SkyPeople Fruit Juice Reports Third Quarter 2013 Financial Results

Gross Profit by Segment.The gross profit margin of the concentrated pear juice segment rose to 36% in the third quarter of 2013 from 30% in the year-ago period of 2012 mainly due to the lower cost of raw materials for the current period as compared to the same period of 2012. The gross profit margin of the fruit juice segment of 38% had remained stable in the third quarter of 2013 from the year-ago quarter. These two product segments comprised substantially all of the Company's gross profit for the third quarter of 2013, resulting in an increase in the overall gross margin for the Company.

The gross profit margin of the concentrated kiwifruit juice and kiwifruit puree increased to 70% for the third quarter of 2013 from 47% for the comparable period of 2012, primarily due to the lower cost of fresh kiwi purchased in the current quarter as compared to the same period of 2012.

The gross loss margin of concentrated apple juice and apple aroma was 36% for the three months ended September 30, 2013 compared to a gross profit margin of 17% for the same period of 2012 primarily due to a significantly lower selling price of concentrated apple juice.

Operating Expenses. Operating expenses for the third quarter of fiscal 2013 was $2.6 million, or 13% of sales, which were higher than that of the same period of 2012, when operating expenses represented 6% of sales. General and administrative expenses increased 70% to $1.6 million in thethird quarter of 2013 as compared to $1.0 million for the same period of 2012, mainly due depreciation for property, plant and equipment in Yingkou ofapproximately $548,000 that was incurred during the current period and charged into general and administrative expenses.Selling expenses increased 36% to $1.0 million as compared to $0.7 million in the same period of 2012, mainly due to an increase in the payroll and related expenses as a result of an increase in the Company's headcount to the handle an increased sales of fruit juice beverages. During thethird quarter of 2013, the Company suspended research and development work and thus did not incur any research and development costs; the Company incurred $142,077 incurred in research and development expenses for the three months ended September 30, 2012.

Income from Operations. Income from operations was $4.6 million for the third quarter of 2013, a decrease of 31% from $6.7 million for the same period in 2012. The decrease in the income from operations was mainly due to a decrease in both revenue as well as gross margin and an increase in operating expenses.

Net Income and Earnings per Share. Net income attributable to SkyPeople Fruit Juice was $3.0 million for the third quarter of 2013, a decrease of 40% as compared to $5.0 million for the same period in 2012, while diluted earnings per share was $0.11 as compared to $0.19 for the same period in 2012.

Financial Condition

As of September 30, 2013, the Company had $87.2 million in cash and cash equivalents, up from $77.6 million as of fiscal year end 2012. The Company's working capital was $77.8 million. As of September 30, 2013, the Company had total liabilities of $37.8 million, which included $18.9 million in a short-term bank loan, $1.5 million in notes payable to a bank and an $8.0 million short-term payable to a related party. As of September 30, 2013, stockholders' equity attributable to SkyPeople Fruit Juice was $167.5 million as compared to $156.5 million as of fiscal year end 2012.

During the nine months ended September 30, 2013, the Company's operating activities generated a net cash inflow of $31.4 million, as compared to $20.3 million for the same period in 2012. Net cash used in investing activities were $39.2 million for the nine months ended September 30, 2013 as compared to $5.3 million for the same period in 2012. For the nine months ended September 30, 2013, cash flow generated from financing activities totaled $15.6 million as compared to $5.2 million for the same period in 2012. Historically, the Company has financed its capital expenditures and other operating expenses through cash on hand, operating cash flows and bank loans.

Project Updates

In the third quarter of 2011, SkyPeople entered into a Letter of Intent with the People's Government of Suizhong County, Liaoning Province, to establish a fruit and vegetable industry chain and processing zone in Suizhong County, Liaoning Province. The Suizhong project may include the construction and operation of fruit juice production lines, a vegetable and fruit flash freeze facility, a refrigeration storage facility and warehouse, a world-class food safety testing center, fruit and vegetable finished products processing center, etc. The implementation of the project is subject to government approval of the project.

During the nine months ended September 30, 2013, the Company finished the feasibility study of the project and submitted a detailed project proposal to the local government. Both parties decided to continue with the project. The Company paid RMB 52 million (approximately $8.5 million) as partial payment to acquire the land use rights from the local government.

In the fourth quarter of 2012, SkyPeople (China) entered into an investment/service agreement with the Yidu Municipal People's Government in Hubei Province of China. The total amount of RMB 300 million (approximately $48 million) will be mainly used to establish the distribution center and the deep processing zone on the project land of approximately 280 mu (approximately 46 acres). The Yidu Municipal People's Government is in the process of demolition buildings on land designated for the project.

During the nine months ended September 30, 2013, the Company has made partial payment of RMB 75 million (approximately $12 million) as consideration to acquire the land use rights. The Company is actively working with various bodies of the Yidu Municipal People's Government and making preparations for the start of the project.

