Navigation Links
Tiens Biotech Group (USA) Reports Fourth Quarter and Twelve-Month Results
Date:3/28/2008

NEW YORK, March 28 /Xinhua-PRNewswire/ -- Tiens Biotech Group (USA), Inc. ("the Company" or "Tiens"), (AMEX: TBV), http://www.tiens-bio.com , announced financial results for the fourth quarter and twelve months ended December 31, 2007.

Revenue for the fourth quarter of 2007 was $13.3 million compared to $16.6 million for the fourth quarter of 2006.

Net income for the fourth quarter of 2007 was $3.9 million, or $0.05 per share, compared to net income of $5.9 million, or $0.08 per share for the fourth quarter of 2006.

Revenue for the twelve months ended December 31, 2007 was $54.9 million, compared to $66.8 million for the twelve months ended December 31, 2006.

Net income for the twelve months ended December 31, 2007 was $18.6 million, or $0.26 per share, compared to $26.3 million, or $0.37 per share for the twelve months ended December 31, 2006.

Revenue by Region

For the fourth quarter of 2007, revenue in China was $6.7 million compared to $6.8 million for the fourth quarter of 2006. For the twelve months ended December 31, 2007, revenue in China was $22.5 million, compared to $27.1 million for the twelve months ended December 31, 2006.

Revenue for 2006 benefited from a special promotion conducted in the third quarter of the year for distributors in China, which increased sales. No similar promotion was held during 2007, which contributed to the decrease in revenue for the period. In addition, the application for a direct selling license in China is still pending. Until the application is approved, Tianshi Engineering will continue to sell Tiens' products through its branches, affiliated companies and chain stores in China.

For the f $54,900,060 $66,790,466 -17.8%

For more information, please contact:

Investor Relations

Tiens Biotech Group (USA), Inc.

Tel: +86-22-8213-7915

Fax: +86-22-8213-7667

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 site: http://www.tiens-bio.com

ourth quarter of 2007, international revenue was $6.6 million, compared to $9.8 million for the fourth quarter of 2006. For the twelve months ended December 31, 2007, international revenue was $32.4 million, compared to $39.7 million for the comparable period of 2006. This decrease mainly reflects a general sales weakness, particularly to countries in Africa during the second quarter of 2007.

International sales were also impacted by the General Administration of Quality Supervision, Inspection and Quarantine's (AQSIQ) announcement in August 2007 of an ongoing national campaign in China against unsafe food and substandard products. As a result of this campaign by the AQSIQ, there has been a general slow-down in international sales and several of Tiens' international affiliates being unable to receive sufficient quantities of products to meet their demand. However, it is important to note that to date, no problems have been identified with any of Tiens' products. The campaign, which was originally scheduled to finish at the end of 2007, is currently scheduled to continue throughout 2008.

In December 2007, Tiens entered into an agreement to acquire Tianjin Tiens Life Resources Co., Ltd. (Life Resources), a company which is currently constructing research and development, manufacturing and logistic facilities, as well as administrative offices totaling approximately 420,000 square meters in Tianjin, China. The facilities are located 7 kilometers from Tiens' current headquarters in Tianjin. The acquisition closed on March 13, 2008. Tiens estimates that the budget for completion of the Life Resources project will be approximately $220 million, including $64 million already paid to acquire all of the registered share capital of Life Resources. The Company plans to move its headquarters to these new facilities upon completion.

Tiens has developed and produces 33 nutrition supplement products, which include wellness products and dietary nutrition supplements. During 2007, the Company phased out production of its personal care line of products, which had not been a material part of its business, to focus on its wellness products and dietary supplements which offer greater future opportunities.

Other Highlights

Cost of sales for the fourth quarter of 2007 was $4.5 million, compared to $4.4 million for the fourth quarter of 2006. Cost of sales for the twelve months ended December 31, 2007 was $16.5 million, compared to $18.1 million for the same period in 2006. This decrease was primarily due to the corresponding decrease in sales revenue. Cost of sales decreased at a lesser rate than revenue because the cost of raw materials increased during 2007 while the Company's product prices remained unchanged.

Gross profit for the fourth quarter of 2007 was $8.8 million compared to $12.2 million for the fourth quarter of 2006. The gross profit margin for the fourth quarter of 2007 was 65.9%, compared to 73.7% for the same period in 2006. Gross profit for the twelve months ended December 31, 2007 was $38.4 million, compared to $48.7 million for the same period in 2006. The gross profit margin for the twelve months ended December 31, 2007 was 69.9%, compared to 72.9% for the same period in 2006. These decreases reflect the reductions in revenue for the fourth quarter and twelve months of 2007 and gross profit margins being lower for semi-finished products than for the finished products that the Company was selling in 2006.

