omniture

China Fruits Corporation Reports FY2014 3rd Quarter Results

- Record Nine Months Ended September 30, 2014 Gross Revenue of $13,414,155, up 495% YOY
- Record Nine Months Ended September 30, 2014 Net Income of $245,211, up 397% YOY
2014-11-18 01:29 1290

BEIJING, November 18, 2014 /PRNewswire/ -- 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 quarter ended September 30, 2014.

Financial Highlights

  • Revenue increased by 495% to $13,414,155 in the nine months ended September 30, 2014, compared to $2,255,669 in the same period of 2013.
  • Operation income of the third quarter of 2014 was $262,979, compared to the operating losses of $231,191 for the same period of 2013.
  • Net income in the quarter ended September 30, 2014 was $245,211, an increase of 397% compared to $49,340 in the same quarter of 2013.
  • Fully diluted earnings per share were $0.01, compared to net loss of $0.01 per share in the same period in 2013.

"495% is a very significant sales growth rate for the nine months ended September 30, 2014, compared to the same period in 2013. It indicates that our China fruits corporation is in a quick development phase with steady and sturdy paces. Meanwhile, the number of our franchise retail store is expanding to 35," said Mr. Quanlong Chen, Chairman and Chief Executive Officer of China Fruits Corporation, "and we are excited about the future of our fruit e-commerce business, because we believe that our retail stores can give us competitive edge of our unique O2O business model."

Third Quarter 2014 Results

  • Revenue

China Fruits Corporation reported that gross revenue were $2,862,463 and $13,414,155 for the three and nine months ended September 30, 2014, respectively, increased of 416%, and 495% from the corresponding period of 2013, primarily to company's effort in developing overseas markets and in increasing franchise stores.

During the nine months ended September 30, 2014, the revenues from Thailand were approximately $5,650,000, or 42% of total revenues, which were $0 during the same period of 2013, and the revenues from Dubai and other markets were approximately $1,100,000, or 8% of total revenues, which were $0 during the same period of 2013.

Revenues from franchise retail stores increased to approximately $4,730,000, or 35% of total revenues for the nine months ended September 30, 2014. Such increased was direct result from the increase in our franchise stores, which totaled 35 stores as September 30, 2014, compared to 6 stores in the same period in 2013.

  • Cost of Goods Sold

The Company had $2,191,743 in cost of goods sold for the third quarter of 2014, an increase of 396% from $441,996 for the corresponding period in 2013.

Gross margin was 23.43% for the third quarter of 2014, compared to 20.36% for the corresponding period in 2013. The increased gross margin was contributed by strengthening the Company's cost control procedure and efforts in collaboration with non-related suppliers.

  • Operating Expense

Operating expense for the three nine months ended September 30, 2014 were $407,741, respectively, increased by 18%, compared to $344,209 for the same period in 2013. The increasing in operating expense was due primarily to the increase in selling expense.

  • Operating Income

Operating income for the third quarter of 2014 was $262,979, compared to operating loss of $231,191 in the same period of 2013.

  • Net Income and EPS

Net income attributable to China's Fruit shareholders was $245, 211, a 397% increase from the corresponding period of 2013. Fully diluted earnings per share were 0.01, compared to net loss of $0.01 per share in the same period in 2013. The Company also received a grant from the government in amount of $2,989, which was to encourage the Company's contribution in modern agriculture.

  • Cash

As of September, 2014, China Fruits had cash equivalents of $15,594, compared to $40,217 as of December 31, 2013. Cash flow used in operating activities was $1,791 for the nine months ended of 2014. Cash flow used in investing activities was $457,975. Net cash provided by financing activities was $441,734.

Financial Guidance

The company preliminary plans to invest approximately $160,000 to develop its e-commerce business, as they believe e-commerce market will share the same significance as traditional market in the near future.

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, franchise sales and/or direct setups.

In June of 2014, the board of directors of the Company authorized and approved to setup a new subsidiary called US-China Fruits Company Limited ("US-China Fruits") under the laws of British Virgin Islands, of which China Fruits has 99.99% ownership. The article of incorporation of US-China Fruits was filed on June 16, 2014 but the company had no activities as of September 30, 2014. The Company believes the new subsidiary will facilitate the process and increase the efficiency when they develop overseas markets.

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 an approximately 26,700-square-foot distribution center and thirty-five 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 its 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 http://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 September 30, 2014 and December 31, 2013

Unaudited

(Stated in US Dollars)













(Audited)









