- Record FY 2014 Total Revenue of $32,635,446, up 248.30% YOY
- Record FY 2014 Net Income of $1,552,023, up 831.46% YOY
BEIJING, April 16, 2015 /PRNewswire/ -- China Fruits Corporation CHFR ("China Fruits" or "the Company"), a producer and distributor of fresh tangerine and other fresh fruits in the People's Republic of China, today released its financial results of fiscal year ended December 31, 2014.
Fiscal Year 2014 Highlights
- Total revenues in fiscal year 2014 were $32,635,446, a 248.30% increase from the corresponding period in 2013.
- Operating income in fiscal year 2014 was $1,914,657, compared to operating loss of $30,708 from the corresponding period in 203.
- Net income attributable to China Fruits in fiscal year 2014 was $1,552,023, 831.46% increase from the corresponding period in 2013.
"2014 was a year of remarkable accomplishment for China Fruits. Our franchise retail stores reached 64, increasing by approximately 814% compared to 7 stores in 2013. We also reached a new high of 16 million dollars revenues on exporting Nanfeng Tangerines," said Mr. Quanlong Chen, Chairman and Chief Executive Officer of China Fruits Corporation, "China Fruits is at a high-speed developing phase. We will continue to focus on expanding the network of our franchise retail stores in 2015, expecting to own 135 franchise retail stores. Simultaneously, we are devoted into developing e-commerce, which is also part of our long-term strategic plan. We expect the Company's total number of shares of Common Stock issued and outstanding to be 2,089,016 shares and earnings per share to be $0.74 when the DEC 14C form filed on SEC on April 7th, 2015 becomes effective."
Fiscal Year 2014 Results
Total Revenues
For the fiscal year 2014, China Fruits reported total revenues of $32,635,446, compared to $9,369,901 for the same period last year, primarily to company's effort in expanding overseas markets, franchise stores and E-commerce business.
- Overseas Markets
Fresh fruits export was a key component of the company's revenues, which was approximately $22 million, or 67% of total revenues in 2014, including approximately $5 million from Thailand, approximately $4.6 million from Myanmar, approximately $4.5 million from Kyrgyzstan, approximately $3.2 million from Kazakhstan and approximately $1.6 million from Dubai.
- Franchise Retail Stores
Revenues from franchise retail stores increased to approximately $8.5 million, or 26.05% of total revenues for the twelve months ended December 31, 2014. Such increase was primarily because the company focuses on the franchise stores expansion, which totaled 64 stores as of December 31, 2014, compared to 7 stores in 2013.
- E-commerce Business
E-commerce business generated approximately 0.4 million dollars revenue for the twelve months ended December 31, 2014.
Cost of Goods Sold
The company had $26,845,474 in cost of goods sold for the fiscal year 2014, an increase of 268.44% from $7,286,184 for the corresponding period in 2013. The company expects to reduce the cost of goods sold through alliance with more non-related suppliers, which will also help to reduce the risk of concentration.
Gross profit was $5,789,972 for the fiscal year 2014, increased by 177.87%, compared to the corresponding period in 2013.
Operating Expense
Operating expense for the fiscal year 2014 was $3,875,315, increased by 83.28%, compared to $2,114,426 for the same period in 2013. The increase in operating expenses in 2014 was attributable to the increase in selling and marketing expenses, such as advertising, shipping, handling and exhibition expenses, etc.
Operating Income
Operating income was $1,914,657 in 2014, compared to operating loss of $30,708 over the same period in 2013.
Net income and EPS
Net income attributable to China's Fruits shareholders was $1,552,023 in 2014, increased by 831.46%, compared to $166,622 over the same period in 2013. Such increase was primarily due to the increase in sales revenues. Fully diluted earnings per share were $0.03, compared to $0.0033 per share over the same period in 2013.
Cash and Cash Equivalents
As of December 31, 2014, China Fruits had cash and cash equivalents of $801,356, compared to $40,217 as of December 31, 2013. Cash flow used in operating activities was $2,610,557 for the twelve months ended December 31, 2014. Cash flow used in investing activities was $679,031. Net cash provided by financing activities was $4,055,571.
Financial Guidance
China Fruits continues to develop e-commerce business, as the company believes the goal is to combine e-commerce with growing retail stores network to introduce an "online to offline" business model for their clients. Such integration will increase the company's brand recognition and market shares in fruit e-commerce business.
The Company also expects the total number of franchise stores to be increased to around 135 by the end of 2015. 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 articles of incorporation of US-China Fruits was filed on June 16, 2014. The switch from current exporting system to new system involving US-China Fruits was not completed; thus, there were no activities in US-China Fruits as of December 31, 2014. The Company believes the new subsidiary will facilitate the process and increase the efficiency when they develop overseas markets.
