Yew Bio-Pharm Group Reports 2015 Second Quarter Financial Results
HARBIN, China, Aug. 18, 2015 /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 and products made from yew timber in China, today reported financial results for three- and six-months ended June 30, 2015.
2015 Second Quarter Results
| Three Months Ended June 30, | Percentage | ||
| 2015 | 2014 | Change | |
| Revenues: | |||
| TCM Raw Materials | $3,909,313 | $1,150,855 | 240% |
| Yew Trees | 344,919 | 872,437 | (60)% |
| Wood ear mushroom | 405,484 | – | 100% |
| Handicrafts | 7,206 | 40,325 | (82)% |
| Total Revenues | $4,666,922 | $2,063,527 | 126% |
Total revenues for the second quarter of 2015 increased 126% to $4.7 million from $2.1 million a year ago. Sales of TCM raw materials amounted to 83.8% of total revenues; sales of yew trees amounted to 7.4% of total revenues; sales of wood ear mushroom amounted to 8.7% of total revenues; and sales of handicrafts made up the remaining 0.1%.
For the 2015 second quarter, gross profit was $2.4 million, or 51% of total revenues, compared with $1.6 million, or 79.4% of total revenues for the comparable 2014 quarter. The decrease in the gross profit margin was primarily attributable to the lower gross margin yield of wood ear mushroom segment, and a one-time yew tree extracts sales occurred in June, 2015.
Operating expenses increased 119% to $484,475 for the quarter ended June 30, 2015, from $221,022 in the year-ago quarter. The increasing was primarily attributable to the increases in compensation and related benefits and other expenses.
Net income for the three months ended June 30, 2015 increased 41% to $2,005,656 from $1.4 million in the same quarter last year due to the increases of total revenues. Earnings per diluted share for the three months ended June 30, 2015 was $0.03, in line with the same period last year.
Six Month 2015 Financial Results
| Six Months Ended June 30, | Percentage | ||
| 2015 | 2014 | Change | |
| Revenues: | |||
| TCM Raw Materials | $4,866,320 | $2,194,785 | 122% |
| Yew Trees | 1,043,671 | 1,836,743 | (43)% |
| Wood ear mushroom | 1,304,672 | – | 100% |
| Handicrafts | 94,714 | 100,016 | (5)% |
| Total Revenues | $7,309,377 | $4,131,544 | 77% |
Total revenues for the first six months of 2015 increased to $7.3 million from $4.1 million a year ago. Sales of TCM raw materials amounted to 66.6% of total revenues; sales of yew trees amounted to 14.3% of total revenues; sales of wood ear mushroom amounted to 17.8% of total revenues; and sales of handicrafts made up the remaining 1.3%.
Gross profit was $3.9 million, or 52.7% of total revenues, compared with $3.2 million, or 77.0% of total revenues for the comparable 2014 quarter. The decrease in the gross profit margin was primarily attributable to the lower gross margin yield of wood ear mushroom segment, and the one-time yew tree extracts sales occurred in June, 2015
Operating expenses increased 146% to $956,541 for the six months ended June 30, 2015, from $388,418 for the same period last year. The increasing was primarily attributable to the increases in compensation and related benefits and other expenses.
Net income for the first six months of 2015 increased 6% to $3.0 million from $2.8 million for the same period last year. Earnings per diluted share were $0.05, compared to $0.04 for the same period last year.
At June 30, 2015 the company had approximately $610,000 in cash and $3.2 million in accounts receivable.
“Revenue for the quarter increased 126% compared to last year due to the sales increases in TCM raw materials and wood ear mushroom segments which offset the decrease of Yew tree sales,” said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. ” Wood ear mushroom sales contributed a large proportion for the Company’s revenues in the past half year, and we expect to develop more customer resources and expand our wood ear mushroom sales in the next half of 2015.”
“Our TCM raw materials sales increased sharply in the second quarter of 2015 which was mainly due to the increase in demand from our related party, Yew Pharmaceutical. Yew Pharmaceutical has developed a new technology to extract yew essence oil from TCM raw materials and further processing the oil to be used as the base of a new product, Yew Candle. The development of Yew Candle had led to the increase in demand of TCM raw materials. Sales of Yew Candle would begin in early October this year, and we expect our TCM raw materials sales will continue to increase.”
