Tiens Biotech Group Q2 Profit Declines - Quick Facts [TBV]

8/14/2007 8:32:55 AM Tiens Biotech Group, Inc. (TBV) reported second quarter net income of $5.1 million or $0.07 per share, compared to net income of $5.2 million or 40.07 per share in the last year quarter.

Revenue for the quarter was $14.32 million, compared to $14.29 million in the year-ago quarter.

Revenue for the six months ended June 30, 2007 was $30.6 million, down from $31.0 million in the last year period. Net income for the period was $11.6 million or $0.16 per share, compared to net income of $12.0 million or $0.17 per share in the prior year period.

source: http://www.rttnews.com/sp/Quickfactsnew.asp?date=08/14/2007&item=95

Tiens Biotech Group (USA) Reports Second Quarter Results

August 14, 2007: 08:00 AM EST

NEW YORK, Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- Tiens Biotech Group (USA), Inc. (''the Company'' or ''Tiens''), , http://www.tiens-bio.com , announced financial results for the second quarter ended June 30, 2007.

Revenue for both the second quarter of 2007 and the second quarter of 2006 was $14.3 million.

Net income for the second quarter of 2007 was $5.1 million, compared to net income of $5.2 million for the second quarter of 2006. Earnings per share for both the second quarter of 2007 and 2006 were $0.07.

Revenue for the six months ended June 30, 2007 was $30.6 million, compared to $31.0 million for the six months ended June 30, 2006.

Net income for the six months ended June 30, 2007 was $11.6 million, compared to net income of $12.0 million for the first six months of 2006. Earnings per share for six months ended June 30, 2007 were $0.16 compared to $0.17 for the first six months of 2007.

Revenue by Region

For the second quarter of 2007, revenue in China was $5.1 million, an increase of 14.8% compared to the same period in 2006.

In China, Tiens sells its products to Tianjin Tianshi Biological Engineering Co., Ltd. (''Tianshi Engineering''), an affiliated Chinese company. In order to qualify for a direct selling license in China, Tianshi Engineering is required to produce a part of the products that it sells in China. As a result, in 2006, Tiens began to sell semi-finished products to Tianshi Engineering, which jointly shares licenses with Tiens to produce, manufacture and sell the products. The semi-finished products, which Tiens is now exclusively selling in China, have lower sales prices than the finished products Tiens had previously sold to Tianshi Engineering.

During the first quarter of 2006, Tiens had significant amounts of finished products in inventory. As previously mentioned above, semi-finished products have lower sales prices than finished products Tiens had previously sold to Tianshi Engineering. By the second quarter of 2006, most of the finished products in inventory had been sold. Therefore, the increase between the second quarters of 2007 and 2006 reflects a growth in sales of our products in China on the basis of comparing sales of semi-finished products in the second quarters of both 2006 and 2007. The increase in the strength of the Chinese renminbi (RMB) against the dollar accounted for 43% of the $662,905 increase in revenue in the second quarter of 2007 compared to the same period in 2006.

For the six months ended June 30, 2007, revenue in China was $12.3 million, a decrease of 5.3% compared to the first half of 2006. Management believes that sales to China have been negatively impacted by the following factors:

    -- continued consumer uncertainty in China regarding the impact of
      recently enacted direct selling regulations and uncertainty regarding
      the timing of the direct selling license application process and
      approval; and

   -- increased government and media scrutiny on the direct selling industry,
      particularly following last year's publication of the new direct
      selling regulations.

The application of Tianshi Engineering for a direct selling license in China is still pending.

For the second quarter of 2007, international revenue was $9.2 million, a decrease of 6.5% compared to the same period in 2006. The decrease was primarily due to a decrease in sales in Africa. For the six months ended June 30, 2007, international revenue was $18.2 million, an increase of 1.3% compared to the same period in 2006.

Other Highlights

Cost of sales for the second quarter of 2007 increased to $4.5 million, or 15.9%, compared to $3.8 million for the comparable period in 2006. This increase was primarily due to an increase in the strength of the renminbi against the dollar. Cost of sales for the six months ended June 30, 2007 was $8.9 million, compared to $8.6 million for the same period in 2006.

