Yasheng Group reports record full-year results
In the beginning of 2013, the global economy continued to recover. The company expanded seed, vegetable and green agricultural product lines, with strengthened internal control system implementation. Sales are generated from their farm and side line products. Net sales for the year ended December 31, 2013 increased $18 million or 1.8% to $1,011 million as compared to $993 million for the year ended December 31, 2012. The increase in net sales was attributable to higher yields and a better product mix. The Yasheng Groupalso continued to benefit from expanded distribution channels. However, at the beginning and the end of 2013, most of the northern region of China experienced cold weather with snow and wind, negatively affecting fruit tree harvests.
The cost of goods sold consists primarily of the costs of raw materials, labour, and overhead. Cost of sales for the year ended December 31, 2013 increased by $7.9 million, or 0.9%, to $868 million from $860 million for the year ended December 31, 2012. Due to management's continued heightened focus on cost control exercised throughout production, costs grew less than sales. The Gansu Provincial Development and Reform Commission reported that in 2013 the major reasons for increased agricultural costs were: transportation and diesel costs continued to rise, the costs for consumables such as pesticides, seeds, agricultural film increased, and labour costs continued to rise.
Gross Profit and Gross Margin. The gross profit for the year ended December 31, 2013 increased $10.3 million or 8% to $143 million from $133 million for the year ended December 31, 2012. The profit improvement was primarily a result of increased production.
Net Income. Our net income for the period grew to $136 million or $.88 per share from $126 million or $.82 per share for the prior-year period.
Please visit www.yashenggroup.com for more information.