Wednesday, April 23, 2008

Tiens Biotech Group (USA) Reports Fourth Quarter and

Revenue for the fourth quarter of 2007 was $13.3
million compared to $16.6 million for the fourth
quarter of 2006.

Net income for the fourth quarter of 2007 was $3.9
million, or $0.05 per share, compared to net income of
$5.9 million, or $0.08 per share for the fourth
quarter of 2006.

Revenue for the twelve months ended December 31, 2007
was $54.9 million, compared to $66.8 million for the
twelve months ended December 31, 2006.

Net income for the twelve months ended December 31,
2007 was $18.6 million, or $0.26 per share, compared
to $26.3 million, or $0.37 per share for the twelve
months ended December 31, 2006.

Revenue by Region

For the fourth quarter of 2007, revenue in China was
$6.7 million compared to $6.8 million for the fourth
quarter of 2006. For the twelve months ended December
31, 2007, revenue in China was $22.5 million, compared
to $27.1 million for the twelve months ended December
31, 2006.

Revenue for 2006 benefited from a special promotion
conducted in the third quarter of the year for
distributors in China, which increased sales. No
similar promotion was held during 2007, which
contributed to the decrease in revenue for the period.
In addition, the application for a direct selling
license in China is still pending. Until the
application is approved, Tianshi Engineering will
continue to sell Tiens' products through its branches,
affiliated companies and chain stores in China.

For the fourth quarter of 2007, international revenue
was $6.6 million, compared to $9.8 million for the
fourth quarter of 2006. For the twelve months ended
December 31, 2007, international revenue was $32.4
million, compared to $39.7 million for the comparable
period of 2006. This decrease mainly reflects a
general sales weakness, particularly to countries in
Africa during the second quarter of 2007.

International sales were also impacted by the General
Administration of Quality Supervision, Inspection and
Quarantine's (AQSIQ) announcement in August 2007 of 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 in
international sales and several of Tiens'
international affiliates being unable to receive
sufficient quantities of products to meet their
demand. However, it is important to note that to date,
no problems have been identified with any of Tiens'
products. The campaign, which was originally scheduled
to finish at the end of 2007, is currently scheduled
to continue throughout 2008.

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