China Yida Reports Record Third Quarter 2009 Results

China Yida Reports Record Third Quarter 2009 Results

FUZHOU, China, Nov. 17 /PRNewswire-Asia-FirstCall/ -- China Yida Holding Company (BULLETIN BOARD: CNDH) ("China Yida" or the "Company"), a leading diversified entertainment and media enterprise in China, today announced its unaudited financial results for the third quarter ended September 30, 2009.

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Third Quarter 2009 Highlights
-- Total net revenue increased 79.3% to $14.0 million, compared to $7.8
million in the third quarter of 2008
-- Net revenue from the tourism business increased 176.3% year over year
to $5.5 million, with a gross margin of 88.9%
-- Net revenue from the media business increased 46.0% year over year to
$8.5 million, with a gross margin of 75.1%
-- Gross profit grew 98.8% to $11.3 million, compared to $5.7 million in
the same period last year
-- Operating income grew 87.7% to $9.5 million, compared to $5.1 million
in the third quarter of 2008
-- Net income increased 45.6% to $7.1 million, compared to $4.9 million in
the same period last year
-- Fully diluted EPS increased 42.9% to $0.40 per share, compared to $0.28
in the third quarter of 2008

Dr. Chen Minhua, Chairman and Chief Executive Officer of China Yida, stated, "We are very pleased to report another quarter of record results, and we particularly delighted with the traction we are getting from our tourism business, which delivered triple-digit year-over-year growth in the third quarter. As we enter the fourth quarter we continue to be excited about the opportunities to continue our rapid and profitable growth. As we announced recently, on October 1, 2009 we opened the Shangping Tulou cluster to visitors as a part of Hua'An Tulou, which brought in 11,000 visitors during this National holiday, compared to 52,000 visitors to the more established Great Golden Lake destination during the same period. We expect attendance and revenue contribution at existing and newly opened tourist attractions to continue to grow driven by our marketing efforts nationwide. Our advertising business also experienced strong growth this quarter driven by increase in demand for airtime at our FETV broadcasting station. Finally, we are also pleased with the progress we made with our 'Journey through China on a Train' infomercial as we continued to expand the number of rail lines and trains where our railway on-board programs are shown. This is an important part of our strategy to ensure that we can raise awareness about our tourism destinations all over the China."

Third Quarter 2009 Results

Total net revenue increased by 79.3% to $14.0 million, compared with $7.8 million in the third quarter of 2008.

Tourism Business

Net revenue from the tourism business increased 176.3% to $5.5 million, compared with $2.0 million in the third quarter of 2008. Cost of revenue from the tourism business, mainly consisting of Chinese business tax at a rate of 5% and depreciation of fixed assets at tourism destinations, was $0.6 million, down 32.2% from $0.9 million in the same period of last year. Gross margin from the tourism business was 88.9% for the third quarter of 2009, compared to 54.8% a year ago.

During the third quarter of 2009, the total number of visitors that entered the Great Golden Lake was around 161,000, an increase of 85%, compared with 87,000 in the same period of last year. Revenue from the Great Golden Lake totaled $4.9 million for the third quarter of 2009.

Subsequent to the end of the quarter China Yida registered a record number of visitors to the Great Golden Lake during China's National Holiday between October 1, 2009 and October 8, 2009. The site received a total of 52,000 visitors during the eight-day period, an increase of 13% compared with 46,000 in the same period of last year. In addition, on October 1, 2009 China Yida opened to visitors the Shangping Tulou cluster, part of Hua'An Tulou's World Heritage tourism destination. Tulou received 11,000 visitors during the National Holiday. The Company expects to attract 160,000 visitors in 2010 to this destination.

Media Business

Net revenue from the media business grew 46.0% to $8.5 million, compared with $5.8 million in the same period of last year. This increase was due to organic growth from advertising sales which resulted from the steady growth of FETV's audience rating which led to higher airtime sales. Cost of revenue from the media business, mainly including Chinese business tax at a rate of 8.5%, procurement cost for TV programs and depreciation of media equipment, was $2.1 million, up 71.0% from $1.2 million in the same period of last year. Gross margin for the media business was 75.1% for the third quarter of 2009, representing a slight decrease from 78.7% a year ago.

FETV's advertising time is sold mainly through about 15 advertising agencies, which are long-term partners. The three largest distributors account for 19% of FETV's revenues in total.

