Why RELLECIGA Swimwear Was Chosen by Amazon

NEW YORK, April 7, 2015 /PRNewswire/ — RELLECIGA has been chosen as the top seller to take part in Lightning Deals again on Amazon.com on the last day of March and got very good results. This is not the first time that RELLECIGA took part in this event – earlier in February Amazon has helped promote RELLECIGA on its website and gained popularity before summer. Soon it became the Top 1 of swimwear and Top 123 of Apparel.

As is known, Amazon is a global superstore. It used to focus on books and consumer electronics, and later it expanded its range to all the retail goods. Differs from other platforms which are still focusing on cheap products in bad quality, Amazon moves one step forward. It notices that importance of quality and brand – it can help build the reputation from both suppliers and consumers. As a result, it is now choosing the reliable brands whose products are in the top quality and helping them to build the brands on its own website.

RELLECIGA, as a Paris-based bikini brand, meets the requirement of Amazon totally and was chosen together with Roxy and Seafolly to enter the website soon after Amazon released the brand-building plan. The main reason that Amazon chose RELLECIGA is its attitude to the quality except for its brand and design. Nowadays the competition of swimwear is even more severe – most manufacturers focus on the cost and price instead of quality and design. Thus there are swimwear that can only be worn once which is disposable. As we all know, swimwear, especially bikini, is the closest wearing to ladies when they are swimming or relaxing on the beach. It must be of as high quality as lingerie so that they can feel more comfortable and show out their most confident and sexiest side. With a dream of “the sexiest woman in the world wears the sexiest bikini”, RELLECIGA concentrates at every detail. Besides using better materials, which is a regular method to guarantee quality, RELLECIGA also uses better technology to improve the quality. For instance, it uses the folding technology to hide the stitches so that the wearer will not feel them and moreover, it looks even more aesthetic.

You can find RELLECIGA even easier on Amazon.com after the Easter. And another good news is that RELLECIGA has just agreed to a swimwear deal with the U.S. supermodel Aubrey Skyy. RELLECIGA believes in healthy instead of skinny style, and Aubrey will help spread its concept all over the world. Moreover, RELLECIGA also inspires more customized swimwear designs for girls like Aubrey in the near future.

Check out more news about RELLECIGA on its official website www.relleciga.com and all the social media below:

Facebook: https://www.facebook.com/Relleciga
Instagram: http://instagram.com/rellecigaswimwear
Twitter: https://twitter.com/RELLECIGABIKINI
YouTube: https://www.youtube.com/user/RellecigaSwimwear

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/why-relleciga-swimwear-was-chosen-by-amazon-300061325.html

PR Newswire and WardrobeTrendsFashion Teams On Multi-Year Partnership

SINGAPORE, April 7, 2015 /PRNewswire/ — Global provider of news release distribution and multimedia platforms, PR Newswire, and Asia’s high fashion and luxury online portal, WardrobeTrendsFashion, announces their newly forged, strategic multi-year partnership today. The partnership allows WardrobeTrendsFashion, also known as WTF, to offer to their audience fresh and constantly updated news headlines and rich media content from a trusted news source; and innovative ways to promote and market themselves.

“We’re thrilled to partner with such a reputable communications company,” said Herbert Rafael Sim, Founder and Managing Director of WardrobeTrendsFashion, “Working together with PR Newswire, we’re able to provide the exceptional readers’ experience that every media publication seeks and that WardrobeTrendsFashion delivers.”

Helen Zhang, Senior Audience Development Manager at PR Newswire said: “We are equally excited to work with WardrobeTrendsFashion. This collaboration further enhances our reach in Asia high fashion sector, and helps our global clients in luxury goods to reach Asia shoppers who are increasingly more important especially. And we are looking forward to further collaborate with WardrobeTrendsFashion in the near future in other areas to help our clients to achieve better visibility in the region.”

About PR Newswire
PR Newswire (www.prnasia.com) is the premier global provider of news release distribution and multimedia platforms that enable marketers, corporate communicators, public relations officers and investor relations professionals to leverage content to engage with all their key audiences. Having pioneered the commercial news distribution industry in 1954, PR Newswire today provides end-to-end solutions to produce, distribute, target and measure text and multimedia content across traditional, digital, mobile and social channels. Combining the world’s largest multi-channel content distribution and optimization network with comprehensive workflow tools and platforms, we enable the world’s enterprises to tell their stories to the world. PR Newswire serves tens of thousands of clients from offices in the Americas, Europe, Middle East, Africa and the Asia-Pacific region, and is a UBM plc company.

