China Yida Announces Third Quarter 2012 Results

               China Yida Announces Third Quarter 2012 Results

PR Newswire

FUZHOU, China, Nov. 13, 2012

FUZHOU, China, Nov. 13, 2012 /PRNewswire/ -- China Yida Holding Company
(Nasdaq: CNYD) ("China Yida" or the "Company"), a diversified tourism and
entertainment enterprise in China, today announced financial results for the
third quarter ended September 30, 2012.

Third Quarter 2012 Results

  oTotal net revenue was $6.3 million, a decrease of 43.6% compared to $11.2
    million in theyear-ago period
  oNet revenue from the tourism business was $3.2 million, an increase of
    9.3% year over year, with a gross margin of 48.7%
  oNet revenue from the media business was $3.2 million, a decrease of 61.9%
    year over year, with a gross margin of 61.0%
  oGross profit was $3.5 million, a decrease of 54.8% compared to $7.7
    million in the year-ago period
  oOperating income was $0.3 million compared to $4.9 million in the third
    quarter of 2011.
  oNet loss attributable to China Yida Holding Company was $1.0 million,
    compared to net income attributable to China Yida Holding Company of $3.2
    million in the year-ago period
  oFully diluted loss was $0.05 per share compared to earnings $0.16 per
    share in the year-ago period

"We saw a solid level of tourist traffic to two of our key tourist
destinations in the third quarter which drove a modest rise in revenue in our
tourism segment. However, the quarter marked the expected contraction of our
media business, which experienced the full effects of regulations that
seriously hamper the means and mode of advertising. As a result, we reported
a loss in the quarter and anticipate an eventual further move away from this
business segment. Most important, we are committed to our vision of creating
a preëminent tourist company and therefore continue to focus our efforts on
developing an array of attractive tourist destinations," commented Dr. Minhua
Chen, Chairman and Chief Executive Officer of China Yida.

"We are especially pleased to see that visitor traffic to Great Golden Lake
has stabilized with the site's full recovery and that visitor traffic to
Yunding Park has begun to grow. Further, we believe that both tourist
destinations have substantially greater visitor potential once ongoing road
access issues are resolved," CEO Chen continued. "The development of our 
three new properties is largely on schedule and we expect to commence
operation of these new tourist destinations during the first half of 2013.
Given that the fundamentals in China's tourism market remain strong, we are
confident that our tourism segment can achieve continued growth and that our
strategy of developing distinctive and varied tourist destinations will
succeed in the long run."

Third Quarter 2012 Results

Total consolidated net revenue for the Company's two business segments,
Tourism and Media, was $6.3 million in the third quarter of 2012, a decrease
of 43.6% as compared to $11.2 million in the year-ago quarter. A review of
each business segment follows.

Tourism Business

Net revenue from the tourism business was $3.2 million, an increase of 9.3% as
compared to $2.9 million in net revenue in the third quarter of 2011. The
increase was primarily attributable to an increasing number of tourists
visiting both the Great Golden Lake and Yunding Recreational Park tourist
destinations, partially offset by the continued downturn at the Hua'An Tulou
site. Gross margin from the tourism business was 48.7% in the third quarter,
compared to 51.8% in the year-ago quarter, but it improved sequentially from
43.8% in the second quarter of 2012.

The total number of visitors that entered the Great Golden Lake during the
third quarter of 2012 was approximated 114,000 as compared to 110,000 in the
same period of last year, and up sequentially from 86,000 in the second
quarter of 2012. The site generated approximately $2.0 million in revenue in
the third quarter, up 9.7% from the comparable year-ago quarter. The Company
believes that visitor traffic to the Great Golden Lake is gradually improving
and expects additional potential for growth once a new road that affords main
access to the site is completed.

