HARBIN, China, March 30, 2016 /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, handicraft products made from yew timber and yew candle made with yew essence oil in China, today reported financial results for the three- and twelve-months ended December 31, 2015.
2015 Fourth Quarter Results
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||
2015 | 2014 | 2015 | 2014 | ||
Revenues: | |||||
TCM Raw Materials | $8,757,989 | $686,669 | $16,470,213 | $4,043,290 | |
Yew Trees | (5,534) | 857,769 | 1,134,412 | 3,208,643 | |
Handicrafts | 46,394 | 48,439 | 156,525 | 173,412 | |
Wood Ear Mushroom | 1,208,546 | 301,231 | 2,648,180 | 301,231 | |
Others | 7,259,835 | - | 9,164,478 | - | |
Total Revenues | $17,267,230 | $1,894,108 | $29,573,808 | $7,726,576 | |
Total revenue for the fourth quarter of 2015 increased 811.6% to $17.3 million from $1.9 million a year ago. Sales of TCM raw materials amounted to 50.7% of total revenues, sales of handicrafts amounted to 0.3% of total revenues, sales of wood ear mushroom amounted to 7.0%, sales of others segment consisting with the yew candle and pine needle extracts amounted to 42.0% of total revenues and we did not make sales of yew trees in the fourth quarter of 2015 which was mainly attributable to the Company’s strategy adjustment to reserve more yew trees for future TCM raw materials sales. The negative revenues of yew tree sales in the fourth quarter of 2015 was mainly due to the exchange rate fluctuation of Renminbi (RMB) versus U.S. dollar compared with the first nine months of 2015.
For the 2015 fourth quarter gross profit was $1.8 million, or 10.2% of total revenue, compared with $1.0 million, or 53.0% of total revenues for the comparable 2014 quarter. Gross profit was primarily impacted by the lower gross margin yields of TCM raw materials, Wood ear mushroom and others segment.
Operating expenses increased 12.5% to $452,164 for the 2015 fourth quarter, from $402,072 in the year-ago quarter. The increasing was primarily attributable to the increases in compensation and related benefits and professional fees.
Net income in the fourth quarter of 2014 was $1.4 million, or $0.03 per diluted share, compared with a net income of $0.6 million in the year-ago quarter, or $0.01 per diluted share.
2015 Results
Total revenues for the 2015 fiscal year were $29.6 million, a 282.8% increase from $7.7 million a year earlier. Sales of TCM raw materials amounted to 55.7% of total revenues, sales of yew trees amounted to 3.8% of total revenues, sales of handicrafts amounted to 0.5 % of total revenues, sales of wood ear mushroom amounted to 9.0% of total revenues and sales of others consisting with yew candle and pine needle extracts made up the remaining 31.0%.
Gross profit was $7.0 million, or 23.8% of total revenues, for the full year, compared with $5.6 million, or 72.3% of total revenues in 2014.
Operating expenses increased 45.2% to $1.9 million for the year ended December 31, 2015, from 1.3 million a year earlier. The increasing was primarily attributable to the increases in compensation and related benefits and other expenses.
Net income for 2015 increased to $5.3 million, or 0.10 per diluted share, from $4.3 million, or $0.07 per diluted share for 2014.
“Revenue for the year ended 2015 increased 282.8% compared to last year due to the larger-than-expected increases in sales of TCM raw materials, wood ear mushroom and the others segment that mainly consists with yew candles and pine needle extracts,” said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. " TCM raw materials, wood ear mushroom and others sales contributed 95.6% of the Company’s total revenues for the year of 2015. The economic growth rate of China has been slowing down in recent years, and the Chinese medium and small-sized enterprises experienced unprecedented challenges in their business operation. We started to combat this downward trend by changing our business model from agriculture focused to a more diversified business model starting the second half of 2014, such change includes the expansion into the dietary supplement market; and adding other new product segments including wood ear mushroom, yew candles and pine needle extracts.”
“We launched a new product in the dietary supplement segment in December of 2015 called Auri Essence, which is wood ear mushroom based supplement designed for the U.S. market. And we are currently working with various distributors to market this product. With significant traction generated, the Company is now officially beginning to explore the dietary supplement industry in the U.S. market. Looking ahead in 2016, we will focus on both our traditional business segments, and also the newly added products. 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 development of 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.
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