XI'AN, China, March 23, 2017 /PRNewswire/ -- SkyPeople Fruit
Juice, Inc. (NASDAQ: SPU) ("SkyPeople" or "the Company"), a
producer of fruit juice concentrates, fruit juice beverages and
other fruit-related products, today announced that on March 20, 2017, its wholly owned subsidiaries,
Hedetang Foods (China) Co. Ltd.
("Hedetang China") and Hedetang Farm Products Trading Market (Mei
County) Co. Ltd., ("Hedetang Farm") entered into an agreement with
Xi'an Taizhan Financial Management Co., Ltd. ("Taizhan") to jointly
establish a new company currently named China Agricultural
Commodity Trading Market Co., Ltd. (the "China Agricultural
Commodity Trading Center") in Mei County, Shaanxi Province, China. The trading center's name is to be
approved by China's National General Administration for
Industry and Commerce.
"We estimate that the China Agricultural Commodity Trading
Center could generate commodities trading volume of RMB 100 billion and revenue of RMB 100 million over the next three years," commented
Hongke Xue, Chief Executive Officer of SkyPeople. "Instead of a
traditional trading model for agricultural products, our trading
center will utilize an e-commerce business model which we envision
will draw major commercial traffic and market share to the
platform."
"To further enhance our new trading platform, we are also
launching standardized financial contracts, long-term commodity
trading services and commodity options that we believe will broaden
the trading center's platform while generating additional revenue.
We also plan upon developing close relationships with banks who
would offer financing services to meet our customers' needs. Our
recent announcement of our entry into the FinTech space is meant to
augment this traditional access to capital."
"Our goal is to build a regional agricultural products trading
market and to become a leader in agricultural finance
technology. We are excited as to the potential of this new
business and view the establishment of this innovative trading
center as an important milestone for SkyPeople," Mr. Xue
concluded.
Pursuant to the agreement, the total registered capital for the
China Agricultural Commodity Trading Center will be RMB 50 million (approximately $7.35 million). Hedetang China has agreed to
contribute RMB 17.50 million
(approximately $2.57 million),
Hedetang Farm has agreed to contribute RMB
15 million (approximately $2.21
million) and Taizhan has agreed to contribute RMB 17.50 million (approximately $2.57 million) to the China Agricultural
Commodity Trading Center. The agreement stipulates that each
shareholder will split both the profits and the losses of the new
entity on a pro rata basis.
The business scope of the China Agricultural Commodity Trading
Market will include market management of pan-resource commodity
contract transactions and transaction capital settlements;
commodity transaction market management services; relevant
consultation services of the above-mentioned businesses; RMB
settlement services for commodity cross-border transactions; and,
supervision services for logistics storage. Once established, the
China Agricultural Commodity Trading Center will become an
innovative platform that promotes agricultural e-commerce trading,
industrial integration and modernization, and financial
innovation.
It is planned that the China Agricultural Commodity Trading
Center will focus on the trading of agricultural products and will
expand its capabilities to include financial derivatives based on
market trends and investors' needs. The China Agricultural
Commodity Trading Center will be designed to rely on advanced
financial and trading technology to standardize the prices of
agricultural products and will offer an open, fair and market-based
pricing mechanism. It is also planned that trading center will
offer a call auction market and tradeable derivatives to meet
customers' investing and financing needs.
The Company intends to position the China Agricultural Commodity
Trading Center as (1) a
big data and analytics service provider; (2) a
platform utilizing technology to boost efficiency and productivity;
(3) a platform leveraging technology to provide a unique and
efficient shopping experience; (4) a fully-integrated solution that
benefits each party in the supply chain and boosts customer sales;
(5) a sophisticated financial management system that enables
efficient access for large enterprises as well as small agriculture
businesses to access capital to meet ongoing growth needs; and, (6)
a technology platform that solves three key issues for agricultural
businesses: improving revenue, reducing risk, and enabling the
successful closing out or exiting
of a transaction.
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned
subsidiary Pacific Industry Holding Group Co., Ltd. ("Pacific"), a
Vanuatu company, and SkyPeople
Juice International Holding (HK) Ltd., a company organized under
the laws of Hong Kong Special Administrative Region of the People's Republic of China and a wholly
owned subsidiary of Pacific, holds 73.42% ownership interest in
SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)") and 100% ownership interest in
SkyPeople Foods (China) Co., Ltd.
("SkyPeople Foods China"). SkyPeople (China) and ("SkyPeople Foods China"), together
with their operating subsidiaries in China, are engaged in the production and sales
of fruit juice concentrates, fruit beverages, and other fruit
related products in the PRC and overseas markets. The Company's
fruit juice concentrates are sold to domestic customers and
exported directly or via distributors. Fruit juice concentrates are
used as a basic ingredient component in the food industry. Its
brands, "Hedetang" and "SkyPeople," which are registered trademarks
in the PRC, are positioned as high quality, healthy and nutritious
end-use juice beverages. For more information, please visit
http://www.skypeoplefruitjuice.com.
Safe Harbor Statement
Certain of the statements made in this press release are
"forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as amended, or the
Exchange Act. Forward-looking statements include statements with
respect to our beliefs, plans, objectives, goals, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and
other factors, which may be beyond our control, and which may cause
the actual results, performance, capital, ownership or achievements
of the Company to be materially different from future results,
performance or achievements expressed or implied by such
forward-looking statements. All statements other than statements of
historical fact are statements that could be forward-looking
statements. You can identify these forward-looking statements
through our use of words such as "may," "will," "anticipate,"
"assume," "should," "indicate," "would," "believe," "contemplate,"
"expect," "estimate," "continue," "plan," "point to," "project,"
"could," "intend," "target" and other similar words and expressions
of the future.
All written or oral forward-looking statements attributable to
us are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties described in our annual report on Form 10-K for the
year ended December 31, 2015 and
otherwise in our SEC reports and filings, including the final
prospectus for our offering. Such reports are available upon
request from the Company, or from the Securities and Exchange
Commission, including through the SEC's Internet website at
http://www.sec.gov. We have no obligation and do not undertake to
update, revise or correct any of the forward-looking statements
after the date hereof, or after the respective dates on which any
such statements otherwise are made.
For more information, please contact:
COMPANY
Cindy Liu,
Investor Relations Manager
SkyPeople Fruit Juice, Inc.
Tel: China + 86 - 29-8837-7161
Email: skypeople_annie@163.com
Web: http://www.skypeoplefruitjuice.com
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SOURCE SkyPeople Fruit Juice, Inc.