FUZHOU, China, Nov. 17 /Xinhua-PRNewswire-FirstCall/ -- China Yida Holding Company (OTC Bulletin Board: CYID) ("the Company" or "China Yida"), a leading tourism and media management company, today announced its unaudited financial results for the third quarter and nine months ended September 30, 2008. An accompanying financial results presentation can be found on the Company's website at http://www.yidacn.net .
Third Quarter 2008 Financial Highlights
-- Total net revenue increased by 1.3% to $7.8 million, compared with $7.7
million in the 2007 third quarter.
-- Net revenue from the media business decreased by 7% to $5.8 million,
compared with $ 6.2 million in the 2007 third quarter.
-- Net revenue from the tourism business increased by 33% to $2.0 million,
compared with $1.5 million in the 2007 third quarter.
-- Operating income decreased by 16% to $ 5.1 million, compared with $6.1
million in the 2007 third quarter.
-- Net income decreased by 20% to $4.9 million, compared with $6.1 million
in the 2007 third quarter.
Nine Months Ended September 30, 2008 Financial Highlights
-- Total net revenue increased by 87% to $21.4 million, compared with
$11.4 million for the nine months ended September 30, 2007.
-- Net revenue from the media business increased by 110% to $16.9 million,
compared with $8.1 million for the nine months ended September 30, 2007.
-- Net revenue from the tourism business increased by 32 % to $4.5 million,
compared with $3.4 million for the nine months ended September 30, 2007.
-- Operating income increased by 76 % to $14.1 million, compared with $8.0
million in the first nine months of 2007.
-- Net income increased by 76 % to $13.6 million, compared with $7.7
million in the first nine months of 2007.
Dr. Chen Minhua, Chairman of China Yida, stated, "We are pleased to report significant growth in total revenue for the first nine months of 2008, with particularly strong FETV advertisement sales revenue. Our established partnerships with Fuzhou Fengzhong Media and major newspaper outlets in Fujian have enhanced our foundation for steady long-term growth in our media business. We also have seen incremental growth in our tourism business in the first nine months of 2008, as admissions to our Great Golden Lake site increased by 90% over the first nine months of 2007.
"Additionally, we have made significant progress in expanding our media and tourism businesses. We recently signed a letter of intent with Yongtai County Government to develop the largest leisure tourism destination in Fuzhou, which will further our leadership position in the tourism business in Fujian province. This milestone shows successful execution of our unique business model, which leverages the synergies between our tourism and media businesses to build promising and stable long-term growth.
"As we look ahead into the fourth quarter of 2008, we believe that softening global economic conditions will have minimal impact on our business operations. We believe our Company fundamentals remain strong and that our progress year-to-date has shown that we are well positioned for long-term growth. We expect to expand our revenue stream by developing more tourist destinations and continue to focus on the domestic Chinese market as our target market for visitors. During the past National Week holiday, we experienced a record high number of visitors at the Great Golden Lake and expect that the number of visitors to our site will continue to grow as we expand our operations. We have sufficient cash on hand to support growth, and we are continuously seeking additional strategic expansion projects that make financial sense in order to build value for our shareholders," Dr. Chen concluded.
Tourism Business Highlights
Signed Letter of Intent with Yongtai County Government. Pending final government approval of the agreement, China Yida will develop the largest leisure tourism destination in Fuzhou. This tourism destination is an ideal site for recreation and vacation, and has great potential to become a world class resort that attracts more than 10 million leisure visitors from neighboring coastal areas such as Xiamen, Quanzhou and Putian. In addition, it may also attract other leisure travelers from other cities in China, as well as business travelers to Fuzhou and Xiamen.
Under the terms of the letter of intent, China Yida will have operational and management rights to the site for 40 years, which reduces the risks and uncertainties related to the investment and contributes to China Yida's ability to secure a long-term return on investment. China Yida will not be required to pay the transfer fee for the management rights up front; rather, the cost of securing the management rights will be sourced from a percentage of site admission revenue and a percentage of revenue from other
government-franchised operations associated with the site. Additionally, in the event of termination or early termination by Yongtai County Government not relating to a change in government regulation, the Yongtai County Government will repurchase the tangible and intangible assets related to China Yida's investment in the development of the site at fair market value.
Great Golden Lake Tourist Destination. During the first nine months of 2008, the total number of visitors that entered the Great Golden Lake was 210,000, an increase of 90% compared with the same period last year. Additionally, China Yida reported a record number of visitors during China's National Holiday between September 29, 2008 and October 5, 2008. The site received a total of 46,000 visitors during the seven-day period, an increase of 52% compared with the same period last year.
Media Business Highlights
FETV and FFZM. China Yida commenced a strategic partnership with Fuzhou Fen-Zhong media (FFZM), one of the largest land and outdoor advertising media in Fuzhou.
