SYDNEY, April 2, 2015 /PRNewswire/ — Novogen Ltd (ASX:NRT NASDAQ:NVGN) today announced it has appointed US-based public relations firm, PCG Advisory (PCG), to drive the Company’s investor-awareness program in the US. PCG will be using their expertise in creating awareness and establishing key relationships within the US investment community via their targeted outreach campaign.
Dr Graham Kelly said: “The investment community has reacted positively in recent times to the Company’s extensive drug discovery program and with significant growth in activity ahead in the short-term, we felt it was timely to appoint an advisory firm to build on that momentum and communicate our activities to the market to maximise shareholder value. Showcasing the Company to the wholesale investment community is a key part of our strategy to bring new investors into the stock through on-market buying. We look forward to working with the PCG team.”
Jeff Ramson, Founder and CEO of PCG stated, “We are excited to work with the entire team at Novogen. We have extensive experience with Australian emerging growth companies that have stakeholders on several continents. We look forward to communicating the Novogen story to a larger group of US investors, who need to learn about their drug technology platforms and how management will execute the Company’s strategy in the short and long term. We look forward to the partnership.”
ABOUT PCG ADVISORY GROUP
Founded in 2008, PCG Advisory Group is dedicated to the delivery of top tier capital markets advisory services, strategic investor relations, tactical digital and social media communications and cutting edge media and public relations for public and privately held companies. The team at PCG has extensive experience with life sciences and healthcare, high technology, metals and mining, financial services and emerging growth companies from around the globe.
PCG’s Capital Markets Advisory Services include overall investor relations’ strategy development to increase and leverage investor awareness, visibility and credibility. PCG’s Social and Digital Media services include leveraging social and professional digital media sites to effectively and accurately communicate client stories. As an aggregation, distribution, and engagement platform, PCG reaches thousands of individual, retail, institutional investors, bankers and analysts using proprietary techniques, search engine optimization, online marketing, website development and our proprietary and extensive distribution network. PCG’s Media and Public Relations services are a strategic and integral component of all Corporate Communications. The media and public relations team works with print, broadcast, online news sites and bloggers to communicate the best client story at the right time. PCG also actively assists clients during the pre- and post-IPO process as well as through mergers, acquisitions, uplistings, and or a potential crisis. Communicating the client’s story accurately and effectively is tantamount to maximizing exposure to its current and potential stakeholders.
About Novogen Limited
Novogen is a public, drug-development company whose shares trade on both the Australian Securities Exchange (‘NRT’) and NASDAQ (‘NVGN’). The Novogen Group includes a New Haven CT-based joint venture company, CanTx Inc., with Yale University.
Novogen has two main drug technology platforms: super-benzopyrans (SBPs) and anti-tropomyosins (ATMs). SBP compounds have been created to kill the full range of cells within a tumor, but particularly the cancer stem cells. The ATM compounds target the microfilament component of the cancer cell and when used in conjunction with standard anti-microtubule drugs, result in comprehensive and fatal destruction of the cancer cell’s cytoskeleton. Ovarian cancer, colorectal cancer, malignant ascites, prostate cancer, neural cancers (glioblastoma, neuroblastoma in children) and melanoma are the key clinical indications being pursued, with the ultimate objective of employing both technologies as a unified approach to first-line therapy.
Further information is available on our websites www.novogen.com
SINGAPORE, April 2, 2015 /PRNewswire/ — Johnson & Johnson Innovation – JJDC, Inc. (JJDC) today announced a USD $15 million commitment to Vivo Capital Fund VIII (“Vivo VIII”). Vivo Capital is an investment firm focused on investing in and developing healthcare companies in the U.S. and China.
This investment in Vivo VIII provides late stage venture and early stage growth capital to be invested in the United States and China. This investment helps bridge two of the world’s largest healthcare markets and enables cross-country relationships that will allow for market expansion and access to new products. The fund aims to combine the innovation and expertise with the growth and capital of the different regions using their presence in both regions.
JJDC is the first healthcare venture group to invest in Vivo VIII. With headquarters in Palo Alto, Shanghai, and Beijing, Vivo Capital maintains a long history of partnership with entrepreneurs and industry members in both countries.
“We are excited about our investment in Vivo VIII as part of our strategy to support and advance innovation in the Asia Pacific region,” said Vladimir Makatsaria, Company Group Chairman of Medical Devices, Asia Pacific for Johnson & Johnson. “Vivo Capital’s differentiated strategy and depth of experience in China and the United States provides us a greater window on the emerging science in China, and opportunities to invest in these promising companies.”
Vivo Capital has managed a total of seven funds in the last 17 years. They have participated in seven IPOs in China, and have coordinated two of the largest medical device exits in Chinese history with China Kanghui and Trauson. In the United States, the fund has managed multiple exits, including Ceptaris, Neomend, Vicept, and Rempex. Given the room for continued industry growth in China, investment opportunities remain abundant, with total healthcare expenditure set to grow to USD $1 trillion by 2020, with an average growth rate of 18% every year since 2012.
About Johnson & Johnson Innovation – JJDC
About Johnson & Johnson Innovation – JJDC, Inc. is the venture capital subsidiary of Johnson & Johnson that has been investing since 1973 in medical device, diagnostic, pharmaceutical and consumer health areas. Our goal is to create opportunities that meet the strategic needs of Johnson & Johnson while providing visibility to innovative emerging technology, businesses and business models. JJDC measures the success of an investment’s performance not only in financial returns, but also in the viability of providing strategic growth opportunities for the Johnson & Johnson Family of Companies. JJDC is interested in opportunities that address significant unmet medical needs, have clear competitive advantages, IP protection, an executable clinical and commercialization plan and are led by experienced management. JJDC invests in companies across the continuum from early stage seed investments to advanced stages of series venture management. Our investment teams are based in Johnson & Johnson Innovation’s four regional innovation centers in Boston, California, London and Asia Pacific. For more information, please visit www.jnjinnovation.com.
