- First quarter 2014 net sales up 25% compared to the first quarter 2013
- First quarter 2014 gross profit up 130.7% compared to the first quarter 2013
- First quarter 2014 net income from continuing operations was $101,989
- Record high subsidies received from China Telecom and China Unicom and continue to grow
- New York-based international trade subsidiary realized revenue of $607,976
YIWU, China, May 19, 2014 /PRNewswire/ -- Yosen Group, Inc. (stock symbol: YOSN) ("Yosen", or "the Company") announced today its financial results for the first quarter ended March 31, 2014.
Net sales, gross profit, gross profit margin and selling, general and administrative expenses ("SG&A") shown for the period presented all exclude discontinued operations.
Net sales for the first quarter 2014 were reported at $4.5 million, a 25% year-over-year increase over the $3.6 million for the first quarter 2013.
Gross profit for the first quarter 2014 was $334,580, a 130.7% year-over-year increase over the $145,003 for the first quarter 2013.
Gross profit margin was 7.4% for the first quarter 2014, compared to 4.0% for the first quarter 2013. The positive change in the gross profit margin was mostly attributable to the higher profit margin generated from the international trade business through the Company's newly established New York subsidiary.
SG&A expenses in the first quarter 2014 were recorded at $306,327, compared to $721,201 in the first quarter 2013, a decrease by 57.5%. The significant decrease in the SG&A expenses for the first quarter 2014 was primarily due to the Company's focus on reducing personnel cost and new store renovation expenses.
Net income from continuing operation was recorded at $101,989 for the first quarter 2014, compared to a net loss of $ (550,682) for the first quarter 2013. Most noticeably, this is the first time since 2009 the Company reported positive quarterly net income from continuing operations.
Net income was $24,158 for the first quarter 2014, compared to a net loss of $(639,477) for the first quarter 2013. This is also the first time since 2009 the Company reported positive quarterly net income.
"The first quarter 2014 was a turning point for Yosen. For the first time since 2009, Yosen reported positive quarterly operating income and net income." Yosen's CEO Mr. Zhenggang Wang commented. "We are pleased to report our solid sales growth this quarter compared to the first quarter 2013. Yosen has closed many low-efficiency stores and cut excessive personnel over the last few years when facing a fiercely competitive market. For this business realignment, we paid a high price over time. Thanks to the innovative cooperation with China's three largest telecom operators (China Telecom, China Mobile and China Unicom), Yosen was able to reposition itself successfully in the competitive 3C market. Today, we have seen encouraging results from realigning our 3C portfolio to include the best-selling products of Apple and Samsung, choosing best retail locations, accomplishing cost savings through telecom operator subsidies, and providing our customers one-stop shopping convenience. With all these efforts, we are very pleased to announce our solid sales growth as a result, and particularly, for the first time since 2009 we realized positive quarterly net income."
"We had a strong start in our international trade business, which contributed to our total portfolio a high profit margin. Although it had only two months in operations in the first quarter, our New York subsidiary has already realized revenue of $607,976. In the remainder of 2014, we anticipate to continue dedicating more resources to grow the international trade business. Our primary focus in the near future will be to execute the exclusive agreement with Yiwu China Commodity City Information Technology Ltd., as announced in the previous press release. Our successful execution of this agreement will bring Yosen tremendous opportunities to cooperate with other large-scale corporations, trade organizations and municipalities in cross border trade and e-commerce. "
"I strongly believe that Yosen is well-positioned for an even better future," added Mr. Wang.
About Yosen Group, Inc.
Yosen Group, Inc. ("Yosen Group", or "Yosen") was founded in Yiwu City, Zhejiang Province, in 1997. Yosen is a leading retailer of 3C merchandise (Computers, Communication products and Consumer electronics) in Eastern China. The Company partners with China's three dominant telecommunication operators including China Telecom, China Mobile, and China Unicom, and operates 3C specialty stores within mass merchandisers at prime locations. Yosen distributes the best-selling products of Apple, Samsung, among others. Yosen Group, though its corporate headquarters in China and its wholly-owned U.S. subsidiary, is committed to building cross-border sales channels for bringing the world's best consumer products to China and, simultaneously, introducing China's most competitive products to the overseas markets. Yosen Group is China Commodity City Group's exclusive partner in the Greater New York area. The Company operates under the "Yosen" and "Yong Xin" brand names.
For more information, visit http://www.yosn.com.
Safe Harbor Statement
Certain statements in this press release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding the Company's future performance. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the periodic reports that are filed with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. The Company undertakes no duty to update these forward-looking statements except as required by law.
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