Yew Bio-Pharm Group Reports 2017 Third Quarter Financial Results

EL MONTE, Calif., Nov. 13, 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- and nine-months ended September 30, 2017.

Total revenues for the third quarter of 2017 decreased 21.2% to $11.6 million from $14.7 million a year ago. Sales of TCM raw materials amounted to 25.4% 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, mainly consisting with yew candles, pine needle extract and essential oil soaps amounted to 74.6% of total revenues.

For the 2017 third quarter, gross profit was $749,916, or 6.5% of total revenues, compared with $1.4 million, or 9.7% of total revenues for the comparable 2016 quarter. The decrease in overall gross profit margin was primarily attributable to the lower gross margin yields of Others segment.

Operating expenses decreased 12.9% to $260,916 for the quarter ended September 30, 2017, from $299,517 in the year-ago quarter. The decreasing was primarily attributable to the decrease in depreciation and professional fees.

Net income for the three months ended September 30, 2017 decreased 43.1% to $614,407 from $1.1 million in the same quarter last year. Earnings per diluted share for the three months ended September 30, 2017 was $0.01, as compared to $0.02 for the same quarter of last year.

Total revenues for the nine months of 2017 decreased 10.9% to $35.0 million from $39.3 million a year ago. Sales of TCM raw materials amounted to 48.5% 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, mainly consisting with yew candles, pine needle extract and essential oil soaps, amounted to 51.5% of total revenues.

Gross profit was $11.9 million, or 33.8% of total revenues, compared with $4.5 million, or 11.3% of total revenues for the comparable 2016 quarter. The increase in the gross profit margin was primarily attributable to the higher gross margin yields of TCM raw materials.

Operating expenses decreased 10.2% to $859,234 for the nine months ended September 30, 2017, from $956,674 for the same period last year. The decreasing was primarily attributable to the decreases in depreciation, professional fees and Other.

Net income for the nine months of 2017 increased 221.2% to $11.0 million from $3.4 million for the same period last year. Earnings per diluted share was $0.20, as compared to $0.07 for the same period last year.

"The sales of yew candles, pine needle extract and essential oil soaps maintained a stable growth for the third quarter and also the past nine months of 2017, as compared with the same periods of 2016," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "These yew essential oil derivative products such as yew candle and soap have contributed a great portion of overall revenues for the Company since year 2016. We are actively transforming our business type from agriculture-focused to a more diversified business model."

"Our two cosmetic products, which include with yew essential oil, have finished production and will be launched to the U.S. market before the year end. We would like to use these two products to introduce the benefits of our yew essential oil to the U.S. consumers, as the cosmetic products would be more popular and common for people to use. Meanwhile, our two coffee products, wood ear coffee and pine needle coffee, have been formally launched to the U.S. market early of November, and the products have started to be sold at Shun Fat Supermarket, San Gabriel Superstore, California. We believe these newly added products will greatly enrich our product mixes and become new sources of revenues for the Company."   

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