Tiens Group elected as “Asia Brand Top 500”, Mr. Li Jinyuan, CEO awarded the “Personality of the Year for Asia Brand 2008”
The promulgation ceremony of The Third Asia Brand Ceremony was held on the 9 September 2008 at the Disney International Convention Centre in Hong Kong. Tiens Group was awarded “Asia Brand Top 500”, Mr. Li Jinyuan, the CEO awarded the “Personality of the Year for Asia Brand 2008”.
Asia Brand Ceremony was held united by the following 9 authorized organizations and media: Asia International Famous & Excellent Brand Authentication and Supervision Management Centre, State Department National Capital Supervision Management Committee Research Centre, People’s Pictorial, Asia Economy Magazine, Economy Daily China Economy Information Magazine, Branded Times, National Development & Reformation Committee China Economy & Trade Report Magazine, China Economy System Innovation Magazine, Today’s Wealth Magazine. It has been held successfully for the third time till now. The Third Asia Brand Ceremony inclusive of the release of ranking chart of the Asia Brand Top 500, promulgation ceremony of Asia Brand Ceremony, Asia International Brand Stratagem Forum, grand final of Miss Asia Brand contest and etc.
Ranking chart of Asia Brand Top 500 assessed those brands and corporations within the territory of Asia based on 4 dimensionalities, namely market performance, development potentiality, quality level and benefit level. There are 10 fractionized guidelines within 4 dimensionalities: age of brand, standard of internationalization, marketing combination, brand awareness, capital amount increment, innovation capability, after sale service, quality standard, business income, and net profit. Addition of these dimensionality and guidelines made the selection task more scientific and objectivity.
The committee of Asia Brand Ceremony announced the 1000 elected Asia Brand since June 2008, conducted 100000 questionnaire surveys; site inspection was conducted in July and August for key corporations. Dr Li Baomin, the expert of committee assessment team, the Party appointed Secretary of the State Department National Capital Research Centre, Mr. Zhou Jun, the consultant of National Development & Reformation Committee, Mr. Wang Jiangong, the Stratagem Development Manager of People’s Daily oversea edition, visited head office of Tiens Group on the 8 August 2008 and have a friendly talk with Mr. Li Jinyuan.
The Asia Brand Ceremony Assessment System committee decided to elect Tiens Group into the ranking chart of Asia Brand Top 500 and Mr. Li Jinyuan awarded the “Personality of the Year for Asia Brand” according to the outstanding achievement of Tiens Group in the global market as well as the excellent contribution of Mr. Li Jinyuan in internationalization of Chinese brand. Based on the excellent contribution of TIENS towards health industry in Asia region, TIENS was elected as “China 500 Most Valuable Brand” in May 2008, now ascended successfully the range of Asia Brand Top 500.
Mr. Li Jinyuan, the CEO, awarded the “Personality of the Year Asia Brand 2008” with his outstanding contribution towards health industry in Asia. Those awardees for this honor for the last two years inclusive of global famous entrepreneurs like Mr.. Lee Kah Sing (Chairman of Cheung Kong Holdings), Mitarai Fujio (CEO of Canon Pty Ltd), Muhammad Yunus (Founder of Grameen Bank in Bangladesh), Zhang Ruimin (CEO of Haier Group), Koo Bon-Moo (CEO of LG Group) and etc.
At the same day, Mr. Li was invited to attend the congress take “the Asian brand present situation and the future” as the topic to “the Asian international brand strategy forum”, and Mr. Li share brand establishment and TIENS brand success key to all of the audience. Mr. Li pointed out that the brand is enterprise's life, TIENS enter the global market with the creativity and the innovation to global 190 countries and the area, in the brand setup procedure, Mr. Li stressed that it must take play in the different country's management and with the place regulations, the culture, high quality product and professional customer service which are the main key to the local market thoroughly.
We trust that the construction of TIENS brand will gain more accomplishment under the effort of global TIENS people together. Let’s hand in hand and side by side to make TIENS an excellent reputable international brand.
Source : http://www.tiens.com/tiens/group/en/About/news_200809121608837.htm
Sunday, November 30, 2008
Tiens Biotech Group (USA) Reports Record Third Quarter and Nine-Month Results
NEW YORK, Nov. 14 /Xinhua-PRNewswire-FirstCall/ -- Tiens Biotech Group(USA), Inc. (the "Company" or "Tiens", (NYSE Alternext US: TBV),http://www.tiens-bio.com , announced financial results for the third quarterand nine months ended September 30, 2008. For the third quarter ended September 30, 2008, revenue was $26.2 million,an increase of 137.6% compared to $11.0 million for the third quarter endedSeptember 30, 2007.
Net income for the third quarter of 2008 was $14.5 million, an increase of377.0% compared to $3.0 million for the same period in 2007.
The increase in revenue for the third quarter of 2008 reflects an increasein revenue for both China and internationally.
For the third quarter of 2008, revenue in China was $14.6 million, anincrease of 330.1% compared to $3.4 million for the same period in 2007.During the third quarter, Tianshi Engineering, the affiliated company whichmarkets and sells Tiens' products in China, announced plans to increase theprices of its products in October 2008. Tiens believes that the increase inrevenue in the third quarter was due in part to customers stocking up oncertain products as a result of the price increase announcement by TianshiEngineering. Therefore, the increase in sales may not continue through thefourth quarter of 2008. At the present time, however, the price increase ofTianshi Engineering products will not affect the price at which Biologicalsells to Tianshi Engineering.
For the third quarter of 2008, international revenue was $11.6 million, anincrease of 52.1% compared to $7.6 million for the same period in 2007. Theincrease in international sales reflects further reductions in exportrestrictions by China for countries in Africa and Asia through the thirdquarter of 2008.
