Health Care

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

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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

Three Months Ended December 31,

Twelve Months Ended December 31,

2014

2013

2014

2013

Revenues:

TCM Raw Materials

$686,669

$998,934

$4,043,290

$4,170,748

Yew Trees

857,769

909,311

3,208,643

3,011,728

Handicrafts

48,439

81,770

173,412

257,172

Wood Ear Mushroom

301,231

–

301,231

–

Total Revenues

$1,894,108

$1,990,015

$7,726,576

$7,439,648

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)

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31,

2014

2013

ASSETS

CURRENT ASSETS:

Cash

$

487,940

$

1,159,611

Accounts receivable

922,564

418,875

Accounts receivable – related party

340,132

377,821

Inventories

1,443,078

1,089,087

Prepaid expenses – related party

5,787

34,031

Prepaid expenses and other assets

16,791

2,697

Total Current Assets

3,216,292

3,082,122

LONG-TERM ASSETS:

Long-term inventories, net

10,663,545

10,245,146

Property and equipment, net

856,250

1,033,078

Land use rights and yew forest assets, net

20,305,821

20,953,562

Total Long-term Assets

31,825,616

32,231,786

Total Assets

$

35,041,908

$

35,313,908

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accrued expenses and other payables

$

84,722

$

136,713

Taxes payable

10,547

10,232

Due to related parties

45,040

4,850,637

Total Current Liabilities

140,309

4,997,582

Total Liabilities

140,309

4,997,582

SHAREHOLDERS’ EQUITY:

Common Stock ($0.001 par value; 140,000,000 shares authorized; 52,125,000 shares and

50,000,000 shares issued and outstanding at December 31, 2014 and 2013, respectively)

52,125

50,000

Additional paid-in capital

8,557,656

8,058,165

Retained earnings

20,444,667

16,664,138

Statutory reserves

3,100,766

2,597,118

Accumulated other comprehensive income – foreign currency translation adjustment

2,746,385

2,946,905

Total Shareholders’ Equity

34,901,599

30,316,326

Total Liabilities and Shareholders’ Equity

$

35,041,908

$

35,313,908

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three-Months Ended

Twelve-Months Ended

December 31,

December 31,

2014

2013

2014

2013

REVENUES:

Revenues

$

1,127,273

$

1,848,698

$

5,657,351

$

5,889,190

Revenues – related party

766,835

141,317

2,069,225

1,550,458

Total Revenues

1,894,108

1,990,015

7,726,576

7,439,648

COST OF REVENUES:

Cost of revenues

577,115

648,654

1,582,980

1,968,682

Cost of revenues – related party

313,016

36,327

553,617

438,718

Total Cost of Revenues

890,131

684,981

2,136,597

2,407,400

GROSS PROFIT

1,003,977

1,305,034

5,589,979

5,032,248

OPERATING EXPENSES:

Selling

12,127

4,745

21,521

23,794

General and administrative

389,945

258,237

1,282,508

1,110,717

Total Operating Expenses

402,072

262,982

1,304,029

1,134,511

INCOME FROM OPERATIONS

601,905

1,042,052

4,285,950

3,897,737

OTHER INCOME (EXPENSES):

Interest income

143

402

179

647

Other income (expenses)

(3,299)

44

(1,952)

1,346

Total Other Income (Expenses)

(3,156)

446

(1,773)

1,993

NET INCOME

$

598,749

$

1,042,498

$

4,284,177

$

3,899,730

COMPREHENSIVE INCOME:

NET INCOME

$

598,749

$

1,042,498

$

4,284,177

$

3,899,730

OTHER COMPREHENSIVE INCOME (LOSS):

Unrealized foreign currency translation gain

11,406

188,142

(200,520)

966,009

COMPREHENSIVE INCOME

$

610,155

$

1,230,640

$

4,083,657

$

4,865,739

NET INCOME PER COMMON SHARE:

Basic

$

0.01

$

0.02

$

0.08

$

0.08

Diluted

$

0.01

$

0.02

$

0.07

$

0.08

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic

50,948,973

50,000,000

50,948,973

50,000,000

Diluted

62,795,716

50,000,000

62,795,716

50,000,000

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended

December 31, 2014

December 31, 2013

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

4,284,177

$

3,899,730

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

172,446

179,857

Amortization of land use rights and yew forest assets

510,363

381,659

Loss on disposal of fixed assets

1,814

349

Stock-based compensation

166,222

–

Issuance of common stock for professional service

335,394

–

Changes in operating assets and liabilities:

Accounts receivable

(506,814)

323,160

Accounts receivable – related party

35,295

(82,282)

Prepaid and other current assets

(14,112)

(2,515)

Prepaid expenses – related party

28,049

27,823

Inventories

(842,558)

(222,738)

Accounts payable

–

(1,008)

Accrued expenses and other payables

(51,393)

(65,466)

Due to related parties

(3,894)

–

Taxes payable

377

4,255

NET CASH PROVIDED BY OPERATING ACTIVITIES

4,115,366

4,442,824

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from disposal of property, plant and equipment

5,000

–

Purchase of property, plant and equipment

(8,534)

(299,613)

Purchase of land use rights and yew forest assets

(2,444,139)

(3,393,082)

NET CASH USED IN INVESTING ACTIVITIES

(2,447,673)

(3,692,695)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from related party advances

1,220

–

Repayments for related parties advances

–

(210)

Distribution to owners – excess of acquisition price over carrying value of yew forest
assets purchased from entities under common control

(2,332,048)

–

NET CASH USED IN FINANCING ACTIVITIES

(2,330,828)

(210)

EFFECT OF EXCHANGE RATE ON CASH

(8,536)

22,871

NET INCREASE (DECREASE) IN CASH

(671,671)

772,791

CASH – Beginning of year

1,159,611

386,821

CASH – End of year

$

487,940

$

1,159,611

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid for:

Interest

$

–

$

–

Income taxes

$

–

$

–

Non-cash investing and financing activities

Due to related party in connection with purchase of yew forest assets from entity
under common control

$

–

$

2,450,600

Excess of acquisition price over carrying value of yew forest assets purchased from
entities under common control

$

–

$

2,338,212

Company Contacts:

Henry Pang

Yew Bio-Pharm Group, Inc.

Tel: (702) 487-4683

hpang@yewbiopharm.com

Investor Relations Contacts:

Cami Xue

Chineseinvestors.com, Inc.

Tel: (800) 958-8561

Cami@chinesefn.com

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