' | ' |
Series B Preferred stock, $0.001 par value; 10,000,000 shares authorized; None issued and outstanding as of December 31, 2013 and December 31, 2012, respectively | ' | ' |
Common stock, $0.001 par value; 66,666,666 shares authorized; 26,661,499 shares issued and outstanding as of December 31, 2013 and 2012, respectively | 26,661 | 26,661 |
Additional paid-in capital | 59,189,860 | 59,189,860 |
Retained earnings | 94,962,299 | 82,793,585 |
Accumulated other comprehensive income | 19,354,599 | 14,500,860 |
Total SkyPeople Fruit Juice, Inc. stockholders' equity | 173,533,419 | 156,510,966 |
Non-controlling interests | 8,422,513 | 6,938,645 |
TOTAL STOCKHOLDERS' EQUITY | 181,955,932 | 163,449,611 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $233,119,543 | $195,219,011 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Accounts receivables, net of allowance | $211,039 | $46,643 |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred Stock Series B, Par Value Per Share | $0.00 | $0.00 |
Preferred Stock Series B, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock Series B, Shares Issued | ' | ' |
Preferred Stock Series B, Shares Outstanding | ' | ' |
Common Stock, Par Value Per Share | $0.00 | $0.00 |
Common Stock, Shares Authorized | 66,666,666 | 66,666,666 |
Common Stock, Shares, Issued | 26,661,499 | 26,661,499 |
Common Stock, Shares, Outstanding | 26,661,499 | 26,661,499 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Comprehensive Income [Abstract] | ' | ' |
Revenue | $78,986,296 | $102,356,001 |
Cost of goods sold | 51,433,323 | 69,283,010 |
Gross profit | 27,552,973 | 33,072,991 |
Operating Expenses | ' | ' |
General and administrative expenses | 5,296,910 | 4,409,055 |
Selling expenses | 4,058,784 | 2,899,141 |
Research and development expenses | 20,183 | 570,278 |
Total operating expenses | 9,375,877 | 7,878,474 |
Income from operations | 18,177,096 | 25,194,517 |
Other income (expenses) | ' | ' |
Interest income | 319,623 | 314,628 |
Subsidy income | 1,295,949 | 1,908,802 |
Interest expenses | -1,983,831 | -888,574 |
Settlement relating to prior acquisition | ' | -475,248 |
Total other income (expenses) | -368,259 | 859,608 |
Income before income tax | 17,808,837 | 26,054,125 |
Income tax provision | 4,639,259 | 6,871,238 |
Net income | 13,169,578 | 19,182,887 |
Less: Net income attributable to non-controlling interests | 1,000,864 | 1,012,755 |
Net income attributable to SkyPeople Fruit Juice, Inc. | 12,168,714 | 18,170,132 |
Other comprehensive income | ' | ' |
Foreign currency translation adjustment | 5,336,743 | 437,329 |
Comprehensive income | 17,505,457 | 18,607,461 |
Other comprehensive income attributable to non-controlling interests | 483,004 | 23,089 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO SKYPEOPLE FRUIT JUICE, INC. | $17,022,453 | $18,584,372 |
Earnings Per Share [Abstract] | ' | ' |
Basic earnings per share | $0.46 | $0.68 |
Diluted earnings per share | $0.46 | $0.68 |
Weighted average number of shares outstanding | ' | ' |
Basic | 26,661,499 | 26,107,264 |
Diluted | 26,661,499 | 26,661,499 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Common Stock | Additional paid-in capital | Retained earnings | Accumulative other comprehensive income | Non-controlling interests |
Beginning Balance, Amount at Dec. 31, 2011 | $143,829,395 | $1,457 | $25,690 | $59,189,374 | $64,623,453 | $14,086,620 | $5,902,801 |
Beginning Balance, Shares at Dec. 31, 2011 | ' | 1,456,647 | 25,690,402 | ' | ' | ' | ' |
Net income | 19,182,887 | ' | ' | ' | 18,170,132 | ' | 1,012,755 |
Preferred stock converted into common stock, Amount | ' | -1,457 | 971 | 486 | ' | ' | ' |
Preferred stock converted into common stock, Shares | ' | -1,456,647 | 971,097 | ' | ' | ' | ' |
Foreign currency translation adjustment | 437,329 | ' | ' | ' | ' | 414,240 | 23,089 |
Ending Balance, Amount at Dec. 31, 2012 | 163,449,611 | ' | 26,661 | 59,189,860 | 82,793,585 | 14,500,860 | 6,938,645 |
Ending Balance, Shares at Dec. 31, 2012 | ' | ' | 26,661,499 | ' | ' | ' | ' |
Net income | 13,169,578 | ' | ' | ' | 12,168,714 | ' | 1,000,864 |
Foreign currency translation adjustment | 5,336,743 | ' | ' | ' | ' | 4,853,739 | 483,004 |
Ending Balance, Amount at Dec. 31, 2013 | $181,955,932 | ' | $26,661 | $59,189,860 | $94,962,299 | $19,354,599 | $8,422,513 |
Ending Balance, Shares at Dec. 31, 2013 | ' | ' | 26,661,499 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $13,169,578 | $19,182,887 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 5,169,597 | 4,596,276 |
Deferred income tax assets | -445,137 | 83,709 |
Bad debt provision | 160,418 | ' |
Inventory markdown | 243,198 | ' |
Changes in operating assets and liabilities | ' | ' |
Accounts receivable | 16,203,666 | -13,290,808 |
Other receivable | -361,983 | -8,900 |
Advances to suppliers and other current assets | -1,205,789 | -4,861 |
Inventories | 2,829,649 | -1,131,943 |
Accounts payable | -11,096,289 | 11,370,240 |
Accrued expenses and other payables | 1,880,263 | -2,648,963 |
Income tax payable | -1,451,888 | 1,206,559 |
Advances from customers | -187,907 | 349,640 |
Net cash provided by operating activities | 24,907,376 | 19,703,836 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Additions to property, plant and equipment | -12,616,030 | -7,034,822 |
Payments for deposit on land use right | -36,733,518 | -1,205,038 |
Prepayments for deposit on equipment | -10,659,136 | -511,172 |
Net cash used in investing activities | -60,008,684 | -8,751,032 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Increased in restricted cash | -7,104,451 | 315,814 |
Proceeds from short-term notes | 10,656,677 | -284,131 |
Proceeds from related party loan | 8,024,970 | ' |
Proceeds from short-term bank loans | 17,178,140 | 6,336,634 |
Repayment of short-term bank loans | -6,739,021 | -1,138,658 |
Net cash provided by financing activities | 22,016,315 | 5,229,659 |
Effect of change in exchange rate | 2,413,669 | 223,808 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -10,671,324 | 16,406,271 |
Cash and cash equivalents, beginning of year | 77,560,278 | 61,154,007 |
Cash and cash equivalents, end of year | 66,888,954 | 77,560,278 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Cash paid for interest | 1,239,500 | 888,574 |
Cash paid for income taxes | 6,536,283 | 5,556,241 |
SUPPLEMENTARY DISCLOSURE OF SIGNIFICANT NON-CASH TRANSACTION | ' | ' |
Transferred from other assets to property, plant and equipment and construction in process | $355,836 | $5,221,925 |
Corporate_Information
Corporate Information | 12 Months Ended | |
Dec. 31, 2013 | ||
Corporate Information/Summary of Significant Accounting Policies [Abstract] | ' | |
CORPORATE INFORMATION | ' | |
1. | CORPORATE INFORMATION | |
SkyPeople Fruit Juice, Inc. (“SkyPeople” or the “Company”), formerly known as Entech Environmental Technologies, Inc. (“Entech”) and Cyber Public Relations, Inc. (“Cyber Public Relations”), was initially incorporated on June 29, 1998 under the laws of the State of Florida. | ||
The Company, through its wholly owned subsidiary Pacific Industry Holding Group Co., Ltd. (“Pacific”) and SkyPeople Juice International Holding (HK) Ltd. (“SkyPeople International”) is a holding company for SkyPeople Juice Group Co., Ltd. (“SkyPeople (China)”), a company organized under the laws of the People’s Republic of China (“PRC”), in which SkyPeople International holds a 99.78% ownership interest (which was increased from 99% on December 7, 2010), SkyPeople (China) is engaged in the business of producing and selling a wide variety of fruit products, including fruit juice concentrates, fruit juice beverages, and fruit-related products in the PRC and overseas market. | ||
All activities of the Company are principally conducted by subsidiaries operating in the PRC. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Corporate Information/Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of Preparation | |||||||||
These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. | |||||||||
The Company’s functional currency is the Chinese Renminbi (RMB); however, the accompanying consolidated financial statements have been translated and presented in United States Dollars (USD). | |||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. | |||||||||
Certain amounts of prior year were reclassified to conform with current year presentation. | |||||||||
Use of Estimates | |||||||||
The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, provision for staff benefit, valuation of change in fair value of warrant liability, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates. | |||||||||
Impairment of Long-Lived Assets | |||||||||
In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, or it is reasonably possible that these assets could become impaired as a result of technological or other industrial changes. The determination of recoverability of assets to be held and used is made by comparing the carrying amount of an asset to future undiscounted cash flows to be generated by the assets. | |||||||||
If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During the reporting periods there was no impairment loss of long-lived assets recognized. | |||||||||
Fair Value of Financial Instruments | |||||||||
On January 1, 2009, the Company adopted FASB Accounting Standard Codification Topic on Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. In February 2008, FASB deferred the effective date of ASC 820 by one year for certain non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The Company adopted the provisions of ASC 820, except as it applies to those non-financial assets and non-financial liabilities for which the effective date has been delayed by one year. | |||||||||
ASC 820 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable input, which may be used to measure fair value and include the following: | |||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2 - Input other than Level 1 that is observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other input that is observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||
Level 3 - Unobservable input that is supported by little or no market activity and that is significant to the fair value of the assets or liabilities. | |||||||||
Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. | |||||||||
The Company has no assets or liabilities measured at fair value or recurring basis. | |||||||||
Earnings Per Share | |||||||||
Under ASC 260-10, Earnings Per Share, basic EPS excludes dilution for Common Stock equivalents and is calculated by dividing net income available to common stockholders by the weighted-average number of Common Stock outstanding for the period. Our Series B Convertible Preferred Stock is a participating security. Consequently, the two-class method of income allocation is used in determining net income available to common stockholders. | |||||||||
Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table. | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
NUMERATOR FOR BASIC AND DILUTED EPS | |||||||||
Net income (numerator for Diluted EPS) | $ | 12,168,714 | $ | 18,170,132 | |||||
Net income allocated to Preferred Stock holders | - | (377,718 | ) | ||||||
Net income allocated to Common Stock holders | 12,168,714 | 17,792,414 | |||||||
DENOMINATORS FOR BASIC AND DILUTED EPS | |||||||||
Weighted average Common Stock outstanding | 26,661,499 | 26,107,264 | |||||||
DENOMINATOR FOR BASIC EPS | 26,661,499 | 26,107,264 | |||||||
Add: Weighted average Preferred Stock, as if converted | - | 554,235 | |||||||
