omniture

Yew Bio-Pharm Reports Improved Financial Results for 2017 Second Quarter

2017-08-15 04:05 1707

EL MONTE, Calif., Aug. 15, 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 three- and six-months ended June 30, 2017.

2017 Second Quarter Results



Three Months Ended June 30,


Percentage



2017


2016


Change

 Revenues:







     TCM Raw Materials


$11,536,786


$9,146,345


26.14%

     Yew Trees


-


21,741


(100.00)%

     Handicrafts


1,004


79,223


(98.73)%

     Others


4,066,586


6,812,801


(40.31)%

Total Revenues


$15,604,376


$16,060,110


(2.84)%

Total revenues for the second quarter of 2017 decreased 2.84% to $15.6 million from $16.1 million a year ago. Sales of TCM raw materials amounted to 73.93% of total revenues; sales of handicrafts amounted to 0.01% of total revenues and sales of "Others" segment consisting with the yew candles, pine needle extracts, essential oil soaps and dietary supplement amounted to 26.06% of total revenues. We did not make sales of yew tree in the second quarter of 2017 due to the Company's strategy adjustment to reserve more yew trees for future TCM raw materials sales.

For the three months ended June 30, 2017, gross profit was $10.6 million, or 67.9% of total revenues, compared with $1.6 million, or 10.3% 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 12.1% to $299,915 for the quarter ended June 30, 2017, from $341,257 in the year-ago quarter. The decreasing was primarily attributable to the decreases in professional fees.

Net income for the three months ended June 30, 2017 increased 685.0% to $10.3 million from $1.3 million in the same quarter last year due to the decrease in cost of revenues from TCM raw material. Earnings per diluted share for the three months ended June 30, 2017 was $0.19, as compared to $0.03 for the three months ended June 30, 2016.

Six Month 2017 Financial Results



Six Months Ended June 30,


Percentage



2017


2016


Change

Revenues:







     TCM Raw Materials


$14,071,047


$17,189,810


(18.14)%

     Yew Trees


-


23,246


(100.00)%

     Handicrafts


2,368


96,473


(97.55)%

     Others


9,406,425


7,370,950


27.61%

Total Revenues


$23,479,840


$24,680,479


(4.86)%

Total revenues for the first six months of 2017 decreased to $23.5 million from $24.7 million a year ago. Sales of TCM raw materials amounted to 59.93% of total revenues; sales of handicrafts amounted to 0.01% of total revenues and sales of "Others" segment consisting with the yew candles, pine needle extracts, essential oil soaps and dietary supplement amounted to 40.06% of total revenues. We did not make sales of yew tree in the first half of 2017 due to the Company's strategy adjustment to reserve more yew trees for future TCM raw materials sales.

For the six months ended June 30, 2017, gross profit was $11.1 million, or 47.3% of total revenues, compared with $3.0 million, or 12.3% of total revenues for the comparable first six months of 2016. The increase in the gross profit margin was primarily attributable to the higher gross margin yields of TCM raw materials.

Operating expenses decreased 9.0% to $598,318 for the six months ended June 30, 2017, from $657,157 for the same period last year. The decreasing was primarily attributable to the decreases in professional fees.

Net income for the first six months of 2017 increased 342.4% to $10.4 million from $2.4 million for the same period last year. Earnings per diluted share was $0.19, as compared to $0.05 for the six months ended June 30, 2016.

"We were pleased to continue to deliver strong operating and financial results through our increased sales and business strategy adjustment since the year of 2016." said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "Our net income for the second quarter increased 685.0% compared to last year due to the decrease in cost of revenues from TCM raw materials, which illustrates the success of our company strategy in another way. Since 2016, we changed our strategy to decrease our yew seedling sales and to grow the seedlings for picking leaves, which will be finally made to TCM raw materials. From the second quarter of 2017, we reserved enough leaves to pick without cutting down the whole grown trees and our TCM raw materials unit cost decreased accordingly."

"As we also mentioned in prior announcement, our new e-commerce website officially went live on June 7, 2017 under the URL: http://www.yewshop.com, and the new website had begun to generate revenues from June, 2017. We expect the newly added business section will contribute more revenues in the following months. Meanwhile, our two new cosmetic series products, which contain yew oil ingredient, are expected to deliver by the end of August. We believe these new developed cosmetic products will greatly enrich our product mix and to increase our potential revenues 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

 

 

(financial tables follow)

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS




June 30, 

2017



December 31,

2016




(Unaudited)





ASSETS







CURRENT ASSETS:







Cash


$

2,437,554



$

278,991


Accounts receivable



12,091,226




14,467,852


Accounts receivable - related party



11,597,870




6,941,931


Inventories, net



14,330,750




10,296,792


Prepaid expenses - related party



65,921




76,035


Prepaid expenses and other assets



82,085




75,743


VAT recoverables



1,399,774




1,655,954











Total Current Assets



42,005,180




33,793,298











LONG-TERM ASSETS:









Long-term inventories, net



6,922,600




7,151,613


Property and equipment, net



659,849




692,116


Land use rights and yew forest assets, net



9,605,585




4,558,234











Total Long-term Assets



17,188,034




12,401,963











Total Assets


$

59,193,214



$

46,195,261











LIABILITIES AND SHAREHOLDERS' EQUITY









CURRENT LIABILITIES:









Accounts payable


$

878,697



$

2,700,148


Accounts payable - related parties



505,746




638,318


Accrued expenses and other payables



668,163




379,294


Notes payable



1,184,908




1,156,444


Taxes payable



4,770




16,520


Due to related parties



786,746




883,596


Short-term borrowings



4,671,148




1,723,865











Total Current Liabilities



8,700,178




7,498,185











NONCURRENT LIABILITIES:









