REDWOOD CITY, CA -- (Marketwire) -- 04/12/12 -- Yasheng Group (OTCQB: YHGG) (PINKSHEETS: YHGG) (XETRA: YSF), a high-growth diversified China-based agricultural company with US headquarters in California, today announced its financial results for the full year 2011.
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FY2011 FY2010
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Revenues $ 949.1 $ 849.5
Net Income $ 114.1 $ 97.4
EPS $ .74 $ .63
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Full Year 2011 Highlights
- Sales increased 11.7 percent to $949.1 million
- Gross profit increased 14.9 percent to $121.6 million
- Net income was $114.1 million or EPS $.74, compared to $97.4 or EPS $.63 for the same period last year
Full Year 2011 Results
Revenues
We generate sales from our farm and side line products. Net sales for the year ended December 31, 2011 increased $99.68 million or 11.7% to $949.1 million as compared to $849.5 million for the year ended December 31, 2010. The increase in net sales was attributable to higher yields and a better product mix coupled with better pricing on agricultural products, particularly potatoes, vegetables, garlic, beans, and fruits. The price increases were driven by greater demand for our products in the domestic market. We also benefitted from expanded distribution channels serving this market.
Cost of Goods Sold
Our cost of goods sold consists primarily of the costs of our raw materials, labor, and overhead. Cost of sales for the year ended December 31, 2011 increased by a marginal $83.9 million, or 11.3%, to $827.5 million from $743.6 million for the year ended December 31, 2010. Due to the management's continued heightened focus on cost control exercised throughout production and the surge in the product prices, costs grew slower than sales, although our production was adversely affected by increased labor and sales costs year over year.
Gross Profit and Gross Margin
Our gross profit for the year ended December 31, 2011 increased $15.75 million or 14.9% to $121.6 million from $105.8 million for the year ended December 31, 2010. The improved margins were a result of better production yields and higher product pricing.
Net Income
Our net income for the year ended December 31, 2011, increased to $114 million or $.74 per share compared to $97.4 million or $.63 per share for the same period last year.
Yasheng Group
Yasheng Group, founded over 30 years ago, is a US holding company that conducts primarily agricultural operations in the Northwest of China. Today it is one of China's leading producers and marketers with six major product segments including field crops, vegetables, fruit, specialty crops, hops, hemp, seeds, beef and poultry. Yasheng is a supplier of high-quality agricultural products to world-famous conglomerates such as McDonald's, KFC, Tsingtao Beer, and Pepsi. The company is led by a highly qualified management team and has total assets of approximately $2.0 billion, over 15,000 employees, and a history of strong sales and earnings growth. Please visit our website www.yashenggroup.com and register to receive future press releases directly.
Safe Harbor Statement
Except for the historical information contained herein, certain matters discussed in this press release are forward-looking statements which involve risks and uncertainties. These forward-looking statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are discussed in the company's various filings with the Securities and Exchange Commission. The company assumes no obligation to update these forward-looking statements.