About China Fruits
China Fruits Corporation CHFR is a U.S.-listed holding company, engaged in manufacturing, trading and distributing fresh tangerine and other fresh fruits in the People's Republic of China. The Company wholly owns three subsidiaries: Taina International Fruits (Beijing) Co., Ltd., which builds and operates franchise retail stores, Jiangxi Taina Nanfeng Orange Co., Ltd., which engages in the fresh fruits manufacturing, and US-China Fruits Company Limited, which plans to do the business of import and export. The Company owns a 782,765-square-foot manufacturing base, with air-adjusted and fresh-keeping warehouse, and advanced photoelectric fruit sorter. The Company owns 64 franchise retail stores, one distribution center and one express export zone in Nanfeng. 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", "China's Fast-Growing Company", 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 LLC
Email: taina@dgipl.com
Tel: +1(646)-801-2803
Website: http://www.taina.cn
China Fruits Corporation Audited Consolidated Balance Sheets As of December 31, 2014 and 2013 (Stated in US Dollars) | ||||||
ASSETS |
12/31/2014 |
12/31/2013 | ||||
Current Assets |
||||||
Cash & cash equivalents |
$ |
801,356 |
$ |
40,217 | ||
Accounts receivable, Net |
14,442,327 |
4,075,765 | ||||
Other receivable, Net |
248,898 |
141,363 | ||||
Advance to suppliers |
5,894,668 |
2,162,844 | ||||
Inventories |
2,089,796 |
1,566,556 | ||||
Prepaid expense |
89,558 |
67,862 | ||||
Refundable tax |
297,481 |
266,719 | ||||
Related party receivable |
1,114,279 |
— | ||||
TOTAL CURRENT ASSETS |
24,978,363 |
8,321,326 | ||||
Noncurrent Assets |
||||||
Investment |
162,906 |
— | ||||
Property, plant & equipment, net |
3,366,085 |
3,370,148 | ||||
Construction in progress |
356,793 |
1,146 | ||||
Intangible assets, net |
307,614 |
331,697 | ||||
Other long-term asset and deposits |
55,326 |
24,548 | ||||
Long-term amortization |
1,115 |
4,479 | ||||
TOTAL NON-CURRENT ASSETS |
4,249,839 |
3,732,018 | ||||
TOTAL ASSETS |
$ |
29,228,202 |
$ |
12,053,344 | ||
LIABILITIES & STOCKHOLDERS' EQUITY |
||||||
CURRENT LIABILITIES |
||||||
Accounts payable and accrued expenses |
$ |
13,881,635 |
$ |
4,238,843 | ||
Short-term loans |
4,936,059 |
2,479,379 | ||||
Customer deposit |
838,553 |
493,164 | ||||
Taxes payable |
775,919 |
261,286 | ||||
Other payables |
841,155 |
657,952 | ||||
Due to related parties |
1,941,527 |
1,074,031 | ||||
Accrued liabilities and payroll tax liabilities |
1,262,399 |
354,489 | ||||
Long-term bank loan, current portion |
377,942 |
— | ||||
TOTAL CURRENT LIABILITIES |
24,855,189 |
9,559,144 | ||||
LONG TERM LIABILITIES |
||||||
Long term bank loan |
342,103 |
— | ||||
TOTAL LONG TERM LIABILITIES |
342,103 |
— | ||||
TOTAL LIABILITIES |
$ |
25,197,292 |
$ |
9,559,144 | ||
STOCKHOLDERS' EQUITY |
||||||
Common stock, par value $.001, 100,000,000 shares authorized, 49,951,223 shares issued |
$ |
49,951 |
$ |
49,951 | ||
and outstanding as of December 31, 2014 and 2013, respectively |
||||||
Preferred stock, 200,000,000 shares authorized, designated as Series A and Series B. |
13 |
13 | ||||
Series A: par value $.001; 2,000,000 shares authorized, 13,150 shares issued and outstanding as of December 31, 2014 and 2013, respectively |
||||||
Series B; par value $0.001, voting; 50,000,000 shares authorized, 12,100,000 shares issued and outstanding as of December 31, 2014 and 2013, respectively |
12,100 |
12,100 | ||||
Additional paid in capital |
3,789,864 |
3,789,864 | ||||
Statutory reserve |
170,950 |
170,950 | ||||
Accumulated deficits |
(451,073) |
(2,003,096) | ||||
Accumulated other comprehensive income |
459,105 |
474,419 | ||||
TOTAL STOCKHOLDERS' EQUITY |
4,030,910 |
2,494,201 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
29,228,202 |
$ |
12,053,344 |
China Fruits Corporation Audited Consolidated Statements of Income and Comprehensive Income For the years ended December 31, 2014 and 2013 (Stated in US Dollars) |
||||||||||
12/31/2014 |
12/31/2013 |
|||||||||
Sales |
$ |
32,635,446 |
$ |
9,369,901 |
||||||
Cost of goods sold |
(26,845,474) |
(7,286,184) |
||||||||
GROSS PROFIT |
