omniture

China Fruits Corporation Reports FY2014 1st Quarter Results

2014-05-21 22:27 980

NANFENG, China, May 21, 2014 /PRNewswire-FirstCall/ -- China Fruits Corporation (OTC: CHFR) ("China Fruits" or "the Company"), a distributor and producer of fresh tangerine and other fresh fruits in the People's Republic of China, today announces financial results for the first quarter of 2014.

First Quarter 2014 Highlights

  • Revenue for the first quarter of 2014 was $8,015,860, a 984% increase from the corresponding period in 2013.
  • Operating loss for the first quarter of 2014 was $7,064, narrowing 98% from the corresponding period in 2013.
  • Net income attributable to China Fruits' shareholders was $114,711, compared to a net loss of $261,746 in the same period in 2013. Fully diluted earnings per share were $0.0023, compared to negative earnings per share in the same period in 2013.

"The company's business development is line with our strategic plans. The fast growth rate of revenues is attributed to our efforts in developing overseas market and to increase of franchise stores," said Mr. Quanlong Chen, Chairman and Chief Executive Officer of China Fruits Corporation, "and we launched "Taina® Miss Fruit" Beauty Contest on March 5th, 2014. We hope selected fruit beauties can deliver healthy lifestyles to customers and to increase our brand's recognition."

First Quarter 2014 Results

- Revenues

China Fruits reported total revenue of $8,015,860 for the first quarter of 2014, representing an increase of 984% from the corresponding period in 2013, primarily driven by the Company's efforts in developing overseas markets and in increasing franchises stores.

Revenues from overseas sales were approximately $5,102,085, of which $4,432,187 was from Thailand, $127,302 was from Dubai and $63,025 was from Indonesia. The Company had 10 franchise retail stores in the Beijing area as of March 31, 2014, compared to 4 stores in the same period in 2013.

- Cost of Goods Sold

Cost of revenue was $7,098,744 for the first quarter of 2014, an increase of 1037% from $624,075 for the corresponding period in 2013.

Gross margin was 11.44% for the first quarter of 2014, compared to 15.58% for the corresponding period in 2013. The gross margin of fresh fruits products typically ranges between 10% and 15%. The reduction of gross margin was primarily due to promotion activities of low price and price increase from some suppliers. The Company expected to reduce the cost of goods sold through collaboration with more non-related suppliers, which would also help us to reduce the risk of concentration.

- Operating Expenses

Operating expenses were $924,179 for the first quarter of 2014, an increase of 127% from $406,331 for the corresponding period in 2013.

Selling expenses were $596,470 for the first quarter of 2014, an increase of 269% from $161,647 for the corresponding period in 2013.

General and administrative expenses were $327,710 for the first quarter of 2014, an increase of 34% from $244,684 for the corresponding period in 2013.

- Operating Loss

Operating loss was $7,064 for the first quarter of 2014, narrowing 98% from the corresponding period in 2013.

- Net Income and EPS

Net income attributable to China Fruits shareholders was $ 114,711 for the first quarter of 2014, compared to a net loss of $261,746 in the same period in 2013. Fully diluted earnings per share were $0.0023, compared to negative earnings per share in the same period in 2013. The net income during first quarter of 2014 was also due to the grants received from the local government in amount of $239,132, which was to encourage the Company's efforts on modern agricultural development. Without the government grant, the Company would have suffered loss of $36,741.

- Cash

As of March 31, 2014, China Fruits had cash and cash equivalents of $1,586,253, compared to $40,217 as of December 31, 2013. Cash flows used in operating activities were $2,382,555 for the first quarter of 2014. Cash flows used in investing activities were $10,225. Net cash provided by financing activities was $3,950,552.

Financial Guidance

The Company expects sales to increase during 2014 as the Company is moving toward implementing its business plan, including the increase in franchise retail stores, development of overseas market, and e-commence business expansion.