Yunding Recreational Park attracted 34,000 visitors in the third quarter of
2012, a solid increase from the 14,000 visitors in the third quarter of 2011.
As compared to the second quarter of 2012, visitor traffic decreased by
14,000 as a result of ongoing road construction and unfavorable weather
conditions. The site generated approximately $0.9 million in revenue in the
third quarter of 2012, more than double the amount generated in the comparable
year-ago quarter. The increase in visitors and revenue at Yunding for the
quarter is primarily attributable to enhanced marketing efforts of the
Company's travel agency.

The Hua'An Tulou tourist destination received approximately 18,000 visitors,
compared to 50,000 visitors in the comparable year-ago quarter, and 20,000
visitors in the second quarter of 2012. The decrease was mainly due to tough
market competition from two nearby Tulou clusters in Fujian Province. Hua'An
Tulou generated approximately $0.3 million in revenue in the third quarter of
2012, a decrease from $0.7 million in the comparable year-ago quarter.

Media Business

Net revenue from the media business in the third quarter of 2012 was $3.2
million, a decrease of 61.9% from the $8.3 million posted in the comparable
period a year ago. Fujian Education Television Channel ("FETV") experienced a
60.3% fall in revenue in the quarter year over year to an estimated $3.1
million due to actions by domestic media authorities restricting the
broadcasting manner and content of TV advertising. The restricting content of
TV advertising included shopping programs, min ads and certain medical
advertisements. Revenue from the Company's train media business was an
estimated $0.1 million for the third quarter of 2012 as compared to $0.6
million for the third quarter of 2011, as a majority of advertising clients
terminated their purchases due to the absence of an automatic broadcasting and
monitoring system. The decrease in revenue is in line with the Company's
expectation and further decreases may occur in the next few quarters.

Gross margin for the media business was 61.0% for the third quarter of 2012,
as compared to 74.3% in the comparable year-ago quarter. The decrease in gross
margin was primarily attributable to the substantial fall-off in revenue at
FETV.

Consolidated Operating Results

Gross profit for China Yida's consolidated operations was $3.5 million in the
third quarter of 2012, representing a gross profit margin of 54.8%, compared
to gross profit of $7.7 million and a gross margin of 68.5% for the comparable
period of 2011.

Total operating expenses increased by 12.8% to $3.1 million in the third
quarter of 2012, compared with $2.8 million in the third quarter of 2011. This
increase was primarily attributable to a 31.8% jump in selling expenses, which
increased from $1.6 million to $2.1 million, due to higher marketing and
operating expenses at Yunding Park compared to the same period last year.
Operating income decreased by 93.0% to $0.3 million in the third quarter of
2012 compared with $4.9 million in the year ago quarter.

Net loss attributable to China Yida Holding Company for the third quarter of
2012 was $1.0 million, or $0.05 per diluted share, as compared with net income
of $3.2 million, or $0.16 per diluted share, for the third quarter of 2011.

Nine Month Results

Total net revenue decreased by 36.8% to $21.5 million for the nine months
ended September 30, 2012, compared with $34.0 million for the nine months
ended September 30, 2011. Net revenue from advertising decreased by 47.0% to
$14.1 million, compared with $26.7 million for the nine months ended September
30, 2011. Net revenue from the tourism business increased by 0.6% to $7.3
million for the nine months ended September 30, 2012.

Gross profit for the first nine months of 2012 decreased 45.1% year over year
to $12.9 million from $23.4 million in the first nine months of 2011. The
gross margin for the first nine months of 2012 was 59.9% as compared to 69.0%
in the year-ago period. Operating income decreased by 71.2% to $4.7 million in
the first nine months of 2012, compared with $16.2 million in the first nine
months of 2011.

Net income attributable China Yida Holding Company for the nine months ended
September 30, 2012 was $1.3 million, or $0.06 per fully diluted share, as
compared to net income of $10.7 million, or $0.54 per share, for the
comparable period of 2011.

