SISHUI COUNTY, SHANDONG PROVINCE, CHINA / ACCESSWIRE / July 12, 2017 / China YCT International Group, Inc. (OTCQB: CYIG) ("CYIG" or the "Company"), a developer, manufacturer and distributor of traditional Chinese medicines, today announced its financial results for the fiscal year ending March 31, 2017.
In Summary:
During the fiscal year ended March 31, 2017, we realized $56,463,164 in revenue, representing an increase of 18.1% or $8,636,056, as compared to $47,827,108 for the same period in 2016. The increase in revenue in RMB was 25.7%, as compared to the fiscal year ended March 31, 2016, but 7.6% of the increase was offset by fewer USD converted from RMB due to a significant RMB depreciation occurred in the fiscal year ended March 31, 2017, compared with the same period in 2016. The total 25.7% revenue increase in RMB was due to the increased sales of acertruncatumbunge seed oil and health care products.
During the fiscal year ended March 31, 2017, we realized net income of $10,054,654, representing a 19.5% or $1,637,885 increase, compared to $8,416,769 during the fiscal year ended March 31, 2016. The increase was mainly due to higher gross profit and decreased operating expenses. The net income measured in RMB increased by 27%, reflecting the significant RMB depreciation that occurred in the fiscal year ended March 31, 2017. During the fiscal year ended March 31, 2017, 20.1% of our total revenue was generated from the sales of acertruncatum oil products, compared to 10.0% during the fiscal year ended March 31, 2016. For the year ended March 31, 2017, our revenue from sales of the acertruncatum oil products was $11,372,538, representing an increase of 139.6% or $6,626,754, as compared to $4,745,784 for the same period in 2016. The revenue from sales of acertruncatum oil products denominated in RMB increased by 155.1% but it was offset by 15.5% decrease when converted to USD due to a significant RMB depreciation that occurred during the fiscal year ended March 31, 2017, compared with the prior fiscal year. The significant increase in sales of acertruncatum oil products in RMB was primarily due to the increased promotion of our acertruncatumbunge seed oil by organizing conferences to introduce the features and benefits of the product to our distributors and customers.
The sales of the Huoliyuan Capsule, produced from ginseng extract, accounted for 43.8% of our revenue during the year ended March 31, 2017, compared to 55.9% during the year ended March 31, 2016. The sales of the Huoliyuan Capsule in the year ended March 31, 2017, was $24,733,953, a decrease of 7.5%, or $2,015,774, as compared to the year ended March 31, 2016. The revenue from sales of Huoliyuan Capsule denominated in RMB only decreased by 1.6%, but the total sales decrease denominated in USD was added by another 5.9% due to a significant RMB depreciation occurred during the year ended March 31, 2017, compared with the prior year. The slight decrease in sales of Huoliyuan Capsule in RMB was primarily due to the increasing competition from other companies that also produce and sell the same type of the medicine.
With the development of the direct selling market, the direct sales team of the Company grew to nearly 200,000 people last year, and the direct sales performance increased by 50% from $21,077,381.00 in the fiscal year ended March 31, 2016 to $31,532,169.00 in the fiscal year ended March 31, 2017, representing 55.8% of the Company's total sales.
Mr. Yan Tinghe, the Company's CEO, said, "The Company's next business goal is to become a leading enterprise in research, cultivation, and production in the domestic and international market for acertruncatum woody edible oils."
About China YCT
CYIG is engaged, is developing, manufacturing and selling its own traditional Chinese medicines made primarily from ginseng extract, manufacturing and distributing acertruncatumbunge seed oils, and distributing health care supplement products in the PRC. The Company, which is headquartered in Shandong Province in the PRC, also operates through its 97% owned subsidiary, Shandong Spring Pharmaceutical Co., Ltd., a corporation organized in the PRC.
Safe Harbor Statement
Certain statements in this press release, constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding the Company's future performance. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the periodic reports that are filed with the Securities and Exchange Commission. The Company's traditional Chinese medicines are used for a variety of conditions, but the Company has not conducted clinical trials as to the medicines' efficacy in curing or treating any disease or medical condition. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. The Company undertakes no duty to update these forward-looking statements except as required by law.
CONTACT:
For more information, please contact:
Zecheng Shao, Vice President
Tel: 0086-537-4268276
Email: zecheng.shao@gmail.com
SOURCE: China YCT International Group, Inc.
