Yew Bio-Pharm Group Reports 2017 Fourth Quarter and Full Year Financial Results
EL MONTE, Calif., April 2, 2018 /PRNewswire/ -- Yew Bio-Pharm Group, Inc., ("Yew Bio" or the "Company") (OTCQB: 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 essential oil in China, today reported financial results for the three- and twelve-months ended December 31, 2017.
2017 Fourth Quarter Results
Total revenue for the fourth quarter of 2017 decreased 54.2% to $5.5 million from $12.0 million a year ago. Sales of TCM raw materials amounted to 57.7% of total revenues; sales of others segment consisting with yew essential oil candle, yew essential oil soap, pine needle extract, complex Taxus Cuspidate extract and composite northeast yew extract amounted to 41.5% of total revenues; sales of handicrafts amounted to 0.8% of total revenues, and sales of yew trees amounted to 0.0% of total revenues which is due to the Company's strategy adjustment to reserve more yew trees for future TCM raw materials sales.
For the 2017 fourth quarter, gross profit was a loss of $6.8 million, compared with a loss of 1.2 million. The loss for the fourth quarter of 2017 was primarily due to adjustment of inventory and yew forest assets based on our physical inventory observation.
Operating expenses increased 460.9% to $878,089 for the 2017 fourth quarter, from $156,546 in the year-ago quarter. The increasing was primarily attributable to the increase in compensation and related benefits and Other fees.
Net income in the fourth quarter of 2016 was a loss of $7.8 million, or a loss of $0.14 per diluted share, compared with a loss of $1.4 million in the year-ago quarter, or a loss of $0.03 per diluted share.
Total revenues for the 2017 fiscal year were $40.5 million, a 21.0% decrease from $51.3 million a year earlier. Sales of TCM raw materials amounted to 49.8% of total revenues, sales of yew trees amounted to 0.0% of total revenues, sales of handicrafts amounted to 0.1% of total revenues and sales of others consisting with yew essential oil candle, yew essential oil soap, pine needle extract, complex Taxus Cuspidate extract and composite northeast yew extract made up the remaining 50.1%.
Gross profit was $5.1 million, or 12.5% of total revenues, for the full year, compared with $3.2 million, or 6.3% of total revenues in 2016.
Operating expenses increased 56.1% to $1.7 million for the year ended December 31, 2017, from 1.1 million a year earlier. The increasing was primarily attributable to the increases in compensation and related benefits and Other fees.
Net income for 2017 increased to $3.2 million, or 0.06 per diluted share, from $2.0 million, or $0.04 per diluted share for 2016.
"Our TCM raw materials and Others segment sales contributed most of our revenues for the year 2017," said Mr. Zhguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "We developed a series of yew product derivatives such as yew oil candle, yew essential oil soap, face serum and moisturizer cosmetics which contain yew essential oil, functional pillow, complex Taxus Cuspidate extract and composite northeast yew extract since from year 2015, and these products have been accepted by more and more customers of the U.S. and Chinese market. We also established a yew product retail and experience store in San Gabriel, California in 2017, and we hope to introduce our yew products to the U.S. customers by establishing more experience stores in the future."
"Our face serum and moisturizer cream cosmetics containing yew essential oil had formally launched to the market during the fourth quarter of 2017, and now we are working with our Chinese distributors to complete the application to export to Chinese market. We expect the application to be finished during six to nine months. Meanwhile, we are also exploring major U.S. distributors to seek listing our cosmetics on the shelf. As we announced in the earlier news, we have been through to explore the transformation of the Company's business model from a forestry company to a high value-added manufacturer mainly utilizes the yew tree raw materials as basis. Looking ahead in 2018, we will continue to enrich our product mix and develop more value-added products for the Company, and we expect the Company to achieve sustained growth with the new business."
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.