FUZHOU, China, May 14 /PRNewswire-Asia-FirstCall/ -- China Yida Holding Company (Nasdaq: CNYD) ("China Yida" or the "Company"), a leading diversified entertainment and media enterprise in China, today announced record financial results for the quarter ended March 31, 2010.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20091012/CNM039LOGO )

    First Quarter 2010 Highlights
    -- Total net revenue increased 50.7% to $14.8 million, compared to $9.8
       million in the first quarter of 2009
    -- Net revenue from the tourism business increased 86.8% year over year to
       $6.0 million
    -- Net revenue from the media business increased 33.0% year over year to
       $8.8 million
    -- Operating income grew 43.8% to $9.6 million, compared to $6.7 million
       in the first quarter of 2009
    -- Net income increased 43.5% to $7.1 million, compared to $4.9 million in
       the same period last year
    -- Fully diluted EPS was $0.37 per share, compared to $0.07 in the first
       quarter of 2009, or $0.28 after adjustment of 1-for-4 reverse split
       approved by our board on April 23, 2009
    -- Closed a registered direct offering of 2,489,721 common shares at a
       purchase price of $11.50 per share for net proceeds of approximately
       $28.6 million.

Dr. Chen Minhua, Chairman and Chief Executive Officer of China Yida, stated, "We are very pleased to report strong profitable growth for the first quarter of 2010, driven by the increase in visitors to our Great Golden Lake park, as well as higher advertising revenue from FETV, and revenue contribution from Hua'An Tulou and railway media. We recently signed two new tourism projects outside the Fujian Province to further expand our capacity to take advantage of the flourishing tourism and leisure market in China. As we look to the future, we feel confident that our track record of execution, industry leading portfolio of tourism and media assets, and strong pipeline of new opportunities positions well to participate in the expected growth of the leisure industry in China."

First Quarter 2010 Results

Total net revenue increased by 50.7% to $14.8 million, compared with $9.8 million in the first quarter of 2009.

Tourism Business

Net revenue from the tourism business increased 86.8% to $6.0 million, compared with $3.2 million in the first quarter of 2009.

For the first quarter of 2010, the Great Golden Lake generated $4.9 million in revenues with the total number of visitors increasing 26% year over year to around 161,000. Hua'An Tulou accepted 65,000 visitors, and contributed revenue of $1.17 million in this quarter. There was no revenue from Hua'An Tulou during the first quarter of 2009.

Media Business

Net revenue from the media business grew 33.0% to $8.8 million, compared with $6.6 million in the same period of last year.

Advertising revenue from FETV during the first quarter of 2010 was approximately $7.7 million, an increase of 17.5% year over year, which was increase in sale of airtime. The "Journey through China on a Train" infomercial program generated $1.0 million in revenue for the quarter, compared to zero in the corresponding period of last year. This program is now reaching approximately 200 million passengers each year.

Gross profit for China Yida's consolidated operations was $11.9 million in the first quarter of 2010, with gross margin of 80.3%, compared to $8.3 million and 84.7% for the comparable period of 2009, respectively. The decrease in gross margin was mainly due to higher costs for ramping-up new projects in their early stages including Hua'An Tulou and "Journey through China on the Train."

Total operating expense increased by 38.6% to $2.3 million in the first quarter of 2010, compared with $1.6 million in the first quarter of 2009. Higher operating expenses were driven primarily by the increase in selling expenses to support the launch of our new businesses.

Operating income increased by 43.8% to $9.6 million, compared with $6.7 million a year ago. Operating margin for the first quarter of 2010 was 65.0%, compared with 68.2% for the first quarter of 2009.

Net income for the first quarter of 2010 was $7.1 million, or $0.37 per diluted share, an increase of 43.5%, compared with a net income of $4.9 million, or $0.07 per diluted share (or $0.28 after adjustment of 1-for-4 reverse split approved by our board on April 23, 2009), in the first quarter of 2009.

Financial Condition

As of March 31, 2010, the Company reported $31.1 million in cash and cash equivalents. Working capital was $27.1 million with a current ratio of 5.8. As of March 31, 2010, the Company had $111.3 million in shareholders' equity compared to $77.7 million at the end of 2009.

China Yida generated $7.8 million in cash flow from operating activities in the first quarter of 2010 and spent $9.1 million on capital expenditures, which were primarily used for the construction of entertainment facilities at Yunding Park and Hua'An Tulou. For the rest of year 2010, the Company expects a residual scheduled payment of approximately $10 million related to the construction of Yunding Park, and approximately $1 million related to Hua'An Tulou. The Company has also budgeted approximately $35 million related to the new projects in Anhui and Jiangxi province in 2010, the Company closed a registered direct offering of 2,489,721 common shares at a purchase price of $11.50 per share for net proceeds of approximately $28.6 million. Management believes the current cash and operating cash flow will be sufficient to fund the company's ongoing projects and growth strategy.

Recent Development

On April 15, 2010, China Yida jointly with Anhui Xingguang Investment Group Ltd., entered into an agreement with Bengbu Municipal Government to develop the Ming Dynasty Entertainment World in the southeast part of Bengbu, Anhui Province, which covers a total area of approximately 5000 Mu (approximately 824 acres as 1 acre = 6.07 Mu).

