Yew Bio-Pharm Group Reports 2014 Second Quarter Financial Results - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Yew Bio-Pharm Group Reports 2014 Second Quarter Financial Results

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SOURCE Yew Bio-Pharm Group, Inc.

Announces Price Increase for TCM Raw Materials to Support Profitably Objectives

Adds Two New TCM Raw Material Customers

HARBIN, China, Aug. 14, 2014 /PRNewswire/ -- Yew Bio-Pharm Group, Inc. ("Yew Bio" or the "Company") (OTCBB: YEWB), a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine and products made from yew timber in China, today reported financial results for the three- and six-months ended June 30, 2014.

2014 Second Quarter Results




Three Months Ended June 30,


Percentage




2014


2013


Change

Revenues:








TCM Raw Materials


$1,150,805


$1,270,330


(9.4)%


Yew Trees


872,437


796,653


9.5%


Handicrafts


40,325


39,383


2.4%


Total Revenues


$2,063,567


$2,106,366


(2.0)%

Total revenues for the second quarter of 2014 were $2.06 million, compared with $2.11 million a year ago.

Sales of TCM raw materials amounted to 55.8% of total revenues; sales of yew trees amounted to 42.3% of total revenues; and sales of handicrafts made up the remaining 1.9%.

For the 2014 second quarter, gross profit was $1.64 million, or 79.4% of total revenues, compared with $1.60 million, or 76.0% of total revenues for the comparable 2013 quarter. The increase in the gross profit margin was primarily attributable to higher gross profit margin in the TCM raw materials segment.

Operating expenses decreased 20.5% to $221,000 for the quarter ended June 30, 2014, from $278,000 in the year-ago quarter. The decrease was primarily related to overall cost reduction and operational efficiency.

Net income for the three-months ended June 30, 2014 increased 7.2% to $1.4 million from $1.3 million in the same quarter last year. Earnings per diluted share were $0.03, in line with the same period last year.

Subsequent to the quarter, the company signed and closed two new TCM raw material contracts with Shenzhen HongYangSiHai Trading Company and Harbin QiHuiCheng Trading Company for a combined value of more than $350,000

"Revenue for the quarter was in line with last year with growth in the yew trees segment offset the seasonal slowdown of TCM raw materials," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. "We are pleased with the performance from our yew tree regional sales agent, Shenzhen DongFangShangCheng Trading Company whom we signed a one year contract, which contributed to our improvement in this segment.

"To accelerate our growth we are working to expand and diversify our customer base, and the two new TCM raw materials contracts are indicative of such progress. In addition, to improve profitability we implemented a price increase for our TCM raw materials effective August, which is expected to have a positive impact on both revenues and gross profit through the remainder of 2014 and beyond," Wang added.

Six Month 2014 Financial Results




Six Months Ended June 30,


Percentage




2014


2013


Change

Revenues:








TCM Raw Materials


$2,194,785


$2,166,491


1.3%


Yew Trees


1,836,743


1,653,607


11.1%


Handicrafts


100,016


85,208


17.4%


Total Revenues


$4,131,544


$3,905,306


5.8 %

Total revenues for the first six months of 2014 increased to $4.1 million from $3.9 million a year ago. Sales of TCM raw materials amounted to 53.1% of total revenues; sales of yew trees amounted to 44.5% of total revenues; and sales of handicrafts made up the remaining 2.4%.

Gross profit was $3.2 million, or 76.9% of total revenues, compared with $2.8 million, or 72.2% of total revenues for the comparable 2013 quarter. The increase in the gross profit margin was primarily attributable to an increase in profit margin for TCM raw materials, offset by a decrease in profit margin in handicrafts.

Operating expenses decreased 30.1% to $388,000 from $556,000 for the same period last year.  

Net income for the first six months of 2014 increased 23.2% to $2.8 million from $2.3 million for the same period last year. Earnings per diluted share were $0.06, compared to $0.05 for the same period last year.

At June 30, 2014 the company had approximately $230,000 in cash and $1.5 million in accounts receivables.

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. To learn more, please visit http://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: (702) 487-4683
hpang@yewbiopharm.com

 

Investor Relations Contacts:
Judy Lin Sfetcu
PondelWilkinson Inc.
Tel: (310) 279-5980
investor@pondel.com

 

(financial tables follow)

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS





June 30,



December 31,




2014



2013




(Unaudited)




ASSETS







CURRENT ASSETS:







    Cash


$

230,678


$

1,159,611

    Accounts receivable



1,325,680



418,875

    Accounts receivable - related party



138,039



377,821

    Inventories



878,863



1,089,087

    Prepaid expenses – related party



19,786



34,031

    Prepaid expenses and other assets



23,113



2,697








        Total Current Assets



2,616,159



3,082,122








LONG-TERM ASSETS:







    Inventories, net of current portion



10,018,965



10,245,146

    Property and equipment, net



931,651



1,033,078

    Land use rights and yew forest assets, net



20,548,091



20,953,562








        Total Long-term Assets



31,498,707



32,231,786








        Total Assets


$

34,114,866


$

35,313,908








LIABILITIES AND SHAREHOLDERS' EQUITY







CURRENT LIABILITIES:







    Accounts payable


$

42,304


$

-

    Accrued expenses and other payables



134,959



136,713

    Taxes payable



6,309



10,232

    Due to related parties



1,044,742



4,850,637








        Total Current Liabilities



1,228,314



4,997,582








        Total Liabilities



1,228,314



4,997,582








COMMITMENTS AND CONTINGENCIES














SHAREHOLDERS' EQUITY:







    Common Stock ($0.001 par value;  140,000,000 shares authorized;  50,000,000  and 50,000,000 issued and outstanding at June 30, 2014 and December 31, 2013, respectively)



50,000



50,000

    Additional paid-in capital



8,058,165



8,058,165

    Retained earnings



19,165,764



16,664,138

    Statutory reserves



2,888,204



2,597,118

    Accumulated other comprehensive income - foreign currency translation adjustment



2,724,419



2,946,905








        Total Shareholders' Equity



32,886,552



30,316,326








        Total Liabilities and Shareholders' Equity


$

34,114,866


$

35,313,908

 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


Three Months Ended
June 30,


Six Months Ended
June 30,


2014


2013


2014


2013

REVENUES:








    Revenues

$

1,780,535



$

1,143,880



$

3,394,253



$

2,584,871


    Revenues - related party


283,032




962,486




737,291




1,320,435


















       Total Revenues


2,063,567




2,106,366




4,131,544




3,905,306


















COST OF REVENUES:
















    Cost of revenues


354,456




206,310




769,072




701,969


    Cost of revenues - related party


70,479




299,212




183,597




382,222


















       Total Cost of Revenues


424,935




505,522




952,669




1,084,191


















GROSS PROFIT


1,638,632




1,600,844




3,178,875




2,821,115


















OPERATING EXPENSES:
















    Selling


661




6,079




2,421




11,693


    General and administrative


220,361




271,908




385,997




543,869


















       Total Operating Expenses


221,022




277,987




388,418




555,562


















INCOME FROM OPERATIONS


1,417,610




1,322,857




2,790,457




2,265,553


















OTHER INCOME (EXPENSES):
















    Interest income


55




42




291




84


    Other income (expense)


(194)




(200)




1,964




(617)


















       Total Other Income (Expenses)


(139)




(158)




2,255




(533)


















NET INCOME

$

1,417,471



$

1,322,699



$

2,792,712



$

2,265,020


















COMPREHENSIVE INCOME:
















    NET INCOME

$

1,417,471



$

1,322,699



$

2,792,712



$

2,265,020


    OTHER COMPREHENSIVE INCOME:
















       Foreign currency translation adjustment


35,482




442,871




(222,486)




597,523


















    COMPREHENSIVE INCOME

$

1,452,953



$

1,765,570



$

2,570,226



$

2,862,543


















NET INCOME PER COMMON SHARE:
















    Basic

$

0.03



$

0.03



$

0.06



$

0.05


    Diluted

$

0.03



$

0.03



$

0.04



$

0.05


WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
















    Basic


50,000,000




50,000,000




50,000,000




50,000,000


    Diluted


50,000,000




50,000,000




64,872,148




50,000,000


 

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS



For the Six Months Ended
June 30,



2014


2013

CASH FLOWS FROM OPERATING ACTIVITIES:





Net income


$

2,792,712



$

2,265,020


Adjustments to reconcile net income to net cash provided by operating activities:









  Depreciation



91,862




102,954


  Amortization of land use rights and yew forest assets



255,678




178,817


  Loss (gain) on disposal of fixed assets



(2,142)




420


Changes in operating assets and liabilities:









  Accounts receivable



(911,790)




(1,019,696)


  Accounts receivable - related party



237,626




(1,184,390)


  Prepaid expenses and other current assets



(20,473)




(24,082)


  Due from related party



14,034




13,801


  Inventories



358,413




(186,105)


  Accounts payable



42,398




2,957


  Accrued expenses and other payables



(1,100)




(14,358)


  Taxes payable



(3,865)




(2,824)











NET CASH PROVIDED BY OPERATING ACTIVITIES



2,853,353




132,514











CASH FLOWS FROM INVESTING ACTIVITIES:









  Proceeds from disposal of property and equipment



5,000




-


  Purchase of property and equipment



-




(3,084)


  Loan to related party



-




2,448


  Payments for land use rights and yew forest assets



(3,755,629)




(493,878)











NET CASH USED IN INVESTING ACTIVITIES



(3,750,629)




(494,514)











CASH FLOWS FROM FINANCING ACTIVITIES:









  Proceeds from related party advances



1,221




-


  Repayments for related parties advances



(25,674)




-











NET CASH USED IN FINANCING ACTIVITIES



(24,453)




-











EFFECT OF EXCHANGE RATE ON CASH



(7,204)




5,200











NET INCREASE (DECREASE) IN CASH



(928,933)




(356,800)











CASH  - beginning of period



1,159,611




386,821











CASH - end of period


$

230,678



$

30,021











SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:









Cash paid for:









   Interest


$

-



$

-


   Income taxes


$

-



$

-











 Non-cash investing and financing activities









   Reclassification of yew forest assets to inventories


$

1,658



$

-


 

©2012 PR Newswire. All Rights Reserved.

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