(This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson Innovation – JJDC, Inc. and/or Johnson & Johnson. Risks and uncertainties include, but are not limited to, the potential that the expected benefits and opportunities of this investment may not be realized. Investments in externally sourced innovation are inherently risky, with no guarantee of success. A further list and description of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014, including in Exhibit 99 thereto, and the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Neither Johnson & Johnson Innovation – JJDC, Inc. nor Johnson & Johnson undertakes to update any forward-looking statement as a result of new information or future events or developments).
SHANGHAI, April 1, 2015 /PRNewswire/ — In what is a first formal tie-up for the two organizations, MEDTEC China and NAMSA -the leading global medical research organization — are co-organizin…
HONG KONG, April 1, 2015 /PRNewswire/ — On April 1, New Media (HK. 708), which planned to rename as Evergrande Health Industrial Group Co., Ltd., announced that it signed Equity Acquisition Agreement with Evergrande Health Industria…
HARBIN, China, April 1, 2015 /PRNewswire/ — Yew Bio-Pharm Group, Inc. (“Yew Bio” or the “Company”) (OTCBB: YEWB), a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine and products made from yew timber in China, today reported financial results for the three- and twelve-months ended December 31, 2014.
2014 Fourth Quarter Results
Three Months Ended December 31,
Twelve Months Ended December 31,
2014
2013
2014
2013
Revenues:
TCM Raw Materials
$686,669
$998,934
$4,043,290
$4,170,748
Yew Trees
857,769
909,311
3,208,643
3,011,728
Handicrafts
48,439
81,770
173,412
257,172
Wood Ear Mushroom
301,231
–
301,231
–
Total Revenues
$1,894,108
$1,990,015
$7,726,576
$7,439,648
Total revenue for the fourth quarter of 2014 decreased 5.0% to $1.9 million from $2.0 million a year ago. Sales of TCM raw materials amounted to 36.3% of total revenues, sales of yew trees amounted to 45.3% of total revenues, sales of handicrafts amounted to 2.6% of total revenues, and the sales of wood ear mushroom made up the remaining 15.9%.
For the 2014 fourth quarter gross profit was $1.0 million, or 53.0 % of total revenue, compared with $1.3 million, or 65.6% of total revenues for the comparable 2013 quarter. Gross profit was primarily impacted by the sales of TCM raw materials decreased in the fourth quarter.
Operating expenses were $402,072 in the quarter which included option-based compensation of $161,000, as compared to $262,982 in the year-ago quarter.
Net income in the fourth quarter of 2014 was $0.6 million, or $0.01 per diluted share, compared with a net income of $1.0 million in the year-ago quarter, or $0.02 per diluted share.
2014 Results
Total revenues for the 2014 fiscal year were $7.7 million, a 3.9% increase from $7.4 million a year earlier. Sales of TCM raw materials amounted to 52.3% of total revenues, sales of yew trees amounted to 41.5% of total revenues, sales of handicrafts amounted to 2.3% of total revenues, and sales of wood ear mushroom made up the remaining 3.9%.
Gross profit was $5.6 million, or 72.3% of total revenues, for the full year, compared with $5.0 million, or 67.6% of total revenues in 2013.
Operating expenses were $1.3 million for the year ended December 31, 2014, compared with $1.1 million a year earlier.
Net income for 2014 increased to $4.3 million, or 0.07 per diluted share, from $3.9 million, or $0.08 per diluted share for 2013.
“The economic growth rate of China has been slowing down in recent years,” said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group, Inc. “The Chinese medium and small-sized enterprises experienced unprecedented challenges in their business operation. In the second half of 2014, Yew Bio combated this trend by changing its business model from agriculture focused to a more diversified business operation model, such as the expansion into the dietary supplement market and the newly added wood ear mushroom business segment.”
“Meanwhile, the Company signed a multi-year exclusive distribution agreement with Carpal Aid, a U.S. company, to distribute its non-invasive medical device “Carpal Aid” used to treat carpal tunnel syndrome throughout China. We commenced clinic trails on the product in the hospitals of Harbin, China, and we will start distributing the product in the Chinese market as soon as the trails are approved by the CFDA. We expect to make a substantial breakthrough for this new product in the year of 2015. In addition, we will also continue to expand our business to other areas to generate new revenue sources.”
ABOUT YEW BIO-PHARM GROUP, INC
Yew Bio-Pharm Group, Inc., through its operating entity, Harbin Yew Science and Technology Development Co., Ltd. (HDS), is a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine (TCM) and products made from yew timber in China. Raw material from the species of yew tree that the Company grows contains taxol, and TCM containing yew raw materials has been approved as a traditional Chinese medicine in China for secondary treatment of certain cancers. The Company uses a patented, accelerated growth technology to speed the growth and maturity and commercialization of yew trees and believes that it is one of the few companies possessing a permit to sell them. Yew Bio-Pharm also recently established a division to focus on organic foods and dietary supplements with the aim of developing new business opportunities in related industries. To learn more, please visit www.yewbiopharm.com
SAFE HARBOR
This press release forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These forward-looking statements involve a number of risks and uncertainties that could cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to collect from our largest customers; our dependence on a small number of customers for raw materials, including a related party; our ability to continue to purchase raw materials at relatively stable prices; our dependence on a small number of customers for our yew trees for reforestation; our ability to market successfully raw materials used in the manufacture of traditional Chinese medicines; and our ability to receive continued preferential tax treatment for the sale of yew trees and potted yew trees. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K. Yew Bio does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.
