Zuoan Fashion posts 12.1% hike in Q3 revenues

The effective tax rate in the third quarter decreased to 25.6% compared to 26.6% in the prior year period.

Net income for the third quarter increased 0.7% to RMB92.8 million ($14.8 million) from RMB92.2 million ($14.7 million) in the same period last year.  Third quarter net income as a percentage of revenue was 19.5% compared to 21.7% in the prior year period.

Diluted earnings per ordinary share was RMB0.83 ($0.13) in the third quarter of 2012, equivalent to RMB3.34 ($0.53) per ADS, compared to diluted earnings per ordinary share RMB0.83 ($0.13) in the third  quarter of 2011, equivalent to RMB3.31 ($0.53) per ADS. The Company's diluted number of shares outstanding was 111.3 million in the third quarter ended September 30, 2012.

Financial Outlook

For the fourth quarter of 2012, the Company currently anticipates revenue in the range of RMB352-RMB372 million ($56.0 - $59.2 million), gross margin of approximately 44-46%, net income of approximately RMB43.7 - RMB47.8 million ($7.0 - $7.6 million) and basic and fully diluted EPS of approximately RMB0.39 ($0.06) - RMB0.43 ($0.07).  The Company expects to have approximately 111.3 million shares (27.8 million ADSs) outstanding during the quarter ending December 31, 2012.

Approximately 40 new retail stores and 2 flagship stores are expected to be opened by distributors and sub-distributors in of the fourth quarter of 2012. 

Zuoan Fashion