Future FinTech Group, a financial technology company and integrated producer of fruit-related products, today announced its financial results for the second quarter ended June 30, 2017.
Second Quarter 2017 Financial Results
Revenue for the three months ended June 30, 2017 was $2.8 million, as compared to revenue of $10.2 million for the same period of 2016. This decrease was primarily due to a decrease in sales in all of the Company's fruit-related product segments.
Revenue by Segment
Sales from apple-related products were $0.03 million for the three months ended June 30, 2017, as compared to sales of $1.9 million for the same period of 2016.
As for concentrated kiwifruit juice and kiwifruit puree, they were $0.1 million for the second quarter of 2017, as compared to sales of $0.4 million for the same period of 2016. The decline was due to a decrease in products sold in the current quarter as compared to same period of 2016 due to lower market demand.
Concentrated pear juice sales were $0.1 million for the second quarter of 2017, as compared to sales of $1.0 million for the same period of 2016. The decline was due to a decrease in the unit price of the concentrated pear juice and a decrease in sales volume due to lower customer demand. The Company sold 1,149 and 1,314 tons of concentrated pear juice during the second quarters of 2017 and 2016, respectively.
Sales from fruit juice beverages segment were $2.5 million for the second quarter of 2017, as compared to sales of $5.5 million for the same period of 2016. The decline was primarily due to a decrease in sales volume as a result of heavy competition in the China market.
As for others products segment, they were $0.01 million for the second quarter of 2017, as compared to sales of $1.5 million for the same period of 2016. The sale from other products for the three months ended June 30, 2016 was concentrated orange juice. The Company does not expect continued sales from other products as customers' orders related to other products are currently small and unpredictable.
"We reported a decline in our financial results relative to the year ago quarter attributable to a difficult market environment resulting from a business contraction in all of our fruit product segments. A reduction in market demand, competitive pressures and an erosion in pricing caused a contraction in demand for our core fruit-related product segments," said Mr. Hongke Xue, Chief Executive Officer of Future FinTech.
"Although our fruit products business is currently facing challenges, we believe that our mission to lead the company into a new direction by utilizing sophisticated fintech capabilities to build a highly integrated agricultural enterprise will create a wide spectrum of growth opportunities."
"A key growth initiative is our development of a kiwi processing and trading center in Mei County coupled with the lease of 3,292 acres of kiwi orchards and planned purchase of an additional 833 acres of kiwi orchards that will enable us to source our own supply and maintain our high quality standards."
"We are also adding a new fruit segment to our product platform by leasing 1,317 acres of orange orchards in Yidu, Hubei Province to be integrated with the development of new state-of-the-art orange processing facilities. We plan to utilize fintech, e-commerce and best-in-class agricultural practices to integrate production and distribution in order to maximize our return on investment for these key initiatives," concluded Mr. Hongke Xue.
source: prnewswire.com