Add: Weighted average stock warrants outstanding | - | - | |||||||
DENOMINATOR FOR DILUTIVED EPS | 26,661,499 | 26,661,499 | |||||||
EPS - Basic | $ | 0.46 | $ | 0.68 | |||||
EPS - Diluted | $ | 0.46 | $ | 0.68 | |||||
The diluted earnings per share calculation for the year ended December 31, 2013 and 2012 did not include the warrants to purchase up to 175,000 shares of common stock, because their effect was anti-dilutive. | |||||||||
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents included cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original maturity of three months or less. | |||||||||
Deposits in banks in the PRC are not insured by any government entity or agency, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. | |||||||||
Restricted Cash | |||||||||
Restricted cash consists of cash equivalents used as collateral to secure short-term notes payable. | |||||||||
Accounts Receivable | |||||||||
Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We extend credit to our customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required. | |||||||||
We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary. | |||||||||
Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that we should abandon such efforts. | |||||||||
The Company has not experienced any significant difficulty in collecting its accounts receivable in the past and is not aware of any financial difficulties being experienced by its major customers. Bad debt expense was $160,418 and zero during the years ended December 31, 2013 and 2012, respectively. Our credit term for distributors with good credit history is from 30 days to 120 days. As of December 31, 2013 and 2012, accounts receivables of $522,591 and zero have been outstanding for over 120 days. | |||||||||
Inventories | |||||||||
Inventories consist of raw materials, packaging materials (which include ingredients and supplies) and finished goods (which include finished juice in the bottling and canning operations). Inventories are valued at the lower of cost or market. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off. The Company recorded inventory markdown allowance of $243,198 and zero for the year ended December 31, 2013 and 2012, respectively. | |||||||||
Revenue Recognition | |||||||||
The Company recognizes revenue in accordance with ASC 605, Revenue Recognition. Revenue from sales of products is recognized upon shipment or delivery to customers, provided that persuasive evidence of sales arrangements exist, title and risk of loss have been transferred to the customers, the sales amounts are fixed and determinable and collection of the revenue is reasonably assured. Customers have no contractual right to return products. Historically, the Company has not had any returned products. Accordingly, no provision has been made for returnable goods. The Company is not required to rebate or credit a portion of the original fee if it subsequently reduces the price of its product and the distributor still has rights with respect to that product. | |||||||||
Shipping and Handling Costs | |||||||||
Shipping and handling amounts billed to customers in related sales transactions are included in sales revenues and shipping expenses incurred by the Company are reported as a component of selling expenses. The shipping and handling expenses of $1,591,749 and $1,642,317 for 2013 and 2012, respectively, are reported in the Consolidated Statements of Income and Comprehensive Income as a component of selling expenses. | |||||||||
Government Subsidies | |||||||||
A government subsidy is recognized only when the Company complies with any conditions attached to the grant and there is reasonable assurance that the grant will be received. | |||||||||
The government subsidies recognized were $1,295,949 and $1,908,802 for the years ended December 31, 2013 and 2012, respectively, and are included in other income of the consolidated statements of comprehensive income. | |||||||||
Common Stock Purchase Warrants and Other Derivative Financial Instruments | |||||||||
The Company classifies as equity any contracts that require physical settlement or net-share settlement or provide a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) provided that such contracts are indexed to the Company’s stock as defined in ASC 815-40 (“Contracts in Entity’s Own Equity”). The Company classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. | |||||||||
Stock-Based Compensation | |||||||||
The Company recognizes compensation expense for stock-based compensation in accordance with ASC Topic 718. For employee stock-based awards, the Company calculates the fair value of the award on the date of grant using the Black-Scholes method for stock options and the quoted price of common stock for unrestricted shares; the expense is recognized over the service period for awards expected to vest. For non-employee stock-based awards, the fair value of the award on the date of grant is calculated in the same manner as employee awards, however, the awards are revalued at the end of each reporting period and the pro rata compensation expense is adjusted accordingly until such time the nonemployee award is fully vested, at which time the total compensation recognized to date equals the fair value of the stock-based award as calculated on the measurement date, which is the date at which the award recipient’s performance is complete. The estimation of stock-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from original estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class, and historical experience. | |||||||||
Advertising and Promotional Expense | |||||||||
Advertising and promotional costs are expensed as incurred and are included in selling expenses. The Company incurred $104,156 and $135,817 in advertising and promotional costs for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are expensed as incurred. Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. | |||||||||
Construction in progress primarily represents the construction or the renovation costs of plant, machinery and equipment stated at cost less any accumulated impairment loss, which is not depreciated. Costs and interest on borrowings incurred are capitalized and transferred to property and equipment upon completion, at which time depreciation commences. Cost of repairs and maintenance is expensed as incurred. | |||||||||
Depreciation related to property, plant and equipment used in production is reported in cost of sales. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows: | |||||||||
Buildings | 20-30 years | ||||||||
Machinery and equipment | 5-10 years | ||||||||
Furniture and office equipment | 3-5 years | ||||||||
Motor vehicles | 5 years | ||||||||
Foreign Currency and Other Comprehensive Income | |||||||||
The financial statements of the Company’s foreign subsidiaries are measured using the local currency as the functional currency; however, the functional currency and the reporting currency of the Company are the United States dollar (“USD”). Assets and liabilities of the Company’s foreign subsidiaries have been translated into USD using the exchange rate at the balance sheet date, while equity accounts are translated using historical exchange rate. The average exchange rate for the period has been used to translate revenues and expenses. Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). | |||||||||
Other comprehensive income for the year ended December 31, 2013 and 2012 represented foreign currency translation adjustments and were included in the consolidated statements of income and comprehensive income. | |||||||||
Income Taxes | |||||||||
We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. | |||||||||
ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. | |||||||||
Leases | |||||||||
Leases are reviewed and classified as capital or operating at their inception in accordance with ASC Topic 840, Accounting for Leases. For leases that contain rent escalations, the Company records monthly rent expense equal to the total amount of the payments due in the reporting period over the lease term. The difference between rent expense recorded and the amount paid is credited or charged to deferred rent account. | |||||||||
Land Use Right | |||||||||
The Company paid in advance for land use rights according to Chinese law. Prepaid land use rights are being amortized and recorded as lease expenses using the straight-line method over the use terms of the lease, which are 40 to 50 years. | |||||||||
Reportable Segments | |||||||||
We have six operating segments for financial reporting purposes for all periods presented in our consolidated financial statements in accordance with FASB ASC 280 “Segment Reporting.” | |||||||||
Research and Development | |||||||||
Research and development costs are expensed when incurred and are included in operating expenses. | |||||||||
Retirement Costs | |||||||||
Retirement cost contributions relating to defined contribution plans are made based on a percentage of the relevant employees’ salaries and are included in the consolidated Statement of Comprehensive Income as they become payable. The assumptions used in calculating the obligation for retirement cost contributions depend on the local economic environment, interpretations and practices in respect thereof. The Company recorded zero retirement costs during the year ended December 31, 2013 and 2012, respectively. | |||||||||
New Accounting Pronouncements | |||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-05, Foreign Currency Matters, (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05), to resolve a diversity in accounting for the cumulative translation adjustment of foreign currency upon derecognition of a foreign subsidiary or group of assets. ASU 2013-05 requires the parent to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Further, ASU 2013-05 clarified that the parent should apply the guidance in subtopic 810-10 if there is a sale of an investment in a foreign entity, including both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. ASU 2013-05 is effective prospectively for the Company in its first quarter of fiscal 2014, with early adoption permitted. The Company does not expect ASU 2013-05 to have a significant impact on its consolidated results of operations and financial condition. | |||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740)(ASU 2013-11). The amendments in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. These amendments provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company does not expect ASU 2013-11 to have a significant impact on its consolidated results of operations and financial condition. | |||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
3. | INVENTORIES | ||||||||
Inventories by major categories are summarized as follows: | |||||||||
December 31, | |||||||||
2012 | 2011 | ||||||||
Raw materials and packaging | $ | 1,030,866 | $ | 973,139 | |||||
Finished goods | 3,351,034 | 6,305,052 | |||||||
Inventories | $ | 4,381,900 | $ | 7,278,191 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | ||||||||
4. | PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment consist of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | $ | 35,285,220 | $ | 33,393,352 | |||||
Furniture and office equipment | 372,618 | 278,853 | |||||||
Motor vehicles | 564,017 | 528,137 | |||||||
Buildings | 37,994,690 | 32,346,098 | |||||||
Construction in progress | 10,738,946 | 3,192,672 | |||||||
Subtotal | 84,955,491 | 69,739,112 | |||||||
