BEIJING, Aug. 20 /PRNewswire-Asia/ -- Yongye International, Inc. (OTC Bulletin Board: YGII), a leading developer and distributor of Shengmingsu brand plant and animal nutrient products in the People's Republic of China (PRC), today announced it expects to restate its previously issued financial statements to correct a technical error related to accounting for its prior fiscal year 2008 and first quarter 2009 earnings per share calculations as previously disclosed in its financial statements.
For the fiscal year 2008 and first quarter 2009, the Company, as part of the complexities of accounting for the April 2008 Escrow Shares and September 2008 Escrow Shares, put these shares into escrow as part of the first two rounds of financing. The Company then considered these shares "contingently" issuable shares for purposes of calculating earnings per share and excluded such outstanding and contingent shares from the calculation of the weighted average number of common shares outstanding. However, it was subsequently determined that since these Escrow Shares were neither contingently cancellable nor contingently returnable to the Company, the shares should have been included in the calculations of the Company's basic and fully diluted earnings per share. For the year ended December 31, 2008, basic earnings per share are expected to be adjusted by $0.09, (from $0.66 to $0.57) and fully diluted earnings per share are expected to be adjusted by $0.08 (from $0.64 to $0.56).
The Company has corrected this error for its earnings per share for the three and six months ended June 30, 2008 in the current Form 10-Q. The correcting adjustments had no impact on the Company's previously issued consolidated balance sheet, income statement, except earnings per share figures, nor on its cash flow statement as of June 30, 2008 and consolidated statement of cash flows for the six months then ended. Upon completion of its assessment of these errors, the Company will file, as soon as practicable, an amended Form 10-Q for September 30, 2008 and Form 10-K for the year ended December 31, 2008, and Form 10-Q for March 31, 2009.
About Yongye Biotechnology International, Inc.
Yongye International, Inc., headquartered in Beijing, is engaged in the development, distribution and sales of Shengmingsu brand plant and animal nutrient products. The Company's patented and patent pending formulas and proprietary extraction processes allow it to create products that increase crop yields and improve the health of livestock. Its sole operating subsidiary, Inner Mongolia Yongye Nongfeng Biotechnology Co., Ltd., is headquartered in Beijing with administrative and sales offices located in Inner Mongolia, People's Republic of China. The Company sells its products through distributors located in ten provinces throughout China.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Yongye International, Inc.
Mr. Larry Gilmore-VP of Corporate Strategy
Phone: +86-10-8232-8866 x8880
Email: larry.gilmore@gmail.com
CCG Investor Relations, Inc.
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