(financial tables follow)
YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
2014
2013
ASSETS
CURRENT ASSETS:
Cash
$
487,940
$
1,159,611
Accounts receivable
922,564
418,875
Accounts receivable – related party
340,132
377,821
Inventories
1,443,078
1,089,087
Prepaid expenses – related party
5,787
34,031
Prepaid expenses and other assets
16,791
2,697
Total Current Assets
3,216,292
3,082,122
LONG-TERM ASSETS:
Long-term inventories, net
10,663,545
10,245,146
Property and equipment, net
856,250
1,033,078
Land use rights and yew forest assets, net
20,305,821
20,953,562
Total Long-term Assets
31,825,616
32,231,786
Total Assets
$
35,041,908
$
35,313,908
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accrued expenses and other payables
$
84,722
$
136,713
Taxes payable
10,547
10,232
Due to related parties
45,040
4,850,637
Total Current Liabilities
140,309
4,997,582
Total Liabilities
140,309
4,997,582
SHAREHOLDERS’ EQUITY:
Common Stock ($0.001 par value; 140,000,000 shares authorized; 52,125,000 shares and
50,000,000 shares issued and outstanding at December 31, 2014 and 2013, respectively)
52,125
50,000
Additional paid-in capital
8,557,656
8,058,165
Retained earnings
20,444,667
16,664,138
Statutory reserves
3,100,766
2,597,118
Accumulated other comprehensive income – foreign currency translation adjustment
2,746,385
2,946,905
Total Shareholders’ Equity
34,901,599
30,316,326
Total Liabilities and Shareholders’ Equity
$
35,041,908
$
35,313,908
YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Three-Months Ended
Twelve-Months Ended
December 31,
December 31,
2014
2013
2014
2013
REVENUES:
Revenues
$
1,127,273
$
1,848,698
$
5,657,351
$
5,889,190
Revenues – related party
766,835
141,317
2,069,225
1,550,458
Total Revenues
1,894,108
1,990,015
7,726,576
7,439,648
COST OF REVENUES:
Cost of revenues
577,115
648,654
1,582,980
1,968,682
Cost of revenues – related party
313,016
36,327
553,617
438,718
Total Cost of Revenues
890,131
684,981
2,136,597
2,407,400
GROSS PROFIT
1,003,977
1,305,034
5,589,979
5,032,248
OPERATING EXPENSES:
Selling
12,127
4,745
21,521
23,794
General and administrative
389,945
258,237
1,282,508
1,110,717
Total Operating Expenses
402,072
262,982
1,304,029
1,134,511
INCOME FROM OPERATIONS
601,905
1,042,052
4,285,950
3,897,737
OTHER INCOME (EXPENSES):
Interest income
143
402
179
647
Other income (expenses)
(3,299)
44
(1,952)
1,346
Total Other Income (Expenses)
(3,156)
446
(1,773)
1,993
NET INCOME
$
598,749
$
1,042,498
$
4,284,177
$
3,899,730
COMPREHENSIVE INCOME:
NET INCOME
$
598,749
$
1,042,498
$
4,284,177
$
3,899,730
OTHER COMPREHENSIVE INCOME (LOSS):
Unrealized foreign currency translation gain
11,406
188,142
(200,520)
966,009
COMPREHENSIVE INCOME
$
610,155
$
1,230,640
$
4,083,657
$
4,865,739
NET INCOME PER COMMON SHARE:
Basic
$
0.01
$
0.02
$
0.08
$
0.08
Diluted
$
0.01
$
0.02
$
0.07
$
0.08
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic
50,948,973
50,000,000
50,948,973
50,000,000
Diluted
62,795,716
50,000,000
62,795,716
50,000,000
YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended
December 31, 2014
December 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
4,284,177
$
3,899,730
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
172,446
179,857
Amortization of land use rights and yew forest assets
510,363
381,659
Loss on disposal of fixed assets
1,814
349
Stock-based compensation
166,222
–
Issuance of common stock for professional service
335,394
–
Changes in operating assets and liabilities:
Accounts receivable
(506,814)
323,160
Accounts receivable – related party
35,295
(82,282)
Prepaid and other current assets
(14,112)
(2,515)
Prepaid expenses – related party
28,049
27,823
Inventories
(842,558)
(222,738)
Accounts payable
–
(1,008)
Accrued expenses and other payables
(51,393)
(65,466)
Due to related parties
(3,894)
–
Taxes payable
377
4,255
NET CASH PROVIDED BY OPERATING ACTIVITIES
4,115,366
4,442,824
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposal of property, plant and equipment
5,000
–
Purchase of property, plant and equipment
(8,534)
(299,613)
Purchase of land use rights and yew forest assets
(2,444,139)
(3,393,082)
NET CASH USED IN INVESTING ACTIVITIES
(2,447,673)
(3,692,695)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from related party advances
1,220
–
Repayments for related parties advances
–
(210)
Distribution to owners – excess of acquisition price over carrying value of yew forest assets purchased from entities under common control
(2,332,048)
–
NET CASH USED IN FINANCING ACTIVITIES
(2,330,828)
(210)
EFFECT OF EXCHANGE RATE ON CASH
(8,536)
22,871
NET INCREASE (DECREASE) IN CASH
(671,671)
772,791
CASH – Beginning of year
1,159,611
386,821
CASH – End of year
$
487,940
$
1,159,611
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
Interest
$
–
$
–
Income taxes
$
–
$
–
Non-cash investing and financing activities
Due to related party in connection with purchase of yew forest assets from entity under common control
$
–
$
2,450,600
Excess of acquisition price over carrying value of yew forest assets purchased from entities under common control
Company to Hold Conference Call with Accompanying Slide Presentation on March 31, 2015, at 6 p.m. ET
WUHAN CITY, China, April 1, 2015 /PRNewswire/ — Kingold Jewelry, Inc. (“Kingold” or “the Company”) (NASDAQ: KGJI), one of China’s leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products, today announced its financial results for the fourth quarter and year ended December 31, 2014.
2014 Financial and Operating Highlights (all results are compared to prior year period)
Net sales was $1.1 billion compared to $1.2 billion, the decline was primarily due to lower gold pricing
Processed a total of 60.1 metric tons [one metric ton = 35,274 ounces] of 24-karat gold products, an increase of 17.6% compared to 51.1 metric tons and within the Company’s previously announced guidance range
Gross profit increased to $76.3 million compared to $47.0 million, and gross margin was 6.9% compared to 3.9%, largely due to the previously announced purchase of large quantities of gold at low market prices at year end of 2013 and at the beginning of 2014
Net income was $47.3million, or $ 0.72 per diluted share, compared to $28.3 million, or $0.44 per diluted share
Book value per diluted share was $3.91 at December 31, 2014 compared to $3.31 at December 31, 2013
Kingold meets its previously announced 2014 guidance of between 60 metric tons and 70 metric tons with 60.1 million
2014 Fourth Quarter Financial Highlights (all results are compared to prior year period)
Net sales was $209.3 million, a decrease of 34.1% compared to $317.6 million, largely due to the later Chinese New Year
Processed a total of 13.2 metric tons of 24-karat gold products, a decrease of 7.7% compared to 14.3 metric tons
Net income was $7.7 million, or $0.12 per diluted share, a decrease of 3.2% from $7.9 million, or $0.12 per diluted share
Outlook for 2015
Company expects to process between 70 metric tons and 80 metric tons of 24-karat gold products in 2015.
