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TBV 5 year weekly chart ~~~>
some very nice swings in this one. :)
Tiens Biotech Group (USA) Reports Second Quarter and Six-Month Results
Thursday August 14, 7:00 am ET
NEW YORK, Aug. 14 /Xinhua-PRNewswire/ -- Tiens Biotech Group (USA), Inc. (the "Company" or "Tiens", AMEX: TBV), http://www.tiens-bio.com , announced financial results for the second quarter and six months ended June 30, 2008.
For the second quarter ended June 30, 2008, revenue was $19.7 million, an increase of 37.2% compared to $14.3 million for the same period in 2007.
Net income for the second quarter of 2008 was $4.6 million, compared to net income of $5.0 million for the second quarter of 2007. Earnings per share for the second quarter of each of 2008 and 2007 were $0.07.
For the six months ended June 30, 2008, revenue was $32.5 million, an increase of 6.3% compared to $30.6 million for the same period in 2007.
Net income for the six months ended June 30, 2008 was $8.3 million, compared to net income of $11.5 million for the first six months of 2007. Earnings per share for six months ended June 30, 2008 were $0.12 compared to $0.16 for the first six months of 2007.
The significant growth in revenue during the second quarter of 2008 includes an increase in both domestic and international revenue for the period. Revenue in China increased 65.6% to $8.5 million, compared to $5.1 million for the second quarter of 2007, reflecting successful marketing efforts in China and the increase in the value of the renminbi against the dollar. In addition, international revenue rose 21.4% to $11.1 million for the second quarter, compared to $9.2 million for the same period in 2007, reflecting a reduction on export restrictions in that period by China's Administration of Quality Supervision, Inspection and Quarantine ("AQSIQ") which announced an ongoing national campaign in China against unsafe food and substandard products in August 2007. It is important to note that to date, no problems have been identified with any of Tiens' products.
Results for the six months ended June 30, 2008 were affected by a 15% decrease in revenue in China during the first quarter of 2008. During the first quarter of 2008, we believe that sales in China were negatively impacted by continued uncertainty in China regarding the impact of direct selling regulations and uncertainty regarding the timing of the direct selling license application process and approval which has been submitted by Tianjin Tianshi Biological Engineering Co., Ltd. ("Tianshi Engineering"), an affiliated Chinese company.
Revenue by Region
As stated above, revenue in China for the second quarter of 2008 increased 65.6% to $8.5 million, compared to $5.1 million for the second quarter of 2007. International revenue for the second quarter of 2008 increased 21.4% to $11.1 million, compared to $9.2 million for the second quarter of 2007. For the six months ended June 30, 2008, revenue in China was $14.6 million, an 18.4% increase compared to $12.3 million for the same period in 2007. For the six months ended June 30, 2008, international revenue was $17.9 million, a decrease of 1.9% compared to $18.2 million for the same period in 2007. This decrease in international revenue reflects the impact of the export restrictions which were introduced in third quarter of 2007 and impacted results for subsequent quarters, including the first quarter of 2008. The increase in international revenue in the second quarter of 2008 reflects a reduction on the export restrictions in that period.
Background
In August 2007, AQSIQ announced an ongoing national campaign in China against unsafe food and substandard products. As a result of this campaign by the AQSIQ, there has been a general slow-down and backlog of export clearances for Chinese food products, and, from August 2007 through the first quarter of 2008, we experienced significant delays in obtaining export clearance for all of the products which we sell to our international affiliates. Beginning in the second quarter of 2008, these export restrictions were reduced for exports to countries in Africa and Asia, but remained in place for exports to countries in Europe and the Americas. To facilitate the export of our product in the future, in May 2008 we established a new subsidiary, Dongfeng Tianshi Biological Development Co., Ltd. ("Dongfeng Biological") in Liaoyuan, Jilin Province. To date, Dongfeng Biological has not yet conducted any operations.
In China, Tiens sells its products to Tianjin Engineering, an affiliated Chinese company. In order to qualify for a direct selling license in China, Tianshi Engineering is required to produce a part of the products that it sells in China. As a result, in 2006, Tiens began to sell semi-finished products to Tianshi Engineering, which jointly shares licenses with Tiens to produce, manufacture and sell the products. The semi-finished products, which Tiens is now exclusively selling in China, have lower sales prices than the finished products Tiens had previously sold to Tianshi Engineering.
