HARBIN, China, May 15 /Xinhua-PRNewswire-FirstCall/ -- China Yingxia
International, Inc. (OTC Bulletin Board: CYXI) ("China Yingxia" or "the
Company"), a leading provider in the nutraceutical industry engaged in the
development, manufacture and distribution of organic nutritional food
products, supplements, and personal care products in the People's Republic
of China ("PRC"), today reported its financial results for the first
quarter ended March 31, 2008.
First Quarter 2008 Highlights
-- Net revenues increased 27.38% year-over-year to $2.1 million
-- Gross profit increased 48.34% year-over-year to $1.29 million
-- Gross margin improved to 60.95% from 52.34% for the same period last
-- Net income was $0.7 million, or $0.01 per diluted share, up 29.25%
from same period last year
-- Established new subsidiary in India, Q1 2008
-- Acquired Chichi Wang companies, April 2008
First Quarter Fiscal Year 2008 Results
Revenue for the three months ended March 31, 2008, was $2.1 million, an increase of 27.38% from $1.6 million for the same period in 2007. The increase in revenue was a direct result of increasing the number of franchisee owned retail outlets, especially at the county level, and the introduction of new products in its nutritional foods line. The Company added 43 county level franchisees during the first quarter of 2008. The new franchisees contributed approximately $180,112 to first quarter revenues. In addition, revenue generated from the four products introduced in its nutritional foods line such as herbal black fungus soup and crackers, fruit jam, soybean oil and honey, contributed 26.83% of revenues in its nutritional foods product line, representing 9.46% of the Company's total revenues.
Gross profit for the first quarter of 2008 totaled $1.29 million, up 48.34% compared with $0.87 million for the same period last year. Gross profit margin was 60.95% for the first quarter 2008, from 52.34% for the same quarter 2007. The higher gross margin for the first quarter 2008 was attributed to the percentage increase in manufacturing its products in-house versus buying from third parties. For first quarter 2008, products manufactured in-house represented approximately 79.13% of total revenue compared to 36.16% of total revenue for the same period prior year.
Total operating expenses for the three months ended, March 31, 2008 were $0.5 million, up 54.87% from the same period in 2007. The increase in operating expenses was primarily attributable to fees associated with maintaining legal, accounting, and investor relations services.
Operating income increased 44.6% to $0.8 million in first quarter 2008, representing an operating margin of 37.73%, compared to $0.55 million and 33.24% for the same period 2007.
Net income for first quarter 2008 was $0.7 million, or $0.01 per fully diluted share, up 29.25% from net income of $0.55 million, in first quarter 2008. Net margins increased slightly to 33.7% during the first quarter of 2008 from 33.2% in the same period 2007.
"During the first quarter 2008 we experienced increase in revenues and net income driven mostly by our ability to increase sales from new product introductions and the opening of 43 additional county level franchisees" said Ms. Yingxia Jiao, Chief Executive Officer of China Yingxia.
For the period ended, March 31, 2008, the Company had $2.9 million in cash and cash equivalents, $14.62 million in working capital and a current ratio of 26:1. Yingxia did not have any debt outstanding and had $39 million in stockholders' equity. Net cash used in operating activities totaled $0.2 million for the three months ended March 31, 2008, largely impacted by the increase in inventory of $3.2 million. Net cash provided by investing activities totaled $1.5 million, mostly from the collection on short-term loan in the amount of $2.2 million. Net cash used in financing activities were nil for the three month period ended March, 31, 2008.
In the first quarter of 2008, the Company opened a subsidiary in India to sell its nutritional foods product line and dietary supplements. On April 25, 2008, Yingxia announced that it had completed the acquisition of Guangzhou Chichi Network Technology Development Co., Ltd. (''Guangzhou Technology''), and Guangzhou Chichi Network Supermarket Chain Co., Ltd. (''Guangzhou Supermarket Chain''), together known as the Chichi Wang companies for approximately $171,000. The Company is expected to open 50 additional Guangzhou Supermarket Chain in 2008. The projected revenue from the acquisition for the second half of 2008 is $223,080.
"We are pleased with the growth we expect to see from the addition of new products as well as increase the number of franchisee owned retail outlets. In addition we are evaluating strategic acquisitions that will enhance our company's value and the value to our shareholders" said Ms. Yingxia Jiao, CEO of China Yingxia.
For the six months period ending, June 30, 2008, Yingxia estimates revenues to be in the range of $7.5 million to 8.0 million, and estimates net income to be in the range of $2.8 million to $3.1 million.
For the full year ending December 31, 2008, Yingxia estimates revenues to be in the range of $21.1 million to $21.9 million and estimates net income to be in the range of $9 million to $9.3 million.
About China Yingxia International, Inc.
China Yingxia International, Inc., through its 100%-owned subsidiary, Harbin Yingxia Industrial Group Co., Ltd. ('Yingxia'), is primarily engaged in the development, production and sales of health food products in China. Yingxia is located in the Province of Heilongjiang in mainland China. Yingxia's products include soybean-based foods and drinks, longgu golden millet enriched products, cactus-based herbal supplements, personal care products, Nestle products, and organic rice products.