The Company also expects the total number of franchise stores to be increased to around 64 by the end of 2014. The expansion will be accomplished via acquisitions, franchises sales and/or direct setups.

In April 2014, the Company launched "Taina® Miss Fruit" Beauty Contest, and selected 10 fruit beauties. The Company expects selected fruit beauties to increase China Fruits' brand awareness and to lead new trend of healthy lifestyles.

About China Fruits Corporation

China Fruits Corporation (OTC: CHFR) is a U.S.-listed holding company, engaging in manufacturing, trading and distributing fresh tangerine and other fresh fruits in the People's Republic of China. The Company wholly owns two subsidiaries: Taina International Fruits (Beijing) Co., Ltd., which is building and operating franchise retail stores, and Jiangxi Taina Nanfeng Orange Co., Ltd., which is operating a 782,765-square-foot manufacturing base in Jiangxi Province's Nanfeng County. The Company owns a 98,505-square-foot Express Export Zone in Nanfeng, with air-adjusted and fresh-keeping warehouse, and advanced photoelectric fruit sorter. In Beijing, the Company possesses a 26,700-square-foot distribution center and six franchise retail stores across the city. With the support from the international capital markets, the company is strengthening the branded franchise fruit retail stores and digging deeply in this niche. From the very beginning of its business, the Company has been awarded with "National Leading Enterprise of Agriculture Industrialization", "China's Most Influential Fruit Brand", "Leading Fruit Enterprise", and "Top Ten Most Trustable Enterprise" among other rewards. For more information, please visit the Company's corporate website: www.taina.cn.

Forward Looking Statement

This press release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of China Fruits Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and China Fruits Corporation disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements

For More Information
Investor Relations
Dragon Gate Investment Partners
Email: taina@dgipl.com
Tel: +1 (646) 801-2803
Website: http://www.dgipl.com

China Fruits Corporation
Consolidated Balance Sheets
As of March 31, 2014 and December 31, 2013
Unaudited
(Stated in US Dollars)


ASSETS


3/31/2014


12/31/2013


Current Assets






Cash & Cash Equivalents


$ 1,586,253


$ 40,217


Accounts Receivable, Net


4,960,027


4,075,765


Other Receivable, Net


261,301


141,363


Advance to Supplies


1,886,946


2,162,844


Inventories


531,289


1,566,556


Prepaid Expense


61,484


67,862


Refundable Tax


102,886


266,719


TOTAL CURRENT ASSETS


9,390,186


8,321,326











Noncurrent Assets






Property, Plant & Equipment, Net


3,290,772


3,370,148


Construction in Progress


1,136


1,146


Intangible Assets, Net


322,574


331,697


Other Long-term Asset Deposit


24,343


24,548


Organization Cost/ L/T Amortization


3,609


4,479


TOTAL NON-CURRENT ASSETS


3,642,434


3,732,018









TOTAL ASSETS


13,032,620


12,053,344











CURRENT LIABILITIES






Accounts payable and Accrued Expenses


1,549,813


4,238,843


Notes Payable - Current Portion


2,710,203


2,479,379


Customer Deposit


389,698


493,164


Taxes Payable


425,963


261,286


Other Payables


91,464


657,952


Due to Related Parties


4,773,037


1,074,031


Accrued liabilities and Payroll Tax

Liabilities


514,724


354,489


TOTAL CURRENT LIABILITIES


10,454,902


9,559,144











LONG-TERM LIABILITIES






Note Payable-Longterm


-


-


TOTAL LONG TERM LIABILITIES


-


-









TOTAL LIABILITIES


10,454,902


9,559,144


STOCKHOLDERS' EQUITY










Common stock, par value $.001, 100,000,000 shares

authorized, 49,951,223 shares issued

and outstanding as of March 31, 2014 and December 31,

2013, respectively


49,951


49,951

Preferred stock, 200,000,000 shares authorized,

designated as Series A and Series B.