Financial Condition

As of September 30, 2012, the Company had $8.4 million in cash and cash
equivalents, up from $5.7 million as of fiscal year end 2011. Working capital
was a negative $4.4 million due to an increased level of both short-term loans
and the current portion of long-term debt. As of September 30, 2012, the
Company had total debt of $40.8 million out of which short term loans comprise
$4.1 million and the current portion of its long-term debt is $6.9 million.
Shareholders' equity was $159.4 million at the end of the third quarter of
2012 as compared to $157.9 million at the end of 2011.

China Yida generated $0.6 million in cash flow from operating activities in
the third quarter of 2012 and spent $4.5 million on investing activities. The
Company received $1.6 million in proceeds from short-term bank loans in the
third quarter of 2012 to fund the development of its tourism destinations.

Business Update

The Company experienced reasonably good attendance at its Great Golden Lake
and Yunding Recreation Park tourist destinations in the third quarter of 2012
attributable to the summer tourism season and despite still-difficult road
access to both sites. Tourist traffic to the Great Golden Lake increased by
approximately 32.6% from the previous quarter although the road to Shangqing
River is still under construction and visitors must now use a rougher, more
difficult road. It is anticipated that the road construction by the local
government will be completed in the first half of 2013. The natural view and
tourism facilities at the Great Golden Lake destination have now fully
recovered from the severe summer floods of 2010.

Yunding Recreational Park continued to see strong progress as tourist traffic
was up in the third quarter of 2012, almost two and a half times the level
seen in the comparable year-ago quarter. However, tourist traffic is still
below that of Yunding's designed capacity since the site is also hampered by
poor road access. However, the new expressway connecting Fuzhou to Yongtai
Town is being built by the local government and is expected to be completed by
the first half of 2013. In the meantime, Management has been enhancing its
marketing efforts as well as developing second-stage entertainment attractions
to further enrich tourists' visiting experience. The Company plans to put its
recently constructed guest cottages into operation in mid-November of 2012
which will enable visitors to extend their stay at Yunding. The two new
restaurants in Gorges are currently in operation and valley rafting facilities
began trial operation at the site in conjunction with the season from June to
October. In addition, the camping center and shopping plaza are both under
development and are expected to roll out in the first half of 2013.

The increase in tourism segment revenue at both the Great Golden Lake and
Yunding Recreational Park was partially offset by the decrease in revenue at
the Hua'An Tulou tourism destination, attributable to strong competition among
the homogeneous tourism destinations, Nanjing Tulou Cluster and Yongding Tulou
Cluster. The Company plans upon utilizing its travel agency to promote the
site as well as offer more promotions in Xiamen City. China Yida's tourism
marketing center designs and executes proactive marketing strategies that
include developing creative and constructive relationships with travel
agencies and explores new markets for its tourist destinations.

As of September 30, 2012, China Yida has made significant progress in the
development of its three new tourism destinations, Ming Dynasty Entertainment
World in Bengbu City, Anhui province, China Yang-sheng (Nourishing Life)
Paradise in Zhangshu City, Jiangxi province, and the City of Caves in Fenyi
City, Jiangxi province. The development and construction of these new tourist
destinations are in line with the Company's schedule. In the first nine months
of 2012, the Company invested approximately $4.6 million in the acquisition of
land use rights, approximately $9.5 million in the construction of tourism
facilities and $1.2 million in the planning and design for these new tourist
destinations.

Management believes that it can finance all of its ongoing capital
expenditures from cash on hand, cash from operations and bank loans secured
against its land bank. China Yida carefully reviews its capital expenditures
on a regularly basis. Although interest expense were significant in the third
quarter, the Company still generated over $10 million in operating cash flow
as of September 30, 2012, which it believes is sufficient to meet its
repayment obligations. In addition, the Company has ample credit facilities
because local banks remain positive as to the Company's future prospects.

Entering 2012, new construction and development was adversely affected by
more-than-normal rainy days. However, the Company will undertake its best
efforts to complete Phase I construction of these new projects and expects to
commence operation of the two new tourist destinations in Jiangxi province by
the first half of 2013 and the other one in Anhui province by the second half
of 2013.

