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    SkyPeople Fruit Juice, Inc. (SPU) – NASDAQ  Monday, June 29, 2015


    Business Model

SkyPeople Fruit Juice, Inc., a Florida company, through its wholly-owned subsidiary Pacific Industry Holding Group
Co., Ltd. ("Pacific"), a Vanuatu company, and SkyPeople Juice International Holding (HK) Ltd., a company organized
under the laws of Hong Kong Special Administrative Region of the People's Republic of China and a wholly owned
subsidiary of Pacific, holds 99.78% ownership interest in SkyPeople Juice Group Co., Ltd. ("SkyPeople (China)").
SkyPeople (China), together with its operating subsidiaries in China, is engaged in the production and sales of fruit
juice concentrates, fruit beverages, and other fruit related products in the PRC and overseas markets. Its fruit juice
concentrates are sold to domestic customers and exported directly or via distributors. Fruit juice concentrates are
used as a basic ingredient component in the food industry. Its brands, "Hedetang" and "SkyPeople," which are
registered trademarks in the PRC, are positioned as high quality, healthy and nutritious end-use juice beverages. For
more information, please visit
http://www.skypeoplefruitjuice.com


Recent Accomplishments

First Quarter 2015 Summary:

Total revenue was $16.6 million, an increase of 41% year-over-year
Gross profit was $7.2 million, an increase of 95% year-over-year
Gross profit margin was 43% as compared to 31% in the year-ago quarter
Income from operations was $3.1 million, an increase of 94% year-over-year
Net income attributable to SkyPeople Fruit Juice, Inc. was $1.5 million, an increase of 200% year-over-year
Cash, cash equivalents and restricted cash were $45.7 million as of March 31, 2015


"We are pleased to report a robust increase in revenue and a three-fold increase in our net profit for the first quarter
of 2015 from the year-ago quarter as we were able to effectively manage the raw materials costs of certain key
product segments. In particular, our concentrated pear juice segment evidenced a strong rebound from last year's
first quarter due to excellent product accessibility and our ability to secure supply from local markets," said Mr. Yongke
Xue, Chief Executive Officer of SkyPeople. "We are buoyed by current business conditions where we can capitalize
upon our diversified product strategy and generate solid company revenue leveraging the supply-demand dynamics
of seasonally strong fruit product segments.



Financial Fitness

As of March 31, 2015, the Company had $45.7 million in cash, cash equivalents and restricted cash, an increase from
$31.7 million as of fiscal year end 2014. The Company's restricted cash of $6.5 million consists of cash equivalents
used as collateral to secure short-term notes payable. The Company's working capital was $36.7 million as of the first
quarter of 2015 as compared to working capital of $34.8 million as of fiscal year end 2014. As of March 31, 2015, the
Company had total debt of $70.0 million, which included $8.1 million of bank notes payable, $36.3 million in short-term
bank loans, $8.0 million in long-term loans from a related party and $17.6 million in total capital lease obligations.
Stockholders' equity attributable to SkyPeople Fruit Juice was $182.2 million as of the end of the first quarter of 2015
as compared to $181.4 million as of fiscal year end 2014.

During the first quarter of 2015, the Company's operating activities generated a net cash inflow of $8.1 million as
compared to a net cash inflow of $14.9 million from operating activities for the same period of 2014. Net cash used in
investing activities were $2.1 million for the first quarter of 2015, including $2.0 million in additions to property, plant
and equipment as compared to net cash used in investing activities of $3.9 million for the same period of 2014. Cash
flow provided by financing activities totaled $8.1 million for the first quarter of 2015 as compared to $1.2 million of net
cash used in financing activities for the same period of 2014. We believe that projected cash flows from operations,
anticipated cash receipts, cash on hand, and trade credit will provide the necessary capital to meet the Company's
projected operating cash requirements for at least the next twelve months, which does not take into account any
potential expenditures related to the potential expansion of our current production capacity.


Risks

This company certainly will see risk from the economy, weather and commodity prices, however, it's small size should
mitigate some of these concerns
.


Our Trading Strategy

This is another buy and hold type stock that we would not look to invest very much of the portfolio in.  As this company
grows, so can our position in the stock.  A stop loss could easily be entered at a buck, however, in our experience it
can be better to look at either going 10-20% below or above that number, as $1.00 exactly has always seemed to be
a bad place to put a stop.  As far as a profit target, we would look at a fairly loose trailing stop loss should the stock
double, perhaps 40% below the stocks 10-20 day moving average.