Series A: par value $.001; 2,000,000 shares authorized,

13,150 shares issued and outstanding as of March 31,

2014 and December 31, 2013, respectively


13


13

Series B; par value $0.001, voting; 50,000,000 shares

authorized, 12,100,000 shares issued and outstanding as

of March 31, 2014 and December 31, 2013, respectively


12,100


12,100

Additional Paid in Capital


3,789,864


3,789,864

Statutory Reserve


170,950


170,950

Retained Earnings


(1,888,385)


(2,003,096)

Accumulated Other Comprehensive Income


443,225


474,419

TOTAL STOCKHOLDERS' EQUITY


2,577,718


2,494,201







TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


13,032,620


12,053,344

China Fruits Corporation
Consolidated Statements of
Income
For the three months ended March 31, 2014 and 2013
Unaudited
(Stated in US Dollars)




Three Months Ended


REVENUES:


3/31/2014


3/31/2013


Sales


$ 8,015,860


$ 739,222


Cost of Goods Sold


7,098,744


624,075


GROSS PROFIT


917,115


115,147








OPERATING EXPENSES:






Selling Expenses


596,470


161,647


General and Administrative


327,710


244,684


TOTAL OPERATING EXPENSES


924,179


406,331


Operating Income/(Loss)


(7,064)


(291,184)








OTHER INCOME (EXPENSE):






Other Income

14,308


5,826


Other Expense

-


-


Interest Income

60


-


Interest Expense

(51,109)


(31,826)


Government Grants


239,132


55,438


TOTAL OTHER INCOME (LOSS) & EXPENSE


202,391


29,438









INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE

INCOME TAXES


195,326


(261,746)


Income Tax Expense


80,615


-


NET Income (Loss)


114,711


(261,746)









Other compressive income






-Foreign currency translation gain (Loss)


(31,194)


6,249








COMPREHENSIVE (LOSS)


83,517


(255,497)


(Loss) per common share:






Basic and fully diluted


**


(0.01)


Weighted Average Number of Common Shares Outstanding - Basic and Fully Diluted








49,951,223


49,951,223


** Less than $0.01







China Fruits Corporation
Consolidated Statements of Cash Flows
For the three months ended March 31, 2014 and 2013
Unaudited
(Stated in US Dollars)



Three Months Ended

Cash Flows from Operating Activities


3/31/2014


3/31/2013

Net Income/(loss)


$ 114,711


$ (261,746)

Adjustments to reconcile net loss to net





Cash provided by (used in) operating activities:




-


Depreciation and Amortization


59,425


66,718


(Increase) decrease in operating assets:




-


Accounts receivable


(884,262)


321,286


Inventories


1,035,267


(42,371)


Prepaid expenses and other current assets


326,376


79,878

Increase (decrease) in operating activities:




-


Accounts payable


(2,689,030)


26,723


Other payables and accrued liabilities


(509,719)


21,119


Tax payable


164,677


69


Deferred income


-


-

Net cash (used in) provided by Operating Activities


(2,382,555)


211,676







Cash Flows from Investing Activities






Purchase of property and equipment


(10,225)


(20,249)


Purchase of intangible assets






Proceed from disposal of property and equipment





Net cash provided (Used in) by Investing Activities


(10,225)


(20,249)







Cash Flows from Financing Activities






Advance from (to) a third party


3,699,006


(40,172)


Proceeds from /(Payments on) Notes Payable


251,546


(152,655)


Payments on Notes Payable






Proceeds from Note Payable -related party






Due to stockholders




57,664


Net cash provided by (used in) Financing Activities


3,950,552


(135,163)







Foreign currency translation adjustment


(11,736)


181







Net increase/(decrease) in cash & cash equivalents for the periods


1,546,036


56,445






Cash & cash equivalents:





Beginning of period


40,217


47,399

End of period


1,586,253


103,844







Supplementary disclosures of cash flows information:






Cash paid for interest


41,091


31,334


Cash paid for income taxes


164


-

Source: China Fruits Corporation
Keywords: Food/Beverages
collection