In terms of its media segment, the Company has previously disclosed that due
to strict regulations on certain types of TV advertising, it expects that
FETV's advertising revenue may continue to decline further in the quarters
ahead. The Company now expects that it may have to discontinue the FETV
business when the contract is due in July 2013. Beginning on January 1, 2012,
the State Administration of Radio Film and Television (SARFT) disallowed any
commercial advertisements that are inserted in the midst of certain TV
programming with the result that ad time is now minimized and only able to be
inserted at a program's end. In addition, the Company also expects that in the
near future, it is highly likely that it will discontinue its train media
business which generates minimal revenue, though such timing has not yet been
determined.

The Company's strategic plan is to transition from what is currently a media
and tourism company to one that is primarily a tourist company, where revenues
derived from its tourism properties account for an ever-increasing percentage
of its total revenues. China Yida foresees diverse revenue streams emanating
from its tourist properties which the Company expects will drive a sustainable
level of revenue and earnings growth.

Conference Call

China Yida will conduct a conference call at 9:00 a.m. Eastern Time (ET) on
Tuesday, November 13, 2012, to discuss its financial results for the third
quarter ended September 30, 2012. To participate in the live conference call,
please dial any of the following numbers five to ten minutes prior to the
scheduled conference call time.

Toll-Free Dial-In Number:

US 866-395-5819
China, Domestic 400-682-8609
Hong Kong800-966-253
Singapore800-101-1512

International callers can also dial +1-706-643-6986.

The Conference ID for this call is 64152056.

If you are unable to participate in the call at this time, a replay will be
available for two weeks starting on Tuesday, November 13, 2012 at 12:00 p.m.
ET. To access the replay, dial 855-859-2056 or 404-537-3406, international
callers dial +1-800-585-8367. The Conference ID is 64152056.

About China Yida

China Yida is a leading tourism and media enterprise focused on China's
fast-growing leisure industry and headquartered in Fuzhou City, Fujian
province of China. The Company provides tourism management services and
specializes in the development, management and operation of natural, cultural
and historic scenic sites.

China Yida currently operates the Great Golden Lake tourist destination
(Global Geopark), Hua'An Tulou tourist destination (World Culture Heritage)
and China Yunding Park (National Park). China Yida is also developing three
additional tourism projects, Ming Dynasty Entertainment World, China
Yang-sheng (Nourishing Life) Tourism Project and the City of Caves.

The Company's media business provides operations management services including
content and advertising management for the Fujian Education Television Station
("FETV"), and "Journey through China on the Train", an advertisement-embedded
travel program.

For further information, please contact the Company directly, or visit its Web
site at http://www.yidacn.net.

Forward-Looking Statements

Certain statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements may be identified by the use of
words such as "anticipate, "believe," "expect," "future," "may," "will,"
"would," "should," "plan," "projected," "intend," and similar expressions.
Such forward-looking statements, involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of China Yida Holding Co., Inc. (the "Company") to be
materially different from those expressed or implied by such forward-looking
statements. The Company's future operating results are dependent upon many
factors, including but not limited to: (i) the Company's ability to obtain
sufficient capital or a strategic business arrangement; (ii) the Company's
ability to build and maintain the management and human resources and
infrastructure necessary to support the anticipated growth of its business;
(iii) competitive factors and developments beyond the Company's control; and
(iv) other risk factors discussed in the Company's periodic filings with the
Securities and Exchange Commission, which are available for review at
www.sec.gov.