Mr. Zhihong Jia, Chairman and CEO of the Company, commented, “We are pleased with our 2014 financial and operating results as we continued to improve our 24-karat gold manufacturing and designing capability and distribution network throughout China. In 2014, China’s gold industry was impacted by a weaker economy and overall decline in gold prices. Despite these challenges, Kingold processed 60.1 metric tons of gold products during the year and sold them to its 300 major customers from 25 provinces.”
UPDATE ON Kingold Jewelry cultural industry Park
January 8, 2015: The Company announced that it has completed the framework on the property and move to the next phase of construction, which will be focused on both exterior and interior decoration and design. The Company expects to complete the entire project on time and will have a grand opening by the end of December 2015.
January 21, 2015: The Company announced that it has formally received two separate “Certificates of Presale of Commercial Properties” from Wuhan Housing Security and Management Bureau, which cover five commercial buildings, totaling approximately 123,600 square meters (approx. 1,330,000 square feet). The Company is seeking potential buyers for these commercial properties, and is expected to utilize any proceeds from the presale of these units to complete construction.
Chairman Jia stated, “We continue to receive regular inquiries and positive feedback on our development of the Jewelry Park, and remain on track for a grand opening in December 2015.”
2014 OPERATIONAL REVIEW
In the fourth quarter of 2014, Kingold processed approximately 13.2 metric tons of 24-karat gold products, a decrease of 7.7% over the 14.3 metric tons processed in the fourth quarter of 2013. For the year ended December 31, 2014, the Company processed 60.1 metric tons of 24-karat gold products, an increase of 17.6% over the 51.1 metric tons processed in 2013.
Metric Tons of Gold Processed
Three Months Ended:
December 31, 2014
December 31, 2013
Volume
% of Total
Volume
% of Total
Branded*
5.7
43.2%
8.3
58.0%
Customized**
7.5
56.8%
6.0
42.0%
Total
13.2
100%
14.3
100%
Year Ended:
December 31, 2014
December 31, 2013
Volume
% of Total
Volume
% of Total
Branded*
28.8
47.9%
28.6
56.0%
Customized**
31.3
52.1%
22.5
44.0%
Total
60.1
100%
51.1
100%
* Branded Production:
The Company acquires gold from the Shanghai Gold Exchange to produce branded products.
** Customized Production:
Clients who purchase customized products supply gold to the Company for processing.
For the three months ended December 31, 2014, the Company processed a total of 13.2 metric tons of gold, of which branded production was 5.7 metric tons, representing 43.2% of total gold processed, and customized production was 7.5 metric tons, representing 56.8% of total gold processed in the fourth quarter of 2014. In the fourth quarter of 2013, the Company processed a total of 14.3 metric tons, of which branded production was 8.3 metric tons, or 58.0% of the total gold processed, and customized production was 6.0 metric tons, or 42.0% of total gold processed.
For the year ended December 31, 2014, Kingold processed a total of 60.1 metric tons of gold, of which branded production was 28.8 metric tons, or 47.9% of total gold processed, and customized production was 31.3 metric tons, or 52.1% of total gold processed. In 2013, the Company processed a total of 51.1 metric tons of gold, of which branded production was 28.6 metric tons, or 56.0% of the total, and customized production was 22.5 metric tons, or 44.0% of the total.
2014 FINANCIAL REVIEW
Net Sales
Net sales for the three months ended December 31, 2014 was $209.3 million, compared to $317.6 million for the same period in 2013. The decrease in sales is largely due to the later Chinese New Year. The mid-February Chinese New Year postponed the winter sales peak to January of 2015.
Net sales for the year ended December 31, 2014 was 1.1 billion, decrease of 6.9% from the $1.2 billion reported in the year of 2013. The decrease in net sales was primarily driven by the decrease in the price of gold and to increased sales of customized products.
The Company’s total sales from its investment gold business were $19.2 million for the year of 2014, a decrease of 84.5% from $106.1 million in 2013. Demand for investment gold was down overall in light of the slow down in China’s economy.
Gross Profit
Gross profit for the three months ended December 31, 2014 was $13.9 million, a decrease of 1.8%, from $14.2 million for the same period in 2013.
Gross profit for the year of 2014 increased to $76.3 million, an increase of 62.4%, from $47.0 million for year of 2013.
Gross Margin
The Company’s gross margin was 6.7% for the three months ended December 31, 2014, compared to 4.5% in the prior year period.
The Company’s gross margin for the 2014 fiscal year was 6.9%, up from 3.9% in the prior year period. The substantial increase was due to the fact that the Company purchased large quantities of gold inventory at year end 2013 and beginning of 2014 at low market prices, making the first half production at a cost much lower than normal.
Net Income
Net income for the three months ended December 31, 2014 was $7.7 million, or $0.12 per diluted share based on 66.0 million weighted average diluted shares outstanding, compared to net income of $7.9 million in the prior year period, or $0.12 per diluted share based on 64.5 million weighted average diluted shares outstanding in the prior-year period.
Net income for the year of 2014 was $47.3 million, or $0.72 per diluted share based on 66.0 million weighted average diluted shares outstanding, compared to net income of $28.3 million in the prior year, or $0.44 per diluted share based on 63.9 million weighted average diluted shares outstanding, in the prior-year.
