Yew Bio-Pharm Group Reports 2014 First Quarter Financial Results - Total Revenues Increase 15%, with Growth Across All Three Categories -

HARBIN, China, May 21, 2014 /PRNewswire/ -- 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- months ended March 31, 2014.

2014 First Quarter Results




Three Months Ended March 31,


Percentage




2014


2013


Change

Revenues:








TCM Raw Materials


$1,043,980


$896,161


16.5%


Yew Trees


964,306


856,954


12.5%


Handicrafts


59,691


45,825


30.3%


Total Revenues


$2,067,977


$1,798,940


15.0%

Total revenues for the first quarter of 2014 increased 15.0% to $2.1 million from $1.8 million a year ago.  Sales of TCM raw materials amounted to 50.5% of total revenues; sales of yew trees amounted to 46.6% of total revenues; and sales of handicrafts made up the remaining 2.9%.

For the 2014 first quarter, gross profit was $1.5 million, or 74.5% of total revenues, compared with $1.2 million, or 67.8% of total revenues for the comparable 2012 quarter. The increase in the gross profit margin was primarily attributable to higher gross profit margin in the yew trees segment.

Operating expenses decreased 39.7% to $167,000 for the quarter ended March 31, 2014, from $278,000 in the year-ago quarter.

Net income for the three-months ended March 31, 2014 increased 45.9% to $1.4 million from $942,000 in the same quarter last year. Due to an unrealized foreign currency translation loss of $258,000 for the first quarter of 2014, as compared to a gain of $155,000 for the first quarter of 2013, comprehensive income for both the first quarter of 2014 and 2013 was approximately $1.1 million, or $0.02 per diluted share. The change reflects the effect of the value of the U.S. dollar in relation to the RMB.

"We are pleased to have recorded double digit growth across all three revenue categories, with TCM raw material sales volume increasing 14% to 6,070 kg in the quarter. While the number of Yew Trees sold decreased, we sold higher quality yew trees, which resulted in improved profitability," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. "As we move forward, we aim to drive further profitability by focusing on the sale of higher quality Yew Trees."

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 http://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: +1-702-487-4683

hpang@yewbiopharm.com

Investor Relations Contacts:

Judy Lin Sfetcu / Matt Sheldon

PondelWilkinson Inc.

Tel: +1-310-279-5980

investor@pondel.com

(financial tables follow)

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS









March 31,


December 31,


2014


2013



 (Unaudited) 




ASSETS






CURRENT ASSETS:






    Cash

$

99,504


$

1,159,611

    Accounts receivable


1,837,401



418,875

    Accounts receivable - related party


339,044



377,821

    Inventories


1,575,509



1,089,087

    Due from related parties


85,159



34,031

    Prepaid expenses and other assets


16,600



2,697







        Total Current Assets


3,953,217



3,082,122







LONG-TERM ASSETS:






    Inventories, net of current portion


10,009,310



10,245,146

    Property and equipment, net


976,176



1,033,078

    Land use rights and yew forest assets, net


20,048,846



20,953,562







        Total Long-term Assets


31,034,332



32,231,786







        Total Assets

$

34,987,549


$

35,313,908







LIABILITIES AND SHAREHOLDERS' EQUITY






CURRENT LIABILITIES:






    Accounts payable

$

-


$

-

    Accrued expenses and other payables


151,138



136,713

    Taxes payable 


1,898



10,232

    Due to related parties


3,400,914



4,850,637







        Total Current Liabilities


3,553,950



4,997,582







        Total Liabilities


3,553,950



4,997,582







COMMITMENTS AND CONTINGENCIES












SHAREHOLDERS' EQUITY:                                                                                                   






    Common Stock ($0.001 par value; 50,000,000 shares authorized; 50,000,000 and

      50,000,000 issued and outstanding at March 31, 2014 and December 31, 2013, respectively)


50,000



50,000

    Additional paid-in capital


8,058,165



8,058,165

    Retained earnings


17,898,053



16,664,138

    Statutory reserves


2,738,444



2,597,118

    Accumulated other comprehensive income - foreign currency translation adjustment


2,688,937



2,946,905







        Total Shareholders' Equity


31,433,599



30,316,326







        Total Liabilities and Shareholders' Equity

$

34,987,549


$

35,313,908













 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

 (UNAUDITED) 














For Three Months Ended March 31,


2014


2013

REVENUES:






    Revenues

$

1,613,718


$

1,440,991

    Revenues - related party


454,259



357,949

        Total Revenues


2,067,977



1,798,940







COST OF REVENUES:






    Cost of revenues


414,616



495,659

    Cost of revenues - related party


113,118



83,010

        Total Cost of Revenues


527,734



578,669







GROSS PROFIT


1,540,243



1,220,271







OPERATING EXPENSES:






     Selling


1,760



5,614

     Other general and administrative


165,636



271,961

        Total Operating Expenses


167,396



277,575







Other Operating Income


2,142



-







INCOME FROM OPERATIONS


1,374,989



942,696







OTHER INCOME (EXPENSES):






     Interest income


236



42

     Other income (expense)


16



(417)

        Total Other Income (Expenses)


252



(375)







NET INCOME

$

1,375,241


$

942,321







COMPREHENSIVE INCOME:






      NET INCOME

$

1,375,241


$

942,321

      OTHER COMPREHENSIVE INCOME:






           Unrealized foreign currency translation gain (loss)       


(257,968)



154,652

      COMPREHENSIVE INCOME

$

1,117,273


$

1,096,973







NET INCOME PER COMMON SHARE:






       Basic

$

0.03


$

0.02

       Diluted 

$

0.02


$

0.02

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:






       Basic


50,000,000



50,000,000

       Diluted 


68,118,682



50,000,000















YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



For Three Months Ended


March 31, 2014


March 31, 2013

CASH FLOWS FROM OPERATING ACTIVITIES:






    Net income

$

1,375,241


$

942,321

    Adjustments to reconcile net income to net cash






        provided by operating activities:






        Depreciation


46,408



56,274

        Amortization of land use rights and yew forest assets 


128,546



89,244

        Loss (gain) on disposal of property and equipment


(2,142)



417

    Changes in operating assets and liabilities:






        Accounts receivable


(1,432,302)



(760,760)

        Accounts receivable - related party


35,949



(272,041)

        Prepaid and other current assets


(14,005)



(302,193)

        Due from related party


7,045



6,859

        Inventories


264,439



260,540

        Accounts payable


-



1,041

        Accrued expenses and other payables


15,148



133,403

        Due to related parties


-



1,217

        Taxes payable


(8,320)



(2,220)







NET CASH PROVIDED BY OPERATING ACTIVITIES


416,007



154,102







CASH FLOWS FROM INVESTING ACTIVITIES:






        Proceeds from disposal of property and equipment


5,000



-

        Loan made to related parties


(58,825)










NET CASH USED IN INVESTING ACTIVITIES


(53,825)



-







CASH FLOWS FROM FINANCING ACTIVITIES:






        Repayments for related parties advances 


(1,420,521)



-







NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES


(1,420,521)



-







EFFECT OF EXCHANGE RATE ON CASH


(1,771)



3,454







NET INCREASE (DECREASE) IN CASH


(1,060,110)



157,556







CASH  - Beginning of period


1,159,611



386,821







CASH - End of period

$

99,504


$

544,377







SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:   






    Cash paid for:






        Interest

$

-


$

-

        Income taxes

$

-


$

-







    Non-cash investing and financing activities 






    Reclassification of yew forest assets to Inventories

$

610,193


$

-




SOURCE Yew Bio-Pharm Group, Inc.



RELATED LINKS
http://www.yewbiopharm.com

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