Navigation Links
Yongye Biotechnology Announces Preliminary Results for Fiscal Year 2008

BEIJING, Feb. 16 /PRNewswire-Asia-FirstCall/ -- Yongye Biotechnology International, Inc. (OTC Bulletin Board: YGYB; "Yongye" or the "Company"), a leading producer and distributor of plant and animal nutrient products located in the People's Republic of China, today announced preliminary financial results for its fiscal year ended December 31, 2008.

Based upon preliminary financial data that have not yet been reviewed by its independent auditors, Yongye expects net revenue for its fiscal year 2008 to be between $45 million and $47 million, up from $13.1 million in fiscal year 2007, with product sales of over 500,000 units of both plant and animal product. The Company had remarkable revenue growth primarily because of the rapid expansion of Yongye's sales network of branded stores. In 2008, Yongye added an additional 575 independently owned agricultural product stores to its branded store network in its existing markets, bringing its total number of stores from 200 at the end of 2007 to 775 at the end of 2008. In the fourth quarter of 2008, the Company accepted into the network, on a trial basis, another 350 existing, independently owned stores which will allow the Company to assess sales at each store and help it decide whether or not to make each store a Yongye branded store.

The Company expects its gross profit for fiscal year 2008 to be between $23-24 million, with an approximate 50%-51% gross margin, compared to $5.9 million with 44.6% gross margin in 2007. Gross margin increased mainly because of cost efficiencies resulting from economies of scale associated with increased production, and more stable product prices. Net income for fiscal year 2008 is expected to be in the range of $10 million to $11 million, with and approximate 23.0%-24% net margin, up from $4.4 million in 2007 which is a decrease in net margin from 33% in 2007.

"Yongye reached some significant milestones in 2008. Strong demand for our "Shengmingsu" products and rapid expansion of our sales network led to noteworthy revenue and profit growth," commented Mr. Zishen Wu, Chief Executive Officer of Yongye. "While overall economic growth in China is expected to slow in 2009, we believe, based on our experience and understanding of China's agricultural markets, that demand for our plant and animal nutrient products will continue to show strong growth. Our recently expanded production facilities and additional stores will ensure that we meet anticipated demand for our products in 2009. We are fully confident that we will achieve our 2009 make good targets of $66 million in revenue and $15.8 million in net income."

About Yongye Biotechnology International, Inc.

Yongye Biotechnology International, Inc., headquartered in Beijing, is engaged in the distribution and sales of fulvic acid based nutrients for plants and animals. The Company's patented and patent pending processes and proprietary formulas allow it to create products that increase crop yields and improve the health of livestock. Its sole operating subsidiary, Yongye Nongfeng Biotechnology Company, Ltd., is located in Inner Mongolia, People's Republic of China. The Company sells its products through distributors and directly to farmers located in ten provinces throughout China.

The Company does not own any of its branded stores. Yongye works with distributors to target existing, independent agricultural stores which it believe meets its national branding criteria and then enters into agreements with storeowners through which the Company provides training about its products to storeowners and a computer to each store which contains educational and promotional information about the use of its products. Before becoming a Yongye branded store, stores are often physically cleaned and upgraded to meet the Company's national standards. Once a store becomes a Yongye branded store, Yongye's name is prominently displayed in front of the store, and its products are featured as headline products throughout the store through the use of various visual identity items. Storeowners receive direct marketing and product support from Yongye's service professionals and the opportunity to sell a high quality nationally marketed product.

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website ( ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

    Yongye Biotechnology International, Inc.
     Mr. Larry Gilmore
     VP of Corporate Strategy and Principal Financial Officer
     Phone: +86-8232-8866 x8880

    CCG Investor Relations, Inc.
     Mr. Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)

SOURCE Yongye Biotechnology International, Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related biology technology :

1. Yongye Biotechnology to Host Virtual Retail Road Show to Provide Overview of the Company in English and Mandarin
2. Yongye Biotechnology International to Expand its Network of Branded Stores
3. Yongye Biotechnology to Present at Roth Conference
4. Yongye Biotechnology Announces Record Third Quarter Results
5. Yongye Biotechnology to Present at Roth Capital China Comes to Vegas Conference
6. Letter to Shareholders from the CEO and Chairman of the Board of Yongye Biotechnology, Inc.
7. Yongye Biotechnology International Raises $9.4 Million in Private Placement
8. Yongye Biotechnology International Announces Second Quarter Results
9. Yongye Biotechnology International Announces Conference Call to Discuss Second Quarter 2008 Results
10. Yongye Biotechnology International Retains CCG Investor Relations
11. Yongye Biotechnology International, Inc. Appoints New Independent Auditor
Post Your Comments:
(Date:11/30/2015)... Md. , Nov. 30, 2015 ... development company committed to the fostering and monetization ... the current and prospective initiatives designed to create ... Chief Executive Officer of Spherix. "Based on published ... future licensees exceeds $50 billion and Spherix will ...
(Date:11/30/2015)... , Nov. 30, 2015  Champions Oncology, Inc. (CSBR), ... services to personalize the development and use of oncology ... Executive Officer, will be presenting at the LD MICRO ... Pacific Standard Time (PST).  The conference, held at the ... Angeles, CA , will feature 200 small/micro-cap companies ...
(Date:11/30/2015)... 30, 2015 TapImmune, Inc. ... of innovative peptide and gene-based immunotherapeutics and vaccines for ... it will be presenting at the 8 th ... at 2.30 PM PT. Dr. John N. Bonfiglio ... be giving the presentation and will join TapImmune management ...
(Date:11/30/2015)... , Nov. 30, 2015  Aytu BioScience, Inc. (OTCQB: ... and related conditions, will present at two upcoming investor ... an interactive real-time virtual conference, to be held December ... Conference, to be held December 2 nd & ... and streamed live via webcast. ...
Breaking Biology Technology:
(Date:11/17/2015)... , November 17, 2015 ... au 19 novembre  2015.  --> Paris ... --> DERMALOG, le leader de l,innovation biométrique, ... la fois passeports et empreintes sur la même surface ... les passeports et l,autre pour les empreintes digitales. Désormais, ...
(Date:11/12/2015)... CAMBRIDGE, Mass. , Nov. 12, 2015 /PRNewswire/ ... Broad Institute of MIT and Harvard for use ... chemical discovery information management tools. The partnership will ... share both biological and chemical research information internally ... tools will be used for managing the Institute,s ...
(Date:11/9/2015)... , Nov. 09, 2015 ... addition of the "Global Law Enforcement ... offering. --> ) has ... Law Enforcement Biometrics Market 2015-2019" report ... and Markets ( ) has announced ...
Breaking Biology News(10 mins):