5,789,972 |
2,083,717 |
||||||||
OPERATING EXPENSES: |
||||||||||
Selling expenses |
2,495,267 |
1,262,369 |
||||||||
General and administrative expenses |
1,380,048 |
852,056 |
||||||||
TOTAL OPERATING EXPENSES |
3,875,315 |
2,114,426 |
||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS |
1,914,657 |
(30,708) |
||||||||
OTHER INCOME (EXPENSE): |
||||||||||
Other income |
42,742 |
18,780 |
||||||||
Other expense |
(516) |
— |
||||||||
Interest income |
190 |
120 |
||||||||
Interest expense |
(240,102) |
(131,316) |
||||||||
Government grants |
278,780 |
409,160 |
||||||||
TOTAL OTHER INCOME (LOSS) & EXPENSE |
81,094 |
296,744 |
||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
1,995,751 |
266,036 |
||||||||
Income tax expense |
(443,728) |
(99,414) |
||||||||
NET INCOME (LOSS) |
$ |
1,552,023 |
$ |
166,622 |
||||||
Other compressive income |
||||||||||
-Foreign currency translation gain (Loss) |
(15,314) |
84,886 |
||||||||
COMPREHENSIVE INCOME (LOSS) |
1,536,709 |
251,508 |
||||||||
Income/(Loss) per common share: |
||||||||||
Basic |
$ |
0.03 |
** |
|||||||
Fully diluted |
$ |
0.03 |
** |
|||||||
Weighted average number of common shares outstanding |
||||||||||
Basic |
49,951,223 |
49,951,223 |
||||||||
Fully diluted |
55,878,400 |
51,266,223 |
||||||||
** Less than $0.01 |
China Fruits Corporation Audited Consolidated Statements of Cash Flows For the years ended December 31, 2014 and 2013 (Stated in US Dollars)
| ||||||||
For the year ended | ||||||||
12/31/2014 |
12/31/2013 | |||||||
Cash Flows from Operating Activities |
||||||||
Net Income/(loss) |
$ |
1,552,023 |
$ |
166,622 |
||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||
Depreciation and amortization |
170,169 |
320,782 |
||||||
Bad debt expense |
153,585 |
— |
||||||
(Increase)/decrease in operating assets: |
||||||||
Accounts receivable |
(10,520,147) |
(3,589,453) |
||||||
Inventories |
(523,240) |
(1,455,726) |
||||||
Prepaid expenses and other current assets |
(3,922,595) |
(814,225) |
||||||
Related party receivable |
(1,114,279) |
— |
||||||
Increase/(decrease) in operating activities: |
||||||||
Accounts payable |
9,642,792 |
4,151,415 |
||||||
Other payables and accrued liabilities |
1,091,113 |
479,903 |
||||||
Tax payable |
514,633 |
233,702 |
||||||
Customer deposit |
345,389 |
(92,177) |
||||||
Net cash (used in) provided by operating activities |
$ |
(2,610,557) |
$ |
(599,157) |
||||
Cash Flows from Investing Activities |
||||||||
(Increase)/decrease in Construction in Progress |
$ |
(355,652) |
$ |
(1,146) |
||||
Purchase of property and equipment |
(160,473) |
(380,291) |
||||||
Increase in Intangible Assets |
— |
(14,758) |
||||||
Investment |
(162,906) |
— |
||||||
Net cash provided (used in) by investing activities |
$ |
(679,031) |
$ |
(396,195) |
||||
Cash Flows from Financing Activities |
||||||||
Proceeds from short-term loans |
$ |
5,937,933 |
$ |
— |
||||
Repayments of short-term loans |
(3,091,961) |
— |
||||||
Advance from (to) related party |
5,911,868 |
511,599 |
||||||
Repayment of advance from (to) related party |
(5,183,677) |
— |
||||||
Proceeds from notes payable |
— |
1,963,864 |
||||||
Repayments of notes payable |
— |
(1,571,422) |
||||||
Proceeds from notes payable – related party |
— |
— |
||||||
Due to stockholders |
139,305 |
— |
||||||
Proceeds from long-term loan |
342,103 |
— |
||||||
Net cash provided by (used in) Financing Activities |
$ |
4,055,571 |
$ |
904,041 |
||||
Foreign currency translation adjustment |
(4,844) |
84,886 |
||||||
Net increase/(decrease) in cash & cash equivalents for the periods |
761,139 |
(6,425) |
||||||
Cash & cash equivalents: |
||||||||
Beginning of period |
$ |
40,217 |
$ |
46,642 |
||||
End of period |
$ |
801,356 |
$ |
40,217 |
||||
Supplementary disclosures of cash flows information: |
||||||||
Interest received |
$ |
1,025 |
$ |
— |
||||
Interest paid |
$ |
178,387 |
$ |
124,937 |
||||
Income taxes paid |
$ |
— |
$ |
6,873 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/china-fruits-corporation-reports-fy-2014-financial-results-300065980.html
SOURCE China Fruits Corporation
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