Yongye International Provides Update on Accounts Receivable Status
BEIJING, Jan. 8, 2014 /PRNewswire-FirstCall/ -- Yongye International, Inc. (NASDAQ: YONG), ("Yongye" or the "Company") a leading developer, manufacturer, and distributor of crop nutrient products in the People's Republic of China ("PRC"), today provided an update on accounts receivable status as of the quarter and full year ended December 31, 2013.
As of year end 2013, using shipment basis, the Company had $466 million accounts receivable outstanding, of which $177 million have passed the Company's normal six month credit period.
As previously announced, the Company anticipated it would experience an increase in the amount of overdue receivables in the fourth quarter as has been the case during the past several years. The Company's regular payment terms allow distributors to pay the total purchase price within six months after the receipt of the Company's products. The second quarter is the Company's largest quarter for sales as it is the height of the peak farming season in China and as a result, the overdue accounts receivable amount normally spikes during the fourth quarter.
The Company is diligently working with its distributors to increase its collection efforts and closely monitor its distributors' financial status.
About Yongye International, Inc.
Yongye International, Inc. is a leading crop nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye's principal product is a liquid crop nutrient, from which the Company derived substantially all of the sales in 2012. The Company also produces powder animal nutrient product which is mainly used for dairy cows. Both products are sold under the trade name "Shengmingsu," which means "life essential" in Chinese. The Company's patented formula utilizes fulvic acid as the primary compound base and is combined with various micro and macro nutrients that are essential for the health of the crops. The Company sells its products primarily to provincial level distributors, who sell to the end-users either directly or indirectly through county-level and village-level distributors. For more information, please visit the Company's website at www.yongyeintl.com.
Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Yongye International, Inc.
Ms. Rain Xia
Mr. John Capodanno (U.S. Contact)
Ms. May Shen (China Contact)
SOURCE Yongye International, Inc.