HARBIN, CHINA, March 31, 2014 — 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 and products made from yew timber in China, today reported financial results for the three- and twelve-months ended December 31, 2013. 2013 Fourth Quarter Results
Three Months Ended December 31,
Twelve Months Ended December 31,
|TCM Raw Materials||
Total revenue for the fourth quarter of 2013 increased 5.0% to $2.0 million from $1.9 million a year ago. Sales of TCM raw materials amounted to 50.2% of total revenues, sales of yew trees amounted to 45.7% of total revenues, and sales of handicrafts made up the remaining 4.1%.
For the 2013 fourth quarter gross profit was $1.3 million, or 65.6 % of total revenue, compared with $1.5 million, or 76.7% of total revenues for the comparable 2012 quarter. Gross profit was primarily impacted by the remanufacturing of yew trees into TCM from whole plants at the Qingshan plant.
Operating expenses were $262,982 in the quarter, as compared to $2.6 million in the year-ago quarter, which included stock-based compensation of $2.5 million.
Net income in the fourth quarter of 2013 was $1.0 million, or $0.02 per diluted share, compared with a net loss of $1.2 million in the year-ago quarter, or $0.02 per share.
Total revenues for the 2013 fiscal year were $7.4 million, a 10.6% increase from $6.7 million a year earlier. Sales of TCM raw materials amounted to 56.1% of total revenues, sales of yew trees amounted to 40.5% of total revenues, and sales of handicrafts made up the remaining 3.4%.
Gross profit was $5.0 million, or 67.6% of total revenues, for the full year, compared with $5.4 million, or 81.0% of total revenues in 2012.
Operating expenses were $1.1 million for the year ended December 31, 2013, compared with $3.2 million a year earlier.
Net income for 2013 increased to $3.9 million, or 0.08 per diluted share, from $2.2 million, or $0.05 per diluted share for 2012.
“During fiscal 2013, we were able to achieve growth across all revenue categories, selling more than 24,000 kg of TCM raw materials and nearly 500,000 yew trees,” said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. “To increase our growth trajectory, we are expanding our sales and marketing efforts to new customers, as well as continuing to evaluate land leasing opportunities.
“Through our patented Asexual Reproduction Method, we are able to significantly shorten the maturity cycle of naturally-grown yew trees, in as little as three years compared to more than 50 years for naturally grown yew trees. This allows for earlier commercialization while not further endangering the China’s natural supply of yew trees, which were over-forested since the discovery of taxol,” Mr. Wang added.
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. To learn more, please visit www.yewchina.com
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
|Accounts receivable – related party||377,821||284,986|
|Prepaid expenses and other assets||2,697||150|
|Prepaid expenses – related party||34,031||60,245|
|Total Current Assets||3,082,122||2,446,034|
|Inventories, net of current portion||10,245,146||9,382,164|
|Property and equipment, net||1,033,078||885,969|
|Land use rights and yew forest assets, net||20,953,562||15,328,318|
|Total Long-term Assets||32,231,786||25,596,451|
|LIABILITIES AND SHAREHOLDERS’ EQUITY|
|Accrued expenses and other payables||136,713||199,098|
|Due to related parties||4,850,637||47,876|
|Total Current Liabilities||4,997,582||253,686|
|COMMITMENTS AND CONTINGENCIES|
|Common Stock ($0.001 par value; 50,000,000 shares authorized; 50,000,000 and|
|50,000,000 issued and outstanding at December 31, 2013 and 2012, respectively)||50,000||50,000|
|Additional paid-in capital||8,058,165||10,396,377|
|Accumulated other comprehensive income – foreign currency translation adjustment||2,946,905||1,980,896|
|Total Shareholders’ Equity||30,316,326||27,788,799|
|Total Liabilities and Shareholders’ Equity||$||35,313,908||$||28,042,485|
YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|Three-Months Ended||Twelve-Months Ended|
|December 31,||December 31,|
|Revenues – related party||141,317||412,128||1,550,458||1,014,287|
|COST OF REVENUES:|
|Cost of revenues||648,654||368,201||1,968,682||1,095,158|
|Cost of revenues – related party||36,327||74,147||438,718||183,899|
|Total Cost of Revenues||684,981||442,348||2,407,400||1,279,057|
|Other general and administrative||258,237||71,776||1,110,717||691,562|
|Total Operating Expenses||262,982||2,606,299||1,134,511||3,243,965|
|INCOME FROM OPERATIONS||1,042,052||(1,153,913)||3,897,737||2,204,502|
|OTHER INCOME (EXPENSES):|
|Other income (expenses)||44||178||1,346||(429)|
|Total Other Income (Expenses)||446||310||1,993||1,765|
|OTHER COMPREHENSIVE INCOME:|
|Unrealized foreign currency translation gain||188,142||72,720||966,009||181,028|
|NET INCOME PER COMMON SHARE:|
|WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:|
YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
|For the year ended|
|CASH FLOWS FROM OPERATING ACTIVITIES:|
|Adjustments to reconcile net income to net cash|
|provided by operating activities:|
|Amortization of land use rights and yew forest assets||381,659||346,741|
|Loss on disposal of fixed assets||349||1,013|
|Changes in operating assets and liabilities:|
|Accounts receivable – related party||(82,282)||(284,817)|
|Prepaid and other current assets||(2,515)||284|
|Prepaid expenses – related party||27,823||(60,209)|
|Accrued expenses and other payables||(65,466)||78,597|
|Due to related parties||–||(157,025)|
|NET CASH PROVIDED BY OPERATING ACTIVITIES||4,442,824||418,563|
|CASH FLOWS FROM INVESTING ACTIVITIES:|
|Purchase of property and equipment||(299,613)||(313,908)|
|Purchase of land use rights and yew forest assets||(3,393,082)||(392,136)|
|NET CASH USED IN INVESTING ACTIVITIES||(3,692,695)||(706,044)|
|CASH FLOWS FROM FINANCING ACTIVITIES:|
|Repayments for related parties advances||(210)||(63,293)|
|NET CASH USED IN FINANCING ACTIVITIES||(210)||(63,293)|
|EFFECT OF EXCHANGE RATE ON CASH||22,871||5,224|
|NET DECREASE IN CASH||772,791||(345,550)|
|CASH – Beginning of year||386,821||732,371|
|CASH – End of year||$||1,159,611||$||386,821|