About WardrobeTrendsFashion
WardrobeTrendsFashion, also known as WTF, is a high fashion and luxury online portal, featuring fashion lookbooks, campaigns and runway collections; luxury news in the different industries – automobile, aerospace, nautical, dining, watches, jewelry, technology; celebrity news, interviews; as well as charity – activities, events, campaigns by NGOs and Non-profit organizations. WTF strives towards being one of the world largest repository of fashion labels’ campaigns and lookbooks from across the globe.

WTF readers are international and are mostly from the upper echelons of the business world, C-level executives, experts and personnel from the fashion industry, film industry, and more. WTF is accessible via domain urls, WardrobeTrendsFashion.com and WTFSG.com.

Media contacts:
WardrobeTrendsFashion
Media Rep
wardrobetrendsfashion@gmail.com

PR Newswire
Asia Marketing team
Asia.marketing@prnasia.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pr-newswire-and-wardrobetrendsfashion-teams-on-multi-year-partnership-300061146.html

The Sales from China Jo-Jo Drugstores’ Official Online Pharmacy Site Jumped More Than 200%

HANGZHOU, China, April 6, 2015 /PRNewswire/ — China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the “Company” or “China Jo-Jo“), a leading China-based retail and wholesale distributor that offers pharmaceutical and health care products through its online and retail pharmacies, today announced that, based on its preliminary internal estimate, the online sales from its official online pharmacy site, www.dada360.com, increased more than 200% during the latest quarter ending March 31, 2015 as compared to the same period last year. The total quarterly revenue generated from the Company’s own official online pharmacy site has exceeded RMB10,000,000 (approximately USD1.6 million).

The main growth engine was the online purchase from customers of certain commercial health insurance providers, such as Shanghai Jianbao Technology Co., Ltd. (“Shanghai Jianbao”), who issued and distributed Yikatong (the “E-Pharmacy-Card”), a popular pharmacy and health insurance benefit card with over 180,000 current users. As previously announced, the Company established a strategic partnership with Shanghai Jianbao early this year, and the two parties have since carried out close cooperation, including the integration and upgrades of their sales systems, and the development of a mobile App (such as WeChat). The goal of these devices is to direct the majority of Shanghai Jianbao’s online E-Pharmacy-Card transactions to the Company’s official website for pharmacy sales. The management expects that its online sales to reach a monthly revenue of RMB 10 million (approximately USD1.6 million) by end of 2015.

Furthermore, China Jo-Jo has recently enforced major changes to its e-commerce site, such as modifying and optimizing product offerings based on its historical sales data, offering competitive prices and providing more technical features and sales supports to the fast growing mobile users. The Company will also launch a new direct sales campaign to all E-Pharmacy-Card holders, by utilizing emails, WeChat, and reward points program.

Mr. Lei Liu, Chairman of the Company, stated, “While we are thrilled to see the recent surge in the sales of our own online pharmacy, mainly driven by E-Pharmacy-Card business, we believe this is just the beginning of a long term trend. Due to the aging Chinese population and the rapidly growing healthcare cost, Chinese government strongly encourages private enterprises and individuals to participate in various commercial insurances and pharmacy benefit plans, in addition to the government sponsored Social Health Insurance (SHI) program. Our E-Pharmacy-Card business is one of the examples of our strategic decision to collaborate with commercial health insurance providers to leverage our online and offline pharmacy network. We hope to report more exciting news and financial performance to our shareholders in the coming months. “

About China Jo-Jo Drugstores, Inc.

China Jo-Jo Drugstores, Inc., through its own retail drugstores, wholesale distributor and online pharmacy, is a leading retailer and wholesale distributor of pharmaceutical and healthcare products in China. As of December 31, 2014, the Company had 60 retail pharmacies in Hangzhou. The Company’s wholesale subsidiary not only supplies its retail stores, but also distributes drug and other healthcare products to other drugstores and drug vendors. The Company routinely posts important information on its corporate websites at www.jiuzhou-drugstore.com (Chinese) and www.chinajojodrugstores.com (English).

Forward Looking Statement

Statements in this press release regarding the Company that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements, including, but not limited to, financial guidance, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “estimate,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” “anticipate,” the negatives thereof, or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. It is routine for the Company’s internal projections and expectations to change as the quarter and year progresses, and therefore it should be clearly understood that the internal projections and beliefs upon which the Company bases its expectations may change. Although these expectations may change, the Company is under no obligation to inform you if they do. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of numerous factors, including the risks associated with the effect of changing economic conditions in the People’s Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products. Readers are referred to the reports and documents filed from time to time by the Company with the Securities and Exchange Commission for a discussion of these and other important risk factors that could cause actual results to differ from those discussed in forward-looking statements.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-sales-from-china-jo-jo-drugstores-official-online-pharmacy-site-jumped-more-than-200-300061196.html

Kingold Jewelry Receives $15 Million Strategic Investment From Subsidiary Of Fosun International Limited In A Private Placement Transaction

Company to Hold Conference Call at 11:00 AM ET

WUHAN CITY, China, April 6, 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 that it has entered into a convertible note purchase agreement with a majority-owned subsidiary of Fosun International Limited (HKEx stock code: 00656, together with its subsidiaries, “Fosun”) that will result in $15 million of gross proceeds to the Company when the transaction closes.