On April 18, 2010, China Yida entered into an agreement with Zhangshu Municipal Government to develop China Yang-sheng (Nourishing Life) Paradise project, a large-scale vacation destination covering a total area of approximately 6000 Mu (approximately 988 acres), in Zhangshu City, Jiangxi Province. The Project is designed to focus on the theme of famous Taoist practice - Yang-sheng (Nourishing Life), with Zhangshu City's rare natural resources - salt water hot spring, and reputation as one of China's traditional medicine and herb centers. Yang-sheng (Nourishing Life) is the foundation of Taoist lifestyle, which is still desired and actively pursued within today's Asian community.

On April 29, 2010, Dr. Minhua Chen, the Company's Chairman and CEO, presided over the opening bell at the NASDAQ Market Site in New York City to celebrate the Company's listing on the NASDAQ Stock Market. The Company's CFO, Mr. George Wung, gave live interviews at the Wall Street Journal and Street.com to introduce China's fast growing tourism market and China Yida's businesses.

Business Outlook

For the media business management expects 2010 organic growth of 5-10% in advertising revenues from FETV. As the initial phase defined in the management agreement with FETV station will expire in July 2010, the management has started negotiation to secure the extended management term. As of this date, the negotiation is going well and within management's expectations. In addition, the Company will continue its marketing efforts to expand the advertising client base for the "Journey through China on a Train" infomercial program.

Management believes the Company's tourism business will achieve strong growth in 2010 both at existing and newly opened tourist attractions. The high-speed train between Fuzhou and Xiamen was put into use in April 2010, which makes the transportation much easier between the two largest cities of Fujian Province. The management expects that the high speed train will help bring more visitors to their tourism destinations in Fujian Province. Also, the expressway connecting Wuyi Mountain and the Great Golden Lake is expected to be completed and put into use by September 2010, which the management believes will greatly benefit the Great Golden Lake destination. The construction of Yunding Park however, has been affected by poor weather. Management is working hard to catch up on the schedule and looks forward to opening the park to tourists in September 2010, i.e. prior to China's National Holiday.

"We currently have two world class tourism destinations - Great Golden Lake and Hua'an Tulou - under operation with strong growth, and a new large recreational park - Yunding Park - opening to visitors soon. In addition, we have two promising projects outside Fujian Province which we expect will come on line in 2012. As we leverage our strong tourism management expertise and our portfolio of premium media assets, we believe China Yida to deliver long term sustainable growth and to create meaningful and lasting value to our shareholders," Dr. Chen Minhua added.

Conference Call

China Yida will hold a conference call at 10:00 a.m. Eastern Time on Friday, May 14, 2010 to discuss financial results for the first quarter ended March 31, 2010. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 866-672-3985. International callers may dial 706-902-4207. The conference ID for this call is 74921334. If you are unable to participate in the call at this time, a replay will be available for two weeks starting on Friday May 14, 2010 at 10:00 a.m. EDT. To access the replay, dial 800-642-1687, international callers may dial 706-645-9291. The Conference Replay pass-code is 74921334.

About China Yida

China Yida is a leading diversified entertainment enterprise focused on China's fast-growing tourism and media industries and headquartered in Fuzhou City, Fujian province of China. The Company's media business provides operations management services; including channel, column and advertisement management for television station, presently the Fujian Education Television Station ("FETV", a top-rated provincial education television channel), and "Journey through China on the Train" (an advertisement-embedded travel program). Additionally, the Company provides tourism management services, and specializes in the development, management and operation of natural, cultural and historic scenic sites. China Yida currently operates the Great Golden Lake (Global Geopark), Hua'An Tulou Cluster (World Culture Heritage), China Yunding (National Park), the Ming Dynasty Entertainment World and China Yang-sheng (Nourishing Life) tourist destination. For further information, please contact the Company directly, or visit its Web site at http://www.yidacn.net .

Forward-Looking Statements

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of China Yida Holding Co., Inc. (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement; (ii) the Company's ability to build and maintain the management and human resources and infrastructure necessary to support the anticipated growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov.

                              FINANCIAL TABLES FOLLOW



                         CHINA YIDA HOLDING CO. AND SUBSIDIARIES
             CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
                   FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
                                     (UNAUDITED)


                                                 2010            2009
            Net revenue
            Advertisement                     $8,767,284      $6,592,187
            Tourism                            6,035,514       3,230,718
            Total net revenue                 14,802,799       9,822,906

            Cost of revenue
            Advertisement                      1,826,018       1,372,523
            Tourism                            1,096,832         128,226
            Total cost of revenue              2,922,850       1,500,750

            Gross profit                      11,879,949       8,322,156

            Operating expenses
              Selling expenses                   978,584         430,647
              Operating and
               administrative expenses         1,283,944       1,202,198
            Total operating expenses           2,262,528       1,632,845

            Income from operations             9,617,421       6,689,311

            Other (income) expense
              Other (income) expense, net         (8,853)          1,269
              Interest income                     (8,971)        (13,634)
            Total other (income) expense, net    (17,824)        (12,364)

