HEILONGJIANG, China, Aug. 13, 2011 /PRNewswire-Asia-FirstCall/ -- Yanglin Soybean, Inc. (OTC Bulletin Board: YSYB) ("Yanglin" or the "Company"), one of the leading domestic processors of soybean products in China, reported unaudited financial results for the second quarter ended June 30, 2011.
Second Quarter 2011 Results
Our net sales for the three months ended June 30, 2011 decreased by $4,560,212 or 9.14% over the three months ended June 30, 2010. The decrease in sales revenue was mainly the result of the adjustment of operating levels due to the reduced supply of raw materials caused mainly by farmers' high price expectation.
Our net sales for the six months ended June 30, 2011 decreased by $4,758,395 or 5.66% over the six months ended June 30, 2010. The slight decrease in sales revenue was mainly the result of the adjustment of operating levels due to the reduced supply of raw materials caused mainly by farmers' high price expectation.
For The Three Months Ended June 30, | Period to Period Change | ||||||||||||||||
2011 | 2010 | ||||||||||||||||
Item | Amount ($) | Amount ($) | Amount ($) | % | |||||||||||||
Soybean meal | $ | 22,497,301 | $ | 30,858,409 | $ | (8,361,107) | -27.10 | % | |||||||||
Soybean oil | 14,609,101 | 14,739,126 | (130,025) | -0.88 | % | ||||||||||||
Salad oil | 2,833,852 | 2,365,569 | 468,282 | 19.80 | % | ||||||||||||
Squeezed oil | 387,113 | 333,332 | 53,781 | 16.13 | % | ||||||||||||
Soy protein concentrates | 957,283 | 415,229 | 542,054 | 130.54 | % | ||||||||||||
Low temperature soy meal | 4,071,764 | 1,204,961 | 2,866,803 | 237.92 | % | ||||||||||||
Total Net Sales | $ | 45,356,414 | $ | 49,916,626 | $ | (4,560,212) | -9.14 | % | |||||||||
For The Six Months Ended June 30, | Period to Period Change | ||||||||||||||||
2011 | 2010 | ||||||||||||||||
Item | Amount ($) | Amount ($) | Amount ($) | % | |||||||||||||
Soybean meal | $ | 38,762,529 | 54,306,785 | (15,544,256) | -28.62 | % | |||||||||||
Soybean oil | 25,241,803 | 23,547,884 | 1,693,919 | 7.19 | % | ||||||||||||
Salad oil | 4,897,813 | 3,947,521 | 950,292 | 24.07 | % | ||||||||||||
Squeezed oil | 746,275 | 574,518 | 171,757 | 29.90 | % | ||||||||||||
Soy protein concentrates | 1,970,691 | 415,152 | 1,555,539 | 374.69 | % | ||||||||||||
Low temperature soy meal | 7,619,092 | 1,204,738 | 6,414,354 | 532.43 | % | ||||||||||||
Total Net Sales | $ | 79,238,203 | 83,996,598 | (4,758,395) | -5.66 | % | |||||||||||
We recorded a gross loss of $3,281,653 in the three months ended June 30, 2011, in comparison to a gross loss of $2,623,972 in the three months ended June 30, 2010. Our gross profit margin decreased from negative 5.26% to negative 7.24% over the same period. The main reasons for the gross loss in the second quarter of 2011 were the impact of the large imports of soybeans, the high price levels of soybeans and the increase in the raw material prices of certain of our soybean products.
We recorded a gross loss of $3,481,243 in the six months ended June 30, 2011, in comparison to a gross loss of $2,606,858 in the six months ended June 30, 2010. Our gross profit margin decreased from negative 3.1% to negative 4.39% over the same period.
Selling expenses for the three months ended June 30, 2011 increased by $13,643 or 20.33% as compared to the three months ended June 30, 2010. General and administrative expenses for the three months ended June 30, 2011 decreased by $247,090 or 30.59% over the three months ended June 30, 2010. This was mainly caused by the material reduction in the expenses related to public company affairs, including professional fees paid to legal counsel. As a percentage of net sales, general and administrative expenses decreased from $807,741 or 1.62% for the second quarter of 2010 to $560,651 or 1.24% for the second quarter of 2011. As compared to the second quarter of 2010, total operating expenses decreased by $585,479 or 47.72% in the second quarter of 2011, and the percentage of net sales decreased from 1.75% to 1.41%.