Less: accumulated depreciation | (23,048,316 | ) | (17,444,857 | ) | |||||
Net property and equipment | $ | 61,907,175 | 52,294,255 | ||||||
During 2013, due to weather condition, purchasing price of apples in Northeastern China was unexpectedly high. As a result, our production facilities in Yingkou have not been used during entire 2013. Management believes that purchasing price of apples will decrease in 2014 to its normal level and our production facilities in Yingkou will be used in 2014 and beyond. Thus the Company charged no impairment of long-lived assets during 2013. | |||||||||
There were no impairment provisions made for the year ended December 31, 2013 and 2012. | |||||||||
Depreciation expense included in general and administration expenses for the year ended December 31, 2013 and 2012 was $1,141,997 and $391,532, respectively. Depreciation expense included in cost of sales for the year ended December 31, 2013 and 2012 was $3,843,197 and $4,023,824, respectively. |
Land_Usage_Rights
Land Usage Rights | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Land Usage Rights [Abstract] | ' | ||||||||
LAND USAGE RIGHTS | ' | ||||||||
5. | LAND USAGE RIGHTS | ||||||||
According to the laws of the PRC, the government owns all of the land in the PRC. The government of the PRC, its agencies and collectives hold all land ownership. Companies or individuals are authorized to use the land only through land usage rights granted by the PRC government. Land usage rights can be transferred upon approval by the land administrative authorities of the PRC (State Land Administration Bureau) upon payment of the required land transfer fee. Accordingly, the Company paid in advance for land usage rights. Prepaid land usage rights are being amortized and recorded as lease expenses using the straight-line method over the terms of the leases, which range from 40 to 50 years. The amortization expense was $184,403 and $180,920 for fiscal years 2013 and 2012, respectively. The following table sets forth land usage rights of the Company as of December 31, 2013 and 2012, respectively. | |||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Cost | $ | 8,038,175 | $ | 7,796,985 | |||||
Less ¼šAccumulated amortisation | (1,516,023 | ) | (1,288,836 | ) | |||||
$ | 6,522,152 | $ | 6,508,149 | ||||||
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Assets [Abstract] | ' | ||||||||
OTHER ASSETS | ' | ||||||||
6. | OTHER ASSETS | ||||||||
Other assets mainly include deposits to acquire land use right and purchase property, plant and equipment. Payments for acquiring land use right were recorded as long term deposits in other assets before the land use right certificate received. The amount will be transferred to Land Use Right once the official certificate received from the government. Payments to purchase property, plant and equipment were recorded as long term deposits in other assets. The amount will be transferred to property, plant and equipment once the equipment is delivered or installed. | |||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Deposits for land use rights | $ | 38,561,975 | $ | 1,210,214 | |||||
Deposits to purchase property, plant and equipment | 10,979,221 | 497,620 | |||||||
Other long-term deposit | 73,004 | 70,814 | |||||||
$ | 49,614,200 | $ | 1,778,648 |
ShortTerm_Bank_Loans
Short-Term Bank Loans | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Short Term Bank Loans [Abstract] | ' | ||||||||
SHORT-TERM BANK LOANS | ' | ||||||||
7. | SHORT-TERM BANK LOANS | ||||||||
Short-term bank loans consist of the following loans: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Loan payable to Huludao Bank, Suizhong branch due on June 10, 2014, bearing interest at 9.225% per annum, collateralized by the buildings, machinery and land usage rights of Huludao Wonder. | $ | 5,461,792 | $ | 5,297,907 | |||||
Loan payable to Bank of Chongqing, Xi'an branch due on March 20, 2013, bearing interest at 7.8% per annum, collateralized by the buildings and land usage rights of SkyPeople (China). This loan was paid off on March 25, 2013. | - | 3,181,927 | |||||||
Loan payable to China Construction Bank due on May 15, 2013, bearing interest at 6.56% per annum, collateralized by the buildings and machinery of SkyPeople (China) This loan was paid off on May 15, 2013. | - | 2,386,445 | |||||||
Loan payable to China Construction Bank due on May 19, 2014, bearing interest at 6% per annum, collateralized by the buildings of SkyPeople (China) | 2,148,633 | - | |||||||
Loan payable to China Construction Bank due on November 3, 2014, bearing interest at 6% per annum, collateralized by the buildings and land use rights of Yingkou. | 2,312,651 | - | |||||||
Loan payable to Bank of Xi'an due on May 22, 2013, bearing interest at 8.528% per annum, guaranteed by a third party Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd and our CEO, Mr. Hongke Xue. This loan was paid off on May 29, 2013. | - | 795,482 | |||||||
Loan payable to Bank of Xi'an due on June 17, 2014, bearing interest at 7.8% per annum, guaranteed by a third party Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd and our CEO, Mr. Hongke Xue. | 1,640,178 | - | |||||||
Loan payable to Shanghai Pudong Development Bank due on April 6, 2014, bearing interest at 6.6% per annum, collateralized by the buildings of SkyPeople (China) | 4,920,533 | - | |||||||
Loan payable to Bank of Beijing due on July 1, 2014, bearing interest at 7.8% per annum, collateralized by the buildings of a third party, Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd. | 4,920,534 | - | |||||||
Loan payable to China Merchants Bank due on October 30, 2014, bearing interest at 8.4% per annum, guaranteed by a third party, Shaanxi BoAi Medical Science & Technology Development Co., Ltd. and our CEO, Mr. Hongke Xue. | 656,071 | - | |||||||
Loan payable to China Construction Bank due on March 19, 2014, bearing interest at 3.2% per annum, collateralized by certain accounts receivable of SkyPeople (China). This loan was paid off on March 19, 2014. | 291,693 | - | |||||||
Loan payable to China Construction Bank due on March 24, 2014, bearing interest at 3.2% per annum, collateralized by certain accounts receivable of SkyPeople (China). This loan was paid off on February 20, 2014 and on March 24, 2014. | 274,594 | - | |||||||
$ | 22,626,679 | $ | 11,661,761 | ||||||
Notes_Payable_Bank
Notes Payable - Bank | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Notes Payable - Bank [Abstract] | ' | |||||||||||||
NOTES PAYABLE - BANK | ' | |||||||||||||
8. | NOTES PAYABLE – BANK | |||||||||||||
During the year ended December 31, 2013, the Company obtained a series of bank notes from various banks. Bank notes are collaterized by restricted cash and assets of the Company. The following table sets forth the outstanding bank notes as of December 31, 2013: | ||||||||||||||
December 31, | Restricted | |||||||||||||
2013 | Cash | Due date | ||||||||||||
Bank of Xi'an (1) | $ | 1,640,178 | $ | 820,089 | 9-Jan-14 | |||||||||
Shanghai Pudong Development Bank | 3,608,391 | 3,608,391 | 9-Apr-14 | |||||||||||
China Merchants Bank | 656,071 | 328,036 | 8-May-14 | |||||||||||
Bank of Ningxia | 4,920,533 | 2,460,266 | June 12, 204 | |||||||||||
$ | 10,825,173 | $ | 7,216,782 | |||||||||||
-1 | Bank notes has been paid off on January 9, 2014. | |||||||||||||
Related_Party_Transaction
Related Party Transaction | 12 Months Ended | |
Dec. 31, 2013 | ||
Related Party Transactions [Abstract] | ' | |
RELATED PARTY TRANSACTION | ' | |
9. | RELATED PARTY TRANSACTION | |
Sales to related party | ||
The company’s subsidiary sold fruit beverages to a related entity, Shaanxi Fullmart Convenient Chain Supermarket Co., Ltd. ("Fullmart") for approximately $2,600,000 and $2,176,000 for the year ended December 31, 2013 and 2012, respectively. The accounts receivable balances were approximately $731,000 and $624,000 as of December 31, 2013 and 2012, respectively. Fullmart is a company indirectly owned by our Chairman, Mr. Yongke Xue. | ||
Long-term – related party | ||
On February 18, 2013, SkyPeople (China) entered into a loan agreement with SkyPeople International Holdings Group Limited (the "Lender"). The Lender indirectly holds 50.2% interest in the Company. Mr. Yongke Xue ("Y. K. Xue"), the Chairman of the board of directors of the Company (the "Board"), and Mr. Hongke Xue, the newly elected Chief Executive Officer of the Company and director of the Board, indirectly and beneficially own 80.0% and 9.4% of equity interest in the Lender, respectively. Pursuant to the Agreement, the Lender agrees to extend to the Company a one-year unsecured term loan with a principal amount of $8.0 million at an interest rate of 6% per annum. During 2013, the Company received $8.0 million from the Lender. In February 2014, both parties extended this loan for another two years. |
Income_Tax
Income Tax | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
INCOME TAX | ' | ||||||||
10. | INCOME TAX | ||||||||
The Company is incorporated in the United States of America and is subject to United States federal taxation. No provisions for income taxes have been made, as the Company had no U.S. taxable income for the year ended December 31, 2013 and 2012. The effective income tax rate for the Company for both of the years ended December 31, 2013 and 2012 was 26%. The amount of unrecognized deferred tax liabilities for temporary differences related to the dividend from foreign subsidiaries is not determined because such determination is not practical. | |||||||||
The Company has not provided deferred taxes on undistributed earnings attributable to its PRC subsidiaries as they are to be permanently reinvested. On February 22, 2008, MOF, and SAT, jointly issued Cai Shui 2008 Circular 1, “Circular 1.” According to Article 4 of Circular 1, distributions of accumulated profits earned by foreign investment enterprises, (“FIE”) prior to January 1, 2008 to their foreign investors will be exempt from withholding tax, (“WHT”) while distribution of the profits earned by a FIE after January 1, 2008 to its foreign investors shall be subject to WHT. | |||||||||
Dividend payments by PRC subsidiaries are limited by certain statutory regulations in the PRC. No dividends may be paid by PRC subsidiaries without first receiving prior approval from SAFE. Dividend payments are restricted to 90% of after tax profits. | |||||||||
Should the Company’s PRC subsidiaries distribute all their profits generated after December 31, 2007, the aggregate withholding tax amount will be $10,135,412 and $8,726,331 as of December 31, 2013 and 2012, respectively. | |||||||||
The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of ASC Topic 740, Income Taxes. Since SkyPeople (China) intends to reinvest its earnings to further expand its businesses in mainland China, its PRC subsidiaries do not intend to declare dividends to their immediate foreign holding companies in the foreseeable future. Accordingly, the Company has not recorded any deferred taxes in relation to US tax on the cumulative amount of undistributed retained earnings since January 1, 2008. | |||||||||
Effective on January 1, 2008, the PRC Enterprise Income Tax Law, EIT Law, and Implementing Rules imposed a unified enterprise income tax rate of 25% on all domestic-invested enterprises and foreign-invested enterprises in the PRC, unless they qualify under certain limited exceptions. All of the Companies’ Chinese subsidiaries were subject to an enterprise income tax rate of 25%. | |||||||||