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.
Investor Relations Contacts:Cami Xue Chineseinvestors.com, Inc.Tel: (800) 958-8561Cami@chinesefn.com
(financial tables follow)
| YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30,2015 | December 31, 2014 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash | $ | 610,658 | $ | 487,940 | ||||
| Accounts receivable | 2,236,486 | 922,564 | ||||||
| Accounts receivable – related party | 975,562 | 340,132 | ||||||
| Inventories | 3,509,414 | 1,443,078 | ||||||
| Prepaid expenses – related party | 126,731 | 5,787 | ||||||
| Prepaid expenses and other assets | 2,003,906 | 16,791 | ||||||
| Total Current Assets | 9,462,757 | 3,216,292 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Long-term inventories, net | 11,083,446 | 10,663,545 | ||||||
| Property and equipment, net | 795,544 | 856,250 | ||||||
| Land use rights and yew forest assets, net | 20,574,883 | 20,305,821 | ||||||
| Total Long-term Assets | 32,453,873 | 31,825,616 | ||||||
| Total Assets | $ | 41,916,630 | $ | 35,041,908 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 427,165 | $ | – | ||||
| Accrued expenses and other payables | 268,141 | 84,722 | ||||||
| Advances from customers | 67,501 | – | ||||||
| Taxes payable | 16,444 | 10,547 | ||||||
| Due to related parties | 697,445 | 45,040 | ||||||
| Short-term borrowings | 1,642,360 | – | ||||||
| Total Current Liabilities | 3,119,056 | 140,309 | ||||||
| Total Liabilities | 3,119,056 | 140,309 | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Common stock ($0.001 par value; 140,000,000 shares authorized; 52,125,000 shares
issued and outstanding at June 30, 2015 and December 31, 2014) |
52,125 | 52,125 | ||||||
| Additional paid-in capital | 9,108,038 | 8,557,656 | ||||||
| Retained earnings | 23,043,440 | 20,444,667 | ||||||
| Statutory reserves | 3,466,039 | 3,100,766 | ||||||
| Accumulated other comprehensive income – foreign currency translation adjustment | 3,127,932 | 2,746,385 | ||||||
| Total Shareholders’ Equity | 38,797,574 | 34,901,599 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 41,916,630 | $ | 35,041,908 | ||||
| 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 EndedJune 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Revenues | $ | 1,904,941 | $ | 1,780,535 | $ | 3,439,595 | $ | 3,394,253 | ||||||||
| Revenues – related party | 2,761,981 | 283,032 | 3,869,782 | 737,291 | ||||||||||||
| Total Revenues | 4,666,922 | 2,063,567 | 7,309,377 | 4,131,544 | ||||||||||||
| COST OF REVENUES: | ||||||||||||||||
| Cost of revenues | 1,533,314 | 354,456 | 1,907,359 | 769,072 | ||||||||||||
| Cost of revenues – related party | 753,806 | 70,479 | 1,550,730 | 183,597 | ||||||||||||
| Total Cost of Revenues | 2,287,120 | 424,935 | 3,458,089 | 952,669 | ||||||||||||
| GROSS PROFIT | 2,379,802 | 1,638,632 | 3,851,288 | 3,178,875 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Selling | 9,075 | 661 | 13,763 | 2,421 | ||||||||||||
| General and administrative | 475,400 | 220,361 | 942,778 | 385,997 | ||||||||||||
| Total Operating Expenses | 484,475 | 221,022 | 956,541 | 388,418 | ||||||||||||
| INCOME FROM OPERATIONS | 1,895,327 | 1,417,610 | 2,894,747 | 2,790,457 | ||||||||||||
| OTHER INCOME (EXPENSES): | ||||||||||||||||
| Interest income (expense) | (18,546) | 55 | (18,421) | 291 | ||||||||||||
| Government grant | 135,322 | – | 135,322 | – | ||||||||||||
| Other income (expense) | (4,457) | (194) | (4,473) | 1,964 | ||||||||||||
| Total Other Income (Expenses) | 112,319 | (139) | 112,428 | 2,255 | ||||||||||||