In August 2007, China's Administration of Quality Supervision, Inspectionand Quarantine ("AQSIQ") announced an ongoing national campaign in Chinaagainst unsafe food and substandard products. The special campaign againstpoor product quality was launched in response to a series of safety scaresinvolving Chinese products worldwide. The campaign set 20 detailed goals,including twelve "100 percents". For example, 100 percent of food producersshould be licensed; 100 percent of agricultural wholesale markets in citiesmust be monitored; 100 percent of suppliers of raw materials for exportedproducts should be inspected; and 100 percent of agricultural products must befree of five types of strong pesticides. The campaign, which was originallyscheduled to finish at the end of 2007, is currently scheduled to continuethroughout 2008.
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, fromAugust 2007 through the first quarter of 2008, Tiens experienced significantdelays in obtaining export clearance for all of the products which we sell toour international affiliates. Beginning in the second quarter of 2008, theseexport restrictions were reduced for exports to countries in Africa and Asia,but remained in place for exports to countries in Europe and the Americas.During the third quarter of 2008, these export restrictions were furtherreduced.
For the nine months ended September 30, 2008, revenue was $58.7 million,an increase of 41.1% compared to $41.6 million for the nine months endedSeptember 30, 2007.
For the nine months ended September 30, 2008, net income was $22.8 million,an increase of 56.5% compared to $14.6 million for the same period in 2007.
For the nine months ended September 30, 2008, revenue in China was $29.2million, an 85.5% increase compared to $15.7 million for the same period in2007. The growth in revenue during the third quarter was offset by a 15%decrease in revenue in China during the first quarter of 2008. During thefirst quarter of 2008, Tiens believes that sales in China were negativelyimpacted by continued uncertainty in China regarding the impact of recentlyenacted direct selling regulations and uncertainty regarding the timing of thedirect selling license application process and approval.
For the nine months ended September 30, 2008, international revenue was$29.5 million, an increase of 14.0% compared to $25.8 million for the sameperiod in 2007. This increase in international revenue was mainly due to anincrease in sales in Russia and Indonesia.
Other Highlights
Cost of sales for the third quarter of 2008 increased $113.8% to $6.6million, compared to $3.1 million for the same period in 2007. This increasewas mainly due to the increase in revenue for the period. Cost of sales forthe period increased at a lower rate than revenue primarily due to theincrease in sales of products sold to Tianshi Engineering which have a lowercost compared to products sold to overseas companies.
For the nine months ended September 30, 2008, cost of sales increased40.7% to $16.9 million, compared to $12.0 million for the same period in 2007.This increase was in line with the increase in revenue for the period and wasdue to both the increase in sales and the increase in the value of therenminbi against the dollar.
Gross profit for the third quarter of 2008 increased 146.8% to $19.6million, compared to $7.9 million for the same period in 2007. For the ninemonths ended September 30, 2008, gross profit increased 41.3% to $41.8million, compared to $29.4 million for the same period in 2007. The grossprofit margin for the third quarter of 2008 was 74.8%, compared to 72.0% forthe same period in 2007. This increase reflects the increase in proportion ofsales with higher gross profit margins. For the nine months ended September30, 2008, the gross profit margin was 71.3% compared to 71.2% for the sameperiod in 2007. The increase in gross profit margin during the third quarterwas offset by a 4.2% decrease during the first quarter of 2008.
Selling, general and administrative expenses were $4.6 million for thethird quarter of 2008, an increase of 18.5% compared to $3.9 million for thesame period in 2007. The increase was primarily due to increases in salaryexpense and research and development. Selling, general and administrativeexpenses as a percentage of sales was 17.4% for the third quarter of 2008compared to 34.9% for the same period in 2007. For the nine months endedSeptember 30, 2008, selling, general and administrative expenses were $12.9million, an increase of 22.8% compared to $10.5 million in the same period in2007. For the nine months ended September 30, 2008, selling, general andadministrative expenses as a percentage of sales was 22.0%, compared to 25.3%for the same period in 2007. This decrease reflects the increase in sales.
In China, Tiens sells its products to Tianshi Engineering, an affiliatedChinese company. In order to qualify for a direct selling license in China,Tianshi Engineering is required to produce a part of the products that itsells in China. As a result, in 2006, Tiens began to sell semi-finishedproducts to Tianshi Engineering, which jointly shares licenses with Tiens toproduce, manufacture and sell the products. The semi-finished products, whichTiens is now exclusively selling in China, have lower sales prices than thefinished products Tiens had previously sold to Tianshi Engineering. Theapplication of Tianshi Engineering for a direct selling license in China isstill pending.
Tiens continues to strive to expand its market share in China through thebranches, chain stores, and Chinese affiliated companies of TianshiEngineering. To enhance its position in this competitive market, TianshiEngineering continues to increase its marketing activities in China, includingopening additional branches across China, developing a nation-wide advertisingcampaign, encouraging media coverage and strengthening the Tiens brand.
As of September 30, 2008, Tiens had $101.5 million of retained earningsand total shareholders' equity of $143.6 million.
Jinyuan Li, Chairman, President and CEO of Tiens, said, "We are extremelypleased with the significant increase in both our domestic and internationalrevenue and continued sequential growth since the first quarter of 2008. Wecontinue to benefit from reduced international export restrictions and areoptimistic that our international sales will further increase as additionalexport restrictions are lifted. We are well positioned to capitalize on ourgrowing international customer base and remain committed to gaining greatermarket share in China for our high quality products as well."
About Tiens Biotech Group (USA), Inc. http://www.tiens-bio.com .