Transaction Highlights

  • Pursuant to the Purchase Agreement, the Company agreed to issue and sell a $15 million aggregate principal amount 6.0% Senior Secured Convertible Note due 2018 (the “Note”), subject to customary closing conditions.
  • Fosun will have the right to convert the principal amount of the Note into shares of Common Stock at an initial conversion price of approximately $1.15 per share.
  • The Note bears interest at a rate of 6.0% per year payable annually.
  • The Note is secured by a bank letter of credit and a personal guarantee by Kingold’s Chairman and Chief Executive Officer, Mr. Zhihong Jia.

The Company intends to use the proceeds from this strategic investment to accelerate the development of the Kingold Jewelry Cultural Industry Park (“Jewelry Park”).

Mr. Zhihong Jia, Chairman and CEO of the Company, commented, “This is a significant investment and important step in Kingold’s corporate development. We believe that aligning our interests with a globally-known and respected financing partner such as Fosun will broaden Kingold’s capabilities as well as potentially change the landscape of China’s gold jewelry market. Both sides conducted considerable due diligence to reach this agreement, and we are excited about the long-term upside from our two companies working together. Fosun owns Zhaoyuan Gold, one of the largest gold mining companies in China, and Yuyuan Group, one of the largest gold retailers in China. We believe there is a tremendous opportunity in the creation of a vertically integrated conglomerate of gold mining, designing, processing and retailing in China. With Fosun’s strong support and resources, Kingold has a great opportunity to accomplish lateral consolidation across a very fragmented gold manufacturing industry in China and become a solid market leader.”

Kingold to Appoint Two New Board Members
In conjunction with the Purchase Agreement, the Company will increase the size of the Board from five to seven members, effective immediately upon the closing of the sale of the Note through the appointment of Mr. XiaoFeng Lu and Ms. Min Zhou to the Board. Mr. Lu has been designated by Fosun. The Board also determined to appoint Mr. Lu to the Audit Committee and Ms. Zhou to the Compensation Committee, each to be effective immediately upon the closing of the sale of the Note.

Mr. Lu, age 44, is currently Executive General Manager of Fosun Financial Group. Mr. Lu received a Ph.D. in World Economics from Fudan University, a Master’s in Accounting from Liaoning University and a Bachelor’s degree in Statistics & Operational Research from Fudan University. Mr. Lu is also a certified public accountant in China.

Ms. Zhou, age 42, is currently Vice President of Shanghai Yuyuan Jewelry (Group), Ltd. Ms. Zhou received a Bachelor’s degree in Economics from East China Normal University.

Conference Call Details
Kingold also announced that it will discuss today’s announcement in a conference call later this morning (April 6, 2015), at 11:00 a.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/sp-inv.

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.

About Fosun International Limited
Fosun was founded in 1992 in Shanghai. Fosun International Limited (00656.HK) was listed on the Main Board of The Stock Exchange of Hong Kong Limited on 16 July 2007. Today, Fosun has established four business engines comprising “insurance, industrial operations, investment and asset management.” It strives to become a world-class investment group underpinned by the twin drivers of “insurance-oriented comprehensive financial capability” and “industrial-rooted global investment capability.” It is dedicated to applying the value investing principle to its investment model of “Combining China’s Growth Momentum with Global Resources.” For more information, please visit www.fosun.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, but are not limited to, statements that the strategic investment will broaden Kingold’s capabilities and change the landscape of China’s gold jewelry market; a vertically integrated conglomerate of gold mining, designing, processing and retailing in China can be created; and regarding lateral consolidation and becoming a solid market leader. 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

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kingold-jewelry-receives-15-million-strategic-investment-from-subsidiary-of-fosun-international-limited-in-a-private-placement-transaction-300061167.html

Kingold Jewelry Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2014

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

Ever-Glory Reports 2014 Full Year Financial Results

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.

Cautionary Note Regarding Forward-Looking Statements

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.