Television-Newspaper Alliance. China Yida formed a television-newspaper alliance with three major independent newspapers in Fujian: Southeast Express, Strait Capital and Fuzhou Evening.
Third Quarter 2008 Unaudited Financial Results
Total net revenue increased by 1.3% to $7.8 million, compared with $7.7 million in the 2007 third quarter. Net revenue from the media business decreased by 7% to $5.8 million, compared with $ 6.2 million in the 2007 third quarter. Net revenue from the tourism business increased by 40% to $2.0 million, compared with $1.5 million in the 2007 third quarter.
Gross profit was $ 5.7 million in the third quarter of 2008, representing a gross margin of 73%. This compares with gross profit of $6.5 million and a gross margin of 84 % in the third quarter of 2007.
Total operating expenses increased by 20% to $0.6 million in the third quarter of 2008, compared with $0.5 million in the third quarter of 2007, as a result of the investment to transform and improve FETV's programs to be completed by the end of the year.
Operating income decreased by 16% to $ 5.1 million, compared with $6.1 million in the 2007 third quarter. Operating margin for the third quarter of 2008 was 64%, compared with 78% for the third quarter of 2007. The decrease in operating income in the third quarter was primary attributed to the increase in expenses incurred in the FETV program transformation.
China Yida reported a net income for the third quarter of 2008 of $4.9 million, or $0.07 per diluted share, compared with a net income of $6.1 million, or $0.65 per diluted share, for the third quarter of 2007.
Nine Months Ended September 30, 2008 Unaudited Financial Results
Total net revenue increased by 88% to $21.4 million, compared with $11.4 million for the nine months ended September 30, 2007. Net revenue from the media business increased by 110% to $16.9 million, compared with $8.1 million for the nine months ended September 30, 2007. Net revenue from the tourism business increased by 32% to $4.5 million, compared with $3.4 million for the nine months ended September 30, 2007.
Gross profit of $15.9 million represented a gross margin of 74% in the first nine months of 2008. This compares with gross profit of $9.3 million and gross margin of 82 % in the corresponding period last year.
Total operating expenses for the first nine months of 2008 were $1.7 million, versus $1.3 million in the comparable period in 2007, primarily attributed to the retransformation of FETV's programs in the third quarter.
Operating income increased by 76 % to $14.1 million, compared with $8.0 million in the first nine months of 2007.
For the nine months ended September 30, 2008, China Yida reported a net income of $13.6 million, an increase of 77% compared with a net income of $7.7 million for the nine months ended September 30, 2007.
Liquidity
Cash and cash equivalents as of September 30, 2008 were $1.4 million, compared with $726,631 as of December 31, 2007.
Operating cash flow for the nine months ended September 30, 2008 increased by 65 % to $15.7 million, compared with $9.5 million for the nine month period ended September 30, 2007.
Outlook
Over the course of the next few years, we intend to grow and expand our tourism and mass media marketing businesses. We expect to acquire additional tourist areas that will enhance our reputation as a world-class company that develops and manages tourist attractions. These acquisitions will be financed either through revenues of the Company or by financings and sales of the Company's stock or other securities.
With respect to the mass media business, China Yida expects to achieve growth by obtaining the operational management rights of other television network or to cooperate with strategic partners to co-develop a television channel or column via its innovative business model.
About China Yida
China Yida Holding Co. is a leading management company focused on China's emerging and fast-growing media and tourism markets. Headquartered in the city of Fuzhou, in China's Fujian province, China Yida provides media operations management services, including channel, column and advertisement management for television stations. It presently operates the Fujian Education Television station (FETV), a top-rated provincial education television station, whose advertisement management rights are wholly-owned by the Company. Additionally, the Company provides tourism management services, including management consultation, and specializes in the investment and development of natural, cultural and historic scenic sites. China Yida currently manages the Great Golden Lake's five scenic attractions: Golden Lake, Shangqing River, Zhuanyuan Rock, Luohan Mountain and Taining Old Town. China Yida has plans to further expand its portfolio in both the media and tourism businesses.
Forward-Looking Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of China Yida Holding Co., Inc. (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement; (ii) the Company's ability to build and maintain the management and human resources and infrastructure necessary to support the anticipated growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at http://www.sec.gov .