Tiens Biotech Group (USA), Inc. (NYSE Alternext US: TBV) conducts itsbusiness operations from Tianjin, People's Republic of China. Tiens primarilyengages in the research, development, manufacturing, and marketing ofnutrition supplement products, including wellness products and dietarysupplements.
Tiens derives its revenues principally from product sales to affiliatedcompanies in China and internationally in 52 countries. Since itsestablishment, Tiens has developed and produced 33 nutrition supplements,which include wellness products and dietary supplements. Tiens develops itsproducts at its own product research and development center, which employshighly qualified professionals in the fields of pharmacology, biology,chemistry and fine chemistry. Tiens has obtained all required certificatesand approvals from government regulatory agencies to manufacture and sell itsproducts in China.
In China, Tiens conducts the marketing and sales of its products throughits affiliated company, Tianshi Engineering. Tianshi Engineering markets andsells Tiens' products in China through chain stores, domestic affiliatedcompanies, and its 100 branches. Outside of China, Tiens sells its productsto affiliated companies in 52 countries who in turn sell through an extensivedirect sales force, or multi-level marketing sales force. The Company'sdirect sales marketing program is subject to governmental regulation in eachof these countries.
Certain statements in this press release constitute "forward-lookingstatements" within the meaning of Section 27A of the Securities Act of 1933and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements are not necessarily indicative of future financial results,and may involve known and unknown risks, uncertainties and other factors,which may cause the actual results, performance or achievements of the Company,to be materially different from any future results, performance, orachievements expressed or implied by such forward-looking statements. TheCompany's future operating results are dependent upon many factors, includingbut not limited to: (i) the Company's ability to obtain sufficient capital ora strategic business arrangement to fund its expansion plans; (ii) theCompany's ability to build the management and human resources andinfrastructure necessary to support the growth of its business; (iii)competitive factors and developments beyond the Company's control; (iv)whether the Company continues to experience delays in the export clearance ofits products; (v) whether Tianshi Engineering, the Company's affiliate whichsells its products in China, obtains a direct selling license in China; and(vi) other risk factors discussed in the Company's periodic filings with theSecurities and Exchange Commission which are available for review athttp://www.sec.gov under "Search for Company Filings."
TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 (Unaudited) Three months ended Nine months ended September 30, September 30, 2008 2007 2008 2007 As Adjusted As Adjusted (Note 1) (Note 1) REVENUE - RELATED PARTIES $26,195,853 $11,027,478 $58,671,121 $41,584,749 COST OF SALES - RELATED PARTIES 6,606,502 3,089,791 16,850,267 11,979,984 GROSS PROFIT 19,589,351 7,937,687 41,820,854 29,604,765 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 4,562,946 3,851,249 12,898,742 10,504,831 INCOME FROM OPERATIONS 15,026,405 4,086,438 28,922,112 19,099,934 OTHER (EXPENSE) INCOME, NET (252,501) 152,014 (866,178) 1,040,161 INCOME BEFORE PROVISION FOR INCOME TAXES AND MINORITY INTEREST 14,773,904 4,238,451 28,055,934 20,140,095 PROVISION FOR INCOME TAXES 152,990 344,248 3,297,438 1,610,653 INCOME BEFORE MINORITY INTEREST 14,620,914 3,894,203 24,758,496 18,529,442 MINORITY INTEREST 92,326 848,212 1,979,405 3,970,791 NET INCOME 14,528,588 3,045,991 22,779,091 14,558,651 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 807,035 1,927,502 7,906,663 5,700,759 COMPREHENSIVE INCOME $15,335,623 $4,973,493 $30,685,754 $20,259,410 EARNINGS PER SHARE, BASIC AND DILUTED $0.20 $0.04 $0.32 $0.20 WEIGHTED AVERAGE NUMBER OF SHARES, BASIC AND DILUTED 71,333,586 71,333,586 71,333,586 71,333,586 TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2008 AND DECEMBER 31, 2007 A S S E T S September 30, December 31, 2008 2007 As Adjusted (Unaudited) (Note 1) CURRENT ASSETS: Cash $41,667,163 $54,081,848 Accounts receivable, trade - related parties, net of allowance for doubtful accounts of $168,305 and $71,700, as of September 30, 2008 and December 31, 2007, respectively 33,492,698 14,268,229 Accounts receivable, trade - third parties -- 104,398 Inventories 7,565,126 5,949,963 Other receivables 465,221 1,068,343 Other receivables - related parties 10,852,795 13,887,138 Employee advances 423,239 65,901 Prepaid expense 308,614 623,638 Prepaid income taxes 728,993 -- Total current assets 95,503,849 90,049,458 PLANT AND EQUIPMENT, net 15,617,886 16,071,900 OTHER ASSETS: Construction in progress 61,421,955 39,792,774 Construction deposits 3,950,031 1,089,216 Intangible assets, net 15,820,797 9,246,879 Other assets 5,332,266 5,301,847 Total other assets 86,525,049 55,430,716 Total assets $197,646,784 $161,552,074 L I A B I L I T I E S A N D S H A R E H O L D E R S' E Q U I T Y September 30, December 31, 2008 2007 As Adjusted (Unaudited) (Note 1) CURRENT LIABILITIES: Accounts payable $7,507,216 $4,070,906 Advances from customers - related parties 3,074,501 1,700,838 Wages and benefits payable 938,879 1,250,685 Other taxes payable -- 536,819 Income taxes payable 138,841 665,726 Contractor