9/30/2014




12/31/2013


ASSETS













Current Assets













Cash & cash equivalents






$

15,594



$

40,217


Accounts receivable, Net







1,422,579




4,075,765


Other receivable, Net







936,707




141,363


Advance to supplies







3,492,018




2,162,844


Inventories







75,357




1,566,556


Prepaid expense







176,220




67,862


Refundable tax







95,177




266,719


Related party receivable







313,648




————


TOTAL CURRENT ASSETS







6,527,300




8,321,326















Noncurrent Assets













Investment







162,512






Property, plant & equipment, net







3,309,009




3,370,148


Construction in progress







259,986




1,146


Intangible assets, net







310,679




331,697


Other long-term asset and deposits







55,192




24,548


Long term amortization







1,945




4,479


TOTAL NON-CURRENT ASSETS







4,099,323




3,732,018















TOTAL ASSETS






$

10,626,623



$

12,053,344















LIABILITIES & STOCKHOLDERS' EQUITY


























CURRENT LIABILITIES













Accounts payable and accrued expenses






$

910,061



$

4,238,843


Short-term loans







1,706,374




2,479,379


Customer deposit







766,281




493,164


Taxes payable







320,659




261,286


Other payables







1,062,732




657,952


Due to related parties







1,458,886




1,074,031


Accrued liabilities and payroll tax liabilities







445,446




354,489


Long term debt, current portion







377,027




————


TOTAL CURRENT LIABILITIES







7,047,466




9,559,144















LONG TERM LIABILITIES













Long term bank loan







435,532




————


TOTAL LONG TERM LIABILITIES







435,532




————















TOTAL LIABILITIES






$

7,482,998



$

9,559,144















STOCKHOLDERS' EQUITY


























Common stock, par value $.001, 100,000,000 shares authorized, 49,951,223 shares issued and outstanding as of September 30, 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 September 30, 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 September 30, 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


Accumulated deficits







(1,327,517)




(2,003,096)


Accumulated other comprehensive income







448,264




474,419


TOTAL STOCKHOLDERS' EQUITY







3,143,625




2,494,201















TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY



$

10,626,623



$

12,053,344


China Fruits Corporation

Consolidated Statements of Income

For the three-month and nine-month periods ended September 30, 2014 and 2013

Unaudited

(Stated in US Dollars)





Three Months Ended


Nine Months Ended

REVENUES:






9/30/2014


9/30/2013


9/30/2014


9/30/2013














Sales






$

2,862,463



$

555,014



$

13,414,155



$2,255,669

Cost of goods sold






(2,191,743)




(441,996)




(11,070,765)



(1,812,733)

GROSS PROFIT






670,720




113,018




2,343,390



442,936




















OPERATING EXPENSES:















Selling expenses






96,946




100,132




789,854



371,299

General and administrative expenses



310,795




244,077




867,371



675,429

TOTAL OPERATING EXPENSES



407,741




344,209




1,657,225



1,046,728



















INCOME (LOSS) FROM CONTINUING OPERATIONS


262,979




(231,191)




686,165



(603,792)



















OTHER INCOME (EXPENSE):

















Other income






14,193




————




42,725



11,321

Other expense






(515)




(43)




(515)




Interest income






81




————




140




Interest expense






(51,570)




(35,796)




(165,866)



(88,486)

Government grants






2,989




316,370




274,898



376,778

TOTAL OTHER INCOME (LOSS) & EXPENSE



(34,822)




280,531




151,382



299,613
























INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES



228,157




49,340




837,547



(304,179)
























Income tax expense





(17,054)




————




(161,968)



————

NET INCOME (LOSS)




$

245,211



$

49,340



$

675,579



$(304,179)
























Other compressive income
















-Foreign currency translation gain (Loss)





1,322




(6,513)




(26,155)



(47,985)
























COMPREHENSIVE INCOME (LOSS)



246,533




42,827




649,424



(352,164)

Income/(Loss) per common share:















Basic and fully diluted




$

**




**



$

0.01



(0.01)
























Weighted average number of common shares outstanding - Basic and fully diluted


49,951,223




49,951,223




49,951,223



49,951,223

** Less than $0.01

China Fruits Corporation

Consolidated Statements of Cash Flows

For the three-month and nine-month periods ended September 30, 2014 and 2013

Unaudited

(Stated in US Dollars)




For the nine-month period ended





9/30/2014




9/30/2013


Cash Flows from Operating Activities









Net Income/(loss)


$

675,579



$

(304,179)


Adjustments to reconcile net loss to net cash provided by (used in) operating activities:









Depreciation and amortization



87,720




198,358


Bad debt expense



————




11,048


(Increase)/decrease in operating assets:









Accounts receivable



2,653,474




324,198


Inventories



1,491,199




(27,200)


Prepaid expenses and other current assets



(2,091,978)




(126,380)


Related party receivable



(313,648)




————


Increase/(decrease) in operating activities:









Accounts payable



(3,328,782)




383,685


Other payables and accrued liabilities



495,737




(71,001)


Tax payable



59,373




4,936


Customer deposit



273,117




————


Net cash (used in) provided by operating activities


$

1,791



$

393,465











Cash Flows from Investing Activities









(Increase)/decrease in Construction in Progress


$

(258,848)



$

(811)


Purchase of property and equipment



(36,615)




(54,137)


Investment



(162,512)




————


Net cash provided (used in) by investing activities


$

(457,975)



$

(54,948)











Cash Flows from Financing Activities









Proceeds from short-term loans


$

628,920



$

————


Repayments of short-term loans



(1,007,573)




————


Advance from (to) a third party



5,410,017




(462,601)


Repayment of advance from (to) a third party



(5,122,371)




————


Proceeds from notes payable



————




972,873


Repayments of notes payable



————




(948,551)


Proceeds from notes payable - related party



————




8,107


Due to stockholders



97,209




89,664


Proceeds from long-term loan



435,532




————


Net cash provided by (used in) Financing Activities


$

441,734



$

(340,508)











Foreign currency translation adjustment



(10,173)




817











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



(24,623)




(1,174)











Cash & cash equivalents:









Beginning of period


$

40,217



$

47,399


End of period


$

15,594



$

46,225











Supplementary disclosures of cash flows information:









Interest received


$

956



$

————


Interest paid


$

122,125



$

86,942


Income taxes paid


$

28,309



$

6,873


Source: China Fruits Corporation
collection