The reconciliation of income tax expense at the U.S. statutory rate of 35% in 2013 and 2012, to the Company's effective tax rate is as follows: | |||||||||
Year ended December 31, | |||||||||
2013 | 2012 | ||||||||
U.S. Statutory rate | $ | 6,233,094 | $ | 9,118,943 | |||||
Tax rate difference between China and U.S. | (1,849,640 | ) | (2,703,421 | ) | |||||
Change in Valuation Allowance | 240,682 | 322,510 | |||||||
Permanent difference | 15,123 | 133,206 | |||||||
Effective tax rate | $ | 4,639,259 | $ | 6,871,238 | |||||
The provisions for income taxes are summarized as follows: | |||||||||
Year ended December 31, | |||||||||
2013 | 2012 | ||||||||
Current | $ | 5,084,396 | $ | 6,787,529 | |||||
Deferred | (445,137 | ) | 83,709 | ||||||
Total | $ | 4,639,259 | $ | 6,871,238 | |||||
The tax effects of temporary differences that give rise to the Company's net deferred tax asset as of December 31, 2013 and 2012 are as follows: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Net operating loss carryforward | $ | 1,189,075 | $ | 748,750 | |||||
Inventory markdown | 60,799 | - | |||||||
Bad debt provision | 40,104 | - | |||||||
Accrued expenses | 27,691 | 46,527 | |||||||
Startup costs | 97,918 | 31,885 | |||||||
Others | 89,038 | (8,356 | ) | ||||||
1,504,625 | 818,806 | ||||||||
Less valuation allowance | (968,912 | ) | (728,230 | ) | |||||
Deferred tax assets | $ | 535,713 | $ | 90,576 | |||||
Concentrations
Concentrations | 12 Months Ended | |
Dec. 31, 2013 | ||
Concentrations [Abstract] | ' | |
CONCENTRATIONS | ' | |
11. | CONCENTRATIONS | |
The Company did not have concentrations of customers constituting more than 10% of our sales in 2013 and 2012, respectively. | ||
Sales to our five largest customers accounted for approximately 24% and 29% of our net sales during the years ended December 31, 2013 and 2012, respectively. | ||
The Company changed its packing glass bottle supplier in 2011. The largest packing glass bottle supplier for our fruit beverages accounted for 23% and 14% of our total purchases in 2013 and 2012, respectively. Except the packing glass bottle supplier, we did not have concentrations of business with other vendors constituting more than 10% of the Company’s total purchases in 2013 and 2012. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
SEGMENT REPORTING | ' | ||||||||||||||||||||||||||||
12. | SEGMENT REPORTING | ||||||||||||||||||||||||||||
The Company operates in six segments: concentrated apple juice and apple aroma, concentrated kiwifruit juice and kiwifruit puree, concentrated pear juice, fruit juice beverages and fresh fruits and vegetables, and others. Our concentrated apple juice and apple aroma is primarily produced by the Company’s Huludao Wonder factory; concentrated pear juice is primarily produced by the Company’s Jiangyang factory. However, as the Company use the same production line to manufacture concentrated apple juice and concentrated pear juice. In addition, both Shaanxi Province, where the factory of Jianyang factory is located, and Liaoning Province, where the factory of Huludao Wonder is located, are rich in fresh apple and pear supplies, Jinagyang factory also produces concentrated apple juice and Huludao Wonder factory also produces concentrated pear juice when necessary. Concentrated kiwifruit juice and kiwifruit puree is primarily produced by the Company’s Qiyiwangguo factory, and fruit juice beverages is primarily produced by the Company’s Qiyiwangguo factory. The Company’s other products include fructose, concentrated turnjujube juice, and other by products, such as kiwifruit seeds. | |||||||||||||||||||||||||||||
Concentrated fruit juice is used as a basic ingredient for manufacturing juice drinks and as an additive to fruit wine and fruit jam, cosmetics and medicines. The Company sells its concentrated fruit juice to domestic customers and exported directly or via distributors. The Company believes that its main export markets are the United States, the European Union, South Korea, Russia and the Middle East to North America, Europe, Russia, South Korea and the Middle East. The Company sells its Hedetang branded bottled fruit beverages domestically primarily to supermarkets in the PRC. The Company sells its fresh fruit and vegetables to supermarkets and whole sellers in the PRC, | |||||||||||||||||||||||||||||
Some of these product segments might never individually meet the quantitative thresholds for determining reportable segments and we determine the reportable segments based on the discrete financial information provided to the chief operating decision maker. The chief operating decision maker evaluates the results of each segment in assessing performance and allocating resources among the segments. Since there is an overlap of services provided and products manufactured between different subsidiaries of the Company, the Company does not allocate operating expenses and assets based on the product segments. Therefore, operating expenses and assets information by segment are not presented. Segment profit represents the gross profit of each reportable segment. | |||||||||||||||||||||||||||||
(In Thousand) | Concentrated | Concentrated | Concentrated | Fruit | Fresh | Others | Total | ||||||||||||||||||||||
For the Year Ended | apple | kiwifruit | pear juice | juice | fruits and | ||||||||||||||||||||||||
31-Dec-13 | juice and | juice and | beverages | vegetables | |||||||||||||||||||||||||
apple aroma | kiwifruit | ||||||||||||||||||||||||||||
puree | |||||||||||||||||||||||||||||
Reportable segment revenue | $ | 8,679 | $ | 10,100 | $ | 21,008 | $ | 39,938 | $ | 815 | $ | 1,190 | $ | 81,730 | |||||||||||||||
Inter-segment revenue | (1,148 | ) | (292 | ) | (612 | ) | (390 | ) | (1 | ) | (301 | ) | (2,744 | ) | |||||||||||||||
Revenue from external customers | 7,531 | 9,808 | 20,396 | 39,548 | 814 | 889 | 78,986 | ||||||||||||||||||||||
Segment gross profit | $ | 1,535 | $ | 4,313 | $ | 6,500 | $ | 14,646 | $ | 395 | $ | 164 | $ | 27,553 | |||||||||||||||
(In Thousand) | Concentrated | Concentrated | Concentrated | Fruit | Fresh | Others | Total | ||||||||||||||||||||||
For the Year Ended | apple | kiwifruit | pear juice | juice | fruits and | ||||||||||||||||||||||||
31-Dec-12 | juice and | juice and | beverages | vegetables | |||||||||||||||||||||||||
apple aroma | kiwifruit | ||||||||||||||||||||||||||||
puree | |||||||||||||||||||||||||||||
Reportable segment revenue | 26,629 | $ | 10,668 | $ | 29,087 | $ | 27,276 | $ | 8,417 | $ | 5,853 | $ | 107,930 | ||||||||||||||||
Inter-segment revenue | (3,742 | ) | (1,516 | ) | (162 | ) | (139 | ) | - | (15 | ) | (5,574 | ) | ||||||||||||||||
Revenue from external customers | 22,887 | 9,152 | 28,925 | 27,137 | 8,417 | 5,838 | 102,356 | ||||||||||||||||||||||
Segment gross profit | $ | 4,640 | $ | 4,535 | $ | 8,507 | $ | 9,288 | $ | 4,663 | $ | 1,440 | $ | 33,073 | |||||||||||||||
The following table reconciles reportable segment profit to the Company’s consolidated income before income tax provision for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Segment profit | $ | 27,552,973 | $ | 33,072,991 | |||||||||||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||||||||||
Operating expenses | (9,375,877 | ) | (7,878,474 | ) | |||||||||||||||||||||||||
Other income/(expenses) | (368,259 | ) | 859,608 | ||||||||||||||||||||||||||
Income before tax provision | $ | 17,808,837 | $ | 26,054,125 | |||||||||||||||||||||||||
The Company’s export business is primarily comprised of fruit juice concentrates. As most of the export sales are through distributors and therefore we are not certain exactly where the Company’s products are ultimately sold, revenue by geographical location is not presented. However, the Company estimates that our main export markets are the United States, the European Union, South Korea, Russia and the Middle East. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
13. | COMMITMETNS AND CONTINGENCIES | |
Litigation | ||
On April 20, 2011, plaintiff Paul Kubala (on behalf of his minor child N.K.) filed a securities fraud class action lawsuit in the United States District Court, Southern District of New York against the Company, certain of its individual officers and/or directors, and Rodman & Renshaw, LLC, the underwriter of the Company’s follow-on public offering consummated in August 2010, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder. On June 20, 2011, plaintiff Benjamin Padnos filed a securities fraud class action lawsuit in the United States District Court, Southern District of New York against the Company, certain of its current and former officers and/or directors, the Company’s former independent auditors Child Van Wagner & Bradshaw, PLLC and BDO Limited, and Rodman & Renshaw, LLC, the underwriter of the Company’s follow-on public offering consummated in August 2010, alleging violations of Sections10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. On August 30, 2011, the Court consolidated the foregoing two actions and appointed Zachary Lewy as lead plaintiff. On September 30, 2011, pursuant to the Court’s order, Lead Plaintiff filed a consolidated complaint, which names the Company, Rodman & Renshaw, LLC, BDO Limited, Child Van Wagoner & Bradshaw PLLC and certain of the Company’s current and former directors and/or officers and majority shareholders as defendants, and alleges violations of Sections 11, 12 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Exchange Act, and the rules promulgated thereunder. The Consolidated Complaint seeks, among other things, compensatory damages, and reasonable costs and expenses incurred in the action. On December 21, 2011, the Company and certain of the individual defendants filed a motion to dismiss the Consolidated Complaint. On May 3, 2012, Lead Plaintiff voluntarily dismissed the claims against BDO Limited and Child Van Wagoner & Bradshaw PLLC. On September 10, 2012, the Court granted in part and denied in part the Company’s motion to dismiss the Consolidated Complaint. On January 11, 2013, defendant Rodman & Renshaw LLC filed for Chapter 11 bankruptcy protection, and, on January 18, 2013, the court imposed an automatic stay on Plaintiffs claims against Rodman pursuant to Section 326(a) of the Bankruptcy Code. The parties settled this matter by the Company agreeing to contribute $2,200,000 into a settlement fund to pay class members (the “Settlement”). On January 27, 2014, the Court entered an order approving the Settlement, certifying the class for settlement purposes and dismissing the suit with prejudice. | ||
On August 5, 2011, we received a shareholder demand letter from counsel for a purported shareholder. The letter was addressed to the Company’s Board of Directors and requested the Board of Directors to take a number of actions in order to repair the alleged “harm” caused to the Company by certain of its directors and officers, as well as its current and former auditors. The Board of Directors has been reviewing this shareholder demand letter and considering appropriate action that the Company should undertake. On November 7, 2011, Baosheng Lu and Tao Wang were appointed to serve as directors of the board and the independent directors of the board appointed them to serve as the members of the evaluation committee. The evaluation committee is in the process of evaluating the actions demanded by the shareholder and retaining counsel to respond to the shareholder inquiry. No formal shareholder derivative complaint has been filed to date on behalf of the Company. The Company believes any such suit would be without merit and would vigorously defend its position in this regard. | ||
