SkyPeople's Long-Awaited, Much Debated Annual Report Just Released

Skypeople Fruit Juice Inc SPU finally filed its Form 10k for the fiscal year ended December 31, 2015.

Timeline

Here is a timeline of the ordeal the company went through:

April 20, 2016; May 24, 2016; August 17, 2016: Received multiple notifications from the Listing Qualifications Department of the Nasdaq that it did not comply with the filing requirement set forth in the Listing Rule 5250(c)(1) for not filing its

• 10-K report for the period ended December 31, 2015.
• 10-Q for the periods ended March 31, 2016 and June 30, 2016.

Upon submission of plans of compliance, the company was granted an exception to the rule until October 11.

October 12, 2016: Received delisting determination letter from the Nasdaq for not filing the reports by October 11, 2016.

October 19, 2016: Requested a hearing before the Nasdaq Hearings Panel to appeal the delisting determination.

November 2, 2016: Granted a stay by the panel on the suspension of its shares from trading until the scheduled hearing before the panel on December 15, 2016.

November 18, 2016: Received an additional delisting determination letter from the NASDAQ staff, stating that it is not compliance with the rule due to the failure to file its 10-Q for the quarter ended September 30, 2016.

CEO's Explanation

The company's CEO Hongke Xue clarified that the delay was due to 1) the resignation of the company's CFO; 2) a share transfer agreement and capital contribution to bolster capital in one of its subsidiaries to meet the capital requirements of the Chinese government, which delayed work on the year-end audit; and 3) changes in accounting firms.

The company's release showed that its net income fell to $2.9 million in the fiscal year 2015 from $7.9 million last year. Revenues were down 13 percent to $86.4 million.

The company also indicated that despite its attempts at completing the delinquent filings and regaining compliance, it cannot assure that it would be able to do so or that the panel will leave the decision of the Nasdaq staff in place.

At the time of writing, shares of SkyPeople Fruit Juice were down 5.37 percent at $7.22.