In the second quarter of 2013, SkyPeople (China) announced an agreement to manufacture and market kiwi products, entering entered into an investment agreement with the Managing Committee of Mei County National Kiwi Fruit Wholesale Trading Center, which has been authorized by the People's Government of Mei County to be in charge of the construction and administration of the Mei County National Kiwi Fruit Wholesale Trading Center. Pursuant to the investment agreement, the Company will be responsible for construction and financing with a total investment of approximately $71.9 million in buildings and equipment.In addition, the Company agreed to pay a fee of RMB 0.3 million per mu for the land use rights.

During the nine months ended September 30, 2013, the Company has made partial payment of RMB 98 million (approximately $16 million) as consideration to acquire the land use right and construction facilities. The Company is actively working with the Committee to make preparations for the start of the project.

Conference Call

The Company will hold a conference call on Friday, November 15, 2013 at 9:00 am Eastern Time to discuss its financial results for the third quarter ended September 30, 2013. The Company's Chief Executive Officer, Mr. Hongke Xue, and Chief Financial Officer, Mr. Xin Ma, will host the call.

To attend the live conference call, please dial in at least 10 minutes before the call to ensure timely participation.Please use the dial-in information below.

Date:	Friday, November 15, 2013
Time:	9:00 am Eastern Time, US
Conference Line Dial-In:	+1-877-407-0778
International Dial-In:	+1-201-689-8565

To access the replay, please dial 1-877-660-6853 within the United States or 1-201-612-7415 when dialing internationally and enter the pass code 13572505 for the replay. The replay will be available on November 15 at 12:00 pm.

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 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)"). SkyPeople (China), together with its operating subsidiaries in China, is engaged in the production and sales of fruit juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its 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, 2012 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.

- Financial Tables Follow -

SKYPEOPLE FRUIT JUICE, INC.
CONSOLIDATED BALANCE SHEETS
		September 30, 2013			December 31, 2012
			(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	87,176,550		$	77,560,278
Restricted cash			813,273			-
Accounts receivables, net of allowance of $47,686 and $46,643 as of September 30, 2013 and December 31, 2012, respectively			17,895,932			49,435,961
Other receivables			938,203			201,417
Inventories			8,351,708			7,278,191
Deferred tax assets			419,345			90,576
Advances to suppliers and other current assets			58,239			71,536
TOTAL CURRENT ASSETS			115,653,250			134,637,959
PROPERTY, PLANT AND EQUIPMENT, NET			50,583,734			52,180,097
LAND USE RIGHT, NET			6,514,383			6,508,149
OTHER ASSETS			40,565,792			1,892,806
TOTAL ASSETS		$	213,317,159		$	195,219,011
LIABILITIES
CURRENT LIABILITIES
Accounts payable		$	4,873,919		$	14,399,282
Accrued expenses			2,316,302			2,050,675
Income tax payable			1,147,095			3,127,245
Advances from customers			1,068,004			530,437
Notes payable bank			1,496,422			-
Short-term loan - related parties			8,000,000			-
Short-term bank loans			18,932,986			11,661,761
TOTAL CURRENT LIABILITIES		$	37,834,728		$	31,769,400
STOCKHOLDERS' EQUITY
SkyPeople Fruit Juice, Inc. Stockholders' equity
Series B Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued and outstanding as of September 30, 2013 and December 31, 2012			-			-
Common stock, $0.001 par value; 66,666,666 shares authorized; 26,661,499 issued and outstanding as of, September 30, 2013 and December 31, 2012, respectively			26,661			26,661
Additional paid-in capital			59,189,860			59,189,860
Retained earnings			90,305,651			82,793,585
Accumulated other comprehensive income			17,988,439			14,500,860
Total SkyPeople Fruit Juice, Inc. stockholders' equity			167,510,611			156,510,966
Non-controlling interests			7,971,820			6,938,645
TOTAL STOCKHOLDERS' EQUITY			175,482,431			163,449,611
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	213,317,159		$	195,219,011

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SKYPEOPLE FRUIT JUICE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2013				2012				2013				2012
Revenue		$	19,472,130			$	28,563,469			$	48,433,495			$	56,394,242
Cost of sales			12,254,866				20,038,559				30,221,343				38,861,942
Gross Margin			7,217,264				8,524,910				18,212,152				17,532,300
Operating Expenses
General and administrative expenses			1,628,699				960,617				4,216,128				3,092,992
Selling expenses			997,213				732,751				2,951,300				1,779,867
Research and development expenses			-				142,077				18,980				427,447
Total operating expenses			2,625,912				1,835,445				7,186,408				5,300,306
Income from Operations			4,591,352				6,689,465				11,025,744				12,231,994
Otherincome (expense)
Interest income			76,775				77,846				231,295				234,551
Subsidy income			194,587				615,997				981,400

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