Balance Sheet and Cash Flow
(in millions except for percentages)
12/31/2014
12/31/2013
% Changed
(Audited)
(Audited)
Cash
$
1.3
2.3
(41.7%)
Inventories (gold)
212.4
174.4
21.8%
Working Capital
212.6
199.8
6.4%
Stockholders’ Equity
258.2
214.9
20.2%
Net cash provided by operating activities was $20.3 million for the year of 2014, compared with net cash provided by operating activities of $7.7 million for the year of 2013. The change was mainly because of the increase in net income raised from $28.3 million in the year of 2013 to $47.3 million in the year of 2014.
Kingold’s net cash from operating activities can fluctuate significantly due to changes in inventories (principally gold). Other factors that may vary significantly include the Company’s purchases of gold and income taxes. The Company expects that the net cash it generates from operating activities will continue to fluctuate as the Company’s inventories, receivables, accounts payables, and the other factors described above change with increased production and the purchase of larger quantities of raw materials (principally gold).
OUTLOOK FOR 2015
Based on its existing resources and capacity, strong demand for 24-karat gold products in China, the Company believes that its gold processed is expected to be between 70 metric tons and 80 metric tons during 2015. This guidance is based solely on current projected, organic growth. The Company anticipates narrowing this guidance throughout the year, along with providing additional metrics for investors in the coming months.
Conference Call Details
Kingold also announced that it will discuss these financial results in a conference call on March 31, 2015, at 6 p.m. ET.
The dial-in numbers are:
Live Participant Dial In (Toll Free):
877-407-9038
Live Participant Dial In (International):
201-493-6742
The conference call will also be webcast live. To listen to the call, please go to the Investor Relations section of Kingold’s website at www.kingoldjewelry.com, or click on the following link: http://kingoldjewelry.equisolvewebcast.com/q4-2014. The Company will also have an accompanying slide presentation available in PDF format on its homepage prior to the conference call.
About Kingold Jewelry, Inc.
Kingold Jewelry, Inc. (NASDAQ: KGJI), centrally located in Wuhan City, one of China’s largest cities, was founded in 2002 and today is one of China’s leading designers and manufacturers of 24-karat gold jewelry, ornaments, and investment-oriented products. The Company sells both directly to retailers as well as through major distributors across China. Kingold has received numerous industry awards and has been a member of the Shanghai Gold Exchange since 2003. For more information, please visit www.kingoldjewelry.com.
Business Risks and Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by words such as “expects,” “believe,” “project,” “anticipate,” or similar expressions. The forward-looking statements in this release include statements regarding Kingold’s outlook with respect to its 2015 outlook for gold processing, its expectations with respect to completion of construction of the Jewelry Park and planned grand opening, as well as its ability to engage in presales and finance the remaining construction. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. Forward-looking statements are subject to a number of risks, including those contained in Kingold’s SEC filings available at www.sec.gov, including Kingold’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Kingold undertakes no obligation to update or revise any forward-looking statements for any reason.
Company Contact Kingold Jewelry, Inc. Bin Liu, CFO Phone: +1-847-660-3498 (US) / +86-27-6569-4977 (China) bl@kingoldjewelry.com
INVESTOR RELATIONS The Equity Group Inc. Katherine Yao, Associate +86 10-6587-6435 kyao@equityny.com
KINGOLD JEWELRY, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(IN U.S. DOLLARS)
For the three months ended December 31,
For the years ended December 31,
2014
2013
2014
2013
NET SALES
$
209,333,026
$
317,575,713
$
1,107,558,544
$
1,189,915,923
COST OF SALES
Cost of sales
(195,023,389)
(302,998,188)
(1,030,010,474)
(1,141,671,197)
Depreciation
(365,074)
(370,785)
(1,296,583)
(1,277,374)
Total cost of sales
(195,388,463)
(303,368,973)
(1,031,307,057)
(1,142,948,571)
GROSS PROFIT
13,944,562
14,206,740
76,251,487
46,967,352
OPERATING EXPENSES
Selling, general and administrative expenses
2,025,666
1,609,850
7,343,951
4,749,488
Stock compensation expenses
1,310,995
398,773
3,149,980
1,532,563
Depreciation
61,655
44,930
130,074
155,216
Amortization
3,080
6,125
12,300
12,205
Total operating expenses
3,401,396
2,059,678
10,636,305
6,449,472
INCOME FROM OPERATIONS
10,543,166
12,147,062
65,615,182
40,517,880
OTHER INCOME (EXPENSES)
Other Income
–
–
94,624
–
Interest Income
–
–
305,465
56,253
Other Expense
–
–
–
(81)
Interest expense
(307,991)
(760,649)
(1,847,240)
(1,051,564)
Total other expenses, net
(307,991)
(760,649)
(1,447,151)
(995,392)
INCOME FROM OPERATIONS BEFORE TAXES
10,235,174
11,386,413
64,168,031
39,522,488
INCOME TAX PROVISION (BENEFIT)
Current
1,258,968
3,257,007
16,836,054
11,454,787
Deferred
1,301,027
199,243
–
(272,225)
Total income tax provision
2,559,994
3,456,250
16,836,054
11,182,562
NET INCOME
$
7,675,180
$
7,930,163
$
47,331,977
$
28,339,926
OTHER COMPREHENSIVE INCOME (LOSS)
Total foreign currency translation gains (loss)
$
278,221
$
1,039,417
$
(1,331,032)
$
5,820,020
COMPREHENSIVE INCOME
$
7,953,400
$
8,969,580
$
46,000,945
$
34,159,946
Earnings per share
Basic
$
0.12
$
0.12
$
0.72
$
0.45
Diluted
$
0.12
$
0.12
$
0.72
$
0.44
Weighted average number of shares
Basic
65,957,499
64,334,400
65,918,768
63,495,520
Diluted
65,957,499
64,486,938
66,007,075
63,902,912
KINGOLD JEWELRY, INC.