deposits 236,165 595,128 Contactor payables 7,606,111 7,820,285 Other payables 1,223,681 1,133,539 Other payables - related parties 7,582,403 7,938,205 Dividend payable to minority interest -- 4,902,629 Current portion of long term debt, related party 2,130,000 2,130,000 Total current liabilities 30,437,797 32,744,760 NON-CURRENT LIABILITIES Long term debt, net of current portion, related party 3,202,742 4,267,742 Other payables-non current 574,184 538,130 Deferred income 11,207,307 4,895,049 Total non current liabilities 14,984,233 9,700,921 Total liabilities 45,422,030 42,445,681 MINORITY INTEREST 8,576,670 6,144,063 SHAREHOLDERS' EQUITY: Common stock, $0.001 par value, 250,000,000 shares authorized, 71,333,586 issued and outstanding, respectively 71,334 71,334 Paid-in-capital 8,842,009 8,842,009 Statutory reserves 9,420,783 9,420,783 Retained earnings 101,447,251 78,668,160 Accumulated other comprehensive income 23,866,707 15,960,044 Total shareholders' equity 143,648,084 112,962,330 Total liabilities and shareholders' equity $197,646,784 $161,552,074 TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 (UNAUDITED) Nine months ended September 30, 2008 2007 As Adjusted (Note 1) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $22,779,091 $14,558,651 Adjustments to reconcile net income to cash provided by (used in) operating activities: Provision for doubtful accounts 89,913 (11,320) Minority interest 1,979,405 3,970,791 Depreciation 2,063,597 2,218,230 Amortization 226,559 218,677 Interest expense (income) (138,328) 62,182 (Gain) on sale of assets (8,644) (3,341) (Increase) decrease in assets: Accounts receivable, trade - related parties (25,058,774) (1,558,640) Accounts receivable, trade - third parties 109,101 -- Other receivables 639,999 2,050,878 Other receivables - related parties 452,044 (10,924,763) Inventories (1,090,429) 1,436,897 Employee advances (345,666) 51,326 Prepaid expense 347,689 909,621 Increase (decrease) in liabilities: Accounts payable 3,098,509 (1,278,408) Advances from customers - related parties 1,233,804 (62,960) Wages and benefits payable (381,633) (233,645) Other taxes payable (1,834,741) (346,126) Other payables (86,004) 109,016 Other payables - related parties 282,945 (278,926) Net cash provided by operating activities 4,358,437 10,888,140 CASH FLOWS FROM INVESTING ACTIVITIES: Repayment from (loans to) related parties 2,155,702 (2,865,778) Collections from (loans to) local government 454,941 (9,778) Acquisition of intangible assets (6,037,069) (317,238) Construction deposits (3,363,647) -- Contractor deposits (390,634) 64,189 Addition to construction in progress (18,573,180) (17,431,705) Proceeds from sale of equipment 61,797 196 Purchase of equipment and automobiles (574,822) (4,742,096) Net cash used in investing activities (26,266,912) (25,302,210) CASH FLOW FROM FINANCING ACTIVITIES: Loan from (repayment to) related parties 6,578,584 (846,820) Payments on long term debt, related party (1,065,000) -- Increase in legal capital -- 20,999,900 Increase in deferred income 5,861,232 -- Payment to minority interest shareholder (5,123,520) (6,676,102) Net cash provided by (used in) financing activities 6,251,296 13,476,978 EFFECT OF EXCHANGE RATE CHANGES ON CASH 3,242,494 1,822,813 INCREASE (DECREASE) IN CASH (12,414,685) 885,721 CASH, beginning of period 54,081,848 55,214,540 CASH, end of period $41,667,163 $56,100,261 Supplemental disclosures of cash flow information Cash paid during the year for: Interest (net of amount capitalized) $132,662 $211,441 Income taxes $3,857,173 $1,885,052 Note 1. On December 20, 2007, the Company's subsidiary, Tianshi International Holdings Group Ltd. ("Tianshi Holdings"), entered a Sale and Purchase Agreement with Tianshi International Investment Group Co., Ltd. ("Tianshi Investment"). Pursuant to the Sale and Purchase Agreement, Tianshi Holdings agreed to buy all of the registered share capital of Tianjin Tiens Life Resources Co., Ltd. ("Life Resources") for $64.2 million. The transaction closed on March 13, 2008. As Tianshi Holdings and Life Resources were under common control by Jinyuan Li before the combination, the combination was treated for accounting purposes as a pooling of interests. The balance sheet of the Company at December 31, 2007 and comparative interim financial statements for the corresponding periods of the preceding fiscal year were adjusted as if Life Resources had been combined before January 1, 2007. TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES REVENUE BY REGION (Unaudited) Three months ended September 30, 2008 2007 Change China $14,576,060 $3,388,880 330.1% International $11,619,793 $7,638,598 52.1% Total $26,195,853 $11,027,478 137.6% Nine months ended September 30, 2008 2007 Change China $29,191,771 $15,736,494 85.5% International $29,479,350 $25,848,255 14.0% Total $58,671,121 $41,584,749 41.1% For more information, please contact: Investor Relations Tiens Biotech Group (USA), Inc. Tel: +86-22-8213-7915 Fax: +86-22-8213-7667 Email: investor@tiens-bio.com Web: http://www.tiens-bio.com Carl Hymans G. S. Schwartz & Co. Tel: +1-212-725-4500 Fax: +1-212-725-9188 Email: carlh@schwartz.comSOURCE Tiens Biotech Group (USA), Inc.
Source : http://www.ibtimes.com/prnews/20081114/tbv-q3-earnings.htm
Net income for the third quarter of 2008 was $14.5 million, an increase of377.0% compared to $3.0 million for the same period in 2007.
The increase in revenue for the third quarter of 2008 reflects an increasein revenue for both China and internationally.