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

operating activities:

Depreciation

1,426,657

1,432,591

Amortization of intangible assets

12,300

12,205

Share based compensation for services

3,149,980

1,532,563

Inventory valuation allowance

1,088,901

Deferred tax provision (benefit)

(272,225)

Changes in operating assets and liabilities

(Increase) decrease in:

Accounts receivable

26,053

180,215

Inventories

(38,924,060)

(20,400,387)

Other current assets and prepaid expenses

8,193,528

(7,566,421)

Deferred offering costs

Value added tax recoverable

1,959,688

1,022,705

Increase (decrease) in:

Other payables and accrued expenses

(512,197)

1,611,132

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

14,782,320

14,778,080

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ever-glory-reports-2014-full-year-financial-results-300058314.html

Ever-Glory Schedules Full Year 2014 Earnings Release and Conference Call

NANJING, China, March 30, 2015 /PRNewswire/ — Ever-Glory International Group, Inc. (the “Company,” “Ever-Glory”) (NASDAQ-GM: EVK), today announced that the Company will report its full year 2014 financial results on Tuesday, March 31, 2015 before the market opens.

The Company will hold a conference call with senior management to discuss the financial results the same day at 8:00 a.m. Eastern Time. 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.

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.

Cautionary Note Regarding Forward-Looking Statements

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.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ever-glory-schedules-full-year-2014-earnings-release-and-conference-call-300057470.html

Fragrance Du Bois Is Proud To Announce Its Debut in TANGS Orchard

SINGAPORE, March 30, 2015 /PRNewswire/ — Fragrance Du Bois is delighted to announce its first appearance at TANGS’ flagship store, for a month, from March 27 to April 26, 2015.

Du Bois's welcoming perfume consultants will ensure that it stays true to its essential ethos; providing the same personalised service and offering the same comprehensive range of fragrances.

Du Bois’s welcoming perfume consultants will ensure that it stays true to its essential ethos; providing the same personalised service and offering the same comprehensive range of fragrances.

 

The "pop up", located at the Centrestage, is designed to replicate Du Bois's elegant flagship boutique in The Fullerton Hotel Singapore.

The “pop up”, located at the Centrestage, is designed to replicate Du Bois’s elegant flagship boutique in The Fullerton Hotel Singapore.

Situated in the heart of Orchard Road — Singapore’s premier shopping and entertainment district — TANGS Orchard is an ideal place for Fragrance Du Bois to reach out to the burgeoning coterie of luxury shoppers.

Since its inception in 1932, TANGS has been hailed as a shopping haven for locals, expatriates, and tourists alike. With several department stores having emerged in the shopping arena in recent years, TANGS remains as the best established and one of the most highly regarded emporiums in Singapore today.

“We are thrilled to be right smack in the heart of Singapore, adding vibrancy to the city’s shopping hub,” said Nicola Parker, Brand Director of Fragrance Du Bois. “This is a fantastic opportunity to extend our products to locals who might not know about Fragrance Du Bois. It will also be a great opportunity to give Singaporeans, and others, a firsthand experience of a niche perfumery, as well as the magical Oud oil which is used to such special effect in all our creations.”

She added, “TANGS is an ideal retail destination, as it boasts a wide array of brands that are known throughout the world. Our aim is to make Fragrance Du Bois one of those brands, and the association can only enhance our prospects for the future.”

Located at the Centrestage, just beyond the main entrance, the ‘pop up’ is designed to replicate, in miniature, Du Bois’ elegant flagship boutique in The Fullerton Hotel Singapore. Adorned with its signature black and gold furnishings, the pop up boutique will also include Du Bois’ characteristic central feature — a fragrance table with cloches scented with a signature Du Bois perfume.

Despite the scaled down version of the boutique, Du Bois will ensure that it stays true to its essential ethos; providing visitors to TANGS with the same personalised service, and offering the same comprehensive range of fragrances that it does in all of its boutiques.

As part of its social media engagement, customers will have an opportunity to win a 15ml bottle of a Du Bois fragrance, when they post an image of themselves posing with one of Du Bois’ exquisite fragrance bottles.

Fragrance Du Bois is now carrying eminent guest brands such as Xerjoff, House of Sillage, Illuminum, Sue Wong, and Isabey, with more to come in the months ahead. It currently has boutiques in Singapore, Kuala Lumpur, and Bangkok, and also operates fragrance lounges in Dubai and Hong Kong — in which the art of bespoke perfumery creates a truly intimate and unique experience for clients — with more planned for the Middle East and Asia in the near future.

Fragrance Du Bois will be available at TANGS Orchard from the March 27 to April 26, 2015.