Deferred income



345,291




120,973


Total Noncurrent Liabilities



345,291




120,973











Total Liabilities



9,045,469




7,619,158











SHAREHOLDERS' EQUITY:









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



51,875




51,875


Additional paid-in capital



9,721,372




9,654,024


Retained earnings



37,499,437




27,074,624


Statutory reserves



3,762,288




3,762,288


Accumulated other comprehensive loss



(887,227)




(1,966,708)











Total Shareholders' Equity



50,147,745




38,576,103











Total Liabilities and Shareholders' Equity


$

59,193,214



$

46,195,261


 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)



For the Three Months Ended
June 30,


For the Six Months Ended
June 30,



2017


2016


2017


2016


REVENUES:









Revenues

$

4,067,590


$

6,913,765


$

9,408,793


$

7,490,669


Revenues - related party


11,536,786



9,146,345



14,071,047



17,189,810















Total Revenues


15,604,376



16,060,110



23,479,840



24,680,479















COST OF REVENUES:













Cost of revenues


4,058,847



6,806,861



9,360,063



7,434,844


Cost of revenues - related party


955,866



7,603,509



3,010,134



14,202,413















Total Cost of Revenues


5,014,713



14,410,370



12,370,197



21,637,257















GROSS PROFIT


10,589,663



1,649,740



11,109,643



3,043,222















OPERATING EXPENSES:













Selling


66



8,835



331



12,087


General and administrative


299,849



332,422



597,987



645,070















Total Operating Expenses


299,915



341,257



598,318



657,157















INCOME FROM OPERATIONS


10,289,748



1,308,483



10,511,325



2,386,065















OTHER INCOME (EXPENSES):













Interest expense


(35,382)



(41,967)



(87,345)



(69,287)


Other income


1,147



39,829



1,437



39,829















Total Other Expenses


(34,235)



(2,138)



(85,908)



(29,458)















INCOME BEFORE PROVISION FOR INCOME TAXES


10,255,513



1,306,345



10,425,417



2,356,607


PROVISION FOR INCOME TAXES


(604)



-



(604)



-


NET INCOME

$

10,254,909


$

1,306,345


$

10,424,813


$

2,356,607















COMPREHENSIVE INCOME:













NET INCOME

$

10,254,909


$

1,306,345


$

10,424,813


$

2,356,607


OTHER COMPREHENSIVE INCOME (LOSS):













Foreign currency translation adjustment


775,601



(1,174,091)



1,079,481



(898,669)















COMPREHENSIVE INCOME

$

11,030,510


$

132,254


$

11,504,294


$

1,457,938















NET INCOME PER COMMON SHARE:













Basic

$

0.20


$

0.03


$

0.20


$

0.05


Diluted

$

0.19


$

0.03


$

0.19


$

0.05


WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:













Basic


51,875,000



51,875,000



51,875,000



51,875,000


Diluted


53,041,145



51,875,000



55,034,527



51,875,000


 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)




For the Six Months Ended

June 30,




2017



2016


CASH FLOWS FROM OPERATING ACTIVITIES:









Net income


$

10,424,813



$

2,356,607


Adjustments to reconcile net income to net cash provided by operating activities:









Depreciation



46,498




59,387


Stock-based compensation



67,348




165,194


Amortization of land use rights and yew forest assets



70,717




8,810,916


Changes in operating assets and liabilities:









Accounts receivable



2,693,028




682,900


Accounts receivable - related party



(4,421,530)




(3,763,989)


Prepaid expenses and other current assets



(5,367)




(32,041)


Prepaid expenses - related party



11,816




12,413


Inventories, net



(7,625,415)




(6,627,197)


VAT recoverables



292,731




(1,696,123)


Accounts payable



(1,858,142)




62,195


Accounts payable - related parties



(146,182)




3,735


Accrued expenses and other payables



302,587




187,331


Due to related parties



(51,602)




-


Deferred income



218,204




-


Taxes payable



(11,869)




2,467











NET CASH PROVIDED BY OPERATING ACTIVITIES



7,635




223,795











CASH FLOWS FROM INVESTING ACTIVITIES:









Purchase of property and equipment



-




(4,261)


Purchase of intangible assets and yew forest assets



(679,387)




-











NET CASH USED IN INVESTING ACTIVITIES



(679,387)




(4,261)











CASH FLOWS FROM FINANCING ACTIVITIES:









Proceeds from short-term borrowings



6,501,105




1,530,105


Repayment of short-term borrowings



(3,617,764)




(1,530,105)


Proceeds from related party



-




81


Repayments to related party



(75,875)




(35,000)











NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES



2,807,466




(34,919)











EFFECT OF EXCHANGE RATE ON CASH



22,849




(17,318)











NET INCREASE IN CASH



2,158,563




167,297


CASH - Beginning of period



278,991




681,608


CASH - End of period


$

2,437,554



$

848,905











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:









Cash paid for:









Interest


$

86,076



$

41,851


Income taxes


$

18,015



$

6,503


NON-CASH INVESTING AND FINANCIANG ACTIVITIES









Operating expenses paid by related party


$

27,015



$

24,420


Reclassification of inventories to land use rights and yew forest assets


$

4,257,122



$

-


 

View original content:http://www.prnewswire.com/news-releases/yew-bio-pharm-reports-improved-financial-results-for-2017-second-quarter-300503909.html

Source: Yew Bio-Pharm Group, Inc.
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