            Income before income taxes         9,635,245       6,701,675

            Provision for income taxes         2,501,196       1,730,801

            Net income                         7,134,049       4,970,874

            Other comprehensive income
            Foreign currency translation
             gain                               (296,766)        (13,028)

            Other comprehensive income        $6,837,283      $4,957,846

            Basic net earnings per share           $0.38           $0.07
            Basic weighted average shares
             outstanding                      18,918,681      68,084,487

            Diluted net earnings per
             share                                 $0.37           $0.07
            Diluted weighted average
             shares outstanding               19,384,447      68,084,487



                        CHINA YIDA HOLDING CO. AND SUBSIDIARIES
                              CONSOLIDATED BALANCE SHEETS
                       AS OF MARCH 31,2010 AND DECEMBER 31, 2009
                                      (UNAUDITED)

                                        ASSETS
                                               March 31,       December 31,
                                                  2010             2009

          Current assets
            Cash and cash equivalents          $31,064,720       5,776,678
            Accounts receivable                      7,401           2,003
            Other receivable                       201,463         190,424
            Advances and prepayments             1,509,319       1,432,138
              Total current assets              32,782,902       7,401,242

            Property, and equipment, net        32,590,213      32,995,885
            Construction in progress            45,623,520      36,730,184
            Intangible assets, net               7,480,711       7,874,938
            Long term prepayments                1,009,347       1,012,230
              Total assets                    $119,486,694      86,014,478

                      LIABILITIES AND STOCKHOLDERS' EQUITY
          Current liabilities
            Accounts payable                       $49,802          57,277
            Short term loans                     1,726,130       1,731,060
            Other payable                        1,089,139       1,145,564
            Tax payables                         2,825,837       2,835,655
              Total current liabilities          5,690,908       5,769,555

            Long term debts                      2,483,817       2,495,190

              Total liabilities                  8,174,725       8,264,745

            Commitments and contingencies

          Stockholders' equity
          Common stock ($0.0001 par
           value, 100,000,000 shares
           authorized, 19,551,785 and
           17,062,064 issued and
           outstanding as of March 31,
           2010 and December 31, 2009,
           respectively)                             1,955           1,706
          Additional paid in capital            48,436,088      21,711,384
          Accumulated other comprehensive
           income                                2,893,396       3,190,162
          Retained earning                      56,680,841      50,297,151
          Statutory reserve                      3,299,689       2,549,330
          Total stockholders' equity           111,311,970      77,749,733

          Total liabilities and
           stockholders' equity               $119,486,694      86,014,478



                       CHINA YIDA HOLDING CO. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                  FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
                                     (UNAUDITED)

                                                     2010               2009
        CASH FLOWS FROM OPERATING ACTIVITIES
            Net Income                           $7,134,049        $4,970,874
            Adjustments to reconcile net
             income  to net cash
          Cash provided by operating
           activities:
            Depreciation                            367,494           354,336
            Amortization                            371,804           372,242
            Stock based compensation                 41,997                --
          Changes in operating assets and
           liabilities:
            Accounts receivables                    (25,349)           50,501
            Other receivables                      (144,364)         (629,516)
            Advances and prepayments                (79,926)          (53,686)
            Accounts payable and accrued
             expenses                                (7,314)           (1,538)
            Tax payable                              (1,743)        1,236,890
            Customer deposit                           (344)           22,884
            Accrued payroll                          (1,379)          (11,746)
            Other payable                            98,560           392,545

          Net cash provided by operating
           activities                             7,753,486         6,703,785

        CASH FLOWS FROM INVESTING
         ACTIVITIES
            Additions to property &
             equipment                              (55,783)          (64,548)
            Addition to construction in
             progress                            (8,998,027)       (7,662,370)

          Net cash used in investing
           activities                            (9,053,809)       (7,726,918)

        CASH FLOWS FROM FINANCING
         ACTIVITIES
            Issuance of shares for cash          26,682,956                --
            Borrowings                                   --         2,167,545

          Net cash provided by financing
           activities                            26,682,956         2,167,545

        EFFECT OF EXCHANGE RATE CHANGES
         ON CASH AND CASH EQUIVALENTS               (94,589)          107,624

        NET INCREASE IN CASH AND CASH
         EQUIVALENTS                             25,382,632         1,252,036

        CASH AND CASH EQUIVALENTS,
         BEGINNING BALANCE                        5,776,678         8,715,048

        CASH AND CASH EQUIVALENTS, ENDING
         BALANCE                                $31,064,720        $9,967,084

        SUPPLEMENTAL DISCLOSURES:

          Cash paid during the quarter for:
               Income tax payments               $2,525,972          $511,212
               Interest payments                    $70,403           $20,243



    For more information, please contact:

    China Yida Holding Company
     George Wung CFO
     Phone: +1-909-843-6358
     Email: ir@yidacn.net

    CCG Investor Relations
     Crocker Coulson, President
     Phone: +1-646-213-1915

     Ed Job, CFA
     Phone: +86-21-5175-7780
     Email: ed.job@ccgir.com

SOURCE China Yida Holding Company

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