Yew Bio-Pharm Group Reports 2016 Third Quarter Financial Results

EL MONTE, Calif., Nov. 14, 2016 /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, handicraft products made from yew timber and yew candle made with yew essence oil in China, today reported financial results for the three- and nine-months ended September 30, 2016.

2016 Third Quarter Results

Total revenues for the third quarter of 2016 increased 194% to $15 million from $5.0 million a year ago. Sales of TCM raw materials amounted to 46.9% of total revenues; sales of yew trees amounted to 0% of total revenues; sales of wood ear mushroom amounted to 0% of total revenues; sales of handicrafts amounted to 0.01% of total revenues; and sales of others, consisting with yew candles, pine needle extract and dietary supplement, amounted to 53.1% of total revenues.

For the 2016 third quarter, gross profit was $1.4 million, or 9.7% of total revenues, compared with $1.4 million, or 28.4% of total revenues for the comparable 2015 quarter. The decrease in gross profit margin was primarily attributable to the lower gross margin yields of TCM raw materials and "Others" segments.

Operating expenses decreased 38.2% to $299,517 for the quarter ended September 30, 2016, from $484,573 in the year-ago quarter. The decreasing was primarily attributable to the decrease in compensation and related benefits.

Net income for the three months ended September 30, 2016 increased 15.7% to $1.1 million from $933,514 in the same quarter last year. Earnings per diluted share for the three months ended September 30, 2016 was $0.02, in line with the same period last year.

Nine Months 2016 Financial Results

Total revenues for the nine months of 2016 increased to $39.3 million from $12.3 million a year ago. Sales of TCM raw materials amounted to 61.2% of total revenues; sales of yew trees amounted to 0.1% of total revenues; sales of wood ear mushroom amounted to 0% of total revenues; sales of handicrafts amounted to 0.2% of total revenues; and sales of others, consisting with yew candles, pine needle extract and dietary supplement, amounted to 38.5% of total revenues.

Gross profit was $4.5 million, or 11.3% of total revenues, compared with $5.3 million, or 42.8% of total revenues for the comparable 2015 quarter. The decrease in the gross profit margin was primarily attributable to the lower gross margin yields of TCM raw materials and "Others" segments.

Operating expenses decreased 33.6% to $956,674 for the nine months ended September 30, 2016, from $1.4 million for the same period last year. The decreasing was primarily attributable to the decreases in compensation and related benefits.

Net income for the nine months of 2016 decreased 11.8% to $3.4 million from $3.9 million for the same period last year. Earnings per diluted share was $0.07, in line with the same period last year.

"Revenue for the quarter increased 194% compared to last year due to the sales increasing in TCM raw materials and "Others" segments which includes the sales of yew candles, pine needle extracts and our dietary supplement with the brand name of "Auri Essence", and therefore offset the decreases in sales of yew trees and wood ear mushroom," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "The sales of TCM raw materials maintained a strong growth in the past nine months of 2016 as our related party, Yew Pharmaceutical, continues their technology development with yew ingredients, and led to the sales increasing of our TCM segment."

"Our new B2C E-commerce website is pending to launch due to the function improvements, and we are in progress of doing final testing at this point. We would expect to release the website before January, 2017, and we believe the website operation will become a new source of revenues for the Company in the year of 2017. Meanwhile, we will continue to enrich our product mix and develop more value-added products in the future."

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.