Safe Harbor Statement
The statements contained herein that are not historical facts are
'forward-looking statements' within the meaning of Section 21E of the
Securities and Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements may be
identified by, among other things, the use of forward-looking terminology
such as 'believes,' 'expects,' 'may,' 'will,' 'should,' or 'anticipates,'
'expect' or the negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy that involve risks and
uncertainties. In particular, our statements regarding the potential growth
of the markets or forecasting financial results are examples of such
forward-looking statements. The forward-looking statements include risks
and uncertainties, including but not limited to, general economic
conditions and regulatory developments, not within our control. The factors
discussed herein and expressed from time to time in our filings with the
Securities and Exchange Commission could cause actual results and
developments to be materially different from those expressed or implied by
such statements. The forward-looking statements are made only as of the
date of this filing, and we undertake no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.
-SEE FINANCIALS BELOW- CHINA YINGXIA INTERNATIONAL, INC. CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED, MARCH 31, 2008 AND 2007 (Stated in US Dollars)
Sales $2,111,904 $1,657,891
Cost of sales 824,634 790,106
Gross profit 1,287,270 867,785
Research & Development expenses --
Selling, general and administrative 490,340 316,603
Income before other income and (expenses) 796,930 551,182
Other income and (expenses)
Interest income 122
Other expenses (139) (43)
Total other income and (expenses) (17) (43)
Income before income taxes (benefits) 796,913 551,139
Provision for Income Taxes (benefits) 84,543
Net income $712,370 $551,139
Other Comprehensive Income
Foreign currency transaltion adjustment 1,484,055 204,279
Comprehensive income $2,196,425 $755,418
Basic and Diluted Income per Share
Basic $0.02 $0.02
Diluted $0.01 $0.02
Weighted average common shares outstanding
Basic 44,454,732 33,608,857
Diluted 49,711,497 33,608,857
CHINA YINGXIA INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET
AT MARCH 31, 2008 AND DECEMBER 31, 2007
(Stated in US Dollar)
March 31, December 31,
Cash and cash equivalents $2,877,784 $736,683
Accounts receivables, net of allowance for
doubtful accounts 35,401 20,081
Inventory 8,680,380 5,527,135
Tax Receivable -- 32,317
Short-term Loan Receivable -- 2,194,774
Other receivables 1,245,453 3,150,777
Advances to suppliers 1,705,969 1,434,059
Loan Receivable from related parties 655,657 2,037,551
Total current assets 15,200,644 15,133,377
Property and equipment, net of accumulated
of $3,695,884 & 15,953,958 15,515,896
Deposits on buildings and land 3,026,196 1,718,077
Investment advances 4,734,740 4,112,631
Intangible assets, net 686,452 666,785
Total other assets 8,447,388 6,497,493
Total Assets $39,601,990 $37,146,766
Liabilities and Stockholders' Equity
Accounts payable $114,871 $2,911
Unearned revenue 38,139 6,509
Tax payable 127,845 --
Loan payable to related party -- --
Accrued expenses and other payables 303,340 357,976
Total current liabilities 584,195 367,396
Total Liabilities 584,195 367,396
Preferred stock, $0.001 par value, 10,000,000
0 shares outstanding at March 31, 2008
Common stock, $0.001 par value, 100,000,000
44,479,787 shares outstanding at March 31,
2008 44,480 44,440
Additional paid in capital 16,841,627 16,799,667
Accumulated other comprehensive income 4,369,093 2,885,038
Statutory reserves 901,463 901,463
Retained earnings 16,861,132 16,148,762
Total Stockholders' equity 39,017,795 39,017,795
Total Liabilities and Stockholders' Equity $39,601,990 $39,385,191
CHINA YINGXIA INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Stated in US Dollars)
Three Months Ended, March 31,
Cash Flows from operating Activities:
Net income $712,370 $551,139
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 238,439 166,442
Changes in operating assets and liabilities:
Accounts receivable 77,416 (151)
Inventory (3,153,245) (178,050)
Tax receivable 32,317 --
Prepaid expenses -- 95,479
Other receivable 1,905,324 (302,131)
Advances to suppliers (271,911) (166,483)
Accounts payable 111,960 657,518
Unearned revenue 31,630 1,295
Taxes payable 127,845 34,857
Accrued expenses and other payables (54,636) (2,423)
Cash provided by (used in) operating activities (242,491) 857,492
Cash Flow from Investing Activities:
Purchase of property and equipment (28,151) (1,811)
Purchase of patent/land use right -- (98,579)
Investment advance (622,109) --
Collection of short term loan 2,194,774 --
Deposits on buildings and land (1,308,119) --
Collections on loans to related party 1,381,894 265,046
Additions to construction in process (109,714) (280,360)
Cash used in investing activities 1,508,575 (115,704)
Cash Flows from Financing Activities:
Net proceeds from issuance of common stock
Payment of notes payable -- --
Cash provided by (used in) financing activities -- --
Effect of exchange rate changes on cash and cash
equivalents 833,017 136,016
Increase in cash and cash equivalents 2,099,101 877,804
Cash and Cash Equivalents- Beginning of period 736,683 77,867
Cash and Cash Equivalents- End of period $2,835,784 $955,671
Supplemental disclosures of cash flow
1. Interest paid -- --
2. Income taxes paid -- --
For more information, please contact:
Ms. Yingxia, Jiao
Chief Executive Officer
China Yingxia International, Inc.
Investor Relations Contact:
Mr. Crocker Coulson
CCG Elite Investor Relations
|SOURCE China Yingxia International, Inc.|
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