Gross profit for the second quarter of 2007 was $9.9 million compared to $10.5 million for the same period in 2006. The gross profit margin for the second quarter of 2007 was 68.9%, compared to 73.1% for the same period in 2006. Gross profit for the six months ended June 30, 2007 was $21.7 million, compared to $22.4 million for the same period in 2006. The gross profit margin for the six months ended June 30, 2007 was 70.9%, compared to 72.1% for the same period in 2006.

Selling, general and administrative expenses remained flat at $3.3 million for the second quarter of 2007. Increases in salary and depreciation expenses were offset by a decrease in research in development expenses. The selling, general and administrative expenses as a percentage of sales was 23.2% for the second quarter of 2007 compared to 22.9% for the same period in 2006. Selling, general and administrative expenses was $6.6 million for the six months ended June 30, 2007, compared to $5.8 million for the same period in 2006, an increase of 12.2%. The increase was primarily due to an increase in salary and depreciation expenses. The selling and administrative expense as a percentage of sales was 21.4% for the six months ended June 30, 2007 compared to 18.8% for the same period in 2006.

Tiens continues to strive to expand its market share in China through the branches, chain stores, and Chinese affiliated companies of Tianshi Engineering. To enhance its position in this competitive market, Tianshi Engineering continues to increase its marketing activities in China, including opening additional branches across China, developing a nation-wide advertising campaign, encouraging media coverage and strengthening the Tiens brand.

As of June 30 2007, Tiens had $107.0 million of retained earnings and total shareholders' equity of $134.4 million.

Jinyuan Li, Chairman, President and CEO of Tiens, said, ''Tiens generated an increase in domestic revenue in the second quarter while maintaining consistent overall revenue despite the challenging direct selling regulatory environment in China. In addition, Tiens generated an increase in net results compared to the first quarter of 2007. We are committed to achieving future growth and enhanced shareholder value and remain positive in our long-term outlook for the Company.''

For more information please visit:http://www.money.cnn.com/news/newsfeeds/articles/prnewswire/CNTU00114082007-1.htm

New biz model paving the way to success

By Xiao Wang(China Daily)
Updated: 2006-11-03 07:01

Tiens Group, a China-based global consumer product and service company, will pour huge investment into establishing up to 1,000 direct-selling supermarkets around the world by 2009, to sell its flagship products to further cement its global business foothold.

The fledgling African market will occupy a crucial position in Tiens' gigantic expansion plan, sources from the group announced, prior to the Forum on China-Africa Co-operation being held in Beijing from November 1 to 6.

"We aim to implement a new approach to further drive our business forward globally. Backed by our worldwide customer pool, we will channel substantial daily consumer products and services through us and our global partners to make one-stop shopping possible," Li Jinyuan, chairman of Tiens Group, revealed to China Daily.

"Emerging and promising markets, such as Africa, Southeast Asia, Eastern Europe and Latin America, will play an important role in our ambitious global expansion plan," Li added.

The actual investment for the 1,000 direct-selling supermarkets amounts to hundreds of millions of US dollars, and dozens of new supermarkets will be established in Africa, according to the Tiens chairman.

"We attach great importance to the African market. Currently, we have branches in about 30 African countries. The figure will be expanded to 40 next year," Li elaborated.

According to Tiens' plan, to set up 1,000 direct-selling outlets is expected to differentiate the company's strategy from its global competitors'.

"It is a gigantic project, which will give us a competitive edge. In fact, we believe we will outpace our competitors by adopting such a business model," Li highlighted.

The first such supermarket is to be built in Tianjin municipality, where Tiens' China manufacturing facility is located.

Products available in Tiens' future supermarkets will include Tiens' traditional healthcare products, daily consumer commodities, small medical care equipment and products and services of the firm's global partners.

"Besides traditional products from us and our global partners, we will even try to provide value-added tourism and financial products and services in our future supermarkets. Because of our huge consumer pool, service providers, such as financial institutes and tourism agents are enthusiastic about co-operating with us on our supermarket project," Li introduced.

Int'l partners

Besides manufacturing products, Tiens also looks for high-end global suppliers to share its new business model with. Tiens' partners come not only from China but from around the world. Among them, many are global giants scattered in various business segments.