CHINA YIDA HOLDING CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September December
30, 2008 31, 2007
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,373,184 $726,631
Accounts receivable 4,988 21,965
Due from related party -- 351,450
Other current assets 429,419 60,705
Total current assets 1,807,591 1,160,751
Property, plant and equipment, net 8,456,954 8,184,546
Construction in progress, net 22,609,581 278,803
Intangible assets, net 9,934,864 3,956,885
Long-term prepaid expenses 7,907,641 9,459,052
Total assets $50,716,630 $23,040,037
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expense $320,893 $240,988
Loan payable 1,173,313 1,919,228
Other payable 402,136 449,507
Due to related parties 550,000 --
Unearned revenue 384,969 135,945
Tax payables 498,711 1,626,099
Total current liabilities 3,330,022 4,371,767
Stockholders' equity
Preferred stock (10,000,000 shares authorized,
1 share issued and outstanding, par value
$0.001) -- --
Common stock (100,000,000 shares authorized and
68,084,487 and 9,999,955 issued and outstanding
as of September 30, 2008 and December 31, 2007,
par value $0.001) 68,085 10,000
Additional paid in capital 21,561,012 8,591,847
Accumulated other comprehensive income 3,063,678 1,004,344
Retained earning 22,693,833 9,062,079
Total stockholders' equity 47,386,608 18,668,270
Total liabilities and stockholders' equity $50,716,630 $23,040,037
CHINA YIDA HOLDING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited)
Nine Month Periods Three Month Periods
Ended September 30, Ended September 30,
Net revenue 2008 2007 2008 2007
Advertisement $16,947,170 $8,061,125 $5,814,252 $6,235,254
Tourism 4,471,293 3,365,249 1,993,757 1,481,229
Total net revenue 21,418,463 11,426,374 7,808,009 7,716,483
Cost of revenue
Advertisement 3,621,435 1,548,091 1,238,597 839,490
Tourism 1,921,452 597,831 900,292 333,726
Total cost of
revenue (5,542,887) (2,145,922) (2,138,889) (1,173,216)
Gross profit 15,875,576 9,280,452 5,669,119 6,543,266
Operating expenses
Selling expenses 533,097 324,211 139,524 125,359
Operating and
administrative
expenses 1,201,403 953,106 444,286 357,575
Total operating
expenses 1,734,500 1,277,317 583,810 482,934
Income from
operations 14,141,075 8,003,135 5,085,309 6,060,333
Other (income)
expense
Other expense, net 3,083 11,449 6,059 5,972
Interest expense 115,226 179,637 27,143 53,503
Interest income (5,555) (839) (875) (61)
Total other expense 112,754 190,247 32,327 59,414
Income before
income taxes 14,028,322 7,812,888 5,052,983 6,000,919
Provision (benefit)
for income taxes 396,568 79,089 149,186 (142,743)
Net income 13,631,754 7,733,800 4,903,797 6,143,662
Other comprehensive
income
Foreign currency
translation gain 2,059,334 308,646 271,150 121,847
Other comprehensive
income $15,691,088 $8,042,446 $5,174,947 $6,265,509
Basic net earnings
per share $0.25 $0.82 $0.07 $0.65
Basic weighted
average shares
outstanding 54,042,072 9,401,597 68,084,487 9,401,597
Diluted net earnings
per share $0.25 $0.82 $0.07 $0.65
Diluted weighted
average shares
outstanding 55,108,739 9,401,597 69,151,154 9,401,597
CHINA YIDA HOLDING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR NINE MONTH PERIODS ENDED SEPTEMBER 30, 2008 AND 2007
(Unaudited)
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $13,631,754 $7,733,800
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 297,897 267,262
Amortization 3,033,185 116,341
Bad debt reserve 32,226 --
(Increase) / decrease in assets:
Accounts receivables (2,662) 97,525
Other current assets (154,944) (6,591)
Inventories -- (3,802)
Advances (123,717) 208,823
Increase/(decrease) in current liabilities:
Accounts payable and accrued expenses 61,505 (91,118)
Tax payable (1,210,134) 735,784
Unearned revenue 233,573 115,295
Other payable (126,078) 328,351
Total Adjustments 2,040,850 1,767,870
Net cash provided by operating activities 15,672,604 9,501,670
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property & equipment (6,004) (204,363)
Payments to construction in progress (21,756,718) (2,208,496)
Investment in intangible assets (6,435,835) --
Net cash used in investing activities (28,198,557) (2,412,859)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceed from related parties 901,450 --
Issuance of shares for cash 13,027,250 398,883
Loan payments (895,383) (9,439,379)
Net cash provided by (used in) financing
activities 13,033,318 (9,040,496)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS 139,189 131,438
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 646,553 (1,820,247)
CASH AND CASH EQUIVALENTS, BEGINNING BALANCE 726,631 2,169,159
CASH AND CASH EQUIVALENTS, ENDING BALANCE $1,373,184 $348,912
SUPPLEMENTAL DISCLOSURES: 0.00
Income tax payments $172,783 $--
Interest payments $87,677 $179,637
For more information, please contact:
China Yida Contact:
Mr. Wang Huanqing
Vice President, Finance
China Yida Holding Company
Tel: +86-591-2830-8999
Email: lionwung@163.com
Investor Relations Contacts:
Devin Jin
Taylor Rafferty, Shanghai
Tel: +86-21-6289-5658
Email: ChinaYida@taylor-rafferty.com
Investor Relations (US):
Delia Cannan
Taylor Rafferty, New York
Tel: +1-212-889-4350
Email: ChinaYida@taylor-rafferty.com
