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/C O R R E C T I O N -- China Yingxia, Inc./
NEW YORK
(Map)
-
Additionally, the Company stated that it incorrectly answered one of the questions asked during the earnings call held today. The question asked was regarding the income tax rate the company would be subject to in 2008.
The Company had stated it would be subject to no income taxes in 2008 as
result of achieving Wholly Foreign Owned Entity status in 2006. However, after
further confirmation, the Company recognized that the tax holiday had ended as
of
-- Tables follow --
CHINA YINGXIA INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET
Year Ended Year Ended
December 31, 2007 December 31, 2006
ASSETS
Current assets:
Cash and cash equivalents $736,683 $77,867
Account receivables, net of
allowance for doubtful accounts 20,081 1,315
Inventory 5,527,135 1,112,102
Prepaid expenses -- 95,479
Tax Receivable 32,317 --
Short-term loan receivable 2,194,774 --
Other receivables 3,150,777 346,775
Advances to suppliers 1,434,059 445,254
Loan Receivable from related
parties, net of allowance for
doubtful accounts 2,037,551 2,764,599
Total Current Assets 15,133,377 4,843,391
Property and equipment, net of
accumulated depreciation
of $2,381,268 and $3,371,764
respectively 15,515,896 14,990,594
Other Assets
Deposits on buildings and land 1,718,077 --
Land use right, net -- 294,079
Investment Advance 4,112,631 --
Intangible assets, net 666,785 --
Total other assets 6,497,493 294,709
Total Assets $37,146,766 $20,128,694
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,911 $349,499
Unearned revenue 6,509 --
Accrued expenses and other payables 357,976 560,465
Total Current Liabilities 367,396 909,964
Total Liabilities 367,396 909,964
Stockholders' Equity
Preferred stock, $0.001 par value,
10,000,000 shares authorized; - 0 -
shares outstanding at December 31, 2006
and December 31, 2007 -- --
Common stock, $0.001 par value,
100,000,000 shares authorized;
33,608,857 and 44,439,787 shares
outstanding at December 31, 2006
and December 31, 2007 respectively 44,440 33,609
Additional paid in capital 16,799,667 7,324,772
Accumulated other comprehensive
income 2,885,038 928,708
Statutory reserves 901,463 901,463
Retained earnings 16,148,762 10,029,548
Total Stockholders' Equity 36,779,370 19,218,100
Total Liabilities and
Stockholders' Equity $37,146,766 $20,128,064
CHINA YINGXIA INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31,
2007 2006
Sales $ 15,912,318 $ 8,401,711
Cost of Sales 6,771,252 3,835,017
Gross Profit 9,141,067 4,566,694
Operating Expenses
Research & Development Expense 136,767 488,404
Selling, general and administrative 2,920,694 1,739,221
Income before other Income and (Expenses) 6,083,605 2,339,069
Other Income and (Expenses)
Subsidy Income 32,877 --
Interest Income 3,216 431
Other Income -- 138
Other Expense (484) (176)
Other Income and Expenses
Total Other Income and (Expenses) 35,608 393
Income Before Income Taxes (Benefits) 6,119,214 2,339,462
Provision for Income Taxes (Benefits) -- (3,000,795 )
Net Income $ 6,119,214 $ 5,340,257
Other Comprehensive Income
Foreign Currency Translation Adjustment $ 1,956,330 568,889
Comprehensive Income $ 8,075,544 $ 5,909,146
Basic and Diluted Income per common share
Basic $ 0.16 $ 0.33
Diluted $ 0.15 $ 0.33
Weighted average common share outstanding
Basic 37,995,417 17,157,810
Diluted 40,176,812 17,157,810
CHINA YINGXIA INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 and 2006
2007 2006
Cash Flows From Operating Activities:
Net income $ 6,119,214 $ 5,340,257
Adjustments to reconcile net income to net
cash
provided by (used in) operating activities:
Depreciation and amortization 814,831 542,807
Allowance for doubtful accounts 347,439 --
Amortization of stock compensation for
consulting services 212,850 --
Changes in operating assets and
liabilities:
Accounts receivable (32,459) 675,403
Inventory (4,415,033 (929,194)
Tax Receivable (32,317) --
Prepaid expenses 95,479 (91,457)
Other receivable (2,804,002) 2,759,017
Advances to suppliers (988,804) 3,510,157
Accounts payable (346,588) (150,335)
Unearned revenue 6,509 --
Taxes payable -- (2,934,115)
Accrued expenses and other payables (202,489) (297,963)
Cash provided by (used in) operating
activities (1,225,372) 8,424,577
Cash Flows From Investing Activities:
Purchase of property and equipment (290,126) (1,937,126)
Purchase of patent (362,040) (300,081)
Investment Advance (4,112,631) --
Advance to affiliate -- (2,764,599)
Short-term loan (2,194,774) --
Deposits on buildings and land (1,718,077) --
Collections on loans to related party 534,979 --
Additions to construction in process -- (3,798,973)
Cash used in investing activities (8,142,669) (8,800,779)
Cash Flows From Financing Activities:
Net proceeds from issuance of common stock 9,272,876 --
Payment of notes payable -- (210,652)
Cash provided by (used in) financing
activities 9,272,876 (210,652)
Effect of exchange rate changes on cash and
cash equivalents 753,982 629,818
Increase in cash and cash equivalents 658,816 42,964
Cash and Cash Equivalents - Beginning of
year 77,867 34,903
Cash and Cash Equivalents - End of year $ 736,683 $ 77,867
Supplemental disclosures of cash flow
information:
1 Interest paid $ -- $ --
2 Income Taxes paid $ -- $ --
NON-CASH INVESTING AND FINANCING
ACTIVITIES:
Common stock issued for consulting
Services $ 212,850 $ --
For more information, please contact:
Peter Zhou
Tel: +1-212-232-0058
------
China Yingxia International, Inc. Announces Record Fourth Quarter and Year 2007 Results
- FY 2007 Revenues Increased 89.39% to $15.91 million.
- FY 2007 EBIT Increased 161.57% to $6.08 million.
- FY 2007 Net Income was $6.12 million or $0.15 per fully diluted share.
- Teleconference to Be Held at 9:00 a.m. EST Today -
NEW YORK,
Fourth-Quarter Highlights
-- Total Revenues increased 78.31% to a record $5.52 million compared to
$3.09 million for Q4 2006.
-- Gross profit increased 89.74% to a $2.76 million compared to $1.45
million for Q4 2006.
-- Net income increased 29.6% to a record $1.39 million compared to
$1.08 million(1) for the same period in 2006.
Fiscal Year 2007 Highlights
-- Total Revenues increased 89.4% to a record $15.91 million.
-- Gross profit increased 100.17% to a record $9.14 million.
-- Earnings before Interest and Taxes increased 161.57% to a record $6.08
million.
-- Net Income increased 14.59% to a record $6.12 million or $0.15 per
fully diluted share.
(1) The figure excludes the one-time going public expense and one-time
provision for achieving WFOE status.
"This was a record year for our company in terms of financial growth and
also a success in terms of the execution of our business model. Our very
strong revenue growth was driven by an expanded number of nutritional foods,
health supplements, and personal care products provided by our suppliers, as
well as our ability to increase our number of active franchisees" said
"We substantially diversified our product mix. Sales of nutritional foods,
supplements, cosmetics, and personal care products grew 280% to
Fourth Quarter of 2007 Financial Results
For the fourth quarter ended
Gross profit rose 89.74% to
Operating expenses decreased 23.6% to
General and administrative expenses increased to
Net income for the fourth quarter of 2007 increased to
Year 2007 Financial Results
For the year 2007, sales soared 89.39% to a record
While raw cactus plants which accounts for 38.31% of total revenue still remains the top selling product line, the Company has significantly diversified the concentration of its product mix to other product lines including dietary supplements, personal care and other products, and nutritional food products which account for 21.56%, 21.75% and 13.53% of total revenue respectively.
