FUQI International, Inc., the Chinese designer of precious metal jewelry, operating through the BVI-registered subsidiary Fuqi International Holdings Co., Ltd. (Fuqi BVI), has announced financial results for the three month period ended June 30, 2008.
The company reported the increase of revenues of 154 per cent for this period, which became the result of increases in sales volumes and selling prices, and raised the amount of revenues from US$26.3 mln for the second quarter of 2007 to US$66.9 mln in this year. Due to higher selling prices for new jewelry designs and increased processing fees on jewelry, gross profit increased 129% in the Q2 period, from US$3.1 mln for the same period in the last year to US$7.1 mln.
Gross profit margin for the second quarter of 2008 was 10.6% – the amount which corresponds to company’s profit guidance for this period, published earlier and affirmed in July following the earthquake in China.
Operating expenses in the second quarter of 2008 increased to US$1.1 mln, compared to US$927,000 in the same period of the prior year, as a result of higher administrative expenses of the company. Operating income for this period increased to $6.0 mln from $2.1 mln in the second quarter of 2007.
Net income for the second quarter of 2008 increased by 253%, from US$1.5mln in Q2 2007 to US$5.3 mln, or $0.25 per diluted share.
FUQI International also raised its fiscal 2008 revenue, net income and diluted earnings per share (EPS) forecast. The company estimates total revenue in the amount of approximately US$325 – US$333 mln, and anticipates consolidated net income of $23.7 – $24.3 million and diluted EPS of US$1.07 – US$1.09. In 2008, the company expects long term wholesale gross margin of 10.5%, with additional gross margin upside, as its branded retail business becomes more meaningful to overall sales.