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Yew Bio-Pharm Group Reports 2017 First Quarter Financial Results

2017-05-16 04:05
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EL MONTE, Calif., May 16, 2017 /PRNewswire/ -- Yew Bio-Pharm Group, Inc. ("Yew Bio" or the "Company") (YEWB), a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine, handicraft products made from yew timber and yew candle and soap made with yew essence oil in China, today reported financial results for the three months ended March 31, 2017.

 

2017 First Quarter Results



Three Months Ended March 31,

Percentage


2017

2016

Change

Revenues:




  TCM Raw Materials

$2,534,261

$8,043,465

(68)%

  Yew Trees

-

1,505

(100)%

  Handicrafts

1,361

17,250

(92)%

  Others

5,339,842

558,149

857%

  Total Revenues

$7,875,464

$8,620,369

(8.64)%

 

Total revenues for the first quarter of 2017 decreased 8.6% to $7.9 million from $8.6 million a year ago. Sales of TCM raw materials amounted to 32.2% of total revenues; sales of yew trees amounted to 0% of total revenues; sales of handicrafts amounted to 0 % of total revenues and sales of "Others" segment consisting with yew candle, yew essence oil soap and pine needle extracts amounted to 67.8% of total revenues. The Company did not make sales of yew tree in the first quarter of 2017 which was mainly attributable to its strategy adjustment to reserve more yew trees for future TCM raw materials sales.

For the 2017 first quarter, gross profit was $519,980, or 6.6% of total revenues, compared with $1.4 million, or 16.2% of total revenues for the comparable 2016 quarter. The decrease in the gross profit margin were primarily attributable to the lower gross margin of "Others" segments.

Operating expenses decreased 5.5% to $298,403 for the quarter ended March 31, 2017, from $315,900 in the year-ago quarter. The decreasing was primarily attributable to the decreases in stock-based compensation.

Net income for the three months ended March 31, 2017 decreased 83.8% to $169,904 from $1.1 million in the same quarter last year due to the decreases in revenues from TCM raw materials. Earnings per diluted share for the three months ended March 31, 2017 was $0.00 as compared to $0.02 for the same period last year.

"We are pleased with the steady sales increase in Others segment," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. "This newly added segment had contributed a great portion of our total revenues since the second quarter of 2016. As we mentioned in prior announcement, we expected to launch some new products in the year of 2017, and we recently signed agreement to manufacture two cosmetic series products, the facial creamer and wrinkle remover, both contain yew oil as the main ingredient. We believe these new developed cosmetic products will greatly enrich our product mix and to increase our potential revenues."

"We also recently established a retail store located at 1635 S. San Gabriel Blvd. #11, San Gabriel, California. The retail store is mainly focus on promoting and selling yew candles, yew oil soaps and some other yew merchandises. This is a very important milestone for the Company to explore the U.S. consumer market, as well as to promote our yew related products. Accompanied by progressive strategy towards market contact, we believe our yew series products will attract large numbers of U.S. customers in the future."

ABOUT YEW BIO-PHARM GROUP, INC

Yew Bio-Pharm Group, Inc., through its operating entity, Harbin Yew Science and Technology Development Co., Ltd. (HDS), is a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine (TCM) and products made from yew timber in China. Raw material from the species of yew tree that the Company grows contains taxol, and TCM containing yew raw materials has been approved as a traditional Chinese medicine in China for secondary treatment of certain cancers. The Company uses a patented, accelerated growth technology to speed the growth and maturity and commercialization of yew trees and believes that it is one of the few companies possessing a permit to sell them. Yew Bio-Pharm also recently established a division to focus on organic foods and dietary supplements with the aim of developing new business opportunities in related industries. To learn more, please visit www.yewbiopharm.com

SAFE HARBOR

This press release forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These forward-looking statements involve a number of risks and uncertainties that could cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.  A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to collect from our largest customers; our dependence on a small number of customers for raw materials, including a related party; our ability to continue to purchase raw materials at relatively stable prices; our dependence on a small number of customers for our yew trees for reforestation; our ability to market successfully raw materials used in the manufacture of traditional Chinese medicines; and our ability to receive continued preferential tax treatment for the sale of yew trees and potted yew trees. From time to time, these risks, uncertainties and other factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K. Yew Bio does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.

(financial tables follow)

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




March 31,

2017



December 31,

2016



(Unaudited)




                                                        ASSETS






CURRENT ASSETS:






Cash


$

520,787



$

278,991

Accounts receivable



16,348,972




14,467,852

Accounts receivable - related party



8,075,685




6,941,931

Inventories, net



10,730,482




10,296,792

Prepaid expenses - related party



70,728




76,035

Prepaid expenses and other assets



59,897




75,743

VAT recoverables



1,251,678




1,655,954

Total Current Assets



37,058,229




33,793,298









LONG-TERM ASSETS:








Long-term inventories, net



5,305,705




7,151,613

Property and equipment, net



673,498




692,116

Land use rights and yew forest assets, net



4,562,660




4,558,234









Total Long-term Assets



10,541,863




12,401,963









Total Assets


$

47,600,092



$

46,195,261









                          LIABILITIES AND SHAREHOLDERS' EQUITY








CURRENT LIABILITIES:








