Short-term loan - Related Party

9 Months Ended

Sep. 30, 2013

Basis Of Presentation

4. Short-term loan - Related Party

On February 18, 2013, SkyPeople (China) entered into a loan agreement with SkyPeople International Holdings Group Limited (the "Lender"). The Lender indirectly holds 50.2% interest in the Company. Mr. Yongke Xue ("Y. K. Xue"), the Chairman of the board of directors of the Company (the "Board"), and Mr. Hongke Xue, the newly elected Chief Executive Officer of the Company and director of the Board, indirectly and beneficially own 80.0% and 9.4% of equity interest in the Lender, respectively. Pursuant to the Agreement, the Lender agrees to extend to the Company a one-year unsecured term loan with a principal amount of $8.0 million at an interest rate of 6% per annum.

During nine months ended September 30, 2013, the Company received $8.0 million from the Lender. As of September 30, 2013, amount payable to SkyPeople International Holdings Group Limited was $8.0 million. Interest of $209,897 was accrued for nine months ended September 30, 2013.