Selling, general and administrative expenses were $4.0 million for the fourth quarter of 2007, compared to $4.1 million for the fourth quarter of 2006. The selling and administrative expense as a percentage of sales was 29.7% for the fourth quarter of 2007 compared to 25.0% for the fourth quarter of 2006. Selling, general and administrative expenses were $14.3 million for the twelve months ended December 31, 2007, compared to $12.8 million for the comparable period in 2006.

The selling and administrative expense as a percentage of sales was 26.1% for the twelve months ended December 31, 2007 compared to 19.1% for the same period in 2006, reflecting an increase in salaries and benefits, consulting expenses, insurance costs and depreciation expenses, and the aforementioned decrease in sales.

As of December 31, 2007, Tiens had $114 million of retained earnings and total shareholders' equity of $146 million.

Jinyuan Li, Chairman, President and CEO of Tiens, said, "2007 was a year in which Tiens faced challenges from the direct selling environment in China and in exporting its products internationally. To date no problems have been found with our high quality products under the national campaign in China to prevent the export of unsafe food and substandard products. We continued to lay the groundwork for both domestic and international sales growth by acquiring Life Resources, which will provide new research and development facilities and enhance our manufacturing capabilities."

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

Tiens Biotech Group (USA), Inc. (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 nutrition supplement products, and personal care products.

Tiens derives its revenues principally from product sales to affiliated companies in China and internationally in 52 countries. Since its establishment, Tiens has developed and produced 33 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, Tianshi Engineering. Tianshi Engineering markets and sells Tiens' products in China through chain stores, domestic affiliated companies, and its 100 branches. Outside of China, Tiens sells its products to affiliated companies in 52 countries who 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."

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

FOR THE THREE MONTHS AND TWELVE MONTHS ENDED DECEMBER 31, 2007 AND 2006

Three months ended Twelve months ended

December 31, December 31,

2007 2006 2007 2006

REVENUE - RELATED

PARTIES $ 13,315,311 $ 16,587,160 $ 54,900,060 $ 66,790,466

COST OF SALES 4,546,711 4,367,702 16,526,695 18,082,441

GROSS PROFIT 8,768,600 12,219,458 38,373,365 48,708,025

SELLING, GENERAL AND

ADMINISTRATIVE

EXPENSES 3,953,263 4,148,297 14,306,660 12,789,810

INCOME FROM

OPERATIONS 4,815,337 8,071,161 24,066,705 35,918,215

OTHER (EXPENSE)

INCOME, NET 475,918 33,633 1,520,208 161,091

INCOME BEFORE

PROVISION FOR

INCOME TAXES

AND MINORITY

INTEREST 5,291,255 8,104,794 25,586,913 36,079,306

PROVISION FOR

INCOME TAXES 416,222 635,408 2,026,875 2,823,899

INCOME BEFORE

MINORITY

INTEREST 4,875,033 7,469,386 23,560,038 33,255,407

MINORITY INTEREST 995,606 1,566,759 4,966,397 6,963,330

NET INCOME 3,879,427 5,902,627 18,593,641 26,292,077

OTHER COMPREHENSIVE

INCOME

Foreign

currency

translation

adjustment 3,334,871 1,083,976 8,265,358 3,480,775

COMPREHENSIVE

INCOME $ 7,214,298 $ 6,986,603 $ 26,858,999 $ 29,772,852

EARNINGS PER SHARE,

BASIC AND

DILUTED $ 0.05 $ 0.08 $ 0.26 $ 0.37

WEIGHTED AVERAGE

NUMBER OF

SHARES 71,333,586 71,333,586 71,333,586 71,333,586

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2007 AND DECEMBER 31, 2006

A S S E T S

December 31, December 31,

2007 2006

CURRENT ASSETS:

Cash $ 48,678,945 $ 54,270,065

Accounts receivable, trade - related

parties, net of allowance for

doubtful accounts of $71,700 and

$86,776 as of December 31, 2007 and

December 31, 2006, respectively 14,268,229 12,926,670

Accounts receivable, trade - third

parties 104,398 18,135

Inventories 5,949,963 6,845,108

Other receivables 892,489 349,905

Other receivables - related parties 13,070,907 8,397,227

Employee advances 64,336 111,121

Prepaid expense 623,638 2,135,917

Total current assets 83,652,905 85,054,148

Property, plant and equipment, net 18,322,619 30,511,319

OTHER ASSETS:

Intangible assets, net 2,603,084 510,183

Long-term prepaid expenses 5,301,847 7,031,348

Loans receivable - related party -- 25,640,000

Acquisition deposit 71,747,182 --

Total other assets 79,652,113 33,181,531

Total assets $ 181,627,637 $ 148,746,998

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2007 AND DECEMBER 31, 2006

L I A B I L I T I E S A N D S H A R E H O L D E R S' E Q U I T Y

December 31, December 31,

2007 2006

CURRENT LIABILITIES:

Accounts payable $ 4,070,906 $ 4,123,105

Advances from customers - related

parties 1,700,838 1,570,120

Wages and benefits payable 1,250,685 992,068

Other taxes payable 536,819 93,714

Income taxes payable 665,726 876,046

Other payables 1,133,539 500,213

Other payables - related parties 7,938,205 522,105

Dividend payable to minority interest 4,902,629 238,311

Current portion of long-term debt,

related party 2,130,000 2,130,000

Total current liabilities 24,329,347 11,045,682

NON-CURRENT LIABILITIES:

Long term debt, net of current portion,

related party 4,267,742 6,397,742

Other payables-non-current 538,130 --

Total non-current liabilities 4,805,872 6,397,742

Total liabilities 29,135,219 17,443,424

MINORITY INTEREST 6,144,063 11,883,323

SHAREHOLDERS' EQUITY:

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 8,842,009 8,842,009

Additional paid-in-capital 69,105 --

Statutory reserves 9,420,783 9,420,783

Retained earnings 113,964,778 95,371,137

Accumulated other comprehensive income 13,980,346 5,714,988

Total shareholders' equity 146,348,355 119,420,251

Total liabilities and shareholders'

equity $ 181,627,637 $ 148,746,998

TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES

REVENUE BY REGION

Three months

ended December 31,

2007 2006 Change

China $ 6,739,641 $ 6,793,469 - 0.8%

International $ 6,575,670 $ 9,793,691 -32.9%

Total $13,315,311 $16,587,160 -19.7%

Twelve months

ended December 31,

2007 2006 Change

China $22,476,135 $27,074,979 -17.0%

International $32,423,925 $39,715,487 -18.4%

Total
'/>"/>

SOURCE Tiens Biotech Group (USA), Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. deCODE genetics to Webcast Presentation at 15th Annual Future Leaders in the Biotech Industry Conference
2. EntreMed to Present at BioCentury Future Leaders in the Biotech Industry Conference
3. Epeius Biotechnologies Awarded U.S. Patent for Targeted Injectable Gene Delivery In Vivo
4. Millennium Biotechnologies, Inc. Signs Marketing and Distribution Agreement with Ferring Pharmaceuticals
5. Accurate Identification of Tumor Origin Using MicroRNAs is Published by Rosetta Genomics Scientists and Collaborators in Nature Biotechnology
6. ITSSD: Russia Can Secure Greatest Biotech Market Advances Following US, Not EU Innovation Model
7. Pharmacopeia to Present at the 15TH Annual Future Leaders in the Biotech Industry Conference
8. SGX Pharmaceuticals to Present at the BioCentury Future Leaders in the Biotech Industry Conference
9. Genetic Engineering & Biotechnology News reports on clinical trials in developing countries
10. Oncolytics Biotech Inc. Announces Issuance of 26th U.S. Patent
11. ProMetic and Sartorius Stedim Biotech collaborate on technology transfer deals in Asia
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2016)... (PRWEB) , ... June 27, 2016 , ... ... operations for Amgen, will join the faculty of the University of North ... adjunct professor of strategy and entrepreneurship at UNC Kenan-Flagler, with a focus on ...
(Date:6/24/2016)... 24, 2016 Epic Sciences unveiled a ... susceptible to PARP inhibitors by targeting homologous recombination ... The new test has already been incorporated into ... cancer types. Over 230 clinical trials ... pathways, including PARP, ATM, ATR, DNA-PK and WEE-1. ...
(Date:6/23/2016)... ... June 23, 2016 , ... UAS LifeSciences, ... launch of their brand, UP4™ Probiotics, into Target stores nationwide. The company, which ... to add Target to its list of well-respected retailers. This list includes such ...
(Date:6/23/2016)... June 23, 2016 Houston Methodist Willowbrook ... Cy-Fair Sports Association to serve as their official ... Houston Methodist Willowbrook will provide sponsorship support, athletic ... with association coaches, volunteers, athletes and families. ... Cy-Fair Sports Association and to bring Houston Methodist ...
Breaking Biology Technology:
(Date:5/16/2016)... --  EyeLock LLC , a market leader of iris-based ... IoT Center of Excellence in Austin, Texas ... embedded iris biometric applications. EyeLock,s iris authentication ... with unmatched biometric accuracy, making it the most proven ... platform uses video technology to deliver a fast and ...
(Date:5/9/2016)... -- Elevay is currently known as the ... high net worth professionals seeking travel for work   ... there is still no substitute for a face-to-face meeting. ... deal with a firm handshake. This is why wealthy ... citizenship via investment programs like those offered by the ...
(Date:4/28/2016)... SAN FRANCISCO and BANGALORE, India ... part of EdgeVerve Systems, a product subsidiary of Infosys (NYSE: ... service provider, today announced a global partnership that ... convenient way to use mobile banking and payment services. ... Mobility is a key innovation area for financial services, but ...
Breaking Biology News(10 mins):