BEIJING, July 19 /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 announced preliminary revenue results for the second quarter ended June 30, 2010, and updated its sales guidance.
Yongye expects to report preliminary unaudited revenue for the second quarter of 2010 of approximately $89 million, a 93.5% increase from $46 million for the same period last year. For the first half of 2010, approximately 39% of sales came from Guangdong, Henan, Hubei and other provinces in central and southern China that are outside of the five traditionally strong provinces in northern China where the Company's business originated and where the bulk of revenues have historically been generated.
Yongye also updated its revenue outlook for 2010 and now expects full year 2010 revenue of between $180 million and $185 million, compared with the previously provided guidance of between $160 million and $165 million. The Company plans to provide updated net income guidance when it reports its second quarter financial results in full next month.
"Our strong second quarter sales and increased revenue guidance reflect the robust demand for our Shengmingsu agricultural nutrient products among rural Chinese farmers," stated Mr. Zishen Wu, Chief Executive Officer. "We are seeing strong sales growth in our traditional provinces as well from the newer Yongye branded stores in central and southern China. This growing demand is a testament to the effectiveness of our product in helping farmers increase crop yields and shorten harvest times, thereby providing them with a compelling return on investment. It also reflects the success of our integrated advertising and promotion campaigns at the national, provincial and village level which ensures that rural farmers continue to respond positively our branding message that Shengmingsu gives them the best value proposition for their plant and animal nutrient needs.
"We are confident in our ability to continue to grow our business and meet the anticipated demand for our Shengmingsu products. We recently announced a 50% capacity increase in our existing plant nutrient production facility from 10,000 tons to 15,000 tons per annum as a result of streamlining our production process and upgrading our manufacturing equipment. We have been utilizing almost all of this additional production capacity. In addition, we have a new production facility that is scheduled to come online in September that will add an additional 20,000 tons of capacity per year for our liquid plant product and 10,000 tons per year for our powder animal product.
"Overall, we remain optimistic about our business prospects. We see strong demand for our products and have made the necessary improvements to our business infrastructure and invested in new capacity to ensure that Yongye is positioned to continue to capitalize on the attractive opportunities in the agricultural nutrient space in China."
About Yongye International, Inc.
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.
For more information, please contact:
Contact:
Yongye International, Inc.
Mr. Larry Gilmore-VP of Corporate Strategy
Phone: +86-10-8232-8866 x8880
Email: larry.gilmore@yongyeintl.com
CCG Investor Relations, Inc.
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Athan Dounis, Account Manager
Phone: +1-646-213-1916
Email: athan.dounis@ccgir.com
