Navigation Links
Tiens Biotech Group (USA) Reports First Quarter Results
Date:5/15/2009

NEW YORK, May 15 /PRNewswire-Asia/ -- Tiens Biotech Group (USA), Inc. (the "Company" or "Tiens", NYSE Amex: TBV), http://www.tiens-bio.com , today announced financial results for the first quarter ended March 31, 2009.

Revenue for the first quarter of 2009 increased 42% to $18.2 million, compared to $12.8 million for the first quarter of 2008, reflecting a significant increase in international sales.

Net income attributable to the Company for the quarter rose 138.1% to $8.6 million, or $0.12 per share, compared to net income of $3.6 million, or $0.05 per share, for the 2008 first quarter.

For the first quarter of 2009, international revenue increased to $15.5 million, or 130.7% over $6.7 million for the same period in 2008, mainly due to greater sales in Indonesia and Vietnam. Additionally, export restrictions have been reduced since China's Administration of Quality Supervision, Inspection and Quarantine ended in late 2008 its national campaign against unsafe food and substandard products, which began in August 2007.

For the first quarter of 2009, revenue in China was $2.7 million, a 55.1% decrease from $6.1 million for the same period in 2008. This decrease of domestic revenue was due to the decrease of orders for wellness products, which management believes was due to customers stocking up on certain products during the third quarter of 2008 as a result of the price increase announcement by, Tianjin Tianshi Biological Engineering Co., Ltd. ("Tianshi Engineering") the affiliated company which markets and sells Tiens' products in China, during that quarter.

Other Highlights

Cost of sales for the first quarter of 2009 increased to $5.7 million, an increase of 42% compared to $4.0 million for the same period in 2008. Cost of sales for the period increased at a slightly lower rate than revenue, primarily due to fixed costs, which do not increase or decrease in line with revenue changes.

Gross profit for the first quarter of 2009 was $12.5 million, an increase of 42.4% compared to $8.8 million for the same period in 2008. This increase reflects the slightly lower rate of increase of cost of sales compared with that of revenue.

Selling, general and administrative expenses were $3.1 million for the first quarter of 2009, a decrease of 3.6% compared to $3.2 million for the same period in 2008. The decrease was primarily due to decreases in salary expenses as a result of salary reductions and reduced headcount and business tax expenses. The selling and administrative expenses as a percentage of sales declined to 17.2% in the 2009 first quarter from 25.3% for the same period in 2008.

In China, Tiens sells its products to Tianshi Engineering. To qualify for a direct selling license in China, Tianshi Engineering is required to produce a part of the products that it sells in China. As a result, in 2006, Tiens began to sell semi-finished products to Tianshi Engineering, which jointly shares licenses with Tiens to produce, manufacture and sell the products. The semi-finished products, which Tiens is now exclusively selling in China, have lower sales prices than the finished products Tiens had previously sold to Tianshi Engineering. The application of Tianshi Engineering for a direct selling license in China is still pending.

Tiens continues to strive to expand its market share in China through the branches, chain stores, and Chinese affiliated companies of Tianshi Engineering. To enhance its position in this competitive market, Tianshi Engineering continues to increase its marketing activities in China, including opening additional branches across China, developing a nation-wide advertising campaign, encouraging media coverage and strengthening the Tiens brand.

As of March 31, 2009, Tiens had $114.9 million of retained earnings and total shareholders' equity of $157.8 million.

Jinyuan Li, Chairman, President and CEO of Tiens, said, "We are pleased to report positive results which include significant increases in total revenue, net income and international revenue, and are confident that international sales will continue to be strong. As the decline in sales in China reflects customers buying in greater volume prior to a price increase, we are optimistic that domestic sales will return to, and potentially exceed, previous levels as customers begin to replenish stored up products. Tiens remains committed to gaining greater market share in China, continuing to expand our growing international customer base, and further implementing our strategic plans for long term growth."

About Tiens Biotech Group (USA), Inc. http://www.tiens-bio.com

Tiens Biotech Group (USA), Inc. (NYSE Amex: TBV) conducts its business operations from Tianjin, People's Republic of China. Tiens primarily engages in the research, development, manufacturing, and marketing of nutrition supplement products, including wellness products and dietary supplements.