CONSOLIDATED BALANCE SHEETS
(IN U.S. DOLLARS)
December 31,
December 31,
2014
2013
ASSETS
CURRENT ASSETS
Cash
$
1,331,658
$
2,284,930
Restricted cash
14,793,632
12,668,749
Accounts receivable
503,406
532,386
Inventories
212,396,363
174,433,501
Other current assets and prepaid expenses
57,971
8,252,387
Due from related party
–
52,354,308
Value added tax recoverable
4,501,426
6,220,866
Deferred income tax assets
–
275,882
Total current assets
233,584,456
257,023,009
PROPERTY AND EQUIPMENT, NET
9,390,258
10,686,947
OTHER ASSETS
Deposit on land use right-Jewelry Park
9,819,687
32,721,442
Construction in progress – Jewelry Park
58,310,818
–
Other assets
157,078
157,946
Land use right
492,027
507,117
Total other assets
68,779,610
33,386,505
TOTAL ASSETS
$
311,754,324
$
301,096,461
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Short term loans
$
16,270,745
$
49,572,985
Long term loans – current maturities
28,844,777
–
Other payables and accrued expenses
2,970,770
3,499,717
Income tax payable
978,713
3,269,908
Other taxes payable
777,537
848,739
Total current liabilities
49,842,542
57,191,349
Long term loans
3,672,308
29,004,287
TOTAL LIABILITIES
53,514,850
86,195,636
COMMITMENTS AND CONTINGENCIES
–
–
EQUITY
Preferred stock, $0.001 par value, 500,000 shares
authorized, none issued or outstanding
as of December 31, 2014 and December 31, 2013
–
–
Common stock $0.001 par value, 100,000,000 shares
authorized, 65,963,502 and 64,953,462 shares issued and outstanding
as of December 31, 2014 and December 31, 2013
65,963
64,953
Additional paid-in capital
79,460,175
76,847,205
Retained earnings
Unappropriated
163,002,075
120,946,375
Appropriated
967,543
967,543
Accumulated other comprehensive income
14,743,718
16,074,749
Total stockholders’ equity
258,239,474
214,900,825
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
311,754,324
$
301,096,461
KINGOLD JEWELRY, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(IN U.S. DOLLARS)
For the years ended December 31,
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
47,331,977
$
28,339,926
Adjusted to reconcile net income to cash provided by
SINGAPORE, April 1, 2015 /PRNewswire/ — The HK and Singapore-based investment structure The Watch Fund is officially nominated for the category “Best Alternative Investment Manager” at the renowned WealthBriefingAsia Singapore Awards 2015. Previous winners of the award — which is initiated by the global wealth management news portal WealthBriefing —include Standard Chartered Private Banking, DBS Bank and J.P. Morgan.
Although the nomination is already a high accomplishment for The Watch Fund (TWF), its unique concept may be crucial for the final decision. Investors actually hold and wear two to three times of their investment amount in luxury watches from day one — before TWF eventually sells the watches for more than a 10% net profit. Being the only structure that individually manages accounts in the alternative investing space of watches — and allowing investors to wear them from day one — it has a distinctive position in the category “Best Alternative Investment Manager”.
Dominic Khoo, founder of TWF and Southeast Asia’s only certified watch specialist, feels tremendously honoured to be a nominee: “The review of the applications is an independent and transparent process. The best senior banking and wealth management professionals scan every investment structure and only pick the top performers.”
TWF was only founded in 2013 but already has USD$38,000,000 assets under management — and is challenging a global player such as HSBC. “The nomination is a clear distinction to other alternative asset funds — it shows our top performance and innovation.” says Khoo.
The Watch Fund has two distinctive features: It is already the world’s biggest watch investment vehicle and the one with the highest returns. The performance is remarkable: Whilst one “unlucky” investor took back a 10% net gain after 364 days of wearing his three 6-digit priced watches, other investors have done better — with the highest return of 54% in just three months or 216% annualized.
However, the typical investor is not a watch enthusiast: “Ironically you can say that our investors have no real interest in watches.” says Dominic Khoo. “They are focused on the returns and those are great. The Watch Fund has an international database of more than 9000 watch collectors that buy from the investors. If you understand the difference between a collector and an investor, you can understand where the money making is.“ he explains.
“Just imagine us a one-year fixed deposit — instead of a 1% interest rate and a token umbrella, you can expect more than 11% and a whole range of investment-grade luxury watches as your personal, verifiable, usable collateral from day one.” Investors can even choose from an optional 10% net annualized guaranteed return — but Khoo clarifies that whilst this option might mean downside is protected, upside over and above the 10% goes straight to The Watch Fund’s revenue.
Another unique proposition of The Watch Fund— that could influence the final decision for the WealthBriefingAsia Singapore Awards 2015 — is that there are no annual or management fees. It survives of transaction fees which Khoo believes makes the TWF and investors completely aligned: “If you don’t make money — we don’t survive.” says Khoo.
The performance of alternative investments is outstanding: According to the Coutts Index (2014) passion investments such as watches have risen 176% since 2005 and are outperforming shares in the MSCI All Country Equity Index. “Bearing in mind that this period includes the recession of 2008, it is important to invest not just in physical products with dying labour craft but also in uncorrelated assets in a world of volatility.” Khoo advises.
The award ceremony of the WealthBriefingAsia Singapore Awards 2015 is initiated by the global wealth management news portal WealthBriefing and will be held on 16 April in Singapore’s world-famous Raffles Hotel. WealthBriefing is published by UK based Clearview Financial Media, the world’s leading provider of business intelligence in the private banking and wealth management sector. Aiming to connect investment vehicles and client communities in financial centers such as New York, London, Hong Kong and Singapore, the prestigious awards are handed over by financial experts and top managers.
Media Enquiries
For further information, please contact
Jasmine Tuan Public Relations The Watchfund Pte. Ltd. 6 Kay Siang Road, Singapore 248924 Phone: +65-6366-4642 Mobile: +65-9843-1997 Email: pr@thewatchfund.com Website: www.thewatchfund.com
Australian start-up, Sonoa Health, has today appointed a respected investment banker as CEO. His mission: bring an innovative product to market, secure strategic partnerships, and expand internationally
SAN FRANCISCO, March 31, 2015 /PRNewswire/ — Sonoa Health, a health tech startup based in Melbourne, Australia, has developed a world-first consumer health portal, Health&, which brings together data from online health records, medication prescriptions, wearable devices and more.