About Fragrance Du Bois

Fragrance Du Bois is a niche luxury perfume house working closely with sustainable plantations in Asia, bringing exciting new 100% organic Oud oil based fragrances to exclusive markets worldwide. Sustainably sourcing the finest raw materials across the globe, working with French perfumers to create a full range of products, and also providing bespoke fragrance services, Fragrance Du Bois is personal luxury with a conscience. With exclusive fragrance lounges around the world, in Dubai, Hong Kong, Thailand, Malaysia and Singapore, Fragrance Du Bois creates only the finest experience in bespoke perfumery.

Fragrance Du Bois is known as Parfums Du Bois in France and in non-French speaking markets, as Fragrance Du Bois.

About Asia Plantation Capital

Quick facts:

  • US$ 600 million – combined value of assets owned and under management
  • US$ 53.5 million – turnover in the last financial year
  • US$ 100 million – turnover forecast for current financial year
  • 2,000,000 – Aquilaria trees today, on Agarwood plantations.

Asia Plantation Capital (APC) is the owner and operator of a diverse range of commercial plantation and farming businesses across the Asia-Pacific region and around the world, and is part of the Asia Plantation Capital Group of associated companies. Its focus is on multicultural and diverse plantation projects geared to the domestic and commercial demands of the countries in which it operates. Working closely with, and supporting local communities, is an underlying core principle of the APC business, providing social and cultural support, as well as investment, to move these communities away from deforestation and illegal logging activities, previously seen as a main source of income in some regions of Asia. Established officially in 2008 (although operating privately since 2002) the group now has plantation and agricultural projects on four continents, with operational projects at various stages in Thailand, Malaysia, China, Laos, India, Cambodia, Sri Lanka, Myanmar, Vietnam, North America and Europe.

Promoting the use of sustainable and certified wood is the best way of preventing deforestation, protecting biodiversity, and combatting poverty in the tropical rainforest regions. For the yachting sector (a major user of teak) which strives for excellence and which is already involved in environmental efforts, this is also a way of ensuring that no wood from illegal logging is used.

For further information, please contact:-
Samantha Tham
Marketing Executive
Email: samantha.tham@fragrancedubois.com
Mobile:
+65 9144 0933
Office: +65 6299 4998

Adrian Heng
Group Marketing Director
Email: adrian.heng@fragrancedubois.com
Mobile:
+65 9750 7440
Office: +65 6299 1778

Photo – http://photos.prnasia.com/prnh/20150330/8521502010-a
Photo – http://photos.prnasia.com/prnh/20150330/8521502010-b

China Nepstar Chain Drugstore Ltd. Reports Fourth Quarter and Fiscal Year 2014 Financial Results

SHENZHEN, China, March 30, 2015 /PRNewswire/ — China Nepstar Chain Drugstore Ltd. (NYSE: NPD) (“Nepstar” or the “Company”), a leading retail drugstore chain in China based on the number of directly operated stores, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2014.

Financial Highlights

For the quarter ended December 31, 2014:

  • Same store sales increased by 14.2% compared to the fourth quarter of 2013
  • Revenue increased by 13.4% to RMB850.1 million (US$137.0 million) compared to RMB749.8 million in the fourth quarter of 2013
  • Net income increased by 151.1% to RMB33.4 million (US$5.4 million) compared to net income of RMB13.3 million in the fourth quarter of 2013
  • Basic and diluted income per ADS was RMB0.34 (US$0.06) compared to basic and diluted income of RMB0.14 per ADS for the fourth quarter of 2013

For the year ended December 31, 2014:

  • Same store sales increased by 9.0% compared to 2013
  • Revenue increased by 9.4% to RMB2,953.3 million (US$476.0 million) compared to RMB2,699.1 million in 2013
  • Net loss was RMB13.8 million (US$2.2 million)
  • Basic and diluted loss per ADS were RMB0.14 (US$0.02)

Mr. Fuxiang Zhang, Chief Executive Officer of Nepstar, commented, “Our continuous efforts to streamline business operations, optimize individual store performance, improve product mix and market products proactively through in-store promotions have delivered double-digit growth in revenues and same store sales in the fourth quarter of 2014 compared to the same period in 2013. Both our prescription and OTC pharmaceutical products experienced strong sales in the fourth quarter of 2014. We have achieved top line growth for five consecutive years and strengthened customer relationships in a retail environment that continues to be challenging.”

Fourth Quarter Results

During the fourth quarter of 2014, the Company opened 36 new stores and closed 104 stores. As of December 31, 2014, the Company had a total of 1,980 directly operated stores.

Revenue for the fourth quarter of 2014 increased by 13.4% to RMB850.1 million (US$137.0 million) from RMB749.8 million for the same period in 2013. Same store sales (for the 1,750 stores opened before December 31, 2012 and which remained in operations as of December 31, 2014) for the fourth quarter of 2014 increased by 14.2% compared to the same period in 2013. The increase in revenue and same store sales was primarily attributable to in-store promotional initiatives and strengthened marketing efforts for pharmaceutical products.