Tiens derives its revenues principally from product sales to affiliated companies in China and internationally in 46 countries. Since its establishment, Tiens has developed and produced 37 nutrition supplements, which include wellness products and dietary supplements. Tiens develops its products at its own product research and development center, which employs highly qualified professionals in the fields of pharmacology, biology, chemistry and fine chemistry. Tiens has obtained all required certificates and approvals from government regulatory agencies to manufacture and sell its products in China.

In China, Tiens conducts the marketing and sales of its products through its affiliated company, Tianjin Tianshi Biological Engineering Co., Ltd. ("Tianshi Engineering"). Tianshi Engineering markets and sells Tiens' products in China through chain stores, domestic affiliated companies, and its 98 branches. Outside of China, Tiens sells its products to affiliated companies that in turn sell through an extensive direct sales force, or multi-level marketing sales force. The Company's direct sales marketing program is subject to governmental regulation in each of these countries.

Certain statements in this press release constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements are not necessarily indicative of future financial results, and may involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) the Company's ability to build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; (iv) whether the Company continues to experience delays in the export clearance of its products; (v) whether Tianshi Engineering, the Company's affiliate which sells its products in China, obtains a direct selling license in China; and (vi) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission which are available for review at http://www.sec.gov under "Search for Company Filings."

                               -Tables Follow-



                TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

        CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
         FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008 (UNAUDITED)

                                              Three months ended March 31,
                                                   2009          2008

    REVENUE - RELATED PARTIES                  $18,237,545   $12,820,821

    COST OF SALES - RELATED PARTIES              5,735,059     4,040,060

    GROSS PROFIT                                12,502,486     8,780,761

    SELLING, GENERAL AND ADMINISTRATIVE
     EXPENSES                                    3,130,936     3,247,199

    INCOME FROM OPERATIONS                       9,371,550     5,533,562

       (Interest expense)                          (52,616)      (52,584)
        Interest income                             85,768       237,332
        Other (expense) income                     (45,288)      259,423
    OTHER (EXPENSE) INCOME, NET                    (12,136)      444,171

    INCOME BEFORE INCOME TAXES                   9,359,414     5,977,733

    INCOME TAXES                                   359,615     1,480,394

    NET INCOME                                   8,999,799     4,497,339

        LESS: Net Income attributable to
         noncontrolling interest                  (406,974)     (888,437)

    NET INCOME ATTRIBUTABLE TO THE COMPANY       8,592,825     3,608,902

    OTHER COMPREHENSIVE INCOME:
        Foreign currency translation adjustment    200,003     4,423,860

    COMPREHENSIVE INCOME ATTRIBUTABLE TO THE
     COMPANY                                     8,792,828     8,032,762

    COMPREHENSIVE INCOME ATTRIBUTABLE TO THE
     NONCONTROLLING INTEREST                       419,595     1,163,584

    COMPREHENSIVE INCOME                        $9,212,423    $9,196,346

    EARNINGS PER SHARE, BASIC AND DILUTED            $0.12         $0.05

    WEIGHTED AVERAGE NUMBER OF SHARES           71,333,586    71,333,586



                TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2008 AND DECEMBER 31, 2008


                                              March 31,     December 31,
                                                2009           2008
                                             (Unaudited)
                  ASSETS

    CURRENT ASSETS:
     Cash                                    $20,293,635    $20,992,573
     Cash related to assets held for sale     23,857,787     23,861,938
       Total cash                             44,151,422     44,854,511
     Accounts receivable, trade - related
      parties, net of allowance for
      doubtful accounts of $925,565 and
      $1,108,789 as of March 31, 2009 and
      December 31, 2008, respectively         25,648,895     23,941,431
     Inventories                               6,985,983      8,365,607
     Other receivables                           830,579        813,591
     Other receivables - related parties      18,360,639     15,729,076
     Employee advances                           189,686        112,591
     Prepaid expenses                            892,240        301,898
     Prepaid taxes                             1,727,363      1,531,207
     Assets held for sale                     10,930,860     10,904,842
       Total current assets                  109,717,667    106,554,754

    PROPERTY, PLANT AND EQUIPMENT, net        10,719,838     10,274,643

    OTHER ASSETS:
     Construction in progress                 77,345,874     72,300,104
     Construction deposits                     3,517,428      2,586,302
     Intangible assets, net                   13,077,072     13,137,195
     Other assets                                 80,345         87,541
       Total other assets                     94,020,719     88,111,142

