Published:
China Yingxia International, Inc. Reports First Quarter 2008 Results
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 inthe 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
year
-- Net income was $0.7 million, or $0.01 per diluted share, up 29.25%
from same period last year
Recent Highlights
-- 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.
Financial Condition
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.
Recent Events
In the first quarter of 2008, the Company opened a subsidiary inIndia 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.
Business Outlook
"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 inChina.
Yingxia is located in the Province ofHeilongjiang in mainlandChina.
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)
2008-3-31 2007-3-31
Sales $2,111,904 $1,657,891
Cost of sales 824,634 790,106
Gross profit 1,287,270 867,785
Operating expenses
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,
2008 2007
Assets
Current assets:
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
depreciation
of $3,695,884 & 15,953,958 15,515,896
Other assets
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
Current liabilities:
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
Stockholders' equity
Preferred stock, $0.001 par value, 10,000,000
shares authorized;
0 shares outstanding at March 31, 2008
Common stock, $0.001 par value, 100,000,000
shares authorized;
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,
2008 2007
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
information:
1. Interest paid -- --
2. Income taxes paid -- --
For more information, please contact:
Company Contact:
Ms. Yingxia, Jiao
Chief Executive Officer
China Yingxia International, Inc.
Tel: +86-451-8631-0948
Email: gy335577@163.com
Investor Relations Contact:
Mr. Crocker Coulson
President
CCG Elite Investor Relations
Tel: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Web: http://www.ccgelite.com
SOURCE China Yingxia International, Inc.
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