Contact:
China Yida Holding      CCG Investor
                                   Relations
Jocelyn Chen     Crocker Coulson, President
Phone: +86 591                     Phone: + (1) 646-213-1915
28082230
Email: ir@yidacn.net    Email: Crocker.Coulson@ccgir.com

FINANCIAL TABLES FOLLOW

CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


                                                  September 30,   December 31,
                                                  2012            2011
                                                  (UNAUDITED)     (AUDITED)
ASSETS
Current assets
 Cash and cash equivalents                     $ 8,416,253     $ 5,684,847
 Accounts receivable                             227,674         129,849
 Other receivables, net                          625,786         4,940,389
 Advances and prepayments                        1,639,287       1,881,427
 Repayment – current portion                     363,307         207,117
 Total current assets                          11,272,307      12,843,629
 Property and equipment, net                     140,451,891     110,593,580
 Construction in progress                        3,415,337       25,964,029
 Intangible assets, net                          44,887,717      32,355,010
 Long-term prepayments                           4,819,210       12,758,763
 Deferred tax assets                             -               104,078
 Total assets                                $ 204,846,462   $ 194,619,089
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
 Short-term loans                              $ 4,114,575     $ 943,619
 Long-term debt, current portion                 6,871,340       3,761,894
 Accounts payable                                24,827          91,385
 Current obligation under airtime rights         2,206,033       2,359,169
commitment
 Accrued expenses and other payables             2,080,927       638,175
 Taxes payable                                   391,767         1,223,528
 Deferred tax liabilities – current              -               67,644
 Total current liabilities                     15,689,469      9,085,414
 Long-term obligation under airtime rights       -               1,548,928
commitment
 Long-term debt                                  29,769,855      26,040,732
 Total liabilities                             45,459,324      36,675,074
Commitments and contingencies
Stockholders' equity
Preferred stock ($0.001 par value, 10,000,000     -               -
shares authorized, none issued and outstanding)
Common stock ($0.0001 par value, 100,000,000
shares authorized, 19,571,785 and 19,551,785      19,571          19,551
issued and outstanding as of September 30, 2011
and December 31, 2011, respectively)
Additional paid in capital                        49,148,049      49,111,569
Accumulated other comprehensive income            13,426,488      12,484,116
Retained earnings                                 88,975,816      87,715,182
Statutory reserve                                 2,549,330       2,549,330
Total China Yida Holding. Co. Stockholders'       154,119,254     151,879,748
Equity
Non-controlling interest                          5,267,884       6,064,267
Total stockholders' equity                        159,387,138     157,944,015
Total liabilities and stockholders' equity      $ 204,846,462   $ 194,619,089



CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

OTHER COMPREHENSIVE INCOME

(UNAUDITED)


                           Nine months ended         Three months ended
                           September 30,             September June 30
                           2012          2011         2012          2011
Net revenue
Advertisement            $ 14,126,023  $ 26,675,830 $ 3,168,963   $ 8,322,439
Tourism                    7,340,957     7,299,124    3,152,618     2,885,042
Total net revenue          21,466,980    33,974,654   6,321,581     11,207,481
Cost of revenue
Advertisement              4,227,122     6,847,683    1,236,714     2,141,129
Tourism                    4,377,807     3,681,633    1,618,473     1,389,869
Total cost of revenue      8,604,929     10,529,316   2,855,187     3,530,998
Gross profit               12,862,051    23,445,338   3,466,394     7,676,483
Operating expenses
 Selling expenses         4,751,736     3,704,622    2,104,616     1,596,304
 General and              3,443,661     3,543,764    1,019,861     1,174,569
administrative expenses
Total operating expenses   8,195,397     7,248,386    3,124,477     2,770,873
Income from operations     4,666,654     16,196,952   341,917       4,905,610
Other income (expense)
 Other expense, net       (191,870)     (41,430)     (77,203)      (23,648)
 Interest income          32,218        75,358       11,645        27,942
 Interest expenses        (990,189)     (228,212)    (870,698)     (26,454)
Total other expenses      (1,149,841)   (194,284)    (936,256)     (22,160)
Income (Loss) before
income tax and             3,516,813     16,002,668   (594,339)     4,883,450
non-controlling interest
Less: Provision for        2,457,792     5,433,442    451,471       1,715,696
income tax
Net income (Loss)          1,059,021     10,569,226   (1,045,810)   3,167,754
Net loss attributed to     201,613       84,015       70,399        40,852
non-controlling interest
Net income (loss)
attributable to China      1,260,634     10,653,241   (975,411)     3,208,606
Yida Holding Co.
Other comprehensive
income
Foreign currency           980,614       5,005,563    (253,430)     1,741,244
translation gain (loss)
Comprehensive income     $ 2,039,635   $ 15,574,789 $ (1,299,240) $ 4,908,998
(loss)
Compehensive loss
attributable to            163,371       84,678       79,962        41,469
non-controlling interest
Comprehensive income
(loss) attributable to   $ 2,023,006   $ 15,659,467 $ (1,219,278) $ 4,950,467
China Yida Holding Co.
Earnings per share
- Basic                  $ 0.06        $ 0.54       $ (0.05)      $ 0.16
- Diluted                $ 0.06        $ 0.54       $ (0.05)      $ 0.16
Weighted average shares
outstanding
- Basic                    19,561,240    19,551,785   19,571,785    19,551,785
- Diluted                  19,561,240    19,561,621   19,571,785    19,555,436