On July 8, 2011, the Company brought suit against Absaroka Capital Management, LLC (“Absaroka”) and its principal Kevin Barnes in the U.S. District Court of Wyoming under the caption SkyPeople, Inc. v. Absaroka Capital Management, LLC, et al., No. 11-cv-238. Absaroka is a purported independent investment analyst who, while holding a short position in our stock, issued a so-called research report (the “Report”) asserting, inter alia, that the Company had inflated revenues. We brought suit alleging three causes of action for libel per se, libel per quod and intentional interference with a prospective business relationship. In or around November, 2011, Absaroka and Barnes brought counter claims against us for defamation per se, defamation per quod and abuse of process. On June 22, 2012, the Company and Absaroka reached an out-of-court settlement of litigation in the U.S. District Court for the District of Wyoming. The settlement includes a dismissal of all claims and counterclaims filed by the Parties, with neither party admitting any wrongdoing or liability. As part of the settlement agreement, Absaroka has agreed to remove the Report from its website, undertake best efforts to remove the Report from third-party sites, and refrain from issuing any further articles, public statements, or research reports concerning the Company. | ||
Other than the above, from time to time we may be a party to various litigation proceedings arising in the ordinary course of our business, none of which, in the opinion of management, is likely to have a material adverse effect on our financial condition or results of operations. |
Subsequent_Event
Subsequent Event | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events [Abstract] | ' | |
SUBSEQUENT EVENT | ' | |
14. | SUBSEQUENT EVENT | |
In January 2014, the SkyPeople (China), Xinda Financial Leasing Co., Ltd. (“Xinda”) entered into equipment leasing agreements with three suppliers, pursuant to which considerations of machinery and equipment will be paid by Xinda, SkyPeople (China) will lease these machinery and equipment from Xinda for five years. The total cost of equipment under this lease agreement is RMB129 million (approximately $21 million). Estimated lease payment will be approximately RMB 8 million per quarter (approximately $1.3 million). The Company will classify the leases as capital leases in accordance with ASC 840 “Leases”. | ||
In accordance with ASC 855, “Subsequent Events,” the Company has evaluated subsequent events that have occurred after the date of the balance sheet through the date of issuance of these financial statements and has determined that there was no material event need to be disclosed, other than discussed above. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Corporate Information/Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Basis of Presentation | ' | ||||||||
Basis of Preparation | |||||||||
These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. | |||||||||
The Company’s functional currency is the Chinese Renminbi (RMB); however, the accompanying consolidated financial statements have been translated and presented in United States Dollars (USD). | |||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant inter-company accounts and transactions have been eliminated. | |||||||||
Certain amounts of prior year were reclassified to conform with current year presentation. | |||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and this requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting period. The significant areas requiring the use of management estimates include, but not limited to, the allowance for doubtful accounts receivable, estimated useful life and residual value of property, plant and equipment, provision for staff benefit, valuation of change in fair value of warrant liability, recognition and measurement of deferred income taxes and valuation allowance for deferred tax assets. Although these estimates are based on management’s knowledge of current events and actions management may undertake in the future, actual results may ultimately differ from those estimates. | |||||||||
Impairment of Long-Lived Assets | ' | ||||||||
Impairment of Long-Lived Assets | |||||||||
In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, or it is reasonably possible that these assets could become impaired as a result of technological or other industrial changes. The determination of recoverability of assets to be held and used is made by comparing the carrying amount of an asset to future undiscounted cash flows to be generated by the assets. | |||||||||
If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. During the reporting periods there was no impairment loss of long-lived assets recognized. | |||||||||
Fair Value of Financial Instruments | ' | ||||||||
Fair Value of Financial Instruments | |||||||||
On January 1, 2009, the Company adopted FASB Accounting Standard Codification Topic on Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. In February 2008, FASB deferred the effective date of ASC 820 by one year for certain non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). The Company adopted the provisions of ASC 820, except as it applies to those non-financial assets and non-financial liabilities for which the effective date has been delayed by one year. | |||||||||
ASC 820 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable input, which may be used to measure fair value and include the following: | |||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2 - Input other than Level 1 that is observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other input that is observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||
Level 3 - Unobservable input that is supported by little or no market activity and that is significant to the fair value of the assets or liabilities. | |||||||||
Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. | |||||||||
The Company has no assets or liabilities measured at fair value or recurring basis. | |||||||||
Earnings Per Share | ' | ||||||||
Earnings Per Share | |||||||||
Under ASC 260-10, Earnings Per Share, basic EPS excludes dilution for Common Stock equivalents and is calculated by dividing net income available to common stockholders by the weighted-average number of Common Stock outstanding for the period. Our Series B Convertible Preferred Stock is a participating security. Consequently, the two-class method of income allocation is used in determining net income available to common stockholders. | |||||||||
Diluted EPS is calculated by using the treasury stock method, assuming conversion of all potentially dilutive securities, such as stock options and warrants. Under this method, (i) exercise of options and warrants is assumed at the beginning of the period and shares of Common Stock are assumed to be issued, (ii) the proceeds from exercise are assumed to be used to purchase Common Stock at the average market price during the period, and (iii) the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) are included in the denominator of the diluted EPS computation. The numerators and denominators used in the computations of basic and diluted EPS are presented in the following table. | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
NUMERATOR FOR BASIC AND DILUTED EPS | |||||||||
Net income (numerator for Diluted EPS) | $ | 12,168,714 | $ | 18,170,132 | |||||
Net income allocated to Preferred Stock holders | - | (377,718 | ) | ||||||
Net income allocated to Common Stock holders | 12,168,714 | 17,792,414 | |||||||
DENOMINATORS FOR BASIC AND DILUTED EPS | |||||||||
Weighted average Common Stock outstanding | 26,661,499 | 26,107,264 | |||||||
DENOMINATOR FOR BASIC EPS | 26,661,499 | 26,107,264 | |||||||
Add: Weighted average Preferred Stock, as if converted | - | 554,235 | |||||||
Add: Weighted average stock warrants outstanding | - | - | |||||||
DENOMINATOR FOR DILUTIVED EPS | 26,661,499 | 26,661,499 | |||||||
EPS - Basic | $ | 0.46 | $ | 0.68 | |||||
EPS - Diluted | $ | 0.46 | $ | 0.68 | |||||
The diluted earnings per share calculation for the year ended December 31, 2013 and 2012 did not include the warrants to purchase up to 175,000 shares of common stock, because their effect was anti-dilutive. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents included cash on hand and demand deposits placed with banks or other financial institutions, which are unrestricted as to withdrawal and use and with an original maturity of three months or less. | |||||||||
Deposits in banks in the PRC are not insured by any government entity or agency, and are consequently exposed to risk of loss. The Company believes the probability of a bank failure, causing loss to the Company, is remote. | |||||||||
Restricted Cash | ' | ||||||||
Restricted Cash | |||||||||
Restricted cash consists of cash equivalents used as collateral to secure short-term notes payable. | |||||||||
Accounts Receivable | ' | ||||||||
Accounts Receivable | |||||||||
Accounts receivable are recognized and carried at the original invoice amount less an allowance for any uncollectible amount. We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in our existing accounts receivable. We extend credit to our customers based on an evaluation of their financial condition and other factors. We generally do not require collateral or other security to support accounts receivable. We perform ongoing credit evaluations of our customers and maintain an allowance for potential bad debts if required. | |||||||||
We determine whether an allowance for doubtful accounts is required by evaluating specific accounts where information indicates the customers may have an inability to meet financial obligations. In these cases, we use assumptions and judgment, based on the best available facts and circumstances, to record a specific allowance for those customers against amounts due to reduce the receivable to the amount expected to be collected. These specific allowances are re-evaluated and adjusted as additional information is received. The amounts calculated are analyzed to determine the total amount of the allowance. We may also record a general allowance as necessary. | |||||||||
Direct write-offs are taken in the period when we have exhausted our efforts to collect overdue and unpaid receivables or otherwise evaluate other circumstances that indicate that we should abandon such efforts. | |||||||||
The Company has not experienced any significant difficulty in collecting its accounts receivable in the past and is not aware of any financial difficulties being experienced by its major customers. Bad debt expense was $160,418 and zero during the years ended December 31, 2013 and 2012, respectively. Our credit term for distributors with good credit history is from 30 days to 120 days. As of December 31, 2013 and 2012, accounts receivables of $522,591 and zero have been outstanding for over 120 days. | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories consist of raw materials, packaging materials (which include ingredients and supplies) and finished goods (which include finished juice in the bottling and canning operations). Inventories are valued at the lower of cost or market. We determine cost on the basis of the weighted average method. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off. The Company recorded inventory markdown allowance of $243,198 and zero for the year ended December 31, 2013 and 2012, respectively. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