For the third quarter of 2008, revenue in China was $14.6 million, anincrease of 330.1% compared to $3.4 million for the same period in 2007.During the third quarter, Tianshi Engineering, the affiliated company whichmarkets and sells Tiens' products in China, announced plans to increase theprices of its products in October 2008. Tiens believes that the increase inrevenue in the third quarter was due in part to customers stocking up oncertain products as a result of the price increase announcement by TianshiEngineering. Therefore, the increase in sales may not continue through thefourth quarter of 2008. At the present time, however, the price increase ofTianshi Engineering products will not affect the price at which Biologicalsells to Tianshi Engineering.
For the third quarter of 2008, international revenue was $11.6 million, anincrease of 52.1% compared to $7.6 million for the same period in 2007. Theincrease in international sales reflects further reductions in exportrestrictions by China for countries in Africa and Asia through the thirdquarter of 2008.
In August 2007, China's Administration of Quality Supervision, Inspectionand Quarantine ("AQSIQ") announced an ongoing national campaign in Chinaagainst unsafe food and substandard products. The special campaign againstpoor product quality was launched in response to a series of safety scaresinvolving Chinese products worldwide. The campaign set 20 detailed goals,including twelve "100 percents". For example, 100 percent of food producersshould be licensed; 100 percent of agricultural wholesale markets in citiesmust be monitored; 100 percent of suppliers of raw materials for exportedproducts should be inspected; and 100 percent of agricultural products must befree of five types of strong pesticides. The campaign, which was originallyscheduled to finish at the end of 2007, is currently scheduled to continuethroughout 2008.
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, fromAugust 2007 through the first quarter of 2008, Tiens experienced significantdelays in obtaining export clearance for all of the products which we sell toour international affiliates. Beginning in the second quarter of 2008, theseexport restrictions were reduced for exports to countries in Africa and Asia,but remained in place for exports to countries in Europe and the Americas.During the third quarter of 2008, these export restrictions were furtherreduced.
For the nine months ended September 30, 2008, revenue was $58.7 million,an increase of 41.1% compared to $41.6 million for the nine months endedSeptember 30, 2007.
For the nine months ended September 30, 2008, net income was $22.8 million,an increase of 56.5% compared to $14.6 million for the same period in 2007.
For the nine months ended September 30, 2008, revenue in China was $29.2million, an 85.5% increase compared to $15.7 million for the same period in2007. The growth in revenue during the third quarter was offset by a 15%decrease in revenue in China during the first quarter of 2008. During thefirst quarter of 2008, Tiens believes that sales in China were negativelyimpacted by continued uncertainty in China regarding the impact of recentlyenacted direct selling regulations and uncertainty regarding the timing of thedirect selling license application process and approval.
For the nine months ended September 30, 2008, international revenue was$29.5 million, an increase of 14.0% compared to $25.8 million for the sameperiod in 2007. This increase in international revenue was mainly due to anincrease in sales in Russia and Indonesia.
Other Highlights
Cost of sales for the third quarter of 2008 increased $113.8% to $6.6million, compared to $3.1 million for the same period in 2007. This increasewas mainly due to the increase in revenue for the period. Cost of sales forthe period increased at a lower rate than revenue primarily due to theincrease in sales of products sold to Tianshi Engineering which have a lowercost compared to products sold to overseas companies.
For the nine months ended September 30, 2008, cost of sales increased40.7% to $16.9 million, compared to $12.0 million for the same period in 2007.This increase was in line with the increase in revenue for the period and wasdue to both the increase in sales and the increase in the value of therenminbi against the dollar.
Gross profit for the third quarter of 2008 increased 146.8% to $19.6million, compared to $7.9 million for the same period in 2007. For the ninemonths ended September 30, 2008, gross profit increased 41.3% to $41.8million, compared to $29.4 million for the same period in 2007. The grossprofit margin for the third quarter of 2008 was 74.8%, compared to 72.0% forthe same period in 2007. This increase reflects the increase in proportion ofsales with higher gross profit margins. For the nine months ended September30, 2008, the gross profit margin was 71.3% compared to 71.2% for the sameperiod in 2007. The increase in gross profit margin during the third quarterwas offset by a 4.2% decrease during the first quarter of 2008.
Selling, general and administrative expenses were $4.6 million for thethird quarter of 2008, an increase of 18.5% compared to $3.9 million for thesame period in 2007. The increase was primarily due to increases in salaryexpense and research and development. Selling, general and administrativeexpenses as a percentage of sales was 17.4% for the third quarter of 2008compared to 34.9% for the same period in 2007. For the nine months endedSeptember 30, 2008, selling, general and administrative expenses were $12.9million, an increase of 22.8% compared to $10.5 million in the same period in2007. For the nine months ended September 30, 2008, selling, general andadministrative expenses as a percentage of sales was 22.0%, compared to 25.3%for the same period in 2007. This decrease reflects the increase in sales.
In China, Tiens sells its products to Tianshi Engineering, an affiliatedChinese company. In order to qualify for a direct selling license in China,Tianshi Engineering is required to produce a part of the products that itsells in China. As a result, in 2006, Tiens began to sell semi-finishedproducts to Tianshi Engineering, which jointly shares licenses with Tiens toproduce, manufacture and sell the products. The semi-finished products, whichTiens is now exclusively selling in China, have lower sales prices than thefinished products Tiens had previously sold to Tianshi Engineering. Theapplication of Tianshi Engineering for a direct selling license in China isstill pending.
Tiens continues to strive to expand its market share in China through thebranches, chain stores, and Chinese affiliated companies of TianshiEngineering. To enhance its position in this competitive market, TianshiEngineering continues to increase its marketing activities in China, includingopening additional branches across China, developing a nation-wide advertisingcampaign, encouraging media coverage and strengthening the Tiens brand.
As of September 30, 2008, Tiens had $101.5 million of retained earningsand total shareholders' equity of $143.6 million.
