Yew Bio-Pharm Group Reports 2016 First Quarter Financial Results

HARBIN, China, May 16, 2016 /PRNewswire/ -- Yew Bio-Pharm Group, Inc. ("Yew Bio" or the "Company") (OTCQB: YEWB), a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine, handicraft products made from yew timber and yew candle made with yew essence oil in China, today reported financial results for the three months ended March 31, 2016.

2016 First Quarter Results

Total revenues for the first quarter of 2016 increased 226% to $8.6 million from $2.6 million a year ago. Sales of TCM raw materials amounted to 93.3% of total revenues; sales of yew trees amounted to 0% of total revenues; sales of handicrafts amounted to 0.2% of total revenues and sales of "Others" segment consisting with the yew candle and dietary supplement amounted to 6.5% of total revenues. We did not make sales of wood ear mushroom in the first quarter of 2016, as this is still a newly introduced product category for the Company, we are still seeking for various customer resources for this segment.

For the 2016 first quarter, gross profit was $1.4 million, or 16.2% of total revenues, compared with $1.5 million, or 55.7% of total revenues for the comparable 2015 quarter. The decrease in the gross profit margin were primarily attributable to the lower gross margin yields of TCM raw materials and "Others" segments.

Operating expenses decreased 33% to $315,900 for the quarter ended March 31, 2016, from $472,066 in the year-ago quarter. The decreasing was primarily attributable to the decreases in compensation and related benefits.

Net income for the three months ended March 31, 2016 increased 9.6% to $1.1 million from $958,390 in the same quarter last year due to the decreases of operating expenses. Earnings per diluted share for the three months ended March 31, 2016 was $0.02, in line with the same period last year.

"Revenue for the first quarter increased 226% compared to last year due to the increase in revenues from TCM raw materials and the "Others" segment which includes the sales of yew candles and dietary supplement with the brand name of "Auri Essence", and therefore offset the decrease in sales of yew tree, handicraft and wood ear mushroom," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. "We are pleased with the performance from our traditional business segment of TCM raw material sales which was mainly due to the increase in demand from our related party, Yew Pharmaceutical. They use their own technology advantages to develop new products processed from yew raw materials that lead to the demand increasing of our TCM raw materials."

"We are also excited about the sales of our newly added dietary supplement product, Auri Essence, which was made from the essence of wood ear mushroom. We launched the product in December, 2015 for the U.S. market, and we already made sales in the first quarter of 2016. Auri Essence is currently listed in several E-Commerce websites which will benefit the product to attract more attentions from customers and improve the terminal sales. We will continue to enrich our product mix and develop more value-added products for the Company. It is also the Company's long-term strategy to continue to grow through product diversification in the healthcare and dietary supplement industries."

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.

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SOURCE Yew Bio-Pharm Group, Inc.

Related Links

http://www.yewbiopharm.com