Yew Bio-Pharm Group Reports 2017 First Quarter Financial Results

EL MONTE, Calif., May 15, 2017 /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 and soap made with yew essence oil in China, today reported financial results for the three months ended March 31, 2017.

Total revenues for the first quarter of 2017 decreased 8.6% to $7.9 million from $8.6 million a year ago. Sales of TCM raw materials amounted to 32.2% of total revenues; sales of yew trees amounted to 0% of total revenues; sales of handicrafts amounted to 0 % of total revenues and sales of "Others" segment consisting with yew candle, yew essence oil soap and pine needle extracts amounted to 67.8% of total revenues. The Company did not make sales of yew tree in the first quarter of 2017 which was mainly attributable to its strategy adjustment to reserve more yew trees for future TCM raw materials sales.

For the 2017 first quarter, gross profit was $519,980, or 6.6% of total revenues, compared with $1.4 million, or 16.2% of total revenues for the comparable 2016 quarter. The decrease in the gross profit margin were primarily attributable to the lower gross margin of "Others" segments.

Operating expenses decreased 5.5% to $298,403 for the quarter ended March 31, 2017, from $315,900 in the year-ago quarter. The decreasing was primarily attributable to the decreases in stock-based compensation.

Net income for the three months ended March 31, 2017 decreased 83.8% to $169,904 from $1.1 million in the same quarter last year due to the decreases in revenues from TCM raw materials. Earnings per diluted share for the three months ended March 31, 2017 was $0.00 as compared to $0.02 for the same period last year.

"We are pleased with the steady sales increase in Others segment," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. "This newly added segment had contributed a great portion of our total revenues since the second quarter of 2016. As we mentioned in prior announcement, we expected to launch some new products in the year of 2017, and we recently signed agreement to manufacture two cosmetic series products, the facial creamer and wrinkle remover, both contain yew oil as the main ingredient. We believe these new developed cosmetic products will greatly enrich our product mix and to increase our potential revenues."

"We also recently established a retail store located at 1635 S. San Gabriel Blvd. #11, San Gabriel, California. The retail store is mainly focus on promoting and selling yew candles, yew oil soaps and some other yew merchandises. This is a very important milestone for the Company to explore the U.S. consumer market, as well as to promote our yew related products. Accompanied by progressive strategy towards market contact, we believe our yew series products will attract large numbers of U.S. customers 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.

Company Contacts:
Henry Pang
Yew Bio-Pharm Group, Inc.
Tel: (626) 401-9588
[email protected]

SOURCE Yew Bio-Pharm Group, Inc.

Related Links

http://www.yewbiopharm.com