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. Stron
|SOURCE Yongye Biotechnology International, Inc.|
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