The nutritional food product line contributed approximately
The Company achieved a gross profit of
The Company incurred total operating expenses of
SG&A amounted to
We recorded an allowance for doubtful accounts in the amount of
Net Income for 2007 was
Net income for 2006 includes a one time income tax benefit we received as
a result of achieving WFOE status. The tax benefit represented
Excluding the income tax provision and normalizing for the going public
expense, net income in 2006 was
Diluted income per share for 2007 was
Outlook
Based on Company's projections, expected 2008 revenue growth is in the range of approximately 30-35%, gross margins growth in the range of 27-32%, and approximately 45-50% growth in net income for the full year of 2008.
"In 2008, we expect strong growth in sales and net income," said
"We will also continue to seek our acquisition targets to expand our
distribution network domestically and abroad. While 100% of our sales were
within
2007 Operating Highlights and Year End Balance Sheet Update
-- In August 2007, the Company made a short tem loan of $2,194,774 to the
agriculture production base in Hulan county, Helongjiang Province to
help finance the well sinker and irrigation project due to an
unexpected severe drought in the northern part of China during the
summer of 2007. The purpose of the loan was to support the farmers in
order to prevent any further damage to their harvest and to secure the
raw materials for the Company's own production. The loan was intended
to be interest free and for a short-term period from August 2007 to
March 2008. The management expects the entire loan to be repaid by the
end of March 2008.
As of March 31, 2008, this full amount has been collected.
"We are please to have collected these loans," stated
-- On December 5, 2007, the Company ("Buyer") signed an agreement
("Agreement") with Shanghai Jin Ao Food Co., Ltd. ("Seller") to
purchase its six (6) Soybean Milk production lines for a total amount
of RMB 30,000,000 (approximately US$4.1 million), including production
equipments, technique know-how and marketing resources. The Agreement
calls for the Company ("Buyer") to make three installment payments of
the full purchase price before January 31, 2008. Once the payments are
made in full, the Seller will transfer the ownership of the equipments
and all related resources to the Buyer. As of December 31, 2007, the
Company made all three-installment payments and recorded the entire
amount as investment advance since the transaction has not been
completed yet. Upon closing of this transaction, the Company will
reclassify the amount to fixed assets and other related accounts.
"We are very excited about the opportunities for organic soy milk,"
-- Other receivables typically represent cash advances to employees and
sales representatives for normal business purposes. Included in the
other receivables was also an advanced payment in the amount of
RMB13,800,000 (approximately US$1.9 million) made to a organic rice
growing project in Donghai, Jiangsu Province, in anticipation of a good
harvest year. The advance was not utilized because the actual output of
the rice was less than expected. The Company collected the full amount
in the first quarter of 2008.
As of March 31, 2008, the Donghai receivable has been fully collected.
-- As of December 31, 2007, the Company has loans receivable from related
parties in the amount of $2,037,551. All related party loans are
provided to the affiliated retail stores or companies to facilitate the
initial establishment of their businesses for selling the Company's
products. These loans are interest free and unsecured and are due upon
demand. The Company expects to collect most of the outstanding loans in
the next few months. An allowance for doubtful accounts in the amount
of $347,702 was recorded for the year ended December 31, 2007.
As of March 31, 2008, the $347,702 write down was collected and
approximately $1,980,189 of the $2,037,551 (or 97.18%) loans receivable
has been fully collected.
Conference Call
The conference call will take place at
This call is being webcast by ViaVid Broadcasting. The webcast may be accessed at ViaVid's Web site at http://www.viavid.net .
The Company filed its annual report on Form 10K-SB on
About
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' 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 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.
