Yew Bio-Pharm Group Reports 2015 Third Quarter Financial Results

16 Nov, 2015, 09:00 ET from Yew Bio-Pharm Group, Inc.

HARBIN, China, Nov. 16, 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 the three- and nine-months ended September 30, 2015.

2015 Third Quarter Results  


Three Months Ended September 30,

Percentage


2015

2014

Change

Revenues:




TCM Raw Materials

$2,845,904

$1,161,838

145%

Yew Trees

96,275

514,130

(81)%

Wood ear mushroom

134,962

-

100%

Handicrafts

15,417

24,956

(38)%

Others

1,904,643

-

100%

Total Revenues

$4,997,201

$1,700,924

194%

Total revenues for the third quarter of 2015 increased 194% to $5.0 million from $1.7 million a year ago. Sales of TCM raw materials amounted to 56.9% of total revenues; sales of yew trees amounted to 1.9% of total revenues; sales of wood ear mushroom amounted to 2.7% of total revenues; sales of handicrafts amounted to 0.3% of total revenues; and sales of others, consisting with yew candles, amounted to 38.2% of total revenues.

For the 2015 third quarter, gross profit was $1.4 million, or 28.4% of total revenues, compared with $1.4 million, or 82.7% 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 TCM raw materials and handicrafts.

Operating expenses decreased 5.6% to $484,573 for the quarter ended September 30, 2015, from $513,539 in the year-ago quarter. The decreasing was primarily attributable to the decreases in compensation and related benefits and professional fees.

Net income for the three months ended September 30, 2015 increased 4.6% to $933,514 from $892,716 in the same quarter last year. Earnings per diluted share for the three months ended September 30, 2015 was $0.02, in line with the same period last year.

Nine Months 2015 Financial Results


Nine Months Ended September 30,

Percentage


2015

2014

Change

Revenues:




TCM Raw Materials

$7,712,224

$3,356,622

130%

Yew Trees

1,139,946

2,350,874

(52)%

Wood ear mushroom

1,439,634

-

100%

Handicrafts

110,131

124,972

(12)%

Others

1,904,643

-

100%

Total Revenues

$12,306,578

$5,832,468

111%

Total revenues for the nine months of 2015 increased to $12.3 million from $5.8 million a year ago. Sales of TCM raw materials amounted to 62.7% of total revenues; sales of yew trees amounted to 9.3% of total revenues; sales of wood ear mushroom amounted to 11.7% of total revenues; sales of handicrafts amounted to 0.9% of total revenues; and sales of others, consisting with yew candles, amounted to 15.4% of total revenues.

Gross profit was $5.3 million, or 42.8% of total revenues, compared with $4.6 million, or 78.6% 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 TCM raw materials.

Operating expenses increased 59.8% to $1.4 million for the nine months ended September 30, 2015, from $901,957 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 nine months of 2015 increased 5.8% to $3.9 million from $3.7 million for the same period last year. Earnings per diluted share were $0.07, compared to $0.06 for the same period last year.

At September 30, 2015 the company had approximately $171,483 in cash and $1.7 million in accounts receivable.

"Revenue for the quarter increased 194% compared to last year due to the sales increases in TCM raw materials, wood ear mushroom and the others segments which offset the decrease of Yew tree sales," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "TCM raw materials and wood ear mushroom sales contributed a large proportion for the Company's revenues as our related party, Yew Pharmaceutical, increases the demands in the past nine months,"

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) 958-8561

Cami@chinesefn.com  

 

 

(financial tables follow)

 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



September 30,
2015


December
31, 2014


(Unaudited)



ASSETS

CURRENT ASSETS:




Cash

$

171,483


$

487,940

Accounts receivable


1,654,609



922,564

Accounts receivable - related party


-



340,132

Inventories


7,791,129



1,443,078

Due from related parties


47,601



-

Prepaid expenses - related party


369,232



5,787

Prepaid expenses and other assets


277,699



16,791

VAT recoverables


1,072,052



-







Total Current Assets


11,383,805



3,216,292







LONG-TERM ASSETS:






Long-term inventories, net


11,392,307



10,663,545

Property and equipment, net


725,122



856,250

Land use rights and yew forest assets, net


19,726,404



20,305,821







Total Long-term Assets


31,843,833



31,825,616







Total Assets

$

43,227,638


$

35,041,908







LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:






Accounts payable

$

739,691


$

-

Accounts payable – related party


1,480,698



-

Accrued expenses and other payables


175,227



84,722

Advances from customers


160,072



-

Taxes payable


48,600



10,547

Due to related parties


697,521



45,040

Short-term borrowings


1,642,360



-







Total Current Liabilities


4,944,169



140,309







Total Liabilities


4,944,169



140,309







SHAREHOLDERS' EQUITY:






Common stock ($0.001 par value; 140,000,000 shares authorized; 51,875,000 and
52,125,000 shares issued and outstanding at September 30, 2015 and December 31,
2014, respectively)


