HARBIN, China, May 14, 2015 /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 and products made from yew timber in China, today reported financial results for the three months ended March 31, 2015.
2015 First Quarter Results
Three Months Ended March 31, | Percentage | ||
2015 | 2014 | Change | |
Revenues: | |||
TCM Raw Materials | $957,006 | $1,043,980 | (8.3)% |
Yew Trees | 698,752 | 964,306 | (27.5)% |
Wood ear mushroom | 899,189 | - | 100% |
Handicrafts | 87,508 | 59,691 | 46.6% |
Total Revenues | $2,642,455 | $2,067,977 | 27.8% |
Total revenues for the first quarter of 2015 increased 27.8% to $2.6 million from $2.1 million a year ago. Sales of TCM raw materials amounted to 36.2% of total revenues; sales of yew trees amounted to 26.4% of total revenues; sales of wood ear mushroom amounted to 34.1% of total revenues; and sales of handicrafts made up the remaining 3.3%.
For the 2015 first quarter, gross profit was $1.5 million, or 55.7% of total revenues, compared with $1.5 million, or 74.5% of total revenues for the comparable 2014 quarter. The decrease in the gross profit margin was primarily attributable to the lower gross margin yield of wood ear mushroom segment.
Operating expenses increased 186% to $472,066 for the quarter ended March 31, 2015, from $165,254 in the year-ago quarter. The increasing was primarily attributable to the increases in compensation and related benefits and other expenses.
Net income for the three months ended March 31, 2015 decreased 30.3% to $958,390 from $1.4 million in the same quarter last year due to the increases of operating expense. Earnings per diluted share for the three months ended March 31, 2015 was $0.02, in line with the same period last year.
“Revenue for the quarter increased 27.8% compared to last year due to the increase in the newly added wood ear mushroom segment which offset the decrease of Yew tree sales,” said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. “We are pleased with the performance from our wood ear mushroom sales, and we believe that with the addition of wood ear mushroom as a new revenue source, the Company’s financial health will be greatly improved.”
“We also signed a tripartite joint contract to further develop the wood ear mushroom business recently. With the execution of the contract in the following months of this year, we will grow more high quality and low cost wood ear mushroom that could result in an increase of the Company’s revenue. Meanwhile, The Company also intends to explore other potential downstream products that derive from the further processing of yew products and wood ear mushroom in the near future. It is the Company’s long-term strategy to continue to grow through product diversification in the healthcare and food industry.”
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.
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