Selling expenses for the six months ended June 30, 2011 increased by $14,352 or 10.88% as compared to the six months ended June 30, 2010. As a percentage of net sales, selling expenses remained at 0.18% over the period. General and administrative expenses for the six months ended June 30, 2011 decreased by $512,803 or 30.93% over the six months ended June 30, 2010. As a percentage of net sales, general and administrative expenses rose from $1,657,793 or 1.97% for the six months ended June 30, 2010 to $1,144,990 or 1.44% for the six months ended June 30, 2011. As compared to the six months ended June 30, 2010, total operating expenses decreased by $850,418 or 39.71% in the six months ended June 30, 2011, and the percentage of net sales increased from -2.55% to -1.63% over the period.
Loss from operations was primarily due to the reasons described in the sections "Net Sales" and "Cost of Sales and Gross Profit" above. For the six months ended June 30, 2011, we generated a gross loss of $3,481,243 and a loss of $4,772,470 after deducting selling and general and administrative expenses. Operating margin decreased from negative 5.65% to negative 6.02%.
Yanglin has been recognized as a "Key Leading Enterprise" in the industrial sector of the important agriculture industry by the Chinese government. The Company continues to benefit from its income tax exempt status during the entire fiscal year 2011.
Basic and diluted earnings per share (EPS) for the quarter ended June 30, 2011, were $(0.03) and $(0.03), compared to $0.13 and $0.09 for the same quarter last year. Basic and diluted earnings per share (EPS) for the six months ended June 30, 2011, were $(0.29) and $(0.29), compared to $0.32 and $0.22 for the same period last year.
Cash Positions
The Company's balance sheet as of June 2011 included cash and cash equivalents of $25.1 million, compared with $24.3 million at the beginning of 2011. Total shareholders' equity was $45.1 million.
Net Cash provided by operating activities for the six months ended June 30, 2011 was $10,470,427, while net cash used in operating activities for the six months ended June 30, 2010, was $1,881,868. The difference was primarily due to the reduction in the balance of our inventories by $5,932,829 in the six months ended June 30, 2011, while in comparison we decreased the balance of our inventories by $2,089,128 in the same period of 2010, and the reduction in the balance of our advances to suppliers by $9,082,570 in the six months ended June 30, 2011, while in comparison we decreased the balance of our advances to suppliers by $1,216 in the same period of 2010.
Conference Call
The Company will host a conference call on Monday, August 15, 2011 at 9:00 A.M. Eastern Time / 9:00 P.M. Beijing Time. A question and answer session will follow management's presentation.
To participate, please call the following numbers 10 minutes before the call start time and ask to be connected to the Yanglin Soybean conference call:
Phone Number: +1-877-407-0782 (North America) | |
Phone Number: +1-201-689-8567 (International) | |
A replay of the call will be available through Saturday, August 27, 2011 until 11:59 P.M. Eastern Time. | |
For the replay, please call: | |
Phone Number: +1-877-660-6853 (North America) | |
Phone Number: +1-201-612-7415 (International) | |
Account Number: 286 | |
Conference ID Number: 337266 | |
About Yanglin
Yanglin Soybean, Inc. is one of the leading domestic soybean processors in China. The Company manufactures soybean oil, salad oil and soybean meal with an annual processing capacity of 520,000 metric tons in 2011. The Company's products are sold directly to its customers or through distributors. Majority of Yanglin Soybean's customers are located in Northern China.
Forward Looking Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by the Company constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding our ability to prepare the company for growth, the Company's planned capacity expansion and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our 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 but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand, pricing and demand trends for the Company's products, changes to government regulations, risk associated with operation of the Company's facilities, risk associated with large scale implementation of the company's business plan, the ability to attract new customers, ability to increase its product's acceptance, cost of raw materials, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Investors are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
CONTACT: Yanglin Soybean, Inc., Ms. Myrna Shangguan, Chief Financial Officer, cfo@yanglinsoybean.com
SOURCE Yanglin Soybean, Inc.
