Zuoan Fashion sales up 16% in 2012

"Fourth quarter sales were driven by solid sales at our distributor stores and our direct stores. In the fourth quarter, we successfully transferred our 26 self-operated flagship stores to our distributors which allows us to better concentrate on our product offering to our growing base of distributor and sub-distributor stores, improves productivity and reduces operating expense."

"During the fourth quarter, we successfully added 3 new distributors bringing our total distributor count to 16. The regions in which our new distributors operate include the Hainan, Shanxi and Guangdong provinces. A total of 40 distributor and sub-distributor stores were opened in the fourth quarter of 2012, resulting in a total of 1,329 store locations at the end of December, 2012."

"We held our first sales fair of the year in March. All of our distributors and sub-distributors participated in this event and placed their purchase orders on the latest 2013 Fall collection. The order volume increased by 5% compared to the same sales fair last year with average selling prices remaining stable compared to last year."

"Zuoan has a strong balance sheet and improved inventory levels at the end of 2012. In spite of the market challenges in the second half of 2012, our ability to deliver high quality, in-demand products for our customers helped drive results.

"We continue to focus on delivering products that meet our high customer standards on design, quality, and price. We remain optimistic about our long term growth prospects and broadening our brand popularity in China's fashion casual menswear market."

Zuoan Fashion Limited