• First-half net profits down 88% to US$552,540
  • Net sales fall by 18% to $23.8m
  • H1 operating profits decrease 41% to $3.8m
  • Second-quarter net profits down 80% to $156,816
  • Net sales up 16% to $12m
  • Q2 operating profits climb by 131% to $2.2m

SkyPeople Fruit Juice has posted a weak first half but stronger Q2 figures were a cause for optimism.

Net profits slid by 88% to US$552,540 in the six months to the end of June, the China-based fruit juice concentrate and beverage producer said today. Net sales slipped by 18% to $23.8m in the same period while operating profits decreased 41% to $3.8m.

In the second quarter, profits were still down, by 80% to $156,816. However net sales were up 16% to $12m and operating profits climbed by 131% to $2.2m.

In Q1 results released in May, SkyPeople blamed falling profits and sales on limited availability of raw materials. Today, CEO Xue Hongke said a capital lease obligation taken out to pay for projects including the development of orange products in Hubei Province and kiwi products in Mei County had damaged the bottom line.

However, Xue added: “We view our branded fruit juice beverages as a key growth segment that fits China's growth profile very well.”

NASDAQ-listed SkyPeople saw its shares increase by 1% in morning trading.

To read the company's full H1 & Q2 results, click here.