Multinationals such as L'Oreal, Pfizer Pharmaceuticals and Shiseido have hammered out long-term partnerships with Tiens, serving as high-end original equipment manufacturers (OEM) and original design manufacturers (ODM) for Tiens.

"It is true that it is not cheap to find partners at that level. However, by co-operating with these high-end global OEM and ODM partners, we can guarantee the quality of our brand products and our brand value will be enhanced. Brand power is the most important asset in our philosophy," Li explained.

In return, OEM and ODM suppliers of Tiens can benefit from such partnerships because of Tiens' extensive global sales networks and large customer pool.

"We can have our brand power boosted, while our partners can sell products they made through our business channels. It is actually a win-win situation," Li said.

More importantly, by doing that, extra expenses and risks such as tariffs, anti-dumping charges, foreign exchange costs and transportation costs will be avoided, Li emphasized.

"This is exactly what we expect from our new business model," Li added. Tiens adopted the strategy of finding high-end global OEM and ODM partners from 2001, when many privately owned Chinese enterprises were still enthusiastic about and satisfied with serving as OEM suppliers for multinationals.

Profile

Founded in 1995, Tiens Group has grown into a global enterprise with business operations in more than 190 countries and regions, with a customer pool of over 10 million.

Since its foundation, Tiens has managed to maintain a fast but steady growth with its anchor business concentrating on the advanced biotechnology industry.

The group has successfully developed more than 1,000 products, which are based on advanced biotechnologies, in-depth research of Chinese traditional medicine and the Chinese philosophy of healthcare. The group is also involved in financing, real estate development, education, cultural exchanges and modern logistics.

The group marched into the international arena in early 1998, with an internationalized paradigm catering to its own development. So far, there are 50,000 franchised outlets around the world selling its products, and the group has set up branches in 104 countries and regions.

(China Daily )

T B V

Tiens Biotech Group USA Inc., Ticker (TBV), operates primarily through its China-based subsidiary Tiens Biological Development CO. Ltd. Tiens Biological has developed and produced seven major product series, of which six comprise nutrition supplement products, and the seventh comprises personal care products. It develops its products at its own product research and development center and conducts the marketing and sales of its products through its affiliated company, which owns 23 branches, representative offices and chain stores.
Tiens Biotech Group Inc. is an AMEX listed security that has been trading in a range between $2.61 and $6.99 over the past year. With 71,333,590 shares outstanding, a recent price of $4.04 gives a total market capitalization of $285,334,360. While there are certainly larger companies, Tiens Biotech Group Inc. has definitely earned its place in the pack. Last year, Tiens Biotech Group Inc. created $0.37 in earnings for every share outstanding.
With a share price under $50 a share and earnings per share below $1 a share, Tiens Biotech Group Inc. could be an interesting value proposition

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Tiens Yihai Health Industrial Park

The comprehensive layout is atmospheric with miniature views everywhere and a wonderful art painting of architecture as a whole.

The axis of the avenue consists of 2 big roads each is over 1,000 meters long. The road from south to north is name Road of Success; the road from east to west is named Road of Health. The design of the Road of Success is unique. The bricks made of brass are laid starting from the main entrance; carved on bricks are the steps of the world’s celebrities and successful people. As time goes by, new steps will be left constantly. This golden shinning road will extend gradually towards the Monument of Success in the center of the park, presenting a spectacular landscape. The Road of Health from east to west leads directly to the Convalescence Center, flanked on either side of the road with drug herbs, each forming an artificial landscape theme. Exotic plants stick your feet and wake up your imagination. Crossing the river of gold water and embarking the yacht, you will sail to Dianshan Lake.

The chief office building in the administrative region extends 300 meters in length occupying an arc on the ground; the façade of the building employs the modern decoration style; advanced intelligent office system is installed inside. It will be the global administrative center of Tiens after the construction. 4 bridges will be built on the Gold Water River in front of the office building. A pier will be built among the bridges; an open square of over 100 mu is to be built opposite the Gold Water River; a parking apron for helicopters will be built on the east side of the square; a shoal water fountain pool will be built in the middle of the square; by adopting photoelectric frequency conversion technology, the colorful water columns of various shapes will be shot dozens of meters high. Flanking the fountain pool are the large scale European garden views, 4 rows of 200 masts hanging the national flags.

