Xin Ma
首先，我要感谢各位今天参加本次电话会议。我们非常高兴地报告这些强劲的财务业绩，亮点在于本季度由于新鲜水果原料的普遍可获得性，我们的核心产品对收入做出了均衡贡献。这些季度业绩证实了我们通过在大型水果生产省份的水果种植中心附近设立生产中心来采购充足新鲜水果的战略。在我们主要项目计划方面，我们在眉县开发猕猴桃产品制造基地的项目已取得进展，猕猴桃及相关材料交易区的建设现已基本完成。我们在湖北省的橙子开发项目也在推进中。这两个项目的目标是显著扩大我们的加工能力。SkyPeople现在向中国20个省份的20,000多家零售店销售我们的果汁饮料。我们相信，中国收入的增长正在加速消费者口味向健康生活方式的转变，包括增加对高品质果汁饮料的消费。因此，我们处于有利地位，能够利用这一趋势并争取获得额外的市场份额。现在我将转向经营业绩的讨论。2014年第三季度收入为3480万美元，较2013年同期增长79%。这一增长是由于我们几乎所有产品线的销售额增加，但被其他产品部门产生的收入减少所部分抵消。2014年第三季度毛利润为1020万美元，较2013年同期增长41%。增长主要来自苹果相关产品、浓缩梨汁、果汁饮料、新鲜水果蔬菜及其他产品部门产生的毛利润增加，但被猕猴桃相关产品产生的毛利润减少部分抵消。本季度营业费用为300万美元，占销售额的9%，而去年同期为260万美元，占销售额的13%。一般及行政费用下降19%至130万美元，而去年同期为160万美元；但销售费用增长63%至160万美元，而去年同期为100万美元，主要由于销售额增加导致运输和装卸成本上升。本季度营业利润为720万美元，较去年同期增长57%。本季度净利润为470万美元，较去年增长45%，SkyPeople每股收益为0.17美元，而去年同期为0.11美元。现在来看按产品部门划分的销售额。本季度苹果相关产品销售额为560万美元，较去年约35,000美元大幅增长。公司本季度销售约4,370吨浓缩苹果汁，而去年同期为50吨固体。浓缩猕猴桃汁和猕猴桃果泥销售额为33,000美元，较去年同期27,000美元增长33%。本季度我们销售约106吨该产品，而去年同期为221吨。浓缩梨汁销售额为1050万美元，较去年第三季度增长71%。公司销售约7,644吨梨汁，而去年同期为2,802吨。收入增长主要由于销量增加，但被单价下降部分抵消。果汁饮料收入为1450万美元，较去年增长13%。增长是由于市场份额增加以及持续努力扩大该部门的销售渠道。本季度新鲜水果蔬菜收入为390万美元，而去年同期为1,000美元。最后，其他产品部门收入本季度为10,000美元，较2013年同期147,000美元下降。现在来看公司当前的财务状况。截至2014年9月30日，公司拥有现金、现金等价物及受限现金5270万美元，而2013财年末为7410万美元。公司1880万美元的受限现金包括用作短期银行票据应付抵押品的现金等价物。本季度末公司营运资本为3130万美元，而2013财年末为7190万美元。公司总负债为9950万美元，包括4490万美元短期银行贷款和应付银行票据、800万美元关联方长期贷款以及2020万美元资本租赁义务。SkyPeople股东权益为1.771亿美元，而2013财年末为1.735亿美元。2014年前九个月，公司经营活动产生净现金流入1290万美元，而2013年前九个月为3140万美元。投资活动使用的净现金为3710万美元，而去年为3920万美元。融资活动使用的现金流量总计830万美元，而融资活动提供的现金流量为1560万美元。我们还在眉县开发一个关键加工设施。作为更新，公司正在批发设施和采购设备过程中，因此我们的生产已被推迟。此外，猕猴桃及其他相关材料交易区的建设已基本完成。我们还在辽宁省绥中县开发果蔬产业链和加工区，包括果汁生产线及其他仓储和加工设施的建设与运营。我们的新项目是重要的战略举措，旨在把握城市化、收入增长以及我们果汁产品市场份额增长所带来的市场机遇。此时，我想开放电话会议，接受各位对管理团队的任何提问。接线员，请开始问答环节。David，请开始问答环节。我们还在眉县开发一个关键加工设施。作为更新，公司正在批发设施和采购设备过程中，因此我们的生产已被推迟。此外，猕猴桃及其他相关材料交易区的建设已基本完成。我们还在辽宁省绥中县开发果蔬产业链和加工区，包括果汁生产线及其他仓储和加工设施的建设与运营。我们的新项目是重要的战略举措，旨在把握城市化、收入增长以及我们果汁产品市场份额增长所带来的市场机遇。此时，我想开放电话会议，接受各位对管理团队的任何提问。接线员，请开始问答环节。David，请开始问答环节。我们还在眉县开发一个关键加工设施。作为更新，公司正在批发设施和采购设备过程中，因此我们的生产已被推迟。此外，猕猴桃及其他相关材料交易区的建设已基本完成。我们还在辽宁省绥中县开发果蔬产业链和加工区，包括果汁生产线及其他仓储和加工设施的建设与运营。我们的新项目是重要的战略举措，旨在把握城市化、收入增长以及我们果汁产品市场份额增长所带来的市场机遇。此时，我想开放电话会议，接受各位对管理团队的任何提问。接线员，请开始问答环节。David，请开始问答环节。
Xin Ma
First of all, I’d like to thank all of you for joining this conference call today. We are very pleased to report these strong financial results, highlighted by our balanced contribution to revenue among our core product due to the general availability of fresh fruit raw materials during the quarter. These quarterly results confirm our strategy for procuring sufficient quantities of fresh fruit by locating our production center near fruit growing centers in large fruit producing provinces. In terms of our major project initiatives, our project to develop a manufacturing base for kiwi products in Mei County has shown progress with the construction of a kiwi fruit and kiwi related materials trading zone now mostly completed. Our orange development project in Hubei Province is also making progress. The goal of these two projects is to meaningfully expand our processing capabilities. SkyPeople now sells our fruit juice beverages to more than 20,000 retail stores in 20 provinces of China. China's rising income we believe are speeding the transition in consumer tastes towards healthy living, including the increased consumption of high-quality fruit juice beverages. We are therefore well positioned to capitalize on this trend and to contribute to capture additional market share. I’ll now turn