| INCOME BEFORE INCOME TAXES | 2,007,646 | 1,417,471 | 3,007,175 | 2,792,712 | ||||||||||||
| PROVISION FOR INCOME TAXES | (1,990) | – | (43,129) | – | ||||||||||||
| NET INCOME | $ | 2,005,656 | $ | 1,417,471 | $ | 2,964,046 | $ | 2,792,712 | ||||||||
| COMPREHENSIVE INCOME: | ||||||||||||||||
| NET INCOME | $ | 2,005,656 | $ | 1,417,471 | $ | 2,964,046 | $ | 2,792,712 | ||||||||
| OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||
| Foreign currency translation adjustment | 123,694 | 35,482 | 381,547 | (222,486) | ||||||||||||
| COMPREHENSIVE INCOME | $ | 2,129,350 | $ | 1,452,953 | $ | 3,345,593 | $ | 2,570,226 | ||||||||
| NET INCOME PER COMMON SHARE: | ||||||||||||||||
| Basic | $ | 0.04 | $ | 0.03 | $ | 0.06 | $ | 0.06 | ||||||||
| Diluted | $ | 0.03 | $ | 0.03 | $ | 0.05 | $ | 0.04 | ||||||||
| WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING: |
||||||||||||||||
| Basic | 52,125,000 | 50,000,000 | 52,125,000 | 50,000,000 | ||||||||||||
| Diluted | 57,618,689 | 50,000,000 | 57,899,669 | 64,872,148 | ||||||||||||
| YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (UNAUDITED) | ||||||||
| For the Six Months Ended June 30, | ||||||||
| 2015 | 2014 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 2,964,046 | $ | 2,792,712 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | 76,099 | 91,862 | ||||||
| Stock-based compensation | 537,660 | – | ||||||
| Stock issued for professional services | 12,722 | – | ||||||
| Amortization of land use rights and yew forest assets | 256,333 | 255,678 | ||||||
| Gain on disposal of property and equipment | – | (2,142) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,300,729) | (911,790) | ||||||
| Accounts receivable – related party | (629,335) | 237,626 | ||||||
| Prepaid expenses and other current assets | (1,979,257) | (20,473) | ||||||
| Prepaid expenses – related party | (120,407) | – | ||||||
| Due from related parties | – | 14,034 | ||||||
| Inventories | (2,071,367) | 358,413 | ||||||
| Accounts payable | 427,058 | 42,398 | ||||||
| Accrued expenses and other payables | 182,092 | (1,100) | ||||||
| Advances from customers | 67,236 | – | ||||||
| Taxes payable | 5,789 | (3,865) | ||||||
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (1,572,060) | 2,853,353 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Proceeds from disposal of property and equipment | – | 5,000 | ||||||
| Purchase of property and equipment | (7,000) | – | ||||||
| Payment for land use rights and yew forest assets | (588,928) | (3,755,629) | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | (595,928) | (3,750,629) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from short-term borrowings | 1,642,360 | – | ||||||
| Proceeds from related party advances | 652,363 | 1,221 | ||||||
| Repayments for related party advances | – | (25,674) | ||||||
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 2,294,723 | (24,453) | ||||||
| EFFECT OF EXCHANGE RATE ON CASH | (4,017) | (7,204) | ||||||
| NET INCREASE (DECREASE) IN CASH | 122,718 | (928,933) | ||||||
| CASH – Beginning of period | 487,940 | 1,159,611 | ||||||
| CASH – End of period | $ | 610,658 | $ | 230,678 | ||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
| Cash paid for: | ||||||||
| Interest | $ | 18,647 | $ | – | ||||
| Income taxes | $ | – | $ | – | ||||
| Non-cash investing and financing activities | ||||||||
| Reclassification of yew forest assets to inventories | $ | 279,514 | $ | 1,658 | ||||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/yew-bio-pharm-group-reports-2015-second-quarter-financial-results-300129804.html
SOURCE Yew Bio-Pharm Group, Inc.