As of November 10, 2009, "Journey through China on the Train", Yida's railway on-board tourist infomercial program, is shown on 32 railroad lines including 27 high-speed railroad lines.

Gross profit for China Yida's consolidated operations was $11.3 million in the third quarter of 2009, representing a gross margin of 80.5%, compared to $5.7 million and 72.6 % for the comparable period of 2008.

Total operating expense increased by 195.6% to $1.7 million in the third quarter of 2009, compared with $0.6 million in the third quarter of 2008. Selling expenses for the three months ended September 30, 2009 rose 564.9% to $927,679 from $139,524 for the comparable period of 2008. The increase in selling expenses was driven by the higher maintenance cost at Great Golden Lake as a result of growing visitors there. General and administrative expenses increased 79.6% year over year to $0.8 million, which was in line with the Company' s business expansion and revenue growth.

Operating income increased by 87.7% to $9.5 million, compared with $5.1 million a year ago. Operating margin for the third quarter of 2009 was 68.2%, compared with 65.1% for the third quarter of 2008.

Net income for the third quarter of 2009 was $7.1 million, or $0.40 per diluted share, an increase of 45.6%, compared with a net income of $4.9 million, or $0.28 per diluted share, in the third quarter of 2008.

Nine Months Results

Total net revenue increased by 71.4% to $36.7 million, compared with $21.4 million for the nine months ended September 30, 2008. Net revenue from advertising increased by 35.5% to $23.0 million, compared with $16.9 million for the nine months ended September 30, 2008. Net revenue from the tourism business increased by 207.3% to $13.7 million, compared with $4.5 million for the nine months ended September 30, 2008.

During the first nine months of 2009, the total number of visitors that entered the Great Golden Lake was 474,000, an increase of 125.7% compared to 210,000 in the same period of last year. The revenues from the Great Golden Lake totaled $13.1 million for the first nine months of 2009.

During the first nine months of 2009, Hua'an Tulou has accepted 39,000 visitors, and contributed over $0.6 million of revenues to the Company. The Company expects to attract 160,000 visitors in 2010 to this destination.

Gross profit for the first nine months of 2009 increased 84.4% year over year to $29.3 million, with gross margin of 79.7%. Operating income increased by 75.3 % to $24.8 million, compared with $14.1 million in the first nine months of 2008.

Net income for the nine months ended September 30, 2009, was $19.6 million, or $1.11 per fully diluted share, an increase of 43.4% compared with a net income of $13.6 million, or $0.99 per share, for the comparable period of 2008.

Financial Condition

As of September 30, 2009, the Company reported $8.7 million in cash and cash equivalents, representing the same level with the year end of 2008. Working capital was $4.6 million with a current ratio of 2.0. As of September 30, 2009, the Company had $71.7 million in shareholders' equity compared to $52.1 million at the end of 2008. In the first nine months of 2009, China Yida generated $22.3 million in cash flow from operating activities. Capital expenditures were $24.9 million in the first nine months of the year and were primarily used for the construction of entertainment facilities at Yunding Park and Hua'an Tulou cluster.

For the first nine month period of 2009, China Yida has spent $23.1 million on Yunding Park, with a residual scheduled payment in the fourth quarter of 2009 at $8.8 million. The management believes the Company's current cash and operating cash flow will be sufficient to fund this project. Yunding Park, to be opened in the second quarter of 2010, will be the largest leisure tourism destination in Fuzhou, Fujian Province of China.

Business Outlook

Management believes that China Yida is well positioned to benefit from rapidly growing consumer spending on leisure activities in China as a result of increased disposable income and a growing middle class. A recent study by Euromonitor International (2009) forecast trips to tourist destinations are expected to increase at CAGR of 8% between 2008 and 2013, with annual real growth in spending of 13%. In addition, the uncertainty of global economic development will have very minimal impact on the Company's advertising business, as the Chinese economy is recovering rapidly from the recent economic downturn.

Looking forward, Yida's tourism business is expected to experience strong growth driven by existing and newly opened tourist attractions supported by marketing activities nationwide and the addition of services to the Company's scenic spots. The Company also expects moderate organic growth in advertising revenues from its existing media assets. In addition, China Yida will continue to evaluate opportunities to acquire additional TV stations in other provinces where management can find attractive opportunities to replicate its media and tourism business model to accelerate its profitable growth.

