Local Government Supports Kiwifruit Farmers and SkyPeople Fruit Juice with Subsidies Through 2015
07 January 2010 - 12:00AM
PR Newswire (US)
XI'AN, China, Jan. 6 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit
Juice, Inc. (NYSE Amex: SPU) ("SkyPeople" or "the Company"), a
processor and manufacturer of concentrated kiwifruit, apple, pear
and other fruit juices and fruit products in China, today announced
continued governmental support for kiwifruit growers in Shaanxi
Province and direct governmental support for SkyPeople Fruit Juice.
Beginning in 2008, the Shaanxi Fruit Industry Council first
announced it would support kiwifruit farmers with a yearly cash
subsidy of 300RMB for each Chinese "mu" harvested for kiwifruit
(the equivalent value would be approximately $267 USD per acre
based on the exchange rate of December 31, 2009). After an initial
review of the program's benefits over the last two years, the
Shaanxi government reconfirmed support to maintain the program
through 2015. Shaanxi Province is China's largest growing area for
kiwifruit. In particular, Shaanxi Qinling mountain area is the most
fertile growing area for kiwifruit, which can grow 96% species of
kiwifruit known worldwide. The output of the kiwifruit growing area
was 350,000 tons in 2008. As SkyPeople has been recognized as a
High and New Technology Enterprise in Shaanxi Province for the past
three years, and was awarded "Leading Shaanxi-based Agricultural
Company" in December of 2008 by the Agriculture Department of
Shaanxi Province, in coordination with the kiwifruit subsidies
directly to farmers, in November 2009, SkyPeople received subsidies
of RMB 9 million (approximately $1.32 million) from the local
government. This amount was previously recorded as a subsidy income
and other receivables in the Company's financial statements for the
nine months ended September 30, 2009, which was disclosed in the
Company's Form 10Q filed with the SEC on November 16, 2009. The
Company plans to use this fund to expand the Company's R&D
facilities and acquire new fruit juice processing equipment. "Being
in the heart of the largest kiwifruit growing area in China has its
unique advantages," opened Chairman and CEO Mr. Yongke Xue. "While
our proximity to raw material supply has always benefited our
operations, we are pleased that the Shaanxi government has
continually supported kiwifruit growers and our company in our home
province. This round of subsidies for our industry will strengthen
our raw material supply and provide our company a direct benefit
that we can invest back into our business accordingly," Xue
concluded. About SkyPeople Fruit Juice, Inc. SkyPeople Fruit Juice,
Inc. is a holding company of Shaanxi Tianren. Shaanxi Tianren is a
company organized according to the laws of the People's Republic of
China. Shaanxi Tianren's main products are concentrated apple,
kiwifruit, pear and other fruit juices for domestic and
international consumers. Its brand, HEDETANG(R), is positioned as a
high quality, healthy and nutritious juice concentrate and clear
juice product used both as an ingredient component in other
products and an end-use juice concentrate product. Shaanxi Tianren
utilizes the largest kiwifruit plantation in China and is a leading
producer of concentrated kiwifruit juice in Asia. For more
information, please visit http://www.skypeoplefruitjuice.com/ .
Forward-Looking Statements This press release contains certain
"forward-looking statements" that involve a number of risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and the actual results and future events could
differ materially from management's current expectations. Such
factors include, but are not limited to, the Company's ability to
obtain the necessary financing to continue and expand operations,
to market its products in new markets and to offer products at
competitive pricing, to attract and retain management, and to
integrate and maintain technical information and management
information systems, political and economic factors in the People's
Republic of China, compliance requirement of laws and regulations
of the PRC, the effects of currency policies and fluctuations,
general economic conditions and other factors detailed from time to
time in the Company's filings with the United States Securities and
Exchange Commission and other regulatory authorities. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. For more information, please contact:
COMPANY: SkyPeople Fruit Juice, Inc. Ms. Spring Liu, CFO Phone:
+1-818-390-1272 Email: Web: http://www.skypeoplejuice.com/ INVESTOR
RELATIONS: John Mattio HC International, Inc. Phone: US
+1-203-616-5144 Email: Web: http://www.hcinternational.net/
DATASOURCE: SkyPeople Fruit Juice, Inc. CONTACT: SkyPeople Fruit
Juice, Inc., Ms. Spring Liu, CFO, +1-818-390-1272, or ; or
Investors, John Mattio of HC International, Inc., US
+1-203-616-5144, Web site: http://www.skypeoplejuice.com/
http://www.hcinternational.net/
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