REDWOOD CITY, CA -- (Marketwire) -- 05/17/12 -- Yasheng Group (OTCQB: YHGG) (PINKSHEETS: YHGG) (XETRA: YSF), a high-growth diversified China-based agricultural conglomerate with US headquarters in California, today announced results for the first quarter ended March 31, 2012.
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FY2012 FY2011
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Revenues $204.1M $195.3M
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Net Income $20.7M $19.8M
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EPS $.13 $.13
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Net Sales. Sales are generated primarily from our farming operations and related side line products in China. Net sales for the three months ended March 31, 2012 increased by $8.8 million, or 4.5% to $204.1 million as compared to $195.3 million for the three months ended March 31, 2011. The overall increase in net sales was primarily a result of the rising prices of agricultural products attributable to increasing demand in China. We also benefited from our expanded marketing network which covers more provinces, with more distributors and direct clients.
Cost of Goods Sold. Our cost of goods sold consists of the direct production costs such as raw materials, direct labor, overhead and miscellaneous other supplies. Costs were in line with sales due to continued heightened focus on cost control exercised throughout production, the increase in cost is mainly due to the growth in the net sales.
Gross Profit and Gross Margin. Our gross profit for the three months ended March 31, 2012 increased by $0.95 million or 4.46% to $22 million from $21 million for the three months ended March 31, 2011. The improved margin was primarily a result of the growth in the net sales.
Net Income. Our net income for the period grew to $20.7 million or $.13 per basic share from $19.8 million or $.13 per basic share for the prior-year period.
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.