Accounts payable


$

944,478



$

2,700,148

Accounts payable - related parties



511,920




638,318

Accrued expenses and other payables



264,353




379,294

Notes payable



1,165,373




1,156,444

Taxes payable



4,855




16,520

Due to related parties



886,640




883,596

Short-term borrowings



4,600,922




1,723,865









Total Current Liabilities



8,378,541




7,498,185









NONCURRENT LIABILITIES:








Deferred income



121,907




120,973

Total Noncurrent Liabilities



121,907




120,973









Total Liabilities



8,500,448




7,619,158









SHAREHOLDERS' EQUITY:








Common Stock ($0.001 par value; 140,000,000 shares authorized; 51,875,000 shares
issued and outstanding at March 31, 2017 and December 31, 2016, respectively)



51,875




51,875

Additional paid-in capital



9,703,781




9,654,024

Retained earnings



27,244,528




27,074,624

Statutory reserves



3,762,288




3,762,288

Accumulated other comprehensive loss - foreign currency translation adjustment



(1,662,828)




(1,966,708)









Total Shareholders' Equity



39,099,644




38,576,103









Total Liabilities and Shareholders' Equity


$

47,600,092



$

46,195,261

 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)




For the Three Months Ended March 31,



2017



2016

REVENUES:






Revenues


$

5,341,203



$

576,904

Revenues - related party



2,534,261




8,043,465









Total Revenues



7,875,464




8,620,369









COST OF REVENUES:








Cost of revenues



5,301,216




627,983

Cost of revenues - related party



2,054,268




6,598,904









Total Cost of Revenues



7,355,484




7,226,887









GROSS PROFIT



519,980




1,393,482









OPERATING EXPENSES:








Selling expense



265




3,252

General and administrative expense



298,138




312,648









Total Operating Expenses



298,403




315,900









INCOME FROM OPERATIONS



221,577




1,077,582









OTHER INCOME (EXPENSES):








Interest expense



(51,963)




(27,320)

Other income



290




-









Total Other Expenses



(51,673)




(27,320)









INCOME BEFORE PROVISION FOR INCOME TAXES



169,904




1,050,262

PROVISION FOR INCOME TAXES



-




-

NET INCOME


$

169,904



$

1,050,262









COMPREHENSIVE INCOME:








NET INCOME


$

169,904



$

1,050,262

OTHER COMPREHENSIVE INCOME :








Foreign currency translation adjustment



303,880




275,422









COMPREHENSIVE INCOME


$

473,784



$

1,325,684









NET INCOME PER COMMON SHARE:








Basic


$

0.00



$

0.02

Diluted


$

0.00



$

0.02

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:








Basic



51,875,000




51,875,000

Diluted



56,670,931




51,875,000

 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)




For the Three Months Ended March 31,



2017



2016

CASH FLOWS FROM OPERATING ACTIVITIES:






Net income


$

169,904



$

1,050,262

Adjustments to reconcile net income to net cash used in operating activities:








Depreciation



23,220




30,504

Amortization of land use rights and yew forest assets



30,778




4,996,027

Stock-based compensation



49,757




82,598









Changes in operating assets and liabilities:








Accounts receivable



(1,770,317)




1,980,590

Accounts receivable - related party



(1,080,518)




(3,313,946)

Prepaid expenses and other current assets



16,129




(788,609)

Prepaid expenses - related party



5,896




(299,778)

Inventories



1,542,136




(4,091,713)

VAT recoverables



417,200




(96,129)

Accounts payable



(1,776,755)




46,080

Accounts payable – related parties



(131,370)




-

Accrued expenses and other payables



(107,982)




(16,440)

Due to related parties



11,880




81

Taxes payable



(11,760)




5,927









NET CASH USED IN OPERATING ACTIVITIES



(2,611,802)




(414,546)









CASH FLOWS FROM INVESTING ACTIVITIES:








Purchase of property and equipment



-




(4,261)









NET CASH USED IN INVESTING ACTIVITIES



-




(4,261)









CASH FLOWS FROM FINANCING ACTIVITIES:








Proceeds from short-term borrowings



2,880,000




-

Repayments to related parties



(20,000)




(35,000)

Proceeds from related parties



-




10,222









NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES



2,860,000




(24,778)









EFFECT OF EXCHANGE RATE ON CASH



(6,402)




(1,646)









NET INCREASE (DECREASE) IN CASH



241,796




(445,231)









CASH - Beginning of period



278,991




681,608









CASH - End of period


$

520,787



$

236,377









SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:








Cash paid for:








Interest


$

25,368



$

26,884

Income taxes


$

-



$

-

NON-CASH INVESTING AND FINANCING ACTIVITIES








Operating expense paid by related party


$

9,927



$

-

 

Company Contacts:
Henry Pang
Yew Bio-Pharm Group, Inc.
Tel: (626) 401-9588
hpang@yewbiopharm.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/yew-bio-pharm-group-reports-2017-first-quarter-financial-results-300457493.html

Source: Yew Bio-Pharm Group, Inc.

Related stocks: OTC-PINK:YEWB

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