Today, the Company appointed respected investment banker John Stewart as its CEO, who brings to the table more than 18-years experience in investment banking and corporate advisory, which has included working closely with the biggest names in Silicon Valley in the US.
Sonoa Health’s Founder and Chair, Mr Bob Biddle, said Mr Stewart’s appointment is a significant achievement for the Company, which was officially founded four years ago and ramped up production for its consumer health portal early last year with more than 50 handpicked recruits. The portal will be launched later this year.
“We are in a very exciting phase of our development and John’s appointment is a testament to the quality of the company we’ve built and the talent we’ve attracted to drive its success. We are delighted to welcome him to the team,” said Mr Biddle.
“John has spent more than a decade in the heartland of digital health in Silicon Valley and will contribute invaluable perspectives to our business as we secure strategic business partnerships, raise capital, launch our product, and expand internationally.”
Sonoa Health’s new CEO isn’t hesitating to embrace the challenge.
“Sonoa Health presents a rare opportunity to work with the very best medical, creative and digital minds, and has enormous potential for global growth. After more than 18-years in banking, I am pretty comfortable navigating risk and reward – and I know we’re in for an exhilarating climb here,” said Mr Stewart.
Sonoa Health is taking an astute step forward in the highly saturated health tech market, by engaging the world’s most respected medical pioneers to drive the development of health technology and education resources.
“Our Health& portal is designed to provide an intelligent interface between doctors and consumers, which displays consumer health information in one place and helps them to proactively manage illness. It is supported by a search engine containing animated, illustrated and written health content, which is derived from evidence-based resources and designed to boost health literacy,” said Mr Biddle.
“The unique algorithms at the core of Health& power a reasoning engine, which brings the logic of a doctor’s brain online and delivers truly individualised health information to consumers. To achieve this, we’ve accessed the brightest brains and harvested their knowledge.”
The Company has engaged nine medical professors, who are all members of the Order of Australia, to head its Medical Advisory Board. In-house, there is a bright young team of doctors, writers, developers, animators, illustrators and an entrepreneurial leadership team too.
“It’s heartening to lead a brave and committed team of individuals, who are so focused on improving lives across the world. The launch of the Health& consumer portal later this year will signal a great achievement for Australia’s innovation sector,” said Mr Stewart.
Prior to joining Sonoa Health, Mr Stewart was a Managing Director at Gresham Partners, a Managing Director with Lazard in Australia and spent more than 11 years in the US in M&A roles with JPMorgan and Thomas Weisel Partners.He has also worked as an M&A lawyer with Fried Frank in New York and Corrs in Australia.
To request an interview with Sonoa Health CEO, John Stewart, please contact Chief Communications Officer, Haley Price, on +61-423-139-163 orhaley.price@sonoahealth.com
Links & Resources:
* Photos of CEO John Stewart and the Sonoa Health team may be downloaded:
— The healthcare industry can offer efficient customer care and communication through the use of cloud-based data storage solutions.
MOUNTAIN VIEW, Calif., March 31, 2015 /PRNewswire/ — The Affordable Care Act along with the intense pressure to reduce healthcare costs has affected the state of the healthcare system, leaving an open door of opportunity for the IT Industry. Healthcare reform is driving a shift towards Accountable Care Organizations (ACOs), wherein the industry will adopt an outcome-based versus procedure-based focus and reimbursement model.
ACOs are investing in products and technologies to meet the healthcare industry’s needs through various kinds of partnerships. There are substantial opportunities in mHealth, as patients increasingly use mobile apps to access and send information on their health, make appointments, and communicate with their healthcare provider, as well as track their wellness and fitness.
New analysis from Frost & Sullivan,The Future of IT in the Healthcare Industry in North America, Latin America, and Europe,finds that integrated delivery network (IDN) providers must continue to invest in IT solutions and infrastructure to meet the needs of delivery practices and information utilization.
For complimentary access to more information on this research, please visit:http://bit.ly/1CCMg2t
“By providing use cases and demonstrating ROI, the IT industry can expand the scaled use of mobile and remote technology solutions as part of care delivery and patient/provider workflows,” said Frost & Sullivan Customer Research Director Tonya Fowler. “IT solutions can have a huge impact on the bottom line by enabling shared information across an organization.”
The traditional paradigm of patient-centric care is gradually giving way to member engagement and empowerment, which in turn, has opened up opportunities for healthcare providers in the untapped health and wellness sector. Many competitors have already begun to lay the ground work with investments in staff, resources, and targeted acquisitions.
Meanwhile, device manufacturers seek to retain clients with cutting-edge customer care technologies that generate timely and effective results. The big data trend is pivotal and numerous IT vendors have responded by developing cloud-based solutions for the healthcare industry.
The amount of big data needed to provide better and more cost-effective care is best handled in the cloud. The capacity, flexibility, and pricing models presented by cloud service providers resonate well with the healthcare industry.
“Furthermore, the adoption of Health Insurance Portability and Accountability Act (HIPAA)-compliant cloud solutions for data storage and archiving is expanding. Applications in the cloud that support collaboration as well as anytime, anywhere, and any-device needs are growing quickly,” notedFowler. “Niche healthcare cloud service providers will emerge as top contenders in the market, followed by cloud computing vendors that design solutions for healthcare.”
The Future of IT in the Healthcare Industry in North America, Latin America, and Europeis part of theVertical Markets in ICT (http://www.ict.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Big Data Study 2014, Healthcare IT Trends in Brazil, Top 10 ICT Trends for Africa in 2015, 2014 Latin America Cloud Computing Market, and Profiling the Back Office Workforce Optimization Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.
Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
The Integrated Value Propositionprovides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructureis entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
NANJING, China, March 31, 2015 /PRNewswire/ — Ever-Glory International Group, Inc. (the “Company” or “Ever-Glory”) (NASDAQ Global Market: EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider based in China, today reported its financial results for its fiscal year ended December 31, 2014.