Fourth quarter revenue contribution by product category was 21.6% from prescription drugs (21.8% for the same period in 2013); 43.2% from over-the-counter (“OTC”) drugs (40.5% for the same period in 2013); 11.6% from nutritional supplements (13.5% for the same period in 2013); 4.2% from herbal products (4.2% for the same period in 2013); and 19.4% from convenience and other products (20.0% for the same period in 2013).

Gross profit for the fourth quarter increased to RMB360.9 million (US$58.2 million) from RMB317.0 million for the same period in 2013. Gross margin in the fourth quarter of 2014 was 42.4%, compared with 42.3% for the same period in 2013.

The Company’s portfolio of private label products expanded to 2,156 types of products as of December 31, 2014. Sales of private label products represented approximately 14.7% of revenue and 20.4% of gross profit for the fourth quarter of 2014.

Sales, marketing and other operating expenses as a percentage of revenue decreased to 33.0% for the fourth quarter of 2014 from 35.3% for the same period of 2013, whereas sales, marketing and other operating expenses in absolute amount increased slightly for the fourth quarter of 2014.

General and administrative expenses as a percentage of revenue were 3.2% for the fourth quarter of 2014, compared to 3.8% for the same period of 2013. This decrease mainly resulted from management’s cost control efforts.

Income from operations in the fourth quarter of 2014 was RMB50.4 million (US$8.1 million) compared with income from operations of RMB21.2 million for the same period in 2013. This increase was mainly due to higher sales and continued cost control efforts in the fourth quarter of 2014.

Interest income for the fourth quarter of 2014 was RMB1.4 million (US$0.2 million), compared with RMB3.5 million for the same period of 2013.

The Company’s income tax expense was RMB17.9 million (US$2.9 million) for the fourth quarter of 2014, compared with RMB11.4 million for the same period in 2013. The effective tax rate for the fourth quarter of 2014 was 34.9%, compared to 46.2% for the same period in 2013. The decrease in effective tax rate from Q4 2013 to Q4 2014 was primarily attributable to the decreased operating losses generated by certain loss-making subsidiaries in the fourth quarter of 2014 for which full valuation allowances were recorded in respect of the related deferred tax assets. As compared to the PRC statutory tax rate of 25% applicable to our major operating subsidiaries, the difference in the effective income tax rate for the current quarter was primarily due to non-deductible expenses, the tax effect from the waiver of intra-group debts subject to tax bureau’s approval and the relatively high amounts of operating losses from loss-making subsidiaries, for which full valuation allowances were made on their deferred tax assets, as compared to the overall results of the Company. Shareholders are reminded that in the PRC losses in companies which are part of a group are not allowed to be off-set against profits arising in other companies in the same group.

Net income for the fourth quarter of 2014 was RMB33.4 million (US$5.4 million), or RMB0.34 (US$0.06) basic and diluted income per ADS, compared to net income of RMB13.3 million, or RMB0.14 basic and diluted income per ADS for the fourth quarter of 2013. As of December 31, 2014, the Company had approximately 197.4 million outstanding ordinary shares. Each ADS represents two ordinary shares of the Company.

In the fourth quarter of 2014, net cash inflow provided by operating activities was RMB44.1 million (US$7.1 million), compared to net cash outflow of RMB25.2 million for the same period in 2013. This net cash inflow was primarily due to the higher operating income achieved and lower inventories storage during the fourth quarter of 2014 compared to the same period in 2013.

Fiscal Year 2014 Financial Results

In 2014, the Company opened 130 new stores and closed 216 stores. As of December 31, 2014, Nepstar had a total of 1,980 stores in operations.

Total revenue for 2014 increased to RMB2,953.3 million (US$476.0 million) from RMB2,699.1 million in 2013. Same store sales (for the 1,750 operating stores opened before December 31, 2012 and which remained in operations as of December 31, 2014) for 2014 increased by 9.0% compared to 2013. The increase in revenue and same store sales was driven by the closure of underperforming stores and continued in-store promotional initiatives and strengthened marketing efforts for pharmaceutical products.

In 2014, revenue contribution from prescription drugs was 22.3%, OTC drugs was 40.1%, nutritional supplements was 13.3%, herbal products was 4.2% and convenience and other products was 20.1%. Revenue from private label products accounted for 17.5% of total revenue and 24.8% of gross profit, respectively.

