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
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 .
This press release contains certain "forward-looking statements" that
involve a number of risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and the actual results and future
events could differ materially from management's current expectations. Such
factors include, but are not limited to, the Company's ability to obtain the
necessary financing to continue and expand operations, to market its products
in new markets and to offer products at competitive pricing, to attract and
retain management, and to integrate and maintain technical information and
management information systems, political and economic factors in the People's
Republic of China, compliance requirement of laws and regulations of the PRC,
the effects of currency policies and fluctuations, general economic conditions
and other factors detailed from time to time in the Company's filings with the
United States Securities and Exchange Commission and other regulatory
authorities. The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.
For more information, please contact:
SkyPeople Fruit Juice, Inc.
Ms. Spring Liu, CFO
HC International, Inc.
Phone: US +1-203-616-5144
SOURCE SkyPeople Fruit Juice, Inc.