to the discussion of operating results. Revenue for the third quarter of 2014 was $34.8 million, an increase of 79% as compared to the same period in 2013. This increase was due to an increase in sales in almost all of our product lines, offset by the decrease of revenue generated from other product segment. Gross profit was $10.2 million in the third quarter of 2014, an increase of 41% from the same period in 2013. The increase was primarily due to the increase in gross profit generated from apple-related products, concentrated pear juice, fruit juice beverages, fresh fruits and vegetables and other product segments, which was partially offset by a lesser amount of gross profit generated from kiwi-related products. Operating expenses was $3.0 million in the current quarter or 9% of sales, as compared to $2.6 million or 13% in sales for the same period last year. General and administrative expenses decreased 19% to $1.3 million as compared to $1.6 million last year, but selling benefits increased 63% to $1.6 million as compared to $1 million for the same period last year, mainly due to an increase in shipping and handling cost as a result of increased sales. Income from operations was $7.2 million in the current quarter, an increase of 57% as compared to the year ago quarter. Net income for the current quarter was $4.7 million, an increase of 45% versus last year with earnings per share attributable to SkyPeople of $0.17 for the current quarter as compared to $0.11 for the same period last year. And now for our sales by product segment. Sales from apple-related products were $5.6 million for the current quarter, a significant increase from sales of approximately $35,000 last year. The company sold approximately 4,370 tons of concentrated apple juice in the current quarter, up from 50 tons solid in the year ago quarter. Sales from concentrated kiwi juice and kiwi puree were $33,000, a 33% increase from the sales of $27,000 for the same period last year. We sold approximately 106 tons of this product in the current quarter as compared to 221 tons last year. Sales of concentrated pear juice were $10.5 million, an increase of 71% from last years third quarter. The company sold approximately 7,644 tons of pear juice as compared 2,802 tons in the same period last year. The increase in revenue was mainly due to increased volume, which was partially offset by a decrease in unit price. Revenue from fruit juice beverages were $14.5 million, an increase of 13% from last year. The increase due to market share gains was continuous efforts of expanding the segment sales channel. Revenue from our fresh fruit and vegetables were $3.9 million, in the current quarter and was $1,000 for the same period last year. And finally, revenue from other product segments were $10,000 in the current quarter, a decrease from sales of $147,000 for the same period 2013. Now turning the company’s current financial position. As of September 30, 2014 the company had $52.7 million in cash, cash equivalents and restricted cash, compared to $74.1 million as of fiscal year end 2013. The company’s restricted cash of $18.8 million consists of cash equivalents used as collateral to secure short-term bank note payable. The company’s working capital was $31.3 million as of the end of the current quarter compared to working capital of $71.9 million as of fiscal 2013 year end. The company had total liabilities of $99.5 million, including $44.9 million in short term bank