Fuqi International, Inc., a Chinese designer of precious metal jewelry, operating through its wholly owned BVI-registered subsidiary Fuqi International Holdings Co., Ltd. (Fuqi BVI), and China-based wholly owned subsidiary, Shenzhen Fuqi Jewelry Co., Ltd. (Fuqi China), has announced its preliminary first quarter 2008 financial results. After initial review of operating results of the Fuqi International, its management reported that they are much better than those provided at the time when the Chinese company reported its financial results of Q4 and fiscal year 2007.
Now the company expects Q1 2008 revenue in the amount of US$76-$77 million, net income of $5.7-$5.8 million, and earnings per share diluted – about $0.27-$0.28. The preliminary financial results for the period include an expected contribution of approximately $1.0-$1.1 million from two jewelry retail counters of the BVI company. The new guidance replaces Chinese company management’s previous forecast of wholesale revenue of approximately US$62 million, net income between $4.0 and $4.4 million, and diluted EPS of $0.19-$0.21. Q1 2008 gross margin is expected to be approximately 11%, net margin â€“ about 7.5%.
Fuqi International, which expects to report final financial results for Q1 2008 during the first half of May 2008, has also given raised financial forecast for the fiscal year 2008. The company expects total wholesale revenue of approximately US$290-$300 million, net income of $18.9-$19.5 million, and diluted EPS of $0.85-$0.90. In 2008, the company expects to continue to sustain long term wholesale gross margins in the 10.5% range, in line with its historical average.
Fuqi International, Inc., based in Shenzhen, isÂ focused on developing, promoting and selling wide range of products made of precious metals and stones in the Chinese luxury goods market. The design database of the company operating through its BVI- and China-based subsidiaries includes more than 28,000 products, making it the leading designer of high quality precious metal jewelry in China.