BEIJING, Jan. 5, 2011 /PRNewswire-Asia-FirstCall/ --
Yongye International, Inc. (Nasdaq: YONG) ("Yongye" or the
"Company"), a leading manufacturer, developer and distributor of
"Shengmingsu" brand plant and animal nutrient products in
China, today reported it has
achieved positive cash flow from operations for the fourth quarter
and full year 2010 and an improvement in its accounts receivable as
of year-end 2010.
For the three months ended December 31,
2010, the Company collected $77.0
million in cash from revenue that was recognized in the
fourth quarter of 2010 and previous quarters. As of December 31, 2010, the Company had $25.7 million in accounts receivable, a decline
of 66.0% from $75.6 million as
of the end of the third quarter of 2010.
Mr. Sam Yu, Chief Financial
Officer, stated, "We believe that 2010 represents an important
turning point in terms of cash flow generation for Yongye as we
were able to achieve both robust revenue growth and positive
operating cash flow as a result of our improved working capital
management.
"Our business is seasonal with approximately 70% to 80% of our
annual sales occurring in the second and third quarters. We
currently provide our key distributors up to six months credit
terms and our strong sales growth resulted in an increase in our
accounts receivable in the second and third quarters. We normally
collect a significant part of our third quarter accounts receivable
balance in the fourth quarter, and we did so again this year.
Our improved working capital management and cash collection
efforts also contributed to the significant decline in our accounts
receivable and positive operating cash flow performance.
"We expect that our positive operating cash flow performance
will continue, including in the year ended December 31, 2011, due to robust market demand
for our products and our improved working capital management. We
remain optimistic about our business prospects as our Shengmingsu
agricultural nutrient product continues to help Chinese farmers
increase crop yields, shorten harvest times, and extend the
life-cycles of plants as well enhance crop taste, nutrition and
appearance."
The results announced in this press release are unaudited. The
Company plans to release its fourth quarter and full year 2010
audited financial results in March
2011.
About Yongye International
Yongye International is a Chinese agricultural nutrient company
headquartered in Beijing, with its
production facilities located in Hohhot, Inner Mongolia,
China. Yongye markets two lines of
organic nutrient products: a liquid nutrient product which is
sprayed on plants and a powder nutrient product which is added to
animal feed. Both products are sold under the brand name
"Shengmingsu," which means "life essential" in Chinese. The
Company's patented and patent pending formulas and proprietary
extraction processes allow it to create products that increase crop
yields and improve the health of livestock. The Company sells its
products primarily to provincial or regional level distributors,
who then channel those products to a carefully selected network of
independently-owned Yongye branded stores in China. For more information, please visit the
Company's website at http://www.yongyeintl.com.
Safe Harbor Statement
This press release contains certain statements that may
include "forward-looking statements."
All statements other than statements of historical fact included
herein are "forward-looking statements."
These forward-looking statements are often identified by the use
of forward-looking terminology such as
"believes," "expects"
or similar expressions, involving known and unknown risks and
uncertainties. 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. You 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 the risk factors discussed in the
Company's periodic reports that are filed with the
Securities and Exchange Commission and available on the
SEC's website (http://www.sec.gov). All
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these risk factors. Other than as required under the securities
laws, the Company does not assume a duty to update these
forward-looking statements.
Contact:
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Yongye
International
Ms. Kelly Wang
Finance Director – Capital
Markets
Phone: +86-10-8231-9608
E-mail:
ir@yongyeintl.com
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Ms. Wendy Xuan
– Business Associate
Phone: +86-10-8232-8866 x
8827
E-mail:
ir@yongyeintl.com
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CCG Investor
Relations
Mr. Athan Dounis
Phone:
+1-646-213-1916
Email:
athan.dounis@ccgir.com
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SOURCE Yongye International, Inc.