omniture

Yew Bio-Pharm Group Reports 2017 Third Quarter Financial Results

2017-11-14 05:05 1255

EL MONTE, Calif., Nov. 14, 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- and nine-months ended September 30, 2017.

2017 Third Quarter Results




Three Months Ended 
September 30,



Increase



Percentage




2017



2016



(Decrease)



Change


TCM raw materials


$

2,939,959



$

6,873,988



$

(3,934,029)




(57.23)%


Yew trees



9,906




-




9,906




0.00%


Handicrafts



2,916




1,087




1,829




168.26%


Others



8,612,134




7,792,024




820,110




10.52%


Total


$

11,564,915



$

14,667,099



$

(3,102,184)




(21.15)%


Total revenues for the third quarter of 2017 decreased 21.2% to $11.6 million from $14.7 million a year ago. Sales of TCM raw materials amounted to 25.4% 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, mainly consisting with yew candles, pine needle extract and essential oil soaps amounted to 74.6% of total revenues.

For the 2017 third quarter, gross profit was $749,916, or 6.5% of total revenues, compared with $1.4 million, or 9.7% of total revenues for the comparable 2016 quarter. The decrease in overall gross profit margin was primarily attributable to the lower gross margin yields of Others segment.

Operating expenses decreased 12.9% to $260,916 for the quarter ended September 30, 2017, from $299,517 in the year-ago quarter. The decreasing was primarily attributable to the decrease in depreciation and professional fees.

Net income for the three months ended September 30, 2017 decreased 43.1% to $614,407 from $1.1 million in the same quarter last year. Earnings per diluted share for the three months ended September 30, 2017 was $0.01, as compared to $0.02 for the same quarter of last year.

Nine Months 2017 Financial Results




Nine Months Ended
September 30,



Increase



Percentage




2017



2016



(Decrease)



Change


TCM raw materials


$

17,011,006



$

24,063,798



$

(7,052,792)




(29.31)%


Yew trees



9,906




23,246




(13,340)




(57.39)%


Handicrafts



5,284




97,560




(92,276)




(94.58)%


Others



18,018,559




15,162,974




2,855,585




18.83%


Total


$

35,044,755



$

39,347,578



$

(4,302,823)




(10.94)%


Total revenues for the nine months of 2017 decreased 10.9% to $35.0 million from $39.3 million a year ago. Sales of TCM raw materials amounted to 48.5% 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, mainly consisting with yew candles, pine needle extract and essential oil soaps, amounted to 51.5% of total revenues.

Gross profit was $11.9 million, or 33.8% of total revenues, compared with $4.5 million, or 11.3% of total revenues for the comparable 2016 quarter. The increase in the gross profit margin was primarily attributable to the higher gross margin yields of TCM raw materials.

Operating expenses decreased 10.2% to $859,234 for the nine months ended September 30, 2017, from $956,674 for the same period last year. The decreasing was primarily attributable to the decreases in depreciation, professional fees and Other.

Net income for the nine months of 2017 increased 221.2% to $11.0 million from $3.4 million for the same period last year. Earnings per diluted share was $0.20, as compared to $0.07 for the same period last year.

"The sales of yew candles, pine needle extract and essential oil soaps maintained a stable growth for the third quarter and also the past nine months of 2017, as compared with the same periods of 2016," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "These yew essential oil derivative products such as yew candle and soap have contributed a great portion of overall revenues for the Company since year 2016. We are actively transforming our business type from agriculture-focused to a more diversified business model."

"Our two cosmetic products, which include with yew essential oil, have finished production and will be launched to the U.S. market before the year end. We would like to use these two products to introduce the benefits of our yew essential oil to the U.S. consumers, as the cosmetic products would be more popular and common for people to use. Meanwhile, our two coffee products, wood ear coffee and pine needle coffee, have been formally launched to the U.S. market early of November, and the products have started to be sold at Shun Fat Supermarket, San Gabriel Superstore, California. We believe these newly added products will greatly enrich our product mixes and become new sources of revenues for the Company."   

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.

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

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS




September 30,
2017



December 31,
2
016




(Unaudited)





ASSETS







CURRENT ASSETS:







Cash


$

1,339,673



$

278,991


Accounts receivable



11,743,961




14,467,852


Accounts receivable - related parties



18,499,561




6,941,931


Inventories, net



9,362,578




10,296,792


Prepaid expenses - related party



61,030




76,035


Prepaid expenses and other assets



92,442




75,743


VAT recoverables



622,134




1,655,954











Total Current Assets



41,721,379




33,793,298











LONG-TERM ASSETS:









Long-term inventories, net



7,730,893




7,151,613


Property and equipment, net



583,542




692,116


Land use rights and yew forest assets, net



9,823,740




4,558,234











Total Long-term Assets



18,138,175




12,401,963











Total Assets


$

59,859,554



$

46,195,261











LIABILITIES AND SHAREHOLDERS' EQUITY









CURRENT LIABILITIES:









Accounts payable


$

1,076,485



$

2,700,148


Accounts payable - related parties



49,198




638,318


Accrued expenses and other payables



153,408




379,294


Notes payable



1,206,702




1,156,444


Taxes payable



4,886




16,520


Due to related parties



678,410




883,596


Short-term borrowings



4,758,689




1,723,865











Total Current Liabilities



7,927,778




7,498,185











NOCURRENT LIABILITY:









    Deferred income



351,642




120,973


        Total Noncurrent Liabilities



351,642




120,973











         Total Liabilities



8,279,420




7,619,158











SHAREHOLDERS' EQUITY:









Common Stock ($0.001 par value; 140,000,000 shares authorized; 51,875,000 shares 
     issued and outstanding at September 30, 2017 and December 31, 2016)



51,875




51,875


Additional paid-in capital



9,748,201




9,654,024


Retained earnings



38,114,448




27,074,624


Statutory reserves



3,762,288




3,762,288


Accumulated other comprehensive loss



(96,678)




(1,966,708)











Total Shareholders' Equity



51,580,134




38,576,103











Total Liabilities and Shareholders' Equity


$

59,859,554



$

46,195,261


 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)




For the Three Months
Ended September 30,



For the Nine Months
Ended September 30,




2017



2016



2017



2016


REVENUES:













Revenues


$

7,272,296



$

7,793,111



$

16,681,089



$

15,283,780


Revenues - related parties



4,292,619




6,873,988




18,363,666




24,063,798



















Total Revenues



11,564,915




14,667,099




35,044,755




39,347,578



















COST OF REVENUES:

















Cost of revenues



7,371,663




7,650,346




16,731,726




15,085,190


Cost of revenues - related parties



3,443,336




5,597,721




6,453,470




19,800,134



















Total Cost of Revenues



10,814,999




13,248,067




23,185,196




34,885,324



















GROSS PROFIT



749,916




1,419,032




11,859,559




4,462,254



















OPERATING EXPENSES:

















Selling



64,347




5,667




64,678




17,754


General and administrative



196,569




293,850




794,556




938,920



















Total Operating Expenses



260,916




299,517




859,234




956,674



















INCOME FROM OPERATIONS



489,000




1,119,515




11,000,325




3,505,580



















OTHER INCOME (EXPENSES):

















Interest expense



(52,105)




(39,367)




(139,450)




(108,654)


Other income



178,122




390




179,559




40,219



















Total Other Income (Expenses)



126,017




(38,977)




40,109




(68,435)



















INCOME BEFORE INCOME TAXES



615,017




1,080,538




11,040,434




3,437,145


PROVISION FOR INCOME TAXES



(610)




-




(610)




-


NET INCOME


$

614,407



$

1,080,538



$

11,039,824



$

3,437,145



















COMPREHENSIVE INCOME:

















NET INCOME


$

614,407



$

1,080,538



$

11,039,824



$

3,437,145


OTHER COMPREHENSIVE INCOME (LOSS):

















Foreign currency translation adjustment



790,549




(198,125)




1,870,030




(1,096,794)



















COMPREHENSIVE INCOME


$

1,404,956



$

882,413



$

12,909,854



$

2,340,351



















NET INCOME PER COMMON SHARE:

















Basic


$

0.01



$

0.02



$

0.21



$

0.07


Diluted


$

0.01



$

0.02



$

0.20



$

0.07


WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:

















Basic



51,875,000




51,875,000




51,875,000




51,875,000


Diluted



54,561,533




51,893,930




53,965,264




51,875,000


 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)




For the Nine Months Ended
September 30,




2017



2016


CASH FLOWS FROM OPERATING ACTIVITIES:









Net income


$

11,039,824



$

3,437,145


Adjustments to reconcile net income to net cash provided by (used in) operating
activities:









Depreciation



50,944




89,410


Stock-based compensation



94,177




245,518


Amortization of land use rights and yew forest assets



137,903




8,784,562


Changes in operating assets and liabilities:









Accounts receivable



3,276,466




(4,873,750)


Accounts receivable - related parties



(11,005,869)




2,806,724


Prepaid expenses and other current assets



(14,847)




(7,999)


Prepaid expenses - related party



17,902




18,519


Inventories, net



(3,278,467)




(10,567,924)


VAT recoverables



1,081,219




(1,899,393)


Accounts payable



(1,698,340)




1,660,178


Accounts payable - related parties



(603,156)




253,723


Accrued expenses and other payables



(202,645)




408,002


Due to related parties



(57,632)




7,471


Deferred income



220,403




-


Taxes payable



(11,873)




(199)











NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES



(953,991)




361,987











CASH FLOWS FROM INVESTING ACTIVITIES:









Purchase of property and equipment



-




(7,742)


Purchase of land use rights and yew forest assets



(793,662)




-











NET CASH USED IN INVESTING ACTIVITIES



(793,662)




(7,742)











CASH FLOWS FROM FINANCING ACTIVITIES:









Proceeds from short-term borrowings



7,881,105




1,530,105


Repayments of short-term borrowings



(4,997,764)




(1,530,105)


Proceeds from related party



-




181


Repayments to related party



(105,875)




(49,030)











NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES



2,777,466




(48,849)











EFFECT OF EXCHANGE RATE ON CASH



30,869




(22,303)











NET INCREASE IN CASH



1,060,682




283,093


CASH - Beginning of the period



278,991




681,608


CASH - End of the period


$

1,339,673



$

964,701











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:









Cash paid for:









Interest


$

140,555



$

64,383


Income taxes


$

18,197



$

6,460











NON-CASH INVESTING AND FINANCING ACTIVITIES









Operating expenses paid by related party


$

34,341



$

27,214


Reclassification of inventories to land use rights and yew forest assets


$

4,300,033



$

-


 

View original content:http://www.prnewswire.com/news-releases/yew-bio-pharm-group-reports-2017-third-quarter-financial-results-300554690.html

Source: Yew Bio-Pharm Group, Inc.
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