Jinyuan Li, Chairman, President and CEO of Tiens, said, "We are extremelypleased with the significant increase in both our domestic and internationalrevenue and continued sequential growth since the first quarter of 2008. Wecontinue to benefit from reduced international export restrictions and areoptimistic that our international sales will further increase as additionalexport restrictions are lifted. We are well positioned to capitalize on ourgrowing international customer base and remain committed to gaining greatermarket share in China for our high quality products as well."
About Tiens Biotech Group (USA), Inc. http://www.tiens-bio.com .
Tiens Biotech Group (USA), Inc. (NYSE Alternext US: TBV) conducts itsbusiness operations from Tianjin, People's Republic of China. Tiens primarilyengages in the research, development, manufacturing, and marketing ofnutrition supplement products, including wellness products and dietarysupplements.
Tiens derives its revenues principally from product sales to affiliatedcompanies in China and internationally in 52 countries. Since itsestablishment, Tiens has developed and produced 33 nutrition supplements,which include wellness products and dietary supplements. Tiens develops itsproducts at its own product research and development center, which employshighly qualified professionals in the fields of pharmacology, biology,chemistry and fine chemistry. Tiens has obtained all required certificatesand approvals from government regulatory agencies to manufacture and sell itsproducts in China.
In China, Tiens conducts the marketing and sales of its products throughits affiliated company, Tianshi Engineering. Tianshi Engineering markets andsells Tiens' products in China through chain stores, domestic affiliatedcompanies, and its 100 branches. Outside of China, Tiens sells its productsto affiliated companies in 52 countries who in turn sell through an extensivedirect sales force, or multi-level marketing sales force. The Company'sdirect sales marketing program is subject to governmental regulation in eachof these countries.
Certain statements in this press release constitute "forward-lookingstatements" within the meaning of Section 27A of the Securities Act of 1933and Section 21E of the Securities and Exchange Act of 1934. Such forward-looking statements are not necessarily indicative of future financial results,and may involve known and unknown risks, uncertainties and other factors,which may cause the actual results, performance or achievements of the Company,to be materially different from any future results, performance, orachievements expressed or implied by such forward-looking statements. TheCompany's future operating results are dependent upon many factors, includingbut not limited to: (i) the Company's ability to obtain sufficient capital ora strategic business arrangement to fund its expansion plans; (ii) theCompany's ability to build the management and human resources andinfrastructure necessary to support the growth of its business; (iii)competitive factors and developments beyond the Company's control; (iv)whether the Company continues to experience delays in the export clearance ofits products; (v) whether Tianshi Engineering, the Company's affiliate whichsells its products in China, obtains a direct selling license in China; and(vi) other risk factors discussed in the Company's periodic filings with theSecurities and Exchange Commission which are available for review athttp://www.sec.gov under "Search for Company Filings."
TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 (Unaudited) Three months ended Nine months ended September 30, September 30, 2008 2007 2008 2007 As Adjusted As Adjusted (Note 1) (Note 1) REVENUE - RELATED PARTIES $26,195,853 $11,027,478 $58,671,121 $41,584,749 COST OF SALES - RELATED PARTIES 6,606,502 3,089,791 16,850,267 11,979,984 GROSS PROFIT 19,589,351 7,937,687 41,820,854 29,604,765 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 4,562,946 3,851,249 12,898,742 10,504,831 INCOME FROM OPERATIONS 15,026,405 4,086,438 28,922,112 19,099,934 OTHER (EXPENSE) INCOME, NET (252,501) 152,014 (866,178) 1,040,161 INCOME BEFORE PROVISION FOR INCOME TAXES AND MINORITY INTEREST 14,773,904 4,238,451 28,055,934 20,140,095 PROVISION FOR INCOME TAXES 152,990 344,248 3,297,438 1,610,653 INCOME BEFORE MINORITY INTEREST 14,620,914 3,894,203 24,758,496 18,529,442 MINORITY INTEREST 92,326 848,212 1,979,405 3,970,791 NET INCOME 14,528,588 3,045,991 22,779,091 14,558,651 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 807,035 1,927,502 7,906,663 5,700,759 COMPREHENSIVE INCOME $15,335,623 $4,973,493 $30,685,754 $20,259,410 EARNINGS PER SHARE, BASIC AND DILUTED $0.20 $0.04 $0.32 $0.20 WEIGHTED AVERAGE NUMBER OF SHARES, BASIC AND DILUTED 71,333,586 71,333,586 71,333,586 71,333,586 TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2008 AND DECEMBER 31, 2007 A S S E T S September 30, December 31, 2008 2007 As Adjusted (Unaudited) (Note 1) CURRENT ASSETS: Cash $41,667,163 $54,081,848 Accounts receivable, trade - related parties, net of allowance for doubtful accounts of $168,305 and $71,700, as of September 30, 2008 and December 31, 2007, respectively 33,492,698 14,268,229 Accounts receivable, trade - third parties -- 104,398 Inventories 7,565,126 5,949,963 Other receivables 465,221 1,068,343 Other receivables - related parties 10,852,795 13,887,138 Employee advances 423,239 65,901 Prepaid expense 308,614 623,638 Prepaid income taxes 728,993 -- Total current assets 95,503,849 90,049,458 PLANT AND EQUIPMENT, net 15,617,886 16,071,900 OTHER ASSETS: Construction in progress 61,421,955 39,792,774 Construction deposits 3,950,031 1,089,216 Intangible assets, net 15,820,797 