The research and development center is located in the north of the administrative region, covering 60 thousand m2 and installed with the most advanced equipments in the world, thus making it the world healthcare product R&D and scholar exchange center.

On the west bank of Gold Water River locates the international training center, covering 40 thousand m2; it’s consisted of a large hall holding 3000 seats and several small halls. The eaves of the hall are styled with 6 curved crystal plates combined together. Characterized with the dynamic post-modern architect style, the 6 crystal plates signify the 6 interactive networks.

A star-level hotel and a large dinning hall supporting 3,000 people are built in the central section of the park.

The 300,000 m2 modern plant and international logistics center is located in the north of the axis of the park;

Between the 2 rivers a living section and expert apartment section are to be built; each villa in the expert apartment section has a unique style of the most representative architectures, ranging from eastern and western, modern and ancient classic. After the construction, there will be friends from various countries of the world living in the villas of various unique styles, singing the same song – the song of Tiens.

Source: http://williamkusuma.blogspot.com

The fastest Tiens Distributor

From Editor Desk,

Who is the fastest distributor in TIENS? Finges will be pointed towards Mr. Hu Jian. He is one of the few Directors in TIENS. To be a Director in TIENS, one needs to have minimum 4 frontline of Gold Lions, or at least 36 frontline of 8 Stars. The surprise does not end there. He reached this position in 18 months ONLY!!!... After joining TIENS in the first 4 months, he became an 8 Star. Three months later, he became Bronze Lion. On the 7th month after joining TIENS he became a Gold Lion (He never felt what it is like to be a Silver Lion.) On month number 10, He received his Luxury Car. On month number 15 He received his Luxury VILLA. Finally, on the 18th month he became a DIRECTOR. SO, what are the rest of US waiting for???... Let's prove to the world, we can be a Director TOO!!!... SEE YOU AT THE TOP!!!

Source: http://williamkusuma.blogspot.com

TIENS Tapping China's Retail Market

From Editor Desk


Banner Store, a retail brand of China TIENS Group Co., Ltd., opened a store which provides common commodities like health care products, household cleaning products and cosmetics, the store will provide some special products such as private-brand commodities and commodities purchased from production area. Banner Store plans to open 40 to 50 such stores in China this year and lift total number of its Banner-branded stores to 400 in the country within three years, revealed insiders.

Banner's worldwide direct-selling stores are expected to reach 1,000 by 2009. Together with franchised stores, number of its worldwide stores are expected to hit 2,000 to 3,000 by then. All of this 1000 supermall will be under Tiens management and another 2000 will be franchiesed.

China TIENS Group Co., Ltd., a multinational group specializing in retail, tours, finance, international trade and e-commerce, has expanded its business to 190 counties and territories by through establishing braches and representative offices in 105 countries and territories.

Source: www.chinadaillynews.com, www.6nets.com

SUCCESS MIND FRAME

From Editor Desk

A Study on ESQ WAY 165 In Line With Network Marketing Practice

It is a common fact that there more unsuccessful networkers than the successful ones. More efforts and energy have been dedicated for the success goal, but until then no best result can be achieved. Here the author share the comprehensive 165 concept to build asset in network marketing industries.
Step 1, We should have the rich mentality such as helpful, honesty, creativity, serviceful, braveness, patient, and so more. This character comes from the inner value of human that called God Spot.

Step 2, We should build the integrity of our mental strength. At this step we should have the believeness that we can be success or winner. Then we should plant the commitment and loyality in building the businness, having the proactive mind, and giving the good manner for other. Then we should develop the leadership character in you. Leadership is a very very important aspect in Network Marketing Business. Find the value in leading people. Still in mental building, we shoul have the principle of forever learning. At this step we should read the change of environtment and critized the method. The next, we should have vison in running the business. The success of this business depends on how great your vision. The last thing in the second step is that we should build system or run a best system for your group.

Step 3, We then act in 5 rule. The first, we should make the mission for this business. It means that we plan for shorter term, middle, and long terms. Then build the reliable character of your team. All the activities should be controll well. Then make a strategic collaboration in your group to make solid team. And finally total action is done comprehensively to boost your business.