The Company recognizes revenue in accordance with ASC 605, Revenue Recognition. Revenue from sales of products is recognized upon shipment or delivery to customers, provided that persuasive evidence of sales arrangements exist, title and risk of loss have been transferred to the customers, the sales amounts are fixed and determinable and collection of the revenue is reasonably assured. Customers have no contractual right to return products. Historically, the Company has not had any returned products. Accordingly, no provision has been made for returnable goods. The Company is not required to rebate or credit a portion of the original fee if it subsequently reduces the price of its product and the distributor still has rights with respect to that product. | |||||||||
Shipping and Handling Costs | ' | ||||||||
Shipping and Handling Costs | |||||||||
Shipping and handling amounts billed to customers in related sales transactions are included in sales revenues and shipping expenses incurred by the Company are reported as a component of selling expenses. The shipping and handling expenses of $1,591,749 and $1,642,317 for 2013 and 2012, respectively, are reported in the Consolidated Statements of Income and Comprehensive Income as a component of selling expenses. | |||||||||
Government Subsidies | ' | ||||||||
Government Subsidies | |||||||||
A government subsidy is recognized only when the Company complies with any conditions attached to the grant and there is reasonable assurance that the grant will be received. | |||||||||
The government subsidies recognized were $1,295,949 and $1,908,802 for the years ended December 31, 2013 and 2012, respectively, and are included in other income of the consolidated statements of comprehensive income. | |||||||||
Common Stock Purchase Warrants and Other Derivative Financial Instruments | ' | ||||||||
Common Stock Purchase Warrants and Other Derivative Financial Instruments | |||||||||
The Company classifies as equity any contracts that require physical settlement or net-share settlement or provide a choice of net-cash settlement or settlement in the Company’s own shares (physical settlement or net-share settlement) provided that such contracts are indexed to the Company’s stock as defined in ASC 815-40 (“Contracts in Entity’s Own Equity”). The Company classifies as assets or liabilities any contracts that require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the Company’s control) or give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement). The Company assesses classification of common stock purchase warrants and other free standing derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation | |||||||||
The Company recognizes compensation expense for stock-based compensation in accordance with ASC Topic 718. For employee stock-based awards, the Company calculates the fair value of the award on the date of grant using the Black-Scholes method for stock options and the quoted price of common stock for unrestricted shares; the expense is recognized over the service period for awards expected to vest. For non-employee stock-based awards, the fair value of the award on the date of grant is calculated in the same manner as employee awards, however, the awards are revalued at the end of each reporting period and the pro rata compensation expense is adjusted accordingly until such time the nonemployee award is fully vested, at which time the total compensation recognized to date equals the fair value of the stock-based award as calculated on the measurement date, which is the date at which the award recipient’s performance is complete. The estimation of stock-based awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from original estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class, and historical experience. | |||||||||
Advertising and Promotional Expense | ' | ||||||||
Advertising and Promotional Expense | |||||||||
Advertising and promotional costs are expensed as incurred and are included in selling expenses. The Company incurred $104,156 and $135,817 in advertising and promotional costs for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Property, Plant and Equipment | ' | ||||||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Depreciation is computed using the straight-line method over the useful lives of the assets. Major renewals and betterments are capitalized and depreciated; maintenance and repairs that do not extend the life of the respective assets are expensed as incurred. Upon disposal of assets, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in the consolidated statements of income and comprehensive income. | |||||||||
Construction in progress primarily represents the construction or the renovation costs of plant, machinery and equipment stated at cost less any accumulated impairment loss, which is not depreciated. Costs and interest on borrowings incurred are capitalized and transferred to property and equipment upon completion, at which time depreciation commences. Cost of repairs and maintenance is expensed as incurred. | |||||||||
Depreciation related to property, plant and equipment used in production is reported in cost of sales. We estimated that the residual value of the Company’s property and equipment ranges from 3% to 5%. Property, plant and equipment are depreciated over their estimated useful lives as follows: | |||||||||
Buildings | 20-30 years | ||||||||
Machinery and equipment | 5-10 years | ||||||||
Furniture and office equipment | 3-5 years | ||||||||
Motor vehicles | 5 years | ||||||||
Foreign Currency and Other Comprehensive Income | ' | ||||||||
Foreign Currency and Other Comprehensive Income | |||||||||
The financial statements of the Company’s foreign subsidiaries are measured using the local currency as the functional currency; however, the functional currency and the reporting currency of the Company are the United States dollar (“USD”). Assets and liabilities of the Company’s foreign subsidiaries have been translated into USD using the exchange rate at the balance sheet date, while equity accounts are translated using historical exchange rate. The average exchange rate for the period has been used to translate revenues and expenses. Translation adjustments are reported separately and accumulated in a separate component of equity (cumulative translation adjustment). | |||||||||
Other comprehensive income for the year ended December 31, 2013 and 2012 represented foreign currency translation adjustments and were included in the consolidated statements of income and comprehensive income. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
We use the asset and liability method of accounting for income taxes in accordance with ASC Topic 740, “Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year and (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of the available positive and negative evidence, it is more likely than not some portion or all of the deferred tax assets will not be realized. | |||||||||
ASC Topic 740.10.30 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC Topic 740.10.40 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. We have no material uncertain tax positions for any of the reporting periods presented. | |||||||||
Leases | ' | ||||||||
Leases | |||||||||
Leases are reviewed and classified as capital or operating at their inception in accordance with ASC Topic 840, Accounting for Leases. For leases that contain rent escalations, the Company records monthly rent expense equal to the total amount of the payments due in the reporting period over the lease term. The difference between rent expense recorded and the amount paid is credited or charged to deferred rent account. | |||||||||
Land Use Right | ' | ||||||||
Land Use Right | |||||||||
The Company paid in advance for land use rights according to Chinese law. Prepaid land use rights are being amortized and recorded as lease expenses using the straight-line method over the use terms of the lease, which are 40 to 50 years. | |||||||||
Reportable Segments | ' | ||||||||
Reportable Segments | |||||||||
We have six operating segments for financial reporting purposes for all periods presented in our consolidated financial statements in accordance with FASB ASC 280 “Segment Reporting.” | |||||||||
Research and Development | ' | ||||||||
Research and Development | |||||||||
Research and development costs are expensed when incurred and are included in operating expenses. | |||||||||
Retirement Costs | ' | ||||||||
Retirement Costs | |||||||||
Retirement cost contributions relating to defined contribution plans are made based on a percentage of the relevant employees’ salaries and are included in the consolidated Statement of Comprehensive Income as they become payable. The assumptions used in calculating the obligation for retirement cost contributions depend on the local economic environment, interpretations and practices in respect thereof. The Company recorded zero retirement costs during the year ended December 31, 2013 and 2012, respectively. | |||||||||
New Accounting Pronouncements | ' | ||||||||
New Accounting Pronouncements | |||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-05, Foreign Currency Matters, (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (ASU 2013-05), to resolve a diversity in accounting for the cumulative translation adjustment of foreign currency upon derecognition of a foreign subsidiary or group of assets. ASU 2013-05 requires the parent to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment into net income when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Further, ASU 2013-05 clarified that the parent should apply the guidance in subtopic 810-10 if there is a sale of an investment in a foreign entity, including both (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. ASU 2013-05 is effective prospectively for the Company in its first quarter of fiscal 2014, with early adoption permitted. The Company does not expect ASU 2013-05 to have a significant impact on its consolidated results of operations and financial condition. | |||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Income Taxes (Topic 740)(ASU 2013-11). The amendments in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. These amendments provide that an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The Company does not expect ASU 2013-11 to have a significant impact on its consolidated results of operations and financial condition. | |||||||||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Corporate Information/Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Earnings Per share | ' | ||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | ||||||||
NUMERATOR FOR BASIC AND DILUTED EPS | |||||||||
Net income (numerator for Diluted EPS) | $ | 12,168,714 | $ | 18,170,132 | |||||
Net income allocated to Preferred Stock holders | - | (377,718 | ) | ||||||
Net income allocated to Common Stock holders | 12,168,714 | 17,792,414 | |||||||
DENOMINATORS FOR BASIC AND DILUTED EPS | |||||||||
Weighted average Common Stock outstanding | 26,661,499 | 26,107,264 | |||||||
DENOMINATOR FOR BASIC EPS | 26,661,499 | 26,107,264 | |||||||
Add: Weighted average Preferred Stock, as if converted | - | 554,235 | |||||||
Add: Weighted average stock warrants outstanding | - | - | |||||||
DENOMINATOR FOR DILUTIVED EPS | 26,661,499 | 26,661,499 | |||||||
EPS - Basic | $ | 0.46 | $ | 0.68 | |||||
EPS - Diluted | $ | 0.46 | $ | 0.68 | |||||
Estimated Useful Lives | ' | ||||||||
Buildings | 20-30 years | ||||||||