loans and bank notes payable and an $8 million long-term loan to a related party and $20.2 million in capital lease obligations. Shareholders' equity attributable to SkyPeople was $177.1 million as compared to $173.5 million as of fiscal year-end 2013. For the first nine months of 2014 the company’s operating activities generated a net cash inflow of $12.9 million as compared to $31.4 million for the first nine months of 2013. Net cash used in investing activities was $37.1 million as compared to $39.2 million last year. And cash flow used in financing activities totaled $8.3 million as compared to cash flow provided by financing activities of $15.6 million. We are also developing a key processing facility in Mei County. As an update, the company is in the process of wholesaling facilities and purchasing equipment and so our production has been delayed. In addition the construction of a kiwi fruit and other-related materials trading zone has been mostly completed. We are also developing a fruit and vegetable industry chain and processing zone in Suizhong County, Liaoning Province, to include the construction and operation of fruit juice production lines among other storage and processing facilities. Our new projects are important strategic initiatives, to aware our self of the market opportunity presented by urbanization, growing incomes and the growing percentage for our fruit juice products. At this point I would now like to open up the call to any questions you might have for the management team. Operator, please begin the Q&A session. David, lets begin the Q&A session please. We are also developing a key processing facility in Mei County. As an update, the company is in the process of wholesaling facilities and purchasing equipment and so our production has been delayed. In addition the construction of a kiwi fruit and other-related materials trading zone has been mostly completed. We are also developing a fruit and vegetable industry chain and processing zone in Suizhong County, Liaoning Province, to include the construction and operation of fruit juice production lines among other storage and processing facilities. Our new projects are important strategic initiatives, to aware our self of the market opportunity presented by urbanization, growing incomes and the growing percentage for our fruit juice products. At this point I would now like to open up the call to any questions you might have for the management team. Operator, please begin the Q&A session. David, lets begin the Q&A session please. We are also developing a key processing facility in Mei County. As an update, the company is in the process of wholesaling facilities and purchasing equipment and so our production has been delayed. In addition the construction of a kiwi fruit and other-related materials trading zone has been mostly completed. We are also developing a fruit and vegetable industry chain and processing zone in Suizhong County, Liaoning Province, to include the construction and operation of fruit juice production lines among other storage and processing facilities. Our new projects are important strategic initiatives, to aware our self of the market opportunity presented by urbanization, growing incomes and the growing percentage for our fruit juice products. At this point I would now like to open up the call to any questions you might have for the management team. Operator, please begin the Q&A session. David, lets begin the Q&A session please.
