Yew Bio-Pharm Reports Improved Financial Results for 2017 Second Quarter

EL MONTE, Calif., Aug. 14, 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 three- and six-months ended June 30, 2017.

2017 Second Quarter Results

Total revenues for the second quarter of 2017 decreased 2.84% to $15.6 million from $16.1 million a year ago. Sales of TCM raw materials amounted to 73.93% of total revenues; sales of handicrafts amounted to 0.01% of total revenues and sales of "Others" segment consisting with the yew candles, pine needle extracts, essential oil soaps and dietary supplement amounted to 26.06% of total revenues. We did not make sales of yew tree in the second quarter of 2017 due to the Company's strategy adjustment to reserve more yew trees for future TCM raw materials sales.

For the three months ended June 30, 2017, gross profit was $10.6 million, or 67.9% of total revenues, compared with $1.6 million, or 10.3% 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 12.1% to $299,915 for the quarter ended June 30, 2017, from $341,257 in the year-ago quarter. The decreasing was primarily attributable to the decreases in professional fees.

Net income for the three months ended June 30, 2017 increased 685.0% to $10.3 million from $1.3 million in the same quarter last year due to the decrease in cost of revenues from TCM raw material. Earnings per diluted share for the three months ended June 30, 2017 was $0.19, as compared to $0.03 for the three months ended June 30, 2016.

Six Month 2017 Financial Results

Total revenues for the first six months of 2017 decreased to $23.5 million from $24.7 million a year ago. Sales of TCM raw materials amounted to 59.93% of total revenues; sales of handicrafts amounted to 0.01% of total revenues and sales of "Others" segment consisting with the yew candles, pine needle extracts, essential oil soaps and dietary supplement amounted to 40.06% of total revenues. We did not make sales of yew tree in the first half of 2017 due to the Company's strategy adjustment to reserve more yew trees for future TCM raw materials sales.

For the six months ended June 30, 2017, gross profit was $11.1 million, or 47.3% of total revenues, compared with $3.0 million, or 12.3% of total revenues for the comparable first six months of 2016. The increase in the gross profit margin was primarily attributable to the higher gross margin yields of TCM raw materials.

Operating expenses decreased 9.0% to $598,318 for the six months ended June 30, 2017, from $657,157 for the same period last year. The decreasing was primarily attributable to the decreases in professional fees.

Net income for the first six months of 2017 increased 342.4% to $10.4 million from $2.4 million for the same period last year. Earnings per diluted share was $0.19, as compared to $0.05 for the six months ended June 30, 2016.

"We were pleased to continue to deliver strong operating and financial results through our increased sales and business strategy adjustment since the year of 2016." said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "Our net income for the second quarter increased 685.0% compared to last year due to the decrease in cost of revenues from TCM raw materials, which illustrates the success of our company strategy in another way. Since 2016, we changed our strategy to decrease our yew seedling sales and to grow the seedlings for picking leaves, which will be finally made to TCM raw materials. From the second quarter of 2017, we reserved enough leaves to pick without cutting down the whole grown trees and our TCM raw materials unit cost decreased accordingly."

"As we also mentioned in prior announcement, our new e-commerce website officially went live on June 7, 2017 under the URL: http://www.yewshop.com, and the new website had begun to generate revenues from June, 2017. We expect the newly added business section will contribute more revenues in the following months. Meanwhile, our two new cosmetic series products, which contain yew oil ingredient, are expected to deliver by the end of August. We believe these new developed cosmetic products will greatly enrich our product mix and to increase our potential revenues 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