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Our primary business lies in the production and distribution of concentrated fruit juice products. SkyPeople's concentrated fruit juice products mainly include concentrated apple juice, concentrated pear juice, and concentrated kiwifruit juice. We distributed all of our concentrated fruit juice products to leading domestic and international fruit juice drink processors, such as Huiyuan, LOTTE, and Mengniu. In order to take advantage of economies of scale and to enhance our production efficiency, each of SkyPeople's manufacturing facilities has a focus on juice products centering around one particular fruit based on the proximity to fruit supplies. All of our concentrated juice products are manufactured through the same type of production line with slight variations in processing methods.
Our concentrated pear juice production base is located in Jingyang County, Shaanxi Province, and Huludao city, Liaoning Province. Jingyang County is well known for its ideal natural conditions for the growth of pears. Currently, our production capacity in pear juice concentrate per year is 10,000 tons.
Our concentrated apple juice production base is located in Huludao, Liaoning Province, where our newly acquired Huludao Wonder is located. Huludao and the surrounding area is one of the three major apple planting regions in China. Currently, our production capacity in apple juice concentrate is 10,000 tons per year.
Our concentrated kiwifruit juice production base is located in Zhouzhi County, Xi'an. Zhouzhi County and the surrounding area have a long history of kiwi planting and is well recognized as the world's “hometown of kiwifruit”. Currently, Zhouzhi County grows about 70% of the country's kiwifruit. We plan to increase the production capacity of kiwifruit juice and kiwi puree from 10,000 tons to 20,000 tons by the end of 2010.
SkyPeople's kiwi planting base is the largest in China with the country's largest kiwifruit Research and Develpment facility. Qin Mei Manor, as the facility is called, consists of a total planting area of more than 200,000 Mu (32,950 acres). With an annual fresh fruit output of roughly 200,000 tons, the facility also has a 150 Mu kiwi planting resource nursery, home to 68 species of kiwifruit. The intelligent demonstration base constructed for kiwifruit is part of China's National “863” Program and the “Qin Mei Manor Kiwi Plantation Standardization Project” is a World Bank sponsored project.
In addition, we have recently completed the successful pilot production of concentrated peach juice in our Zhouzhi factory. We plan to officially launch the production of concentrated peach juice in 2009 with an initial annual output of 2,000 tons. |