Gross profit was RMB1,230.5 million (US$198.3 million) for 2014 compared to RMB1,178.3 million in 2013. Gross margin was 41.7% in 2014, compared to 43.7% in 2013. The decrease in gross margin was mainly the result of continued sales promotion initiatives designed to increase market share.

Total operating expenses decreased to 41.4% of total revenue in 2014, compared to 42.5% recorded in 2013. Loss from operations was RMB2.9 million (US$0.5 million) for 2014, compared to income from operations of RMB23.0 million for 2013.

Interest income for 2014 was RMB7.2 million (US$1.2 million), compared to RMB15.7 million in 2013. Dividend income from cost method investments was RMB5.9 million (US$0.9 million) for 2014, compared to RMB5.2 million in 2013. Other income was RMB3.1 million (US$0.5 million) in 2014, compared to nil in 2013. Other income in 2014 mainly represented the gain from the transfer of 100% of the ownership equity interest in one of the Company’s subsidiaries, Weifang Nepstar Pharmaceutical Co., Ltd., to an independent third party.

The Company’s effective tax rate was 208.4% in 2014, compared to 73.1% in 2013. The Company’s income tax expense was RMB26.5 million (US$4.3 million) for 2014, compared to RMB32.1 million in 2013. The difference in effective income tax rate was primarily attributable to high operating losses sustained by certain loss-making subsidiaries in 2014, for which full valuation allowances were made on their deferred tax assets, and the tax effect from the waiver of intra-group debts subject to tax bureau’s approval.

Net loss was RMB13.8 million (US$2.2 million) for 2014, which represented RMB0.14 (US$0.02) basic and diluted loss per ADS, compared to net income of RMB11.8 million in 2013, which represented RMB0.12 basic and diluted income per ADS.

Net cash outflows from operating activities were RMB58.7 million (US$9.5 million) for 2014, compared with cash inflow of RMB6.9 million achieved in 2013. The net cash outflows were primarily due to more prepayments made to suppliers.

As of December 31, 2014, the Company’s total cash, cash equivalents, bank deposits and restricted cash were RMB316.9 million (US$51.1million) and its shareholders’ equity was RMB831.6 million (US$134.0 million), compared to RMB622.8 million and RMB845.5 million, respectively, as of December 31, 2013.

Business Outlook

“Now that we have regained momentum in overall revenues and same store sales, we will turn our focus to improving income from operations through continued stringent expenses control and achieving more sustainable growth in sales going forward,” commented Mr. Zhang. “Our goal is to expand our market share continuously by leveraging our nationwide network of quality retail drugstores, upgrading promotional campaigns and optimizing our product mix.”

Conference Call Information

The Company will host a conference call, to be simultaneously webcasted, on Monday, March 30, 2015 at 8:00 a.m. Eastern Time / 8:00 p.m. Beijing Time. Interested parties may participate in the conference call by dialing +1-877-407-9210 (North America) or +1-201-689-8049 (International) approximately five minutes before the call start time. A live web cast of the conference call will be available on the Nepstar website at http://www.nepstar.cn.

A replay of the call will be available shortly after the conclusion of the conference call through April 6, 2015 at 11:59 p.m. Eastern Time. An archived web cast of the conference call will be available on the Nepstar website at http://www.nepstar.cn. Interested parties may access the replay by dialing +1-877-660-6853 (North America) or +1-201-612-7415 (International) and entering conference ID number 13603145.

About China Nepstar Chain Drugstore Ltd.

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is a leading retail drugstore chain in China. As of December 31, 2014, the Company had 1,980 directly operated stores across 74 cities, one headquarter distribution center and 16 regional distribution centers in China. Nepstar uses directly operated stores, centralized procurement and a network of distribution centers to provide its customers with high-quality, professional and convenient pharmaceutical products and services and a wide variety of other merchandise, including OTC drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products. Nepstar’s strategy of centralized procurement, competitive pricing, customer loyalty programs and private label offerings has enabled it to capitalize on the continuing economic growth in China and take advantage of the demographic trend in China to achieve a strong brand and leading market position. For further information, please go to http://www.nepstar.cn.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the quotations from management in this press release and the Company’s strategic operational plans and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Exchange Rate Information

The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. Translations of amounts from RMB into United States dollars were calculated at the certified exchange rate ofUS$1.00 = RMB6.2046 on December 31, 2014 as set forth in the H.10 weekly statistical release of the Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted into US$ at that rate or at any other date. The percentages stated are calculated based on RMB amounts.

Contacts

Zixin Shao
China Nepstar Chain Drugstore Ltd.
Chief Financial Officer
+86-755-2641-4065
ir@nepstar.cn

Shiwei Yin
Grayling
Investor Relations
+1-646-284-9474
npd@grayling.com

(Tables Follow)

China Nepstar Chain Drugstore Ltd.