"In addition to strong organic growth we expect from our existing portfolio of tourism destinations, we see opportunities to accelerate our growth through acquisitions and other strategic partnerships in both tourism and media segments of our business. China's State Administration of Radio Film and Television is in the process of deregulating the industry to encourage the separation of production of content from broadcasting. This should create additional opportunities for the private sector to participate in the expected growth of the industry. We are now looking into opportunities of acquiring management rights to new tourist destinations as well as TV stations out of Fujian province," Dr. Chen added. "We feel confident to be able to replicate our unique and powerful business model in other parts of China, and build our business into world-class market leader in the years ahead."

Conference Call

China Yida will hold its third quarter 2009 conference call for all interested persons at 08:30 a.m. Eastern Time on Wednesday, November 18, 2009 to discuss its results. To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 1-888-419-5570. International callers should dial +1-617-896-9871. When prompted by the operator, mention conference passcode 94830817. If you are unable to participate in the call at this time, a replay will be available for 14 days starting on November 18, 2009 at 10:00 a.m. Eastern Time. To access the replay, dial 888-286-8010 or for international callers, dial +1-617-801-6888 and enter the passcode 912234481.

About China Yida

China Yida Holding Co. is a leading diversified entertainment enterprise focused on China's fast-growing media and tourism industries and headquartered in Fuzhou City, Fujian province of China. The Company's media business provides operations management services; including channel, column and advertisement management for television station, presently the Fujian Education Television Station ("FETV", a top-rated provincial education television station), and "Journey through China on the Train" ("CRTV", the only railway on-board media authorized by Ministry of Railways). Additionally, the Company provides tourism management services, and specializes in the investment and development of natural, cultural and historic scenic sites. China Yida currently operates the Great Golden Lake tourist destination (Global Geopark, including Golden Lake, Shangqing River, Zhuanyuan Rock, Luohan Mountain and Taining Old Town.), Hua'An Tulou tourist desintation (World Culture Heritage, including Dadi Tulou cluster and the Shangping Tulou cluster), and China Yunding tourist destination (National Park, including Colorful Rock Valley, Yunding Paradise, Yunding Waterfall, South Heavenly Mountain, and Seven Star Lake). The Company's operating scenic sites are over 300 square kilometers in the area. 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 http://www.sec.gov/ .

FINANCIAL TABLES FOLLOW

CHINA YIDA HOLDING CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

ASSETS

September 30, 2009 December 31 2008
Current assets
Cash and cash equivalents $8,723,966 $8,715,048
Accounts receivable, net 10,882 76,569
Prepaid and other receivables 383,905 76,759
Deferred income tax asset 164,664 --
Total current assets 9,283,418 9,032,546
Property, plant and equipment, net 33,350,392 34,173,009
Construction in progress 27,553,375 2,143,894
Intangible assets, net 8,247,801 9,358,333
Advances for property 440,100 --
Total assets $78,875,086 $54,543,613

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
Accounts payable and accrued expense $153,077 $65,368
Loan payable 1,173,600 1,172,591
Other payable 1,108,206 456,181
Unearned revenue 454,071 6,597
Tax payables 234,552 214,900
Deferred income tax liability 15,565 --
Income tax payable 1,512,564 511,624
Total current liabilities 4,651,635 2,427,259
Loan payable, long term 2,495,190 --
Total liabilities 7,146,825 2,427,259

Commitments -- --

Stockholders' equity
Preferred stock, par value $0.001
(10,000,000 shares authorized, 0
share issued and outstanding) -- --
Common stock, par value $0.0001
(100,000,000, shares authorized
and 17,021,447 issued and
outstanding as of June 30, 2009
and December 31, 2008) 1,702 1,702
Additional paid in capital 21,627,395 21,627,394
Accumulated other comprehensive
income 3,192,887 3,134,077
Retained earning 46,906,278 27,353,180

Total stockholders' equity 71,728,261 52,116,353

Total liabilities and stockholders'
equity $78,875,086 $54,543,613

CHINA YIDA HOLDING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
(UNAUDITED)

Nine month periods ended Three month periods ended
September 30, September 30,
2009 2008 2009 2008
Net revenue