Full Year 2014 Highlights
Total net sales increased 25.0% YOY to $460.1 million
Gross profit increased 29.2% YOY to $122.2 million
Operating income increased 20.2% YOY to $21.8 million
Net income increased 52.4% YOY to $16.4 million
2014 EPS of $1.11 compared to 2013 EPS of $0.73
Mr. Edward Yihua Kang, CEO of Ever-Glory commented, “I’m pleased to see our business maintain stable growth, while the macro environment remains challenging in 2014. In 2014, our retail business added two retail brands “Velwin” and “Sea To Sky”, which also sell women’s apparel but have different brand positioning than La go go. We believe the multi-brand strategy will improve our market share and expand our competitive position through the accurate positioning of each brand. In our wholesale business, we remain dedicated to service well-known brands and retail stores by providing a complete set of supply chain management. In 2015, we will continue to focus on high value-added solutions.”
Full Year 2014 Results
Total sales for the year ended December 31, 2014 were $460.1 million, an increase of 25.0% from the year ended December 31, 2013. This increase was primarily attributable to a 29.0% increase in the retail business as well as a 20.8% increase in the wholesale business.
In 2014, retail sales from the Company’s branded fashion apparel retail division, increased 29.0% to $244.7 million, compared to $189.7 million in 2013. This increase was primarily due to the increase in both new stores opened and same store sales. Ever-Glory had 1,201 retail stores as of December 31, 2014, compared to 960 retail stores at December 31, 2013.
In 2014, wholesale sales increased 20.8% to $215.5 million, compared to $178.3 million in 2013. The increase was primarily attributable to increased sales in PRC, Germany, United States and Europe partially offset by decreased sales in United Kingdom and Japan.
Total gross profit for the year 2014 was $122.2 million, or 26.6% of total sales, compared to $94.6 million, or 25.7% of total sales last year.
Selling expenses for the year 2014 increased 30.8% to $67.7 million compared to $51.8 million last year. As a percentage of sales, selling expenses increased 60 basis points to 14.7% compared to 14.1 % last year.
General and administrative expenses for the year 2014 increased 32.5% to $32.7 million compared to $24.7 million last year. As a percentage of sales, general and administrative expenses increased 40 basis points to 7.1% compared to 6.7% last year.
Income from operations increased by 20.2% to $21.8 million in 2014 from $18.1 million in 2013. As a percent of sales, income from operations decreased 20 basis points to 4.7% compared to 4.9% last year.
For 2014, net income was $16.4 million, or $1.11 per diluted share, an increase of 52.4% from $10.7 million, or $0.73 per diluted share in 2013. Net income for 2013 includes approximately $0.3 million, or $0.02 per diluted share, of non-cash income related to the change in fair value of a derivative liability.
Balance Sheet and Cash Flow
As of December 31, 2014, Ever-Glory had approximately $34.1 million of cash and cash equivalents, compared to approximately $27.8 million as of December 31, 2013. Ever-Glory had working capital of approximately $48.5 million as of December 31, 2014, and outstanding bank loans of approximately $60.2 million as of December 31, 2014.
About Ever-Glory International Group, Inc.
Based in Nanjing, China, Ever-Glory International Group, Inc. is a retailer of branded fashion apparel and a leading global apparel supply chain solution provider. Ever-Glory is the first Chinese apparel Company listed on the American Stock Exchange (now named as NYSE MKT) in July 2008 and then transferred to The NASDAQ Global Market on December 31, 2014. Ever-Glory offers apparel to woman under its own brands “La go go”, “Velwin” and “Sea To Sky” and currently operates over 1,201 retail locations in China. Ever-Glory is also a leading global apparel supply chain solution provider with a focus on middle-to-high end casual wear, outerwear, and sportswear brands. Ever-Glory services a number of well-known brands and retail stores by providing a complete set of services of supply chain management on fabric development and design, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution etc.
Conference Call
The Company will hold a conference call today at 8:00 a.m. Eastern Time which will be hosted by Edward Yihua Kang, Chairman of the Board, President, and CEO, and Jason Jiansong Wang, Chief Financial Officer. Listeners can access the conference call by dialing # 1-913-312-1403 and referring to the confirmation code 7993658. The conference call will also be broadcast live over the Internet and can be accessed at the Company’s web site at the following URL: http://www.everglorygroup.com.
A replay of the call will be available from 11:00 a.m.March 31, 2015 through April 7, 2015 Eastern Time by calling # 1-858-384-5517; pin number: 7993658.
Certain statements in this release and other written or oral statements made by or on behalf of Ever-Glory International Group, Inc. (the “Company”) are “forward looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and the Company’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including, without limitation, market acceptance of the Company’s products and offerings, development and expansion of the Company’s wholesale and retail operations, the Company’s continued access to capital, currency exchange rate fluctuation and other risks and uncertainties. The actual results the Company achieves (including, without limitation, the results stemming from the future implementation of the Company’s strategies and the revenue, net income and new retail store projections set forth herein) may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties (many of which are beyond the Company’s control). These statements are based on management’s current expectations and speak only as of the date of such statements. Readers should carefully review the risks and uncertainties described in the Company’s latest Annual Report on Form 10-K and other documents that the Company files from time to time with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
2014
2013
SALES
$
460,141,151
$
368,078,425
COST OF SALES
337,893,182
273,484,086
GROSS PROFIT
122,247,969
94,594,339
OPERATING EXPENSES
Selling expenses
67,729,492
51,772,169
General and administrative expenses
32,703,882
24,676,303
Total operating expenses
100,433,374
76,448,472
INCOME FROM OPERATIONS
21,814,595
18,145,867
OTHER INCOME (EXPENSE)
Interest income
1,238,050
1,186,402
Interest expense
(3,269,464)
(3,005,579)
Change in fair value of derivative liability
–
294,000
Other income
2,060,007
745,322
Total other income(expense)
28,593
(779,855)
INCOME BEFORE INCOME TAX EXPENSE
21,843,188
17,366,012
INCOME TAX EXPENSE
(5,476,921)
(6,627,434)
NET INCOME
16,366,267
10,738,578
Foreign currency translation (loss) gain
(506,177)
1,910,255
COMPREHENSIVE INCOME
$
15,860,090
$
12,648,833
EARNINGS PER SHARE:
Basic and diluted
$
1.11
$
0.73
Weighted average number of shares outstanding Basic and diluted