51,875



52,125

Additional paid-in capital


9,362,216



8,557,656

Retained earnings


23,848,364



20,444,667

Statutory reserves


3,594,628



3,100,766

Accumulated other comprehensive income - foreign currency translation adjustment


1,426,386



2,746,385







Total Shareholders' Equity


38,283,469



34,901,599







Total Liabilities and Shareholders' Equity

$

43,227,638


$

35,041,908

 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)



For the Three Months
Ended September 30,


For the Nine Months
Ended
September 30,


2015


2014


2015


2014

REVENUES:








    Revenues

$

1,997,998


$

1,135,825


$

5,437,593


$

4,530,078

    Revenues - related party


2,999,203



565,099



6,868,985



1,302,390













       Total Revenues


4,997,201



1,700,924



12,306,578



5,832,468













COST OF REVENUES:












    Cost of revenues


1,900,418



236,793



3,807,777



1,005,865

    Cost of revenues - related party


1,677,625



57,004



3,228,355



240,601













       Total Cost of Revenues


3,578,043



293,797



7,036,132



1,246,466













GROSS PROFIT


1,419,158



1,407,127



5,270,446



4,586,002













OPERATING EXPENSES:












    Selling


10,013



6,973



23,776



9,394

    General and administrative


474,560



506,566



1,417,338



892,563













       Total Operating Expenses


484,573



513,539



1,441,114



901,957













INCOME FROM OPERATIONS


934,585



893,588



3,829,332



3,684,045













OTHER INCOME (EXPENSES):












    Interest income (expense)


(33,496)



(255)



(51,917)



36

    Government grant


-



-



135,322



-

    Other income (expense)


36,496



(617)



32,023



1,347













       Total Other Income (Expenses)


3,000



(872)



115,428



1,383













INCOME BEFORE INCOME TAXES


937,585



892,716



3,944,760



3,685,428

PROVISION FOR INCOME TAXES


(4,071)



-



(47,200)



-

NET INCOME

$

933,514


$

892,716


$

3,897,560


$

3,685,428













COMPREHENSIVE INCOME (LOSS):












    NET INCOME

$

933,514


$

892,716


$

3,897,560


$

3,685,428

    OTHER COMPREHENSIVE INCOME (LOSS):












       Foreign currency translation adjustment


(1,701,546)



10,560



(1,319,999)



(211,926)













    COMPREHENSIVE INCOME (LOSS)

$

(768,032)


$

903,276


$

2,577,561


$

3,473,502













NET INCOME PER COMMON SHARE:












    Basic

$

0.02


$

0.02


$

0.07


$

0.07

    Diluted

$

0.02


$

0.02


$

0.07


$

0.06

WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:












    Basic


52,158,967



51,639,946



52,136,447



50,552,656

    Diluted


52,189,711



51,759,743



55,518,924



63,026,963

 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



For the Nine Months Ended 
September 30,


2015


2014

CASH FLOWS FROM OPERATING ACTIVITIES:




Net income

$

3,897,560


$

3,685,428

Adjustments to reconcile net income to net cash provided by (used in) operating activities:






Depreciation


112,837



132,355

Stock-based compensation


800,954



5,657

Stock issued for professional services


3,356



321,387

Amortization of land use rights and yew forest assets


1,108,773



384,467

Gain on disposal of property and equipment


(32,083)



(1,509)

Changes in operating assets and liabilities:






Accounts receivable


(783,741)



(1,189,571)

Accounts receivable - related party


339,740



375,596

Prepaid expenses and other current assets


(269,309)



(34,532)

Prepaid expenses - related party


(375,030)



21,030

Due from related parties


(13,383)



-

VAT recoverables


(1,105,672)



-

Inventories


(5,191,187)



(205,265)

Accounts payable


-



15,974

Accrued expenses and other payables


95,379



(9,992)

Advances from customers


165,092



-

Taxes payable


39,506



(5,857)







NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES


(1,207,208)



3,495,168







CASH FLOWS FROM INVESTING ACTIVITIES:






Proceeds from disposal of property and equipment


-



5,000

Purchase of property and equipment


(7,913)



(3,390)

Payment for land use rights and yew forest assets


(1,362,205)



(4,503,084)







NET CASH USED IN INVESTING ACTIVITIES


(1,370,118)



(4,501,474)







CASH FLOWS FROM FINANCING ACTIVITIES:






Proceeds from short-term borrowings


1,642,360



-

Proceeds from related party advances


658,255



610

Repayments for related party advances


(5,656)



(25,674)







NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES


2,294,959



(25,064)







EFFECT OF EXCHANGE RATE ON CASH


(34,090)



(8,123)







NET DECREASE IN CASH


(316,457)



(1,039,493)







CASH - Beginning of period


487,940



1,159,611







CASH - End of period

$

171,483


$

120,118







SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:






Cash paid for:






Interest

$

47,017


$

-

Income taxes

$

-


$

-







Non-cash investing and financing activities






Reclassification of yew forest assets to inventories

$

190,817


$

828,908

 

SOURCE Yew Bio-Pharm Group, Inc.



RELATED LINKS

http://www.yewbiopharm.com