Advertisement $22,970,469 $16,947,170 $8,487,986 $5,814,252
Tourism 13,739,897 4,471,293 5,508,354 1,993,757
Total net revenue 36,710,366 21,418,463 13,996,340 7,808,009
Cost of revenue
Advertisement 5,777,139 3,621,435 2,117,464 1,238,597
Tourism 1,665,458 1,921,452 610,262 900,292
Total cost of revenue (7,442,596) (5,542,887) (2,727,726) (2,138,889)
Gross profit 29,267,769 15,875,576 11,268,614 5,669,119
Operating expenses
Selling expenses 2,205,129 533,097 927,679 139,524
Operating and
administrative
expenses 2,278,021 1,201,403 798,094 444,286
Total operating
expenses 4,483,150 1,734,500 1,725,773 583,810

Income from operations 24,784,620 14,141,075 9,542,842 5,085,309
Other (income) expense
Other (income) expense,
net 93 3,083 (18,242) 6,059
Interest expense -- 115,226 -- 27,143
Interest income (28,745) (5,555) (3,317) (875)
Total other (income)
expense, net (28,652) 112,754 (21,558) 32,327

Income before income
taxes 24,813,271 14,028,322 9,564,400 5,052,983

Provision for
income taxes 5,260,174 396,568 2,422,562 149,186

Net income 19,553,098 13,631,754 7,141,838 4,903,797
Other comprehensive
income
Foreign currency
Translation gain
(loss) 58,810 2,059,334 101,238 271,150

Other comprehensive
income $19,611,907 $15,691,088 $7,243,076 $5,174,947

Basic net earnings
per share $1.15 $1.01 $0.42 $0.29
Basic weighted average
shares outstanding 17,021,447 13,510,518 17,021,447 17,021,122

Diluted net earnings
per share $1.11 $0.99 $0.40 $0.28
Diluted weighted
average shares
outstanding 17,655,738 13,777,185 17,863,857 17,287,789

CHINA YIDA HOLDING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(UNAUDITED)

2009 2008
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Income $19,553,098 $13,631,754
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation 1,079,388 297,897
Amortization 1,117,901 3,033,185
Bad debt expense -- 32,226
(Increase) / decrease in
assets:
Accounts receivables 65,713 (2,662)
Other receivables 1,295,166 (154,944)
Prepaid expenses (1,921) --
Deferred tax
Advances (1,231,688) (123,717)
Increase/(decrease) in
current liabilities: -- --
Accounts payable and
accrued expenses 88,414 61,505
Tax payables 869,154 (1,210,134)
Unearned revenue 447,194 233,573
Accrued payroll 38,118 --
Other payable (985,423) (126,078)
Net cash provided by
operating activities 22,335,115 15,672,604
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property &
equipment (262,288) (6,004)
Addition to construction
in progress (24,665,863) (21,756,718)
Purchase of intangible assets -- (6,435,835)
Net cash used in
investing activities (24,928,151) (28,198,557)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceed from related party -- 901,450
Issuance of shares for cash -- 13,027,250
Loan proceeds (payments) 2,491,555 (895,383)
Net cash provided by
financing activities 2,491,555 13,033,317
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS 110,401 (13,331)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 8,918 494,034
CASH AND CASH EQUIVALENTS,
BEGINNING BALANCE 8,715,048 726,631
CASH AND CASH EQUIVALENTS,
ENDING BALANCE $8,723,966 $1,220,665
SUPPLEMENTAL DISCLOSURES:
Cash paid during the quarter for:
Capitalized Interest $146,087 $--
Income tax payments $2,250,492 $100,795
Interest payments $65,405 $88,083

For more information, please contact:

China Yida Holdings
George Wung CFO
Tel: +1-909-843-6358
Email: ir@yidacn.net

CCG Investor Relations
Crocker Coulson, President
Phone: +1-646-213-1915
Ed Job, CFA
Tel: +1-646-213-1914
Email: ed.job@ccgir.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20091012/CNM039LOGO
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840

Source: China Yida Holding Company

CONTACT: George Wung, CFO of China Yida Holding Company, +1-909-843-6358,
ir@yidacn.net; Crocker Coulson, President of CCG Investor Relations,
+1-646-213-1915, or Ed Job, CFA, +1-646-213-1914, ed.job@ccgir.com

Web site: http://www.yidacn.net/
http://www.sec.gov/

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