Machinery and equipment | 5-10 years | ||||||||
Furniture and office equipment | 3-5 years | ||||||||
Motor vehicles | 5 years |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
December 31, | |||||||||
2012 | 2011 | ||||||||
Raw materials and packaging | $ | 1,030,866 | $ | 973,139 | |||||
Finished goods | 3,351,034 | 6,305,052 | |||||||
Inventories | $ | 4,381,900 | $ | 7,278,191 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of property plant and equipment | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | $ | 35,285,220 | $ | 33,393,352 | |||||
Furniture and office equipment | 372,618 | 278,853 | |||||||
Motor vehicles | 564,017 | 528,137 | |||||||
Buildings | 37,994,690 | 32,346,098 | |||||||
Construction in progress | 10,738,946 | 3,192,672 | |||||||
Subtotal | 84,955,491 | 69,739,112 | |||||||
Less: accumulated depreciation | (23,048,316 | ) | (17,444,857 | ) | |||||
Net property and equipment | $ | 61,907,175 | 52,294,255 | ||||||
Land_Usage_Rights_Tables
Land Usage Rights (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Land Usage Rights [Abstract] | ' | ||||||||
Following table sets forth land usage rights of the Company | ' | ||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Cost | $ | 8,038,175 | $ | 7,796,985 | |||||
Less ¼šAccumulated amortisation | (1,516,023 | ) | (1,288,836 | ) | |||||
$ | 6,522,152 | $ | 6,508,149 | ||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Assets [Abstract] | ' | ||||||||
Schedule of Other Assets | ' | ||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Deposits for land use rights | $ | 38,561,975 | $ | 1,210,214 | |||||
Deposits to purchase property, plant and equipment | 10,979,221 | 497,620 | |||||||
Other long-term deposit | 73,004 | 70,814 | |||||||
$ | 49,614,200 | $ | 1,778,648 |
ShortTerm_Bank_Loans_Tables
Short-Term Bank Loans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Short Term Bank Loans [Abstract] | ' | ||||||||
Short Term Bank Loans | ' | ||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Loan payable to Huludao Bank, Suizhong branch due on June 10, 2014, bearing interest at 9.225% per annum, collateralized by the buildings, machinery and land usage rights of Huludao Wonder. | $ | 5,461,792 | $ | 5,297,907 | |||||
Loan payable to Bank of Chongqing, Xi'an branch due on March 20, 2013, bearing interest at 7.8% per annum, collateralized by the buildings and land usage rights of SkyPeople (China). This loan was paid off on March 25, 2013. | - | 3,181,927 | |||||||
Loan payable to China Construction Bank due on May 15, 2013, bearing interest at 6.56% per annum, collateralized by the buildings and machinery of SkyPeople (China) This loan was paid off on May 15, 2013. | - | 2,386,445 | |||||||
Loan payable to China Construction Bank due on May 19, 2014, bearing interest at 6% per annum, collateralized by the buildings of SkyPeople (China) | 2,148,633 | - | |||||||
Loan payable to China Construction Bank due on November 3, 2014, bearing interest at 6% per annum, collateralized by the buildings and land use rights of Yingkou. | 2,312,651 | - | |||||||
Loan payable to Bank of Xi'an due on May 22, 2013, bearing interest at 8.528% per annum, guaranteed by a third party Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd and our CEO, Mr. Hongke Xue. This loan was paid off on May 29, 2013. | - | 795,482 | |||||||
Loan payable to Bank of Xi'an due on June 17, 2014, bearing interest at 7.8% per annum, guaranteed by a third party Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd and our CEO, Mr. Hongke Xue. | 1,640,178 | - | |||||||
Loan payable to Shanghai Pudong Development Bank due on April 6, 2014, bearing interest at 6.6% per annum, collateralized by the buildings of SkyPeople (China) | 4,920,533 | - | |||||||
Loan payable to Bank of Beijing due on July 1, 2014, bearing interest at 7.8% per annum, collateralized by the buildings of a third party, Shaanxi Bo Ai Medical Science & Technology Development Co., Ltd. | 4,920,534 | - | |||||||
Loan payable to China Merchants Bank due on October 30, 2014, bearing interest at 8.4% per annum, guaranteed by a third party, Shaanxi BoAi Medical Science & Technology Development Co., Ltd. and our CEO, Mr. Hongke Xue. | 656,071 | - | |||||||
Loan payable to China Construction Bank due on March 19, 2014, bearing interest at 3.2% per annum, collateralized by certain accounts receivable of SkyPeople (China). This loan was paid off on March 19, 2014. | 291,693 | - | |||||||
Loan payable to China Construction Bank due on March 24, 2014, bearing interest at 3.2% per annum, collateralized by certain accounts receivable of SkyPeople (China). This loan was paid off on February 20, 2014 and on March 24, 2014. | 274,594 | - | |||||||
$ | 22,626,679 | $ | 11,661,761 | ||||||
Note_Payable_Bank_Table
Note Payable - Bank (Table) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Notes Payable - Bank [Abstract] | ' | |||||||||||||
Following table sets forth the outstanding bank notes | ' | |||||||||||||
December 31, | Restricted | |||||||||||||
2013 | Cash | Due date | ||||||||||||
Bank of Xi'an (1) | $ | 1,640,178 | $ | 820,089 | 9-Jan-14 | |||||||||
Shanghai Pudong Development Bank | 3,608,391 | 3,608,391 | 9-Apr-14 | |||||||||||
China Merchants Bank | 656,071 | 328,036 | 8-May-14 | |||||||||||
Bank of Ningxia | 4,920,533 | 2,460,266 | June 12, 204 | |||||||||||
$ | 10,825,173 | $ | 7,216,782 | |||||||||||
-1 | Bank notes has been paid off on January 9, 2014. | |||||||||||||
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Reconciliation of federal statutory income tax rate to our effective income tax rate | ' | ||||||||
Year ended December 31, | |||||||||
2013 | 2012 | ||||||||
U.S. Statutory rate | $ | 6,233,094 | $ | 9,118,943 | |||||
Tax rate difference between China and U.S. | (1,849,640 | ) | (2,703,421 | ) | |||||
Change in Valuation Allowance | 240,682 | 322,510 | |||||||
Permanent difference | 15,123 | 133,206 | |||||||
Effective tax rate | $ | 4,639,259 | $ | 6,871,238 | |||||
Provisions for income taxes | ' | ||||||||
Year ended December 31, | |||||||||
2013 | 2012 | ||||||||
Current | $ | 5,084,396 | $ | 6,787,529 | |||||
Deferred | (445,137 | ) | 83,709 | ||||||
Total | $ | 4,639,259 | $ | 6,871,238 | |||||
Net deferred tax asset | ' | ||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Net operating loss carryforward | $ | 1,189,075 | $ | 748,750 | |||||
Inventory markdown | 60,799 | - | |||||||
Bad debt provision | 40,104 | - | |||||||
Accrued expenses | 27,691 | 46,527 | |||||||
Startup costs | 97,918 | 31,885 | |||||||
Others | 89,038 | (8,356 | ) | ||||||
1,504,625 | 818,806 | ||||||||
Less valuation allowance | (968,912 | ) | (728,230 | ) | |||||
Deferred tax assets | $ | 535,713 | $ | 90,576 | |||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||
Segment Reporting | ' | ||||||||||||||||||||||||||||
(In Thousand) | Concentrated | Concentrated | Concentrated | Fruit | Fresh | Others | Total | ||||||||||||||||||||||
For the Year Ended | apple | kiwifruit | pear juice | juice | fruits and | ||||||||||||||||||||||||
31-Dec-13 | juice and | juice and | beverages | vegetables | |||||||||||||||||||||||||
apple aroma | kiwifruit | ||||||||||||||||||||||||||||
puree | |||||||||||||||||||||||||||||
Reportable segment revenue | $ | 8,679 | $ | 10,100 | $ | 21,008 | $ | 39,938 | $ | 815 | $ | 1,190 | $ | 81,730 | |||||||||||||||
Inter-segment revenue | (1,148 | ) | (292 | ) | (612 | ) | (390 | ) | (1 | ) | (301 | ) | (2,744 | ) | |||||||||||||||
Revenue from external customers | 7,531 | 9,808 | 20,396 | 39,548 | 814 | 889 | 78,986 | ||||||||||||||||||||||
Segment gross profit | $ | 1,535 | $ | 4,313 | $ | 6,500 | $ | 14,646 | $ | 395 | $ | 164 | $ | 27,553 | |||||||||||||||
(In Thousand) | Concentrated | Concentrated | Concentrated | Fruit | Fresh | Others | Total | ||||||||||||||||||||||
For the Year Ended | apple | kiwifruit | pear juice | juice | fruits and | ||||||||||||||||||||||||
31-Dec-12 | juice and | juice and | beverages | vegetables | |||||||||||||||||||||||||
apple aroma | kiwifruit | ||||||||||||||||||||||||||||
puree | |||||||||||||||||||||||||||||
Reportable segment revenue | 26,629 | $ | 10,668 | $ | 29,087 | $ | 27,276 | $ | 8,417 | $ | 5,853 | $ | 107,930 | ||||||||||||||||
Inter-segment revenue | (3,742 | ) | (1,516 | ) | (162 | ) | (139 | ) | - | (15 | ) | (5,574 | ) | ||||||||||||||||
Revenue from external customers | 22,887 | 9,152 | 28,925 | 27,137 | 8,417 | 5,838 | 102,356 | ||||||||||||||||||||||
Segment gross profit | $ | 4,640 | $ | 4,535 | $ | 8,507 | $ | 9,288 | $ | 4,663 | $ | 1,440 | $ | 33,073 | |||||||||||||||
Reportable segment profit | ' | ||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||
Segment profit | $ | 27,552,973 | $ | 33,072,991 | |||||||||||||||||||||||||
Unallocated amounts: | |||||||||||||||||||||||||||||
Operating expenses | (9,375,877 | ) | (7,878,474 | ) | |||||||||||||||||||||||||
Other income/(expenses) | (368,259 | ) | 859,608 | ||||||||||||||||||||||||||
Income before tax provision | $ | 17,808,837 | $ | 26,054,125 | |||||||||||||||||||||||||
Corporate_Information_Details_
Corporate Information (Details Textual) | Dec. 31, 2013 | Dec. 07, 2010 |
Corporate Information/Summary of Significant Accounting Policies [Abstract] | ' | ' |
Ownership interest | 99.78% | 99.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NUMERATOR FOR BASIC AND DILUTED EPS | ' | ' |
Net income (numerator for Diluted EPS) | $12,168,714 | $18,170,132 |
Net income allocated to Preferred Stock holders | ' | -377,718 |
Net income allocated to Common Stock holders | $12,168,714 | $17,792,414 |
DENOMINATORS FOR BASIC AND DILUTED EPS | ' | ' |
Weighted average Common Stock outstanding | 26,661,499 | 26,107,264 |
DENOMINATOR FOR BASIC EPS | 26,661,499 | 26,107,264 |
Add: Weighted average Preferred Stock, as if converted | ' | 554,235 |
Add: Weighted average stock warrants outstanding | ' | ' |
DENOMINATOR FOR DILUTIVED EPS | 26,661,499 | 26,661,499 |
EPS - Basic | $0.46 | $0.68 |
EPS - Diluted | $0.46 | $0.68 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) | 12 Months Ended |
Dec. 31, 2013 | |
Building [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '20-30 years |
Machinery and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '5-10 years |
Furniture and office equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '3-5 years |
Motor vehicles [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '5 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Accounting Policies [Line Items] | ' | ' |
Anti-dilutive warrants | 175,000 | 175,000 |
Bad debt provision | $160,418 | ' |
Shipping and handling expenses | 1,591,749 | 1,642,317 |
Accounts receivables | 522,591 | 0 |
Government Subsidies Recognized | 1,295,949 | 1,908,802 |
Advertising and promotional costs | 104,156 | 135,817 |
Inventory markdown allowance | 243,198 | 0 |
Retirement cost | $0 | $0 |
Maximum [Member] | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' |
Estimated residual value, property and equipment | 5.00% | ' |
Prepaid land use rights, Useful life | '50 years | ' |
Credit term | '120 days | ' |
Minimum [Member] | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' |
Estimated residual value, property and equipment | 3.00% | ' |
Prepaid land use rights, Useful life | '40 years | ' |
Credit term | '30 days | ' |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summarized for Inventories by major categories [Line Items] | ' | ' |
Raw materials and packaging | $1,030,866 | $973,139 |
Finished goods | 3,351,034 | 6,305,052 |
Inventories | $4,381,900 | $7,278,191 |
