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Yongye International Announces Positive Operating Cash Flow for Fourth Quarter and Full Year 2010 and Improvement in Accounts Receivable-PR Newswire Asia-Newswire
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Yongye International Announces Positive Operating Cash Flow for Fourth Quarter and Full Year 2010 and Improvement in Accounts Receivable

2011-01-05 22:02
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BEIJING, Jan. 5, 2011 /PRNewswire-Asia/ -- Yongye International, Inc. (Nasdaq: YONG) ("Yongye" or the "Company"), a leading manufacturer, developer and distributor of "Shengmingsu" brand plant and animal nutrient products in China, today reported it has achieved positive cash flow from operations for the fourth quarter and full year 2010 and an improvement in its accounts receivable as of year-end 2010.  

For the three months ended December 31, 2010, the Company collected $77.0 million in cash from revenue that was recognized in the fourth quarter of 2010 and previous quarters. As of December 31, 2010, the Company had $25.7 million in accounts receivable, a decline of 66.0% from $75.6 million as of the end of the third quarter of 2010.

Mr. Sam Yu, Chief Financial Officer, stated, "We believe that 2010 represents an important turning point in terms of cash flow generation for Yongye as we were able to achieve both robust revenue growth and positive operating cash flow as a result of our improved working capital management.  

"Our business is seasonal with approximately 70% to 80% of our annual sales occurring in the second and third quarters. We currently provide our key distributors up to six months credit terms and our strong sales growth resulted in an increase in our accounts receivable in the second and third quarters. We normally collect a significant part of our third quarter accounts receivable balance in the fourth quarter, and we did so again this year.  Our improved working capital management and cash collection efforts also contributed to the significant decline in our accounts receivable and positive operating cash flow performance.  

"We expect that our positive operating cash flow performance will continue, including in the year ended December 31, 2011, due to robust market demand for our products and our improved working capital management. We remain optimistic about our business prospects as our Shengmingsu agricultural nutrient product continues to help Chinese farmers increase crop yields, shorten harvest times, and extend the life-cycles of plants as well enhance crop taste, nutrition and appearance."

The results announced in this press release are unaudited. The Company plans to release its fourth quarter and full year 2010 audited financial results in March 2011.  

About Yongye International

Yongye International is a Chinese agricultural nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye markets two lines of organic nutrient products: a liquid nutrient product which is sprayed on plants and a powder nutrient product which is added to animal feed. Both products are sold under the brand name "Shengmingsu," which means "life essential" in Chinese. The Company's patented and patent pending formulas and proprietary extraction processes allow it to create products that increase crop yields and improve the health of livestock. The Company sells its products primarily to provincial or regional level distributors, who then channel those products to a carefully selected network of independently-owned Yongye branded stores in China. For more information, please visit the Company's website at http://www.yongyeintl.com.

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contact:

 

 

 

 

Yongye International
Ms. Kelly Wang
Finance Director – Capital Markets  
Phone: +86-10-8231-9608
E-mail: ir@yongyeintl.com

 

 

 

 

Ms. Wendy XuanBusiness Associate
Phone: +86-10-8232-8866 x 8827          
E-mail: ir@yongyeintl.com

 

 

 

 

CCG Investor Relations
Mr. Athan Dounis
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com

 

 

 


Source: Yongye International, Inc.

Related stocks: NASDAQ-CM:YONG

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