omniture

Yew Bio-Pharm Group Reports 2016 Third Quarter Financial Results

2016-11-15 05:05 2031

EL MONTE, Calif., Nov 15, 2016 /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 made with yew essence oil in China, today reported financial results for the three- and nine-months ended September 30, 2016.

2016 Third Quarter Results



Three Months Ended
September 30,



Increase



Percentage




2016



2015



(Decrease)



Change


TCM raw materials


$

6,873,988



$

2,845,904



$

4,028,084




142

%

Yew trees



-




96,275




(96,275)




(100)%


Wood ear mushroom



-




134,962




(134,962)




(100)%


Handicrafts



1,087




15,417




(14,330)




93

%

Others



7,792,024




1,904,643




5,887,381




309

%

Total


$

14,667,099



$

4,997,201



$

9,669,898




194

%

Total revenues for the third quarter of 2016 increased 194% to $15 million from $5.0 million a year ago. Sales of TCM raw materials amounted to 46.9% of total revenues; sales of yew trees amounted to 0% of total revenues; sales of wood ear mushroom amounted to 0% of total revenues; sales of handicrafts amounted to 0.01% of total revenues; and sales of others, consisting with yew candles, pine needle extract and dietary supplement, amounted to 53.1% of total revenues.

For the 2016 third quarter, gross profit was $1.4 million, or 9.7% of total revenues, compared with $1.4 million, or 28.4% of total revenues for the comparable 2015 quarter. The decrease in gross profit margin was primarily attributable to the lower gross margin yields of TCM raw materials and "Others" segments.

Operating expenses decreased 38.2% to $299,517 for the quarter ended September 30, 2016, from $484,573 in the year-ago quarter. The decreasing was primarily attributable to the decrease in compensation and related benefits.

Net income for the three months ended September 30, 2016 increased 15.7% to $1.1 million from $933,514 in the same quarter last year. Earnings per diluted share for the three months ended September 30, 2016 was $0.02, in line with the same period last year.

Nine Months 2016 Financial Results



Nine Months Ended
September 30,



Increase



Percentage




2016



2015



(Decrease)



Change


TCM raw materials


$

24,063,798



$

7,712,224



$

16,351,574




212

%

Yew trees



23,246




1,139,946




(1,116,700)




(98)%


Wood ear mushroom



-




1,439,634




(1,439,634)




(100)%


Handicrafts



97,560




110,131




(12,571)




(11)%


Others



15,162,974




1,904,643




13,258,331




696

%

Total


$

39,347,578



$

12,306,578



$

27,041,000




220

%

Total revenues for the nine months of 2016 increased to $39.3 million from $12.3 million a year ago. Sales of TCM raw materials amounted to 61.2% of total revenues; sales of yew trees amounted to 0.1% of total revenues; sales of wood ear mushroom amounted to 0% of total revenues; sales of handicrafts amounted to 0.2% of total revenues; and sales of others, consisting with yew candles, pine needle extract and dietary supplement, amounted to 38.5% of total revenues.

Gross profit was $4.5 million, or 11.3% of total revenues, compared with $5.3 million, or 42.8% of total revenues for the comparable 2015 quarter. The decrease in the gross profit margin was primarily attributable to the lower gross margin yields of TCM raw materials and "Others" segments.

Operating expenses decreased 33.6% to $956,674 for the nine months ended September 30, 2016, from $1.4 million for the same period last year. The decreasing was primarily attributable to the decreases in compensation and related benefits.

Net income for the nine months of 2016 decreased 11.8% to $3.4 million from $3.9 million for the same period last year. Earnings per diluted share was $0.07, in line with the same period last year.

"Revenue for the quarter increased 194% compared to last year due to the sales increasing in TCM raw materials and "Others" segments which includes the sales of yew candles, pine needle extracts and our dietary supplement with the brand name of "Auri Essence", and therefore offset the decreases in sales of yew trees and wood ear mushroom," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "The sales of TCM raw materials maintained a strong growth in the past nine months of 2016 as our related party, Yew Pharmaceutical, continues their technology development with yew ingredients, and led to the sales increasing of our TCM segment."

"Our new B2C E-commerce website is pending to launch due to the function improvements, and we are in progress of doing final testing at this point. We would expect to release the website before January, 2017, and we believe the website operation will become a new source of revenues for the Company in the year of 2017. Meanwhile, we will continue to enrich our product mix and develop more value-added products 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.

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

(financial tables follow)

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




September 30, 2016



December 31, 2015




(Unaudited)





ASSETS







CURRENT ASSETS:







Cash


$

964,701



$

681,608


Restricted cash



295,380




303,511


Accounts receivable



8,564,463




3,857,968


Accounts receivable - related parties



3,546,845




6,489,495


Inventories



12,570,532




4,665,549


Prepaid expenses - related parties



85,252




106,370


Prepaid expenses and other assets



45,796




64,174


VAT recoverables



2,554,246




699,258











Total Current Assets



28,627,215




16,867,933











LONG-TERM ASSETS:









Long-term inventories, net



14,417,140




12,334,261


Property and equipment, net



686,583




702,764


Land use rights and yew forest assets, net



4,893,115




13,906,379











Total Long-term Assets



19,996,838




26,943,404











Total Assets


$

48,624,053



$

43,811,337











LIABILITIES AND SHAREHOLDERS' EQUITY









CURRENT LIABILITIES:









Accounts payable


$

1,650,084



$

11,345


Accounts payable - related party



290,506




41,319


Accrued expenses and other payables



496,988




124,686


Notes payable



590,760




607,022


Taxes payable



13,774




14,261


Due to related parties



827,157




761,236


Short-term borrowings



2,998,779




3,081,332











Total Current Liabilities



6,868,048




4,641,201











Total Liabilities



6,868,048




4,641,201











SHAREHOLDERS' EQUITY:









Common Stock ($0.001 par value; 140,000,000 shares authorized; 51,875,000 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively)



51,875




51,875


Additional paid-in capital



9,868,076




9,622,558


Retained earnings



28,106,385




25,067,733


Statutory reserves



4,160,781




3,762,288


Accumulated other comprehensive income (loss) - foreign currency translation adjustment



(431,112)




665,682











Total Shareholders' Equity



41,756,005




39,170,136











Total Liabilities and Shareholders' Equity


$

48,624,053



$

43,811,337


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,




2016



2015



2016



2015


REVENUES:













Revenues


$

7,793,111



$

1,997,998



$

15,283,780



$

5,437,593


Revenues - related party



6,873,988




2,999,203




24,063,798




6,868,985



















Total Revenues



14,667,099




4,997,201




39,347,578




12,306,578



















COST OF REVENUES:

















Cost of revenues



7,650,346




1,900,418




15,085,190




3,807,777


Cost of revenues - related party



5,597,721




1,677,625




19,800,134




3,228,355



















Total Cost of Revenues



13,248,067




3,578,043




34,885,324




7,036,132



















GROSS PROFIT



1,419,032




1,419,158




4,462,254




5,270,446



















OPERATING EXPENSES:

















Selling



5,667




10,013




17,754




23,776


General and administrative



293,850




474,560




938,920




1,417,338



















Total Operating Expenses



299,517




484,573




956,674




1,441,114



















INCOME FROM OPERATIONS



1,119,515




934,585




3,505,580




3,829,332



















OTHER INCOME (EXPENSES):

















Interest expense



(39,367)




(33,496)




(108,654)




(51,917)


Government grant



-




-




-




135,322


Other income



390




36,496




40,219




32,023



















Total Other Income (Expenses)



(38,977)




3,000




(68,435)




115,428



















INCOME BEFORE INCOME TAXES



1,080,538




937,585




3,437,145




3,944,760


PROVISION FOR INCOME TAXES



-




(4,071)




-




(47,200)


NET INCOME


$

1,080,538



$

933,514



$

3,437,145



$

3,897,560



















COMPREHENSIVE INCOME:

















NET INCOME


$

1,080,538



$

933,514



$

3,437,145



$

3,897,560


OTHER COMPREHENSIVE INCOME (LOSS):

















Foreign currency translation adjustment



(198,125)




(1,701,546)




(1,096,794)




(1,319,999)



















COMPREHENSIVE INCOME


$

882,413



$

(768,032)



$

2,340,351



$

2,577,561



















NET INCOME PER COMMON SHARE:

















Basic


$

0.02



$

0.02



$

0.07



$

0.07


Diluted


$

0.02



$

0.02



$

0.07



$

0.07


WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

















Basic



51,875,000




52,158,967




51,875,000




52,136,447


Diluted



51,893,930




52,189,711




51,875,000




55,518,924


YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)




For the Nine Months Ended
September 30,




2016



2015


CASH FLOWS FROM OPERATING ACTIVITIES:







Net income


$

3,437,145



$

3,897,560


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









Depreciation



89,410




112,837


Stock-based compensation



245,518




800,954


Stock issued for professional services



-




3,356


Amortization of land use rights and yew forest assets



8,784,562




1,108,773


Gain on disposal of property and equipment



-




(32,083)


Changes in operating assets and liabilities:









Accounts receivable



(4,873,750)




(783,741)


Accounts receivable - related parties



2,806,724




339,740


Prepaid expenses and other current assets



(7,999)




(269,309)


Prepaid expenses - related parties



18,519




(375,030)


Due from related party



-




(13,383)


Inventories



(10,567,924)




(5,191,187)


VAT recoverables



(1,899,393)




(1,105,672)


Accounts payable



1,660,178




-


Accounts payable - related party



253,723




-


Accrued expenses and other payables



408,002




95,379


Advances from customers



-




165,092


Due to related parties



7,471




-


Taxes payable



(199)




39,506











NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES



361,987




(1,207,208)











CASH FLOWS FROM INVESTING ACTIVITIES:









Purchase of property and equipment



(7,742)




(7,913)


Payment for land use rights and yew forest assets



-




(1,362,205)











NET CASH USED IN INVESTING ACTIVITIES



(7,742)




(1,370,118)











CASH FLOWS FROM FINANCING ACTIVITIES:









Proceeds from short-term borrowings



1,530,105




1,642,360


Repayment of short-term borrowings



(1,530,105)




-


Proceeds from related party



181




658,255


Repayments to related party



(49,030)




(5,656)











NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES



(48,849)




2,294,959











EFFECT OF EXCHANGE RATE ON CASH



(22,303)




(34,090)











NET INCREASE (DECREASE) IN CASH



283,093




(316,457)











CASH - Beginning of period



681,608




487,940











CASH - End of period


$

964,701



$

171,483











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:









Cash paid for:









Interest


$

64,383



$

47,017


Income taxes


$

6,460



$

-











Non-cash investing and financing activities









Operating expenses paid by related parties


$

27,214



$

-


Reclassification of yew forest assets to inventories



-




190,817


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/yew-bio-pharm-group-reports-2016-third-quarter-financial-results-300361986.html

Source: Yew Bio-Pharm Group, Inc.
collection