9,246,879 Other assets 5,332,266 5,301,847 Total other assets 86,525,049 55,430,716 Total assets $197,646,784 $161,552,074 L I A B I L I T I E S A N D S H A R E H O L D E R S' E Q U I T Y September 30, December 31, 2008 2007 As Adjusted (Unaudited) (Note 1) CURRENT LIABILITIES: Accounts payable $7,507,216 $4,070,906 Advances from customers - related parties 3,074,501 1,700,838 Wages and benefits payable 938,879 1,250,685 Other taxes payable -- 536,819 Income taxes payable 138,841 665,726 Contractor deposits 236,165 595,128 Contactor payables 7,606,111 7,820,285 Other payables 1,223,681 1,133,539 Other payables - related parties 7,582,403 7,938,205 Dividend payable to minority interest -- 4,902,629 Current portion of long term debt, related party 2,130,000 2,130,000 Total current liabilities 30,437,797 32,744,760 NON-CURRENT LIABILITIES Long term debt, net of current portion, related party 3,202,742 4,267,742 Other payables-non current 574,184 538,130 Deferred income 11,207,307 4,895,049 Total non current liabilities 14,984,233 9,700,921 Total liabilities 45,422,030 42,445,681 MINORITY INTEREST 8,576,670 6,144,063 SHAREHOLDERS' EQUITY: Common stock, $0.001 par value, 250,000,000 shares authorized, 71,333,586 issued and outstanding, respectively 71,334 71,334 Paid-in-capital 8,842,009 8,842,009 Statutory reserves 9,420,783 9,420,783 Retained earnings 101,447,251 78,668,160 Accumulated other comprehensive income 23,866,707 15,960,044 Total shareholders' equity 143,648,084 112,962,330 Total liabilities and shareholders' equity $197,646,784 $161,552,074 TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 (UNAUDITED) Nine months ended September 30, 2008 2007 As Adjusted (Note 1) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $22,779,091 $14,558,651 Adjustments to reconcile net income to cash provided by (used in) operating activities: Provision for doubtful accounts 89,913 (11,320) Minority interest 1,979,405 3,970,791 Depreciation 2,063,597 2,218,230 Amortization 226,559 218,677 Interest expense (income) (138,328) 62,182 (Gain) on sale of assets (8,644) (3,341) (Increase) decrease in assets: Accounts receivable, trade - related parties (25,058,774) (1,558,640) Accounts receivable, trade - third parties 109,101 -- Other receivables 639,999 2,050,878 Other receivables - related parties 452,044 (10,924,763) Inventories (1,090,429) 1,436,897 Employee advances (345,666) 51,326 Prepaid expense 347,689 909,621 Increase (decrease) in liabilities: Accounts payable 3,098,509 (1,278,408) Advances from customers - related parties 1,233,804 (62,960) Wages and benefits payable (381,633) (233,645) Other taxes payable (1,834,741) (346,126) Other payables (86,004) 109,016 Other payables - related parties 282,945 (278,926) Net cash provided by operating activities 4,358,437 10,888,140 CASH FLOWS FROM INVESTING ACTIVITIES: Repayment from (loans to) related parties 2,155,702 (2,865,778) Collections from (loans to) local government 454,941 (9,778) Acquisition of intangible assets (6,037,069) (317,238) Construction deposits (3,363,647) -- Contractor deposits (390,634) 64,189 Addition to construction in progress (18,573,180) (17,431,705) Proceeds from sale of equipment 61,797 196 Purchase of equipment and automobiles (574,822) (4,742,096) Net cash used in investing activities (26,266,912) (25,302,210) CASH FLOW FROM FINANCING ACTIVITIES: Loan from (repayment to) related parties 6,578,584 (846,820) Payments on long term debt, related party (1,065,000) -- Increase in legal capital -- 20,999,900 Increase in deferred income 5,861,232 -- Payment to minority interest shareholder (5,123,520) (6,676,102) Net cash provided by (used in) financing activities 6,251,296 13,476,978 EFFECT OF EXCHANGE RATE CHANGES ON CASH 3,242,494 1,822,813 INCREASE (DECREASE) IN CASH (12,414,685) 885,721 CASH, beginning of period 54,081,848 55,214,540 CASH, end of period $41,667,163 $56,100,261 Supplemental disclosures of cash flow information Cash paid during the year for: Interest (net of amount capitalized) $132,662 $211,441 Income taxes $3,857,173 $1,885,052 Note 1. On December 20, 2007, the Company's subsidiary, Tianshi International Holdings Group Ltd. ("Tianshi Holdings"), entered a Sale and Purchase Agreement with Tianshi International Investment Group Co., Ltd. ("Tianshi Investment"). Pursuant to the Sale and Purchase Agreement, Tianshi Holdings agreed to buy all of the registered share capital of Tianjin Tiens Life Resources Co., Ltd. ("Life Resources") for $64.2 million. The transaction closed on March 13, 2008. As Tianshi Holdings and Life Resources were under common control by Jinyuan Li before the combination, the combination was treated for accounting purposes as a pooling of interests. The balance sheet of the Company at December 31, 2007 and comparative interim financial statements for the corresponding periods of the preceding fiscal year were adjusted as if Life Resources had been combined before January 1, 2007. TIENS BIOTECH GROUP (USA), INC. AND SUBSIDIARIES REVENUE BY REGION (Unaudited) Three months ended September 30, 2008 2007 Change China $14,576,060 $3,388,880 330.1% International $11,619,793 $7,638,598 52.1% Total $26,195,853 $11,027,478 137.6% Nine months ended September 30, 2008 2007 Change China $29,191,771 $15,736,494 85.5% International $29,479,350 $25,848,255 14.0% Total $58,671,121 $41,584,749 41.1% For more information, please contact: Investor Relations Tiens Biotech Group (USA), Inc. Tel: +86-22-8213-7915 Fax: +86-22-8213-7667 Email: investor@tiens-bio.com Web: http://www.tiens-bio.com Carl Hymans G. S. Schwartz & Co. Tel: +1-212-725-4500 Fax: +1-212-725-9188 Email: carlh@schwartz.comSOURCE Tiens Biotech Group (USA), Inc.