CHINA YIDA HOLDING CO. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


                                                   For the Nine Months Ended
                                                   September 30,
                                                   2012           2011
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                   $ 1,059,021    $ 10,569,226
 Adjustments to reconcile net income to net
 cash provided
 by operating activities:
  Depreciation                                   3,053,498      2,599,852
  Amortization                                   1,845,015      2,718,586
  Stock based compensation                       36,500         576,536
  Deferred tax                                  36,434         51,914
  Amortization of financing costs
 Changes in operating assets and liabilities:
  Accounts receivable                            (97,174)       (106,811)
  Other receivables, net                         3,718,652      (319,681)
  Advances and prepayments                       254,323        282,239
  Accounts payable                               (67,241)       (1,098,386)
  Accrued expenses and other payables            1,441,158      1,539,620
  Taxes payable                                  (840,807)      (544,244)
 Net cash provided by operating activities    10,619,976     16,268,581
CASH FLOWS FROM INVESTING ACTIVITIES
 Additions to property and equipment              (9,103,497)    (5,823,616)
 Additions to construction in progress            (416,744)      (2,718,003)
 Additions to intangible asset                     (4,639,247)    (11,988,896)
 Proceeds from disposal of intangible asset                       2,080,636
 Increase to long-term prepayments for
 acquisition of
 Property, equipment and land use rights          (1,185,197)    (2,778,112)
 Net cash used in investing activities         (15,344,685)   (21,227,991)
CASH FLOWS FROM FINANCING ACTIVITIES
 Repayment of loan from non-controlling           -              2,712,533
 interest
 Repayment of obligation under airtime rights     (1,729,368)    (1,400,069)
 commitment
 Payment of deferred financing costs              (674,645)      -
 Proceeds from short-term loans                   3,170,326
 Proceeds of long-term loans                      9,510,977      10,788,484
 Repayment of long-term loans                     (2,847,632)    (246,594)
 Net cash provided by financing                   7,429,658      11,854,354
 activities
EFFECT OF EXCHANGE RATE CHANGES ON CASH          26,457         317,307
NET INCREASE (DECREASE) IN CASH AND CASH         2,731,406      7,212,251
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD    5,684,847      7,146,684
CASH AND CASH EQUIVALENTS, ENDING OF PERIOD     $ 8,416,253    $ 14,358,935
SUPPLEMENTAL DISCLOSURES:
 Non-cash investing and financing activities:
  Transfer from construction in progress to
 property and                                    $ 23,165,538   $ -
  equipment
  Transfer from advances and prepayments to
 intangible                                      $ 9,556,747    $ -
  assets
 Cash paid during the period for:
  Income tax                               $ 3,199,743    $ 5,830,819
  Interest                                 $ 2,303,355    $ 691,035

The notes in the Company's 2012 10-Q are an integral part of these
consolidated financial statements.

SOURCE China Yida Holding Company

Website: http://www.yidacn.net
 
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