Yew Bio-Pharm Group Reports 2014 Fourth Quarter And Full Year Financial Results

HARBIN, China, April 1, 2015 /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 twelve-months ended December 31, 2014.

2014 Fourth Quarter Results           

Total revenue for the fourth quarter of 2014 decreased 5.0% to $1.9 million from $2.0 million a year ago.  Sales of TCM raw materials amounted to 36.3% of total revenues, sales of yew trees amounted to 45.3% of total revenues, sales of handicrafts amounted to 2.6% of total revenues, and the sales of wood ear mushroom made up the remaining 15.9%. 

For the 2014 fourth quarter gross profit was $1.0 million, or 53.0 % of total revenue, compared with $1.3 million, or 65.6% of total revenues for the comparable 2013 quarter. Gross profit was primarily impacted by the sales of TCM raw materials decreased in the fourth quarter.

Operating expenses were $402,072 in the quarter which included option-based compensation of $161,000, as compared to $262,982 in the year-ago quarter.

Net income in the fourth quarter of 2014 was $0.6 million, or $0.01 per diluted share, compared with a net income of $1.0 million in the year-ago quarter, or $0.02 per diluted share.

2014 Results

Total revenues for the 2014 fiscal year were $7.7 million, a 3.9% increase from $7.4 million a year earlier.  Sales of TCM raw materials amounted to 52.3% of total revenues, sales of yew trees amounted to 41.5% of total revenues, sales of handicrafts amounted to 2.3% of total revenues, and sales of wood ear mushroom made up the remaining 3.9%.

Gross profit was $5.6 million, or 72.3% of total revenues, for the full year, compared with $5.0 million, or 67.6% of total revenues in 2013. 

Operating expenses were $1.3 million for the year ended December 31, 2014, compared with $1.1 million a year earlier.

Net income for 2014 increased to $4.3 million, or 0.07 per diluted share, from $3.9 million, or $0.08 per diluted share for 2013.

"The economic growth rate of China has been slowing down in recent years," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "The Chinese medium and small-sized enterprises experienced unprecedented challenges in their business operation. In the second half of 2014, Yew Bio combated this trend by changing its business model from agriculture focused to a more diversified business operation model, such as the expansion into the dietary supplement market and the newly added wood ear mushroom business segment."

"Meanwhile, the Company signed a multi-year exclusive distribution agreement with Carpal Aid, a U.S. company, to distribute its non-invasive medical device "Carpal Aid" used to treat carpal tunnel syndrome throughout China. We commenced clinic trails on the product in the hospitals of Harbin, China, and we will start distributing the product in the Chinese market as soon as the trails are approved by the CFDA. We expect to make a substantial breakthrough for this new product in the year of 2015. In addition, we will also continue to expand our business to other areas to generate new revenue sources."

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.

(financial tables follow)

SOURCE Yew Bio-Pharm Group, Inc.

Related Links

http://www.yewbiopharm.com