Source : http://www.ibtimes.com/prnews/20081114/tbv-q3-earnings.htm
Tuesday, November 25, 2008
No Amputation in Spite of Diabetic's Wound
Last December 2006, my dad's right leg was swollen and was not able to move. Doctor's diagnose showed that my dadsuffered from diabetes mellitus. His blood sugar level reached 350. Moreover, there was pus on his swollen leg caused by infection. The doctor decided to take pus out and prescribed some medicines to lessen his blood glucose. however, the pus came out again in only a few days, and the doctor re-took the pus out. The doctor stated that if the pus was still coming out, dad's right leg should be amputated to avoid the spread of the pus to other parts of body.
I told Dr. Rahmawati about my dad's condition. She suggested that my dad consume Tiens's products, such as Chitosan, Calcium 2 (for diabetic patient), and Tea (Antilipemic Tea). My dad should apply Chitosan to the wound besides consuming it. Wonderful! Only within a week, my dad's blood glucose was reducing to 250, and his wounded leg was getting better and the pain was decreasing. A week after that, his wound was h
ealed.A month after consuming Tiens's products, my dad is able to walk, he can even ride his motorbike and go back to work as before. To maintain his health, dad keeps working out, controls his daily food and consumes Tiens products
Monday, November 17, 2008
Sleeplessness
Sleeplessness or insomnia is caused by many reasons. This problem also has various levels, from the lightest to the hardest. Light cases could be overcome by more simple therapy method. Meanwhile, heavy insomnia tends to be related to nervous disorder, so it needs expert's handling and a more complex theraphy. If the insomnia affected your health condition, you better consult with a doctor to receive a proper theraphy.
Suggest you to consume Beneficial Capsules with the dosage of 2x2 capsules every day. This product brings you calming effect and stimulates sleepy state. Besides you might need to consume Vitality Softgel Capsules that functions for soothing stress being with the dosage of 1x1 capsules every day. Also consume Calcium 1 with the dosage of 1 pack every day, drink it in the morning
You better follow Aculife theraphy by focusing on treatment at nervous points causing insomnia. Remember that the frequency and duration of theraphy should be subject to the usage instruction of Aculife.
Suggest you to consume Beneficial Capsules with the dosage of 2x2 capsules every day. This product brings you calming effect and stimulates sleepy state. Besides you might need to consume Vitality Softgel Capsules that functions for soothing stress being with the dosage of 1x1 capsules every day. Also consume Calcium 1 with the dosage of 1 pack every day, drink it in the morning
You better follow Aculife theraphy by focusing on treatment at nervous points causing insomnia. Remember that the frequency and duration of theraphy should be subject to the usage instruction of Aculife.
Sunday, November 16, 2008
Keep Youir Pregnancy Healthy
Doctor, right now I am 8 weeks pregnant. What should i do to keep my pregnancy healthy so I will have a healthy baby as well?
One thing for sure, pays attention to meal pattern. Choose only meal with balanced nutrient and healthy. My advice is following your doctor's suggestion. Every person has specific body condition so I am sure that your doctor knows what your body need
Any Certain Tiens product good to consume by pregnant woman like me?
Pregnant woman is recommended to consume Calcium and Soya. For a fit condition, you can consume Vitality and Zinc for body immunity
I heard that pregnant woman is facing a risk for pre-eclampsia. How do I know the tendency and what should I do to deal with it?
Pre-eclampsia is usually marked by the tendency of high-blood pressure. Pregnant woman who experience this will feel dizzy and sometime unconscious. Please contact your doctor if having this tendency. Please take rest as much as you can. The rest suggestion is valid for all pregnant women. For pre-eclampsia case, bed rest is a must.
One thing for sure, pays attention to meal pattern. Choose only meal with balanced nutrient and healthy. My advice is following your doctor's suggestion. Every person has specific body condition so I am sure that your doctor knows what your body need
Any Certain Tiens product good to consume by pregnant woman like me?
Pregnant woman is recommended to consume Calcium and Soya. For a fit condition, you can consume Vitality and Zinc for body immunity
I heard that pregnant woman is facing a risk for pre-eclampsia. How do I know the tendency and what should I do to deal with it?
Pre-eclampsia is usually marked by the tendency of high-blood pressure. Pregnant woman who experience this will feel dizzy and sometime unconscious. Please contact your doctor if having this tendency. Please take rest as much as you can. The rest suggestion is valid for all pregnant women. For pre-eclampsia case, bed rest is a must.
The Asia Pasific Logistics Launced Online System
Technology achievment now has become more advanced than ever and so is the need to access information more quickly. Therefore at the beginning of this year 2008, in anticipating the rapid advancement of information and the increase of sales figures. Tiens Indonesia Logistic trading Company launched on online system for Indonesia area by using Microsoft Dynamics AX system on Januari 1st, 2008
Formerly, during the process of applying online system, there were for sure some problems that had to be dealt with. However, with the cooperation from the head of information center and the head office logistics departement, all those problems could be resolved. With the presence of this online system, working efficiently was made possible so as to provide the best service to all parties. In the future, the same system will be applied in South Asia and Vietnam area
Formerly, during the process of applying online system, there were for sure some problems that had to be dealt with. However, with the cooperation from the head of information center and the head office logistics departement, all those problems could be resolved. With the presence of this online system, working efficiently was made possible so as to provide the best service to all parties. In the future, the same system will be applied in South Asia and Vietnam area
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