Property_Plant_and_Equiptment_
Property, Plant and Equiptment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Subtotal | $84,955,491 | $69,739,112 |
Less: accumulated depreciation | -23,048,316 | -17,444,857 |
Net property and equipment | 61,907,175 | 52,294,255 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Subtotal | 35,285,220 | 33,393,352 |
Furniture and office equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Subtotal | 372,618 | 278,853 |
Motor vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Subtotal | 564,017 | 528,137 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Subtotal | 37,994,690 | 32,346,098 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Subtotal | $10,738,946 | $3,192,672 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (DetailsTextual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation expense, included in general and administration expenses | $1,141,997 | $391,532 |
Depreciation expense, included in cost of sales | 3,843,197 | 4,023,824 |
Impairment provisions | $0 | $0 |
Land_Usage_Rights_Details
Land Usage Rights (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Land Usage Rights [Line Items] | ' | ' |
Cost | $8,038,175 | $7,796,985 |
Less: Accumulated amortisation | -1,516,023 | -1,288,836 |
Net | $6,522,152 | $6,508,149 |
Land_Usage_Rights_Details_Text
Land Usage Rights (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Land Usage Rights [Line Items] | ' | ' |
Amortization expense | $184,403 | $180,920 |
Minimum [Member] | ' | ' |
Land Usage Rights [Line Items] | ' | ' |
Leases Term, Useful life | '40 years | ' |
Maximum [Member] | ' | ' |
Land Usage Rights [Line Items] | ' | ' |
Leases Term, Useful life | '50 years | ' |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Other Assets [Line Items] | ' | ' |
Deposits for land use rights | $38,561,975 | $1,210,214 |
Deposits to purchase property, plant and equipment | 10,979,221 | 497,620 |
Other long-term deposit | 73,004 | 70,814 |
Other Assets | $49,614,200 | $1,778,648 |
ShortTerm_Bank_Loans_Details
Short-Term Bank Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Bank Loans | ' | ' |
Loans payable | $22,626,679 | $11,661,761 |
Huludao Bank, Suizhong branch due on June 10, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 5,461,792 | 5,297,907 |
Interest rate per annum | 9.23% | 9.23% |
Bank of Chongqing, Xi'an branch due on March 20, 2013 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | ' | 3,181,927 |
Interest rate per annum | 7.80% | 7.80% |
China Construction Bank due on May 15, 2013 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | ' | 2,386,445 |
Interest rate per annum | 6.56% | 6.56% |
China Construction Bank due on May 19, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 2,148,633 | ' |
Interest rate per annum | 6.00% | 6.00% |
China Construction Bank due on November 3, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 2,312,651 | ' |
Interest rate per annum | 6.00% | 6.00% |
Bank of Xi'an due on May 22, 2013 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | ' | 795,482 |
Interest rate per annum | 8.53% | 8.53% |
Bank of Xi'an due on June 17, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 1,640,178 | ' |
Interest rate per annum | 7.80% | 7.80% |
Shanghai Pudong Development Bank due on April 6, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 4,920,533 | ' |
Interest rate per annum | 6.60% | 6.60% |
Bank of Beijing due on July 1, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 4,920,534 | ' |
Interest rate per annum | 7.80% | 7.80% |
China Merchants Bank due on October 30, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 656,071 | ' |
Interest rate per annum | 8.40% | 8.40% |
China Construction Bank due on March 19, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | 291,693 | ' |
Interest rate per annum | 3.20% | 3.20% |
China Construction Bank due on March 24, 2014 | ' | ' |
Short-term Bank Loans | ' | ' |
Loans payable | $274,594 | ' |
Interest rate per annum | 3.20% | 3.20% |
Notes_Payable_Bank_Details
Notes Payable - Bank (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
Line of Credit Facility [Line Items] | ' | ' | |
Notes payable -bank | $10,825,173 | ' | |
Restricted cash | 7,216,782 | ' | |
Bank Of Xi'an due date January 9, 2014 [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Notes payable -bank | 1,640,178 | [1] | ' |
Restricted cash | 820,089 | [1] | ' |
Shanghai Pudong Development Bank due date April 6, 2014 [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Notes payable -bank | 3,608,391 | ' | |
Restricted cash | 3,608,391 | ' | |
China Merchants Bank due date May 8, 2014 | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Notes payable -bank | 656,071 | ' | |
Restricted cash | 328,036 | ' | |
Bank of Ningxia due date June 12, 2014 [Member] | ' | ' | |
Line of Credit Facility [Line Items] | ' | ' | |
Notes payable -bank | 4,920,533 | ' | |
Restricted cash | $2,460,266 | ' | |
[1] | Bank notes has been paid off on January 9, 2014. |
Notes_Payable_Bank_Details_Tex
Notes Payable - Bank (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Notes Payable - Bank [Abstract] | ' |
Note payable valid period | '6 months |
Short-term bank loans due date | 9-Jan-14 |
Total amount of outstanding bank accepted bills | $10,825,173 |
Related_Party_Transaction_Deta
Related Party Transaction (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Feb. 18, 2013 | Feb. 18, 2013 | Dec. 31, 2013 | Feb. 18, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Mr. Yongke Xue | Mr. Hongke Xue | Skypeople International Holdings Group [Member] | Skypeople International Holdings Group [Member] | Fullmart [Member] | Fullmart [Member] | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Fruit beverage sales | ' | ' | ' | ' | ' | ' | $2,600,000 | $2,176,000 |
Accounts receivable for related party transactions | 731,000 | 624,000 | ' | ' | ' | ' | ' | ' |
Equity interest, ownership percentage | ' | ' | 80.00% | 9.40% | ' | 50.20% | ' | ' |
Principal amount for unsecured term loan | 8,000,000 | ' | ' | ' | ' | ' | ' | ' |
Interest rate for unsecured term loan | 6.00% | ' | ' | ' | ' | ' | ' | ' |
Amount received from lender | 8,000,000 | ' | ' | ' | ' | ' | ' | ' |
Description for loan agreement | 'In February 2014, both parties extended this loan for another two years | ' | ' | ' | ' | ' | ' | ' |
Short-term loan - related party | 24,970 | ' | ' | ' | 24,970 | ' | ' | ' |
Interest expense, related party | $325,954 | $0 | ' | ' | ' | ' | ' | ' |
Income_Tax_Details
Income Tax (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
U.S. Statutory rate | $6,233,094 | $9,118,943 |
Tax rate difference between China and U.S. | -1,849,640 | -2,703,421 |
Change in Valuation Allowance | 240,682 | 322,510 |
Permanent difference | 15,123 | 133,206 |
Effective tax rate | $4,639,259 | $6,871,238 |
Income_Tax_Details_1
Income Tax (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Current | $5,084,396 | $6,787,529 |
Deferred | -445,137 | 83,709 |
Total | $4,639,259 | $6,871,238 |
Income_Tax_Details_2
Income Tax (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' |
Net operating loss carryforward | $1,189,075 | $748,750 |
Inventory markdown | 60,799 | ' |
Bad debt provision | 40,104 | ' |
Accrued expenses | 27,691 | 46,527 |
Startup costs | 97,918 | 31,885 |
Others | 89,038 | -8,356 |
Deferred tax assets, gross | 1,504,625 | 818,806 |
Less valuation allowance | -968,912 | -728,230 |
Deferred tax assets | $535,713 | $90,576 |
Income_Tax_Details_Textual
Income Tax (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Applicable income tax rate | 25.00% | ' |
Aggregate withholding tax amount | $10,135,412 | $8,726,331 |
U.S. statutory rate | 35.00% | 35.00% |
Dividend payment maximum rate of after tax profits | 90.00% | ' |
Concentration_Details_Textual
Concentration (Details Textual) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concertration of customers | 'Company did not have concentrations of customers constituting more than 10% of our sales | 'Company did not have concentrations of customers constituting more than 10% of our sales |
Sales to our five largest customers of net sales | 24.00% | 29.00% |
Supplier | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concertration of customers | 'Except the packing glass bottle supplier, we did not have concentrations of business with other vendors constituting more than 10% of the Company's total purchases | 'Except the packing glass bottle supplier, we did not have concentrations of business with other vendors constituting more than 10% of the Company's total purchases |
Sales to our five largest customers of net sales | 23.00% | 14.00% |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reportable segment revenue | $81,730 | $107,930 |
Inter-segment revenue | -2,744 | -5,574 |
Revenue from external customers | 78,986 | 102,356 |
Segment gross profit | 27,553 | 33,073 |
Concentrated apple juice and apple aroma [Member] | ' | ' |
Reportable segment revenue | 8,679 | 26,629 |
Inter-segment revenue | -1,148 | -3,742 |
Revenue from external customers | 7,531 | 22,887 |
Segment gross profit | 1,535 | 4,640 |
Concentrated kiwifruit juice and kiwifruit puree [Member] | ' | ' |
Reportable segment revenue | 10,100 | 10,668 |
Inter-segment revenue | -292 | -1,516 |
Revenue from external customers | 9,808 | 9,152 |
Segment gross profit | 4,313 | 4,535 |
Concentrated pear juice [Member] | ' | ' |
Reportable segment revenue | 21,008 | 29,087 |
Inter-segment revenue | -612 | -162 |
Revenue from external customers | 20,396 | 28,925 |
Segment gross profit | 6,500 | 8,507 |
Fruit juice beverages [Member] | ' | ' |
Reportable segment revenue | 39,938 | 27,276 |
Inter-segment revenue | -390 | -139 |
Revenue from external customers | 39,548 | 27,137 |
Segment gross profit | 14,646 | 9,288 |
FreshFruitsAndVegetablesMember | ' | ' |
Reportable segment revenue | 815 | 8,417 |
Inter-segment revenue | -1 | ' |
Revenue from external customers | 814 | 8,417 |
Segment gross profit | 395 | 4,663 |
Others [Member] | ' | ' |
Reportable segment revenue | 1,190 | 5,853 |
Inter-segment revenue | -301 | -15 |
Revenue from external customers | 889 | 5,838 |
Segment gross profit | $164 | $1,440 |
Segment_Reporting_Details_1
Segment Reporting (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information | ' | ' |
Segment profit | $27,552,973 | $33,072,991 |
Unallocated amounts: | ' | ' |
Operating expenses | 9,375,877 | 7,878,474 |
Other income/(expenses) | -368,259 | 859,608 |
Income before tax provision | $17,808,837 | $26,054,125 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Proceeds from Legal Settlements | $2,200,000 |
Subsequent_Event_Details_Textu
Subsequent Event (Details Textual) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | CNY | |
Subsequent Events [Abstract] | ' | ' |
Subsequent event, Description | ' | ' |
SkyPeople (China), Xinda Financial Leasing Co., Ltd. (“Xinda”) entered into equipment leasing agreements with three suppliers, pursuant to which considerations of machinery and equipment will be paid by Xinda, SkyPeople (China) will lease these machinery and equipment from Xinda for five years. | SkyPeople (China), Xinda Financial Leasing Co., Ltd. (“Xinda”) entered into equipment leasing agreements with three suppliers, pursuant to which considerations of machinery and equipment will be paid by Xinda, SkyPeople (China) will lease these machinery and equipment from Xinda for five years. | |
Cost of equipment under lease agreement. | $21 | 129 |
Estimated Lease Payment | $1.30 | 8 |