        Total assets                        $214,458,224   $204,940,539



                TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2009 AND DECEMBER 31, 2008


        LIABILITIES AND SHARE HOLDERS' EQUITY
                                                    March 31,    December 31,
                                                       2009          2008
                                                   (Unaudited)
    CURRENT LIABILITIES:
     Accounts payable                               $5,724,468    $6,283,849
     Advances from customers - related parties       4,608,494     3,239,650
     Wages and benefits payable                      1,110,191     1,449,146
     Other taxes payable                                    --       117,818
     Contractor deposits                               212,386       163,248
     Contractor payables                            12,261,342    11,871,456
     Other payables                                  1,370,326     1,933,743
     Other payables - related parties                6,367,301     6,373,900
     Current portion of long term debt, related
      party                                          2,130,000     2,130,000
     Liabilities directly associated with assets
      classified as held for sale                      117,380       122,047
       Total current liabilities                    33,901,888    33,684,857

    NON-CURRENT LIABILITIES
     Long term debt, net of current portion,
      related party                                  2,137,742     2,137,742
     Deferred income                                11,222,672    11,208,844
       Total non current liabilities                13,360,414    13,346,586

       Total liabilities                            47,262,302    47,031,443

    EQUITY:
     Shareholders' equity of the Company:
     Common stock, $0.001 par value, 250,000,000
      shares authorized, 71,333,586 issued and
      outstanding, respectively                         71,334        71,334
     Paid-in-capital                                 9,302,605     9,234,123
     Statutory reserves                              9,420,783     9,420,783
     Retained earnings                             114,918,181   106,325,356
     Accumulated other comprehensive income         24,051,065    23,851,062
       Total shareholders' equity of the
        Company                                    157,763,968   148,902,658
     Noncontrolling interest                         9,431,954     9,006,438
     Total equity                                  167,195,922   157,909,096
       Total liabilities and equity               $214,458,224  $204,940,539


                TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
         FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008 (UNAUDITED)

                                                Three months ended March 31,
                                                  2009                2008
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                 $8,999,799          $4,497,339
    Adjustments to reconcile net income
     to cash provided by (used in)
     operating activities:
      Provision for doubtful accounts            (184,568)            (12,288)
      Depreciation                                544,811             683,155
      Amortization                                 97,143              60,894
      Interest income                               1,372             (53,159)
      Gain on sale of assets                      (11,652)             (8,431)
    (Increase) decrease in assets:
      Accounts receivable, trade -
       related parties                         (1,493,130)         (3,914,933)
      Accounts receivable, trade - third
       parties                                         --             106,413
      Other receivables                           (17,415)            255,386
      Other receivables - related parties      (2,567,169)           (198,638)
      Inventories                               1,398,175            (441,968)
      Employee advances                           (76,407)            (48,871)
      Prepaid expense                            (589,907)            112,341
    Increase (decrease) in liabilities:
      Accounts payable                           (567,056)           (169,891)
      Advances from customers - related
       parties                                  1,364,661               1,102
      Wages and benefits payable                 (393,303)           (200,580)
      Other taxes payable                        (270,424)            649,299
      Other payables                             (565,726)            158,270
      Other payables - related parties            106,916             125,300
      Net cash provided by operating
       activities                               5,776,120           1,600,740

    CASH FLOWS FROM INVESTING ACTIVITIES:
    Repayment of loan from related parties             --           1,403,831
    Construction deposits                      (1,163,628)             96,237
    Contractor deposits                            48,930            (284,016)
    Addition to construction in progress       (4,483,010)         (4,257,203)
    Proceeds from sales of properties              17,031                  --
    Purchase of equipment and automobiles      (1,035,910)           (123,344)
     Net cash used in investing activities     (6,616,587)         (3,164,495)

    CASH FLOWS FROM FINANCING ACTIVITIES:
    Loan from related parties                          --           3,489,184
    Increase in paid in capital                    81,626                  --
      Net cash provided by financing
       activities                                  81,626           3,489,184

    EFFECT OF EXCHANGE RATE CHANGES ON CASH        55,752           2,153,552

    INCREASE (DECREASE) IN CASH                  (703,089)          4,078,981

    CASH, beginning of period                  44,854,511          54,081,848

    CASH, end of period                       $44,151,422         $58,160,829

    Supplemental disclosures of cash flow
     information
      Cash paid during the period for:
        Interest                                       --                  --
        Income taxes                             $447,440            $455,480



