omniture

Yew Bio-Pharm Group Reports 2015 Fourth Quarter and Full Year Financial Results

2016-03-31 04:02 2126

HARBIN, China, March 31, 2016 /PRNewswire/ -- Yew Bio-Pharm Group, Inc. ("Yew Bio" or the "Company") (OTCBB: 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 made with yew essence oil in China, today reported financial results for the three- and twelve-months ended December 31, 2015.

2015 Fourth Quarter Results


Three Months Ended December 31,


Twelve Months Ended December 31,


2015

2014


2015

2014

Revenues:






TCM Raw Materials

$8,757,989

$686,669


$16,470,213

$4,043,290

Yew Trees

(5,534)

857,769


1,134,412

3,208,643

Handicrafts

46,394

48,439


156,525

173,412

Wood Ear Mushroom

1,208,546

301,231


2,648,180

301,231

Others

7,259,835

-


9,164,478

-

Total Revenues

$17,267,230

$1,894,108


$29,573,808

$7,726,576

Total revenue for the fourth quarter of 2015 increased 811.6% to $17.3 million from $1.9 million a year ago. Sales of TCM raw materials amounted to 50.7% of total revenues, sales of handicrafts amounted to 0.3% of total revenues, sales of wood ear mushroom amounted to 7.0%, sales of others segment consisting with the yew candle and pine needle extracts amounted to 42.0% of total revenues and we did not make sales of yew trees in the fourth quarter of 2015 which was mainly attributable to the Company's strategy adjustment to reserve more yew trees for future TCM raw materials sales. The negative revenues of yew tree sales in the fourth quarter of 2015 was mainly due to the exchange rate fluctuation of Renminbi (RMB) versus U.S. dollar compared with the first nine months of 2015.

For the 2015 fourth quarter gross profit was $1.8 million, or 10.2% of total revenue, compared with $1.0 million, or 53.0% of total revenues for the comparable 2014 quarter. Gross profit was primarily impacted by the lower gross margin yields of TCM raw materials, Wood ear mushroom and others segment.

Operating expenses increased 12.5% to $452,164 for the 2015 fourth quarter, from $402,072 in the year-ago quarter. The increasing was primarily attributable to the increases in compensation and related benefits and professional fees.

Net income in the fourth quarter of 2014 was $1.4 million, or $0.03 per diluted share, compared with a net income of $0.6 million in the year-ago quarter, or $0.01 per diluted share.

2015 Results

Total revenues for the 2015 fiscal year were $29.6 million, a 282.8% increase from $7.7 million a year earlier. Sales of TCM raw materials amounted to 55.7% of total revenues, sales of yew trees amounted to 3.8% of total revenues, sales of handicrafts amounted to 0.5 % of total revenues, sales of wood ear mushroom amounted to 9.0% of total revenues and sales of others consisting with yew candle and pine needle extracts made up the remaining 31.0%.

Gross profit was $7.0 million, or 23.8% of total revenues, for the full year, compared with $5.6 million, or 72.3% of total revenues in 2014.

Operating expenses increased 45.2% to $1.9 million for the year ended December 31, 2015, from 1.3 million a year earlier. The increasing was primarily attributable to the increases in compensation and related benefits and other expenses.

Net income for 2015 increased to $5.3 million, or 0.10 per diluted share, from $4.3 million, or $0.07 per diluted share for 2014.

"Revenue for the year ended 2015 increased 282.8% compared to last year due to the larger-than-expected increases in sales of TCM raw materials, wood ear mushroom and the others segment that mainly consists with yew candles and pine needle extracts," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. " TCM raw materials, wood ear mushroom and others sales contributed 95.6% of the Company's total revenues for the year of 2015. The economic growth rate of China has been slowing down in recent years, and the Chinese medium and small-sized enterprises experienced unprecedented challenges in their business operation. We started to combat this downward trend by changing our business model from agriculture focused to a more diversified business model starting the second half of 2014, such change includes the expansion into the dietary supplement market; and adding other new product segments including wood ear mushroom, yew candles and pine needle extracts."

"We launched a new product in the dietary supplement segment in December of 2015 called Auri Essence, which is wood ear mushroom based supplement designed for the U.S. market. And we are currently working with various distributors to market this product. With significant traction generated, the Company is now officially beginning to explore the dietary supplement industry in the U.S. market. Looking ahead in 2016, we will focus on both our traditional business segments, and also the newly added products. We will continue to enrich our product mix and develop more value-added products for the Company, and we expect the Company to achieve sustained growth with the development of the new business."

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








December 31,




2015



2014









ASSETS


CURRENT ASSETS:







Cash


$

681,608



$

487,940


Restricted cash



303,511




-


Accounts receivable



3,857,968




922,564


Accounts receivable - related party



6,489,495




340,132


Inventories



4,665,549




1,443,078


Prepaid expenses - related party



106,370




5,787


Prepaid expenses and other assets



64,174




16,791


VAT recoverables



699,258




-











Total Current Assets



16,867,933




3,216,292











LONG-TERM ASSETS:









Long-term inventories, net



12,334,261




10,663,545


Property and equipment, net



702,764




856,250


Land use rights and yew forest assets, net



13,906,379




20,305,821











Total Long-term Assets



26,943,404




31,825,616











Total Assets


$

43,811,337



$

35,041,908











LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:









Accounts payable


$

11,345



$

-


Accounts payable - related party



41,319




-


Accrued expenses and other payables



124,686




84,722


Notes payable



607,022




-


Taxes payable



14,261




10,547


Due to related parties



761,236




45,040


Short-term borrowings



3,081,332




-











Total Current Liabilities



4,641,201




140,309











Total Liabilities



4,641,201




140,309











SHAREHOLDERS' EQUITY:









Common Stock ($0.001 par value; 140,000,000 shares authorized; 51,875,000 shares and
52,125,000 shares issued and outstanding at December 31, 2015 and 2014, respectively)



51,875




52,125


Additional paid-in capital



9,622,558




8,557,656


Retained earnings



25,067,733




20,444,667


Statutory reserves



3,762,288




3,100,766


Accumulated other comprehensive income - foreign currency translation adjustment



665,682




2,746,385











Total Shareholders' Equity



39,170,136




34,901,599











Total Liabilities and Shareholders' Equity


$

43,811,337



$

35,041,908


YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME










Three-Months Ended


Twelve-Months Ended


December 31,


December 31,


2015


2014


2015


2014

REVENUES:








Revenues

$ 7,356,412


$ 1,127,273


$ 12,794,005


$ 5,657,351

Revenues - related party

9,910,818


766,835


16,779,803


2,069,225









Total Revenues

17,267,230


1,894,108


29,573,808


7,726,576









COST OF REVENUES:








Cost of revenues

7,296,392


577,115


11,104,169


1,582,980

Cost of revenues - related party

8,208,068


313,016


11,436,423


553,617









Total Cost of Revenues

15,504,460


890,131


22,540,592


2,136,597









GROSS PROFIT

1,762,770


1,003,977


7,033,216


5,589,979









OPERATING EXPENSES:








Selling

4,848


12,127


28,624


21,521

General and administrative

447,316


389,945


1,864,654


1,282,508









Total Operating Expenses

452,164


402,072


1,893,278


1,304,029









INCOME FROM OPERATIONS

1,310,606


601,905


5,139,938


4,285,950









OTHER INCOME (EXPENSES):








Interest income (expense)

(69,253)


143


(121,170)


179

Government grants

146,930


-


282,252


-

Other income (expense)

(31,967)


(3,299)


56


(1,952)









Total Other Income (Expenses)

45,710


(3,156)


161,138


(1,773)









INCOME BEFORE PROVISION FOR INCOME TAXES

1,356,316


-


5,301,076


4,284,177

PROVISION FOR INCOME TAXES

30,712


-


(16,488)


-

NET INCOME

$ 1,387,028


$ 598,749


$ 5,284,588


$ 4,284,177









COMPREHENSIVE INCOME:








NET INCOME

$ 1,387,028


$ 598,749


$ 5,284,588


$ 4,284,177

OTHER COMPREHENSIVE INCOME (LOSS):








Unrealized foreign currency translation adjustment

(760,704)


11,406


(2,080,703)


(200,520)









COMPREHENSIVE INCOME

626,324


610,155


3,203,885


4,083,657









NET INCOME PER COMMON SHARE:








Basic

$ 0.03


$ 0.01


$ 0.10


$ 0.08

Diluted

$ 0.03


$ 0.01


$ 0.10


$ 0.07

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:








Basic

51,875,000


50,948,973


52,069,863


50,948,973

Diluted

51,875,000


62,795,716


52,113,807


62,795,716









YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS








For the Years Ended
December 31,




2015



2014


CASH FLOWS FROM OPERATING ACTIVITIES:







Net income


$

5,284,588



$

4,284,177


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









Depreciation



143,486




172,446


Amortization of land use rights and yew forest assets



7,599,023




510,363


Loss on disposal of fixed assets



-




1,814


Stock-based compensation



967,744




166,222


Issuance of common stock for professional service



65,856




335,394


Changes in operating assets and liabilities:









Accounts receivable



(3,112,659)




(506,814)


Accounts receivable - related party



(6,438,017)




35,295


Prepaid and other current assets



(49,815)




(14,112)


Prepaid expenses - related party



(105,316)




28,049


Inventories



(5,737,554)




(842,558)


VAT recoverables



(729,984)




-


Accounts payable



11,844




-


Accounts payable - related party



43,135




-


Accrued expenses and other payables



46,807




(51,393)


Due to related parties



478




(3,894)


Notes payable



633,695




-


Taxes payable



4,320




377











NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES



(1,372,369)




4,115,366











CASH FLOWS FROM INVESTING ACTIVITIES:









Proceeds from disposal of property and equipment



3,594




5,000


Change in restricted cash



(316,848)




-


Loan made to related party



(35,384)




-


Repayment from related party



35,384




-


Purchase of property and equipment



(31,497)




(8,534)


Purchase of land use rights and yew forest assets



(2,018,014)




(2,444,139)











NET CASH USED IN INVESTING ACTIVITIES



(2,362,765)




(2,447,673)











CASH FLOWS FROM FINANCING ACTIVITIES:









Proceeds from short-term borrowings



3,216,727




-


Advances and loans from related parties



718,120




1,220


Contribution from owners - transfer of property and equipment to entity under common
control with proceeds over carrying amount



31,052




-


Distribution to owners - excess of acquisition price over carrying value of yew forest
assets purchased from entities under common control



-




(2,332,048)











NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES



3,965,899




(2,330,828)











EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS



(37,097)




(8,536)











NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS



193,668




(671,671)











CASH AND CASH EQUIVALENTS - Beginning of period



487,940




1,159,611











CASH AND CASH EQUIVALENTS - End of period


$

681,608



$

487,940











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:









Cash paid for:









Interest


$

75,196



$

-


Income taxes


$

-



$

-


Company Contacts:

Henry Pang

Yew Bio-Pharm Group, Inc.

Tel: (626) 401-9588

hpang@yewbiopharm.com

Investor Relations Contacts:

Cami Xue

Chineseinvestors.com, Inc.

Tel: (800) 958-8561

Cami@chinesefn.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/yew-bio-pharm-group-reports-2015-fourth-quarter-and-full-year-financial-results-300243392.html

Source: Yew Bio-Pharm Group, Inc.
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