Yew Bio-Pharm Reports 2016 Second Quarter Financial Results

EL MONTE, Calif., Aug. 15, 2016 /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, handicraft products made from yew timber and yew candle made with yew essence oil in China, today reported financial results for three- and six-months ended June 30, 2016.

2016 Second Quarter Results

Total revenues for the second quarter of 2016 increased by 244% to $16.1 million from $4.7 million a year ago. Sales of TCM raw materials amounted to 57% of total revenues; sales of yew trees amounted to 0.1% of total revenues; sales of handicrafts amounted to 0.5% of total revenues and sales of the "Others" segment consisting yew candle and dietary supplement amounted to 42.4% of total revenues. The Company did not make sales of wood ear mushroom in the second quarter of 2016, as this is still a newly introduced product category for the Company and they are still seeking for various customer resources for this segment.

For the 2016 second quarter, gross profit was $1.6 million, or 10.3% of total revenues, compared with $2.4 million, or 51% of total revenues for the comparable 2015 quarter. The decrease in gross profit margin was primarily attributable to the lower gross margin yields of the wood ear mushroom and the "Others" segments.

Operating expenses decreased by 29.6% to $341,257 for the quarter ended June 30, 2016, from $484,475 in the year-ago quarter. The decrease was primarily attributable to the decreases in compensation and related benefits.

Net income for the three months ended June 30, 2016 decreased by 34.9% to $1.3 million from $2.0 million in the same quarter last year due to the cost increase of the TCM raw materials and the "Others" segments. Earnings per diluted share for the three months ended June 30, 2016 was $0.03, in line with the same period last year.

Six Month 2016 Financial Results

Total revenues for the first six months of 2016 increased to $24.7 million from $7.3 million a year ago. Sales of TCM raw materials amounted to 69.6% of total revenues; sales of yew trees amounted to 0.1% of total revenues; sales of handicrafts amounted to 0.4% of total revenues and sales of the "Others" segment consisting yew candle and dietary supplement amounted to 29.9% of total revenues. The Company did not make sales of wood ear mushroom in the first half of 2016, as this is still a newly introduced product category for the Company and they are still seeking for various customer resources for this segment.

Gross profit was $3.0 million, or 12.3% of total revenues, compared with $3.9 million, or 52.7% of total revenues for the comparable 2015 quarter. The decrease in gross profit margin was primarily attributable to the lower gross margin yields of TCM raw material and Others segments.

Operating expenses decreased by 31.3% to $657,157 for the six months ended June 30, 2015, from $956,541 for the same period last year. The decrease was primarily attributable to the decreases in compensation and related benefits.

Net income for the first six months of 2016 decreased by 20.5% to $2.4 million from $3.0 million for the same period last year. Earnings per diluted share was $0.05, in line with the same period last year.

"Revenue for the quarter increased by 244% compared to last year due to the sales increases in the TCM raw materials and the'Others' segments which includes the sales of yew candles, pine needle extracts and our dietary supplement with the brand name 'Auri Essence', and therefore offset the decreases in sales of yew tree and wood ear mushroom," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. "The sales of TCM raw materials maintained a sustained growth in the past half of 2016 as our related party, Yew Pharmaceutical, continues their technology development with yew ingredients that obviously lead to the sales increasing of the TCM segment."

"The 'Others' segment consists of products that are recently added to the Company's business category. By the end of June, 2016, we have added three new products including yew candle, pine needle extract and dietary supplement to the segment. We also continued to change our business model from agriculture-focused to a more diversified business model. As we mentioned in the previous announcement, our new B2C E-commerce website is expected to be launched in the middle of September, and we believe the website operation will become a new source of revenues for the Company. Meanwhile, we will continue to enrich our product mix and develop more value-added products in the future."

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.

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