                 TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES
                                 REVENUE BY REGION

                               Three months ended March 31,
                                   2009            2008               Change

    China                       $2,742,620      $6,105,779            -55.1%
    International              $15,494,925      $6,715,042            130.7%
    Total                      $18,237,545     $12,820,821             42.2%


    For more information, please contact:

     Investor Relations
     Tiens Biotech Group (USA), Inc.
     Tel:   +86-22-8213-3491
     Fax:   +86-22-8213-7914
     Email: investor@tiens-bio.com

     Carl Hymans
     G. S. Schwartz & Co.
     Tel:   +1-212-725-4500
     Fax:   +1-212-725-9188
     Email: carlh@schwartz.com
     Web:  http://www.tiens-bio.com

'/>"/>
SOURCE Tiens Biotech Group (USA), Inc.
Copyright©2009 PR Newswire.
All rights reserved


Related biology technology :

1. Tiens Biotech Group (USA) Reports Second Quarter and Six-Month Results
2. eFuture Signs Contract to Provide Tiens Group with Retail Business Management System
3. Tiens Biotech Group (USA) Reports Fourth Quarter and Twelve-Month Results
4. Oncolytics Biotech(R) Inc.s Research Collaborators to Present Data on REOLYSIN(R) Clinical Trials at ASCO Conference
5. Kibow Biotech, Inc. to Present at BIO 2009 International Convention: Innovations to Heal, Fuel, and Feed the World
6. EFT BioTech Holdings, Inc.s Subsidiary Receives First Permit to Cross Taiwan Strait
7. Veteran-Owned Biotech Startup Company Charges Health Agency (NYSDOH) with Blackballing its Initiatives
8. Oncolytics(R) Biotech Inc. Completes Patient Enrolment in U.S. Phase 2 Sarcoma Study
9. Baseline Research Indicates High Interest in Centocor-Ortho Biotechs SIMPONI(R)
10. Yongye Biotechnology International Raises $ 9.0 Million In Private Placement, Raises Guidance
11. Andre Marion Joins Microchip Biotechnologies Board of Directors
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:12/2/2016)... (PRWEB) , ... December 01, 2016 , ... ACEA Biosciences, ... its Phase I/II clinical trials for AC0010 at the World Conference on Lung Cancer ... providing an update on the phase I/II clinical trials for AC0010 in patients with ...
(Date:12/2/2016)... ... December 01, 2016 , ... DrugDev believes the only way to ... technology experience. All three tenets were on display at the 2nd Annual DrugDev User ... 40 sponsor, CRO and site organizations to discuss innovation and the future of clinical ...
(Date:12/2/2016)... , December 2, 2016 The ... 2021, growing at a CAGR of 7.3% during the forecast period ... hospitals and diagnostic laboratories segment accounted for the largest share of ... ... report on global immunohistochemistry (IHC) market spread across 225 pages, profiling ...
(Date:11/30/2016)... Nov. 30, 2016 /PRNewswire/ - Portage Biotech Inc. ("Portage" ... PBT.U), is excited to announce the formation of ... developing preclinical ophthalmology assets through proof of concept. ... created by Portage Pharmaceuticals Limited and being developed ... surface and anterior segment diseases. This agent has ...
Breaking Biology Technology:
(Date:11/30/2016)... , Nov. 30, 2016 Not many of us realize that we spend ... recovery so we need to do it well. Inadequate sleep levels have been found ... pressure, stroke, diabetes, and even cancer. Maybe now is the best time ... could help them to manage their sleep quality? Continue ... ...
(Date:11/29/2016)... -- BioDirection, a privately held medical device company developing ... of concussion and other traumatic brain injury (TBI), announced ... with the U.S. Food and Drug Administration (FDA) to ... the meeting company representatives reviewed plans for clinical development ... of a planned pilot trial. "We ...
(Date:11/29/2016)... CANNES, France , November 29, 2016 Nearly ... Continue Reading ... ... System is part of an efficient Identity Management. (PRNewsFoto/DERMALOG Identification Systems) ... DERMALOG is Germany's largest Multi-Biometric ...
Breaking Biology News(10 mins):