The application of Tianshi Engineering for a direct selling license in China is still pending.
Other Highlights
Cost of sales for the second quarter of 2008 increased 39.3% to $6.2 million, compared to $4.5 million for the same period in 2007. The rise in cost of sales reflects increases in both sales and the value of the renminbi against the dollar. For the six months ended June 30, 2008, cost of sales increased 15.2% to $10.2 million, compared to $8.9 million for the same period in 2007. Cost of sales for the period reflects greater raw materials costs.
Gross profit for the second quarter of 2008 increased 36.3% to $13.5 million, compared to $9.9 million for the same period in 2007. For the six months ended June 30, 2008, gross profit increased 2.6% to $22.2 million, compared to $21.7 million for the same period in 2007. The gross profit margin for the second quarter of 2008 was 68.4%, compared to 68.9% for the same period in 2007. For the six months ended June 30, 2008, the gross profit margin was 68.5%, compared to 70.9% for the same period in 2007. This modest decrease reflects the increase in the cost of raw materials while the price at which we sell our products has remained constant.
Selling, general and administrative expenses were $5.1 million for the second quarter of 2008, an increase of 50.2% compared to $3.4 million for the same period in 2007. The selling and administrative expenses as a percentage of sales were 25.9% for the second quarter of 2008 compared to 23.7% for the same period in 2007. For the six months ended June 30, 2008, selling, general and administrative expenses were $8.3 million, an increase of 25.3% compared to $6.7 million in the same period in 2007. For the six months ended June 30, 2008, selling, general and administrative expenses as a percentage of sales was 25.7%, compared to 21.8% for the same period in 2007. This increase was primarily due to increases in general administration costs related to the construction of the Life Resources project, salary and insurance expenses, advertising, research and development expenses and the appreciation of the renminbi.
Tiens continues to strive to expand its market share in China through the branches, chain stores, and Chinese affiliated companies of Tianshi Engineering. To enhance its position in this competitive market, Tianshi Engineering continues to increase its marketing activities in China, including opening additional branches across China, developing a nation-wide advertising campaign, encouraging media coverage and strengthening the Tiens brand.
As of June 30, 2008, Tiens had $86.9 million of retained earnings and total shareholders' equity of $128.3 million.
Jinyuan Li, Chairman, President and CEO of Tiens, said, "We are pleased with the increase in both domestic and international revenues over last year's second quarter and our sequential growth compared to the first quarter of 2008. We are committed to gaining greater market share in China for our high quality products and are beginning to reap the benefit of reduced international export restrictions. The further reduction of these restrictions represents an opportunity for Tiens to meet the demands of its growing international customer base. We remain optimistic for long term domestic and international growth."
About Tiens Biotech Group (USA), Inc. http://www.tiens-bio.com .
http://biz.yahoo.com/prnews/080814/cnth004.html?.v=3
surf's up......crikey
Bought some TBV when it broke below $1, the Russell deletion did a number on it. Also, posted the quarterly numbers from last the last report:
http://finance.google.com/finance?fstype=bi&q=AMEX:TBV
surf's up......crikey
Russell 2000 adds 8 consumer staple stocks
Monday June 30, 9:24 am ET
Russell 2000 small-cap index adds 8 consumer staples stocks, removes Jones Soda, Tiens Biotech
NEW YORK (AP) -- Eight stocks in the consumer staples sector were added to the Russell 2000 index of small stocks, while two stocks in the sector were removed.
Diamond Foods Inc., Lifeway Foods Inc., Omega Protein Corp., Schiff Nutrition International, Smart Balance Inc., Star Scientific Inc., Susser Holdings Corp. and Zhongpin Inc. were added in this year's reconstitution of the small stock index.
Jones Soda Co. and Tiens Biotech Group USA Inc were removed from the Russell 2000.
Tacoma, Wash.-based Russell Investments realigns the Russell 3000 index once per year, tracking what it maintains is 99 percent of the U.S. equity market. That index is then broken down to 26 smaller indexes, including the widely watched Russell 1000 index of large capitalization stocks and the Russell 2000 index of small capitalization stocks.
The makeup of the Russell indexes for the next 12 months was finalized after the closing bell Friday.
surf's up......crikey
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