Absaroka’s significant concerns about SkyPeople include the following material issues:

1.      SkyPeople’s Chinese SAIC financials indicate the Company is less than 10% the size claimed in the United Sates SEC financials

2.      Visits to all four of SkyPeople’s production factories found idle facilities with limited and antiquated production equipment; the facilities only operate in production mode for less than two months per year due to limited demand and inefficient production

3.      SkyPeople does not own the largest kiwifruit plantation in Asia and is forced to source input fruits for its factories from local farmers at high costs due to its relatively small size

4.      Retail channel checks and discussions with SkyPeople’s distributors and customers make the company’s claims regarding product distribution and sales volume unbelievable. Many of the Company’s “customers” claim to have done little or no business with the Company and Absaroka’s researchers struggled to find the Company’s beverage products on store shelves

5.      EBITDA margins, inventory turnover, accounts receivables, and selling/marketing costs seem particularly dubious relative to peers and indicate potential accounting shenanigans

6.      A history of low-quality auditors raises significant concerns about validity of published financials and future business prospects

Any of these serious issues on a stand-alone basis should be enough to convince public shareholders to question the current $2.55/share valuation.

For the complete report, please visit:  http://www.absaroka.com/SPU.html

Best Regards-

Kevin Barnes

Absaroka Capital Management, LLC