For more information, please contact:
Peter Zhou
Tel: +1-212-232-0058
- Financial Tables to Follow -
CHINA YINGXIA INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2007
ASSETS
Current assets:
Cash and cash equivalents $736,683
Account receivables, net of allowance for doubtful accounts 20,081
Inventory 5,527,135
Tax Receivable 32,317
Short-term loan receivable 2,194,774
Other receivables 3,150,777
Advances to suppliers 1,434,059
Loan Receivable from related parties, net of allowance
for doubtful accounts 2,037,551
Total Current Assets 15,133,377
Property and equipment, net of accumulated depreciation
of $3,371,764 15,515,896
Other Assets
Deposits on buildings and land 1,718,077
Investment Advance 4,112,631
Intangible assets, net 666,785
Total other assets 6,497,493
Total Assets $37,146,766
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,911
Unearned revenue 6,509
Accrued expenses and other payables 357,976
Total Current Liabilities 367,396
Total Liabilities 367,396
Stockholders' Equity
Preferred stock, $0.001 par value, 10,000,000 shares
authorized; - 0 - shares outstanding at December 31, 2007 -
Common stock, $0.001 par value, 100,000,000 shares
authorized; 44,439,787 shares outstanding at December 31,
2007 44,440
Additional paid in capital 16,799,667
Accumulated other comprehensive income 2,885,038
Statutory reserves 901,463
Retained earnings 16,148,762
Total Stockholders' Equity 36,779,370
Total Liabilities and Stockholders' Equity $37,146,766
CHINA YINGXIA INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31,
2007 2006
Sales $15,912,318 $8,401,711
Cost of Sales 6,771,252 3,835,017
Gross Profit 9,141,067 4,566,694
Operating Expenses
Research & Development Expense 136,767 488,404
Selling, general and administrative 2,920,694 1,739,221
Income before other Income and
(Expenses) 6,083,605 2,339,069
Other Income and (Expenses)
Subsidy Income 32,877 -
Interest Income 3,216 431
Other Income - 138
Other Expense (484) (176)
Other Income and Expenses Total Other
Income and (Expenses) 35,608 393
Income Before Income Taxes (Benefits) 6,119,214 2,339,462
Provision for Income Taxes (Benefits) - (3,000,795)
Net Income $6,119,214 $5,340,257
Other Comprehensive Income
Foreign Currency Translation Adjustment $1,956,330 568,889
Comprehensive Income $8,075,544 $5,909,146
Basic and Diluted Income per common share
Basic $0.16 $0.33
Diluted $0.15 $0.33
Weighted average common share outstanding
Basic 37,995,417 17,157,810
Diluted 40,176,812 17,157,810
CHINA YINGXIA INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 and 2006
2007 2006
Cash Flows From Operating Activities:
Net income $6,119,214 $5,340,257
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Depreciation and amortization 814,831 542,807
Allowance for doubtful accounts 347,439 -
Amortization of stock compensation for
consulting services
Changes in operating assets and liabilities:
Accounts receivable (32,459) 675,403
Inventory (4,415,033) (929,194)
Tax Receivable (32,317) -
Prepaid expenses 95,479 (91,457)
Other receivable (2,804,002) 2,759,017
Advances to suppliers (988,804) 3,510,157
Accounts payable (346,588) (150,335)
Unearned revenue 6,509 -
Taxes payable - (2,934,115)
Accrued expenses and other payables (202,489) (297,963)
Cash provided by (used in) operating
activities (1,225,372) 8,424,577
Cash Flows From Investing Activities:
Purchase of property and equipment (290,126) (1,937,126)
Purchase of patent (362,040) (300,081)
Investment Advance (4,112,631)
Advance to affiliate - (2,764,599)
Short term loan (2,194,774) -
Deposits on buildings and land (1,718,077) -
Collections on loans to related party 534,979 -
Additions to construction in process - (3,798,973)
Cash used in investing activities (8,142,669) (8,800,779)
Cash Flows From Financing Activities:
Net proceeds from issuance of common
stock 9,272,876 -
Payment of notes payable - (210,652)
Cash provided by (used in) financing
activities 9,272,876 (210,652)
Effect of exchange rate changes on
cash and cash equivalents 753,982 629,818
Increase in cash and cash equivalents 658,816 42,964
Cash and Cash Equivalents - Beginning
of year 77,867 34,903
Cash and Cash Equivalents - End of
year $736,683 $77,867
Supplemental disclosures of cash flow information:
1 Interest paid $- $-
2 Income Taxes paid $- $-
NON-CASH INVESTING AND FINANCING
ACTIVITIES:
Common stock issued for consulting
services $212,850 $-
SOURCE
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