Unaudited Condensed Consolidated Statements of Comprehensive Income

(amounts in thousands – except per-share data)

Three-month period ended

Year ended

December 31,

December 31,

2013

2014

2014

2013

2014

2014

RMB

RMB

USD

RMB

RMB

USD

Revenue

749,829

850,146

137,019

2,699,103

2,953,314

475,988

Cost of goods sold

(432,840)

(489,260)

(78,854)

(1,520,796)

(1,722,792)

(277,664)

Gross profit

316,989

360,886

58,165

1,178,307

1,230,522

198,324

Sales, marketing and other operating
expenses

(264,509)

(280,205)

(45,161)

(1,026,798)

(1,098,000)

(176,965)

General and administrative expenses

(28,721)

(27,324)

(4,404)

(121,542)

(125,577)

(20,239)

Impairment losses of property and
equipment

(2,556)

(2,955)

(476)

(6,984)

(9,877)

(1,592)

Income/(loss) from operations

21,203

50,402

8,124

22,983

(2,932)

(472)

Interest income

3,492

1,355

218

15,713

7,234

1,166

Dividend income from cost method
investments

5,232

5,852

943

Other income

126

20

3,082

497

Other loss

(535)

(86)

(535)

(86)

Income before income tax expense

24,695

51,348

8,276

43,928

12,701

2,048

Income tax expense

(11,415)

(17,916)

(2,888)

(32,100)

(26,472)

(4,267)

Net income/(loss)

13,280

33,432

5,388

11,828

(13,771)

(2,219)

Basic earnings / (loss) per ordinary share

0.07

0.17

0.03

0.06

(0.07)

(0.01)

Basic earnings / (loss) per ADS

0.14

0.34

0.06

0.12

(0.14)

(0.02)

Diluted earnings / (loss) per ordinary share

0.07

0.17

0.03

0.06

(0.07)

(0.01)

Diluted earnings / (loss) per ADS

0.14

0.34

0.06

0.12

(0.14)

(0.02)

Other comprehensive income, net of tax:

Foreign currency translation adjustments

798

23

4

65

(123)

(20)

Comprehensive income / (loss) attributable to
China Nepstar Chain Drugstore Ltd.

14,078

33,455

5,392

11,893

(13,894)

(2,239)

China Nepstar Chain Drugstore Ltd.

Unaudited Condensed Consolidated Balance Sheets

(amounts in thousands)

As of

As of

December 31,

December 31,

2013

2014

2014

RMB

RMB

USD

ASSETS

Current assets

Cash and cash equivalents

361,146

252,174

40,643

Short-term bank time deposits

184,440

24,000

3,868

Long-term bank time deposits due within one year

3,256

525

Restricted cash

37,000

37,423

6,031

Accounts receivable, net of allowance for doubtful
accounts

131,984

136,568

22,011

Bills receivable

400

64

Amounts due from related parties

379

3,366

543

Prepaid expenses, deposits and other current assets

169,210

245,254

39,528

Inventories

551,783

546,312

88,050

Deferred tax assets

6,330

2,038

328

Total current assets

1,442,272

1,250,791

201,591

Non-current assets

Long-term bank time deposits

40,256

Property and equipment, net

123,183

137,750

22,201

Rental deposits

41,946

42,257

6,811

Cost method investments

12,638

12,638

2,037

Intangible assets, net

2,509

2,509

404

Goodwill

51,819

51,819

8,352

Deferred tax assets

11,723

16,340

2,633

Accrued interest income

769

Total non-current assets

284,843

263,313

42,438

Total Assets

1,727,115

1,514,104

244,029

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable

403,558

409,428

65,988

Bills payable

4,334

Amounts due to related parties

29,247

25,636

4,132

Accrued expenses and other payables

123,065

122,236

19,700

Income tax payable

34,567

25,743

4,149

Dividend payable

191,246

Deferred Income

22,477

25,715

4,145

Total current liabilities

808,494

608,758

98,114

Non-current liabilities

Deferred income

17,391

15,677

2,527

Deferred tax liabilities

16,541

14,711

2,371

Other non-current liabilities

39,163

43,326

6,983

Total non-current liabilities

73,095

73,714

11,881

Total liabilities

881,589

682,472

109,995

Shareholders’ equity

Share capital

158

158

25

Additional paid-in capital

640,341

640,341

103,204

Accumulated other comprehensive loss

(41,623)

(41,746)

(6,728)

Retained earnings

246,650

232,879

37,533

Total shareholders’ equity

845,526

831,632

134,034

Total liabilities and shareholders’ equity

1,727,115

1,514,104

244,029

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