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EXHIBIT 99.1
MONDAY DECEMBER 18, 5:17 PM EASTERN TIME
PRESS RELEASE
SOURCE: LJ International Inc.
LJ INTERNATIONAL REPORTS SIGNIFICANT GAINS IN SECOND QUARTER SALES
SECOND QUARTER HIGHLIGHTS: -- INCREASED SALES IN EXISTING PRODUCT LINES DRIVE A
31% INCREASE IN REVENUES TO $12.8 MILLION FROM $9.8 MILLION A YEAR AGO. -- NET
INCOME INCREASES 23% TO $1.4 MILLION FROM $1.1 MILLION LAST YEAR -- OVER 260
LORENZO AUTHORIZED JEWELERS SIGNED ON SINCE JUNE 2000
HONG KONG and SCOTTSDALE, Ariz., Dec. 18 /PRNewswire/ -- LJ International Inc.
(Nasdaq: JADE - news), the largest publicly owned manufacturer of semi-precious
jewelry, today reported a 31% increase in sales for its second fiscal quarter
ended October 31, 2000.
"The increase in revenues is primarily attributable to increased sales from our
existing customers by cross-selling. Moreover, solid contributions from
successful new product launches, such as the recently launched Lorenzo-branded
jewelry, drove second quarter sales," said Yu Chuan Yih, Chairman and CEO of LJ
International. "We remain focused on expanding our market share and broadening
our product line."
Company Reports Record Second Quarter Revenues
Revenues for the second fiscal quarter ended October 31, 2000 increased 31% to
$12.8 million from $9.8 million in the year-ago period. The increase in sales is
primarily a result of increased sales in existing product lines and new product
launches. The second quarter of fiscal 2001 represents the sixth consecutive
quarter-over-quarter revenue gain.
While incurring the cost of new product launches, the Company still achieved net
income of $1.4 million for its fiscal second quarter, a 23% gain over net income
of $1.1 million in the year-ago quarter. LJ International earned $0.17 per
diluted share on 8.6 million shares outstanding, a 10% decline from the $0.19
per diluted share earned on 6.3 million shares outstanding in the year-ago
quarter. The increased number of outstanding shares is attributable to the
conversion of the Company's convertible debentures.
"Solid sales gains in the second quarter were driven by our ability to fill
large orders from high-volume customers, and our commitment to quality. In a
very competitive environment, our advantage is high volume," said Michael
Gilburd, Vice President of Corporate Development. "Looking ahead, we expect
continued sales growth across our product lines. In addition, the success of
cross-selling our new product lines should directly contribute to LJ
International's future growth and strong results."
The Lorenzo-branded jewelry line, which was launched in June of 2000, has
already attracted over 260 independent retailers. The line consists of over 200
unique styles of jewelry, manufactured with semi-precious stones.
Bright Fiscal Year 2001 Outlook
"Our growth prospects for fiscal 2001 remain strong, with promising
opportunities for increasing our market share. We will continue to leverage our
existing customer relationships by expanding into target markets," said Mr. Yih.
"The fundamentals of the jewelry industry remain solid as the demand for lower
cost suppliers from overseas markets continues to grow. As part of our proven
success, we will focus on expanding our product lines and broadening our
distribution networks. We anticipate that demand for both our core and new
product lines will fuel growth throughout fiscal 2001," concluded Mr. Yih.
About LJ International Inc.
With manufacturing operations in the People's Republic of China for more than 10
years, LJ International Inc. has grown to become the world's largest
publicly-owned manufacturer and marketer of semi-precious jewelry. The Company's
operations are totally vertically integrated from mine-to-market. LJ
International operates two manufacturing facilities in China that employ
approximately 2,500 skilled craftsmen. The Company produces more than 2 million
pieces of fine finished jewelry, and annually cuts more than 4 million carats of
high quality gemstones, which are sold primarily to the largest jewelry
retailers in the United States and Europe. LJ International invites the public
to visit the Company's website at http://www.ljinc.com/ for additional
information.
Except for the historical information herein the matters discussed in this press
release contain forward-looking statements, including but not limited to future
sales, geographic expansion, customer diversification, the success of the
Company's Lorenzo-branded jewelry, and the implementation of the Company's
expansion strategy. These forward-looking statements may involve a number of
risks and uncertainties. Actual results may vary significantly based on a number
of factors, including, but not limited to, uncertainties in product demand, the
impact of competitive products and pricing, changing economic conditions around
the world, release and sales of new products, and other risk factors detailed in
the Company's most recent annual report, and other filings with the Securities
and Exchange Commission.
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LJ International, Inc.
Selected Financial Information
In Accordance With U.S. GAAP
(United States Dollars, in Thousands, Except Per Share Amounts)
Income Statement Data
Three months Three months
ended ended
October 31, October 31,
2000 1999
(Unaudited) (Unaudited)
Sales $12,851 $9,820
Cost of goods sold 8,225 6,121
Gross profit 4,626 3,699
Selling, general and administrative expenses 2,891 2,305
Operating income 1,735 1,394
Other expenses, net 97 75
Income before income taxes 1,638 1,319
Income taxes 170 129
Net income under US GAAP $1,468 $1,190
Earnings per share - basic (US GAAP) $ 0.17 $0.19
Earnings per share - diluted (US GAAP) $ 0.17 $0.19
Weighted average shares
outstanding - basic 8,671,615 6,365,646
Weighted average shares
outstanding - diluted 8,671,615 6,365,646
Balance Sheet Data
At October 31, At April 30,
2000 1999
(Unaudited) (Unaudited)
Cash $6,726 $5,031
Accounts receivable, net 6,932 5,522
Inventories 20,546 19,203
Prepayments and others 5,048 2,868
Total current assets 39,252 32,624
Property, plant and equipment, net 6,511 6374
Other assets 264 326
Total assets $46,027 $39,324
Total current liabilities 16,330 12,017
Total liabilities 16,832 15,830
Minority interests - -
Related companies' advances - -
Common stock 87 74
Additional paid-in capital 14,448 11,444
Warrant reserve 339 339
Retained earnings 14,321 11,637
Total shareholders' equity 29,195 23,494
Total liabilities and shareholders' equity $46,027 $39,324
