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Ever-Glory continues to generate record revenues & profits
12
Mar '08
Ever-Glory International Group Inc, a leading apparel manufacturer in the People's Republic of China ("PRC"), announced its financial results for the fiscal year ended December 31, 2007.

During the fiscal year ended December 31, 2007, net sales increased 37.7% to $70.3 million from $51.1 million in 2006. The increase in sales resulted from overall increases in sales to customers in Europe, the U.S, Japan and China, where sales grew 37%, 73%, 18% and 47%, respectively, from 2006.

"We concluded the 2007 fiscal year with a very strong finish, continuing to generate record revenues and profits," said Mr. Yihua Kang, Chairman and Chief Executive Officer of Ever-Glory.

"We successfully integrated two important acquisitions, improving our in-house production capacity and expanding our opportunities for future growth.

We enter 2008 in a solid financial position for the widescale launch of our domestic retail LA GO GO brand and have sufficient capacity to take on additional, larger orders from our expanding customer base."

Gross profit in 2007 increased 31.3% to $11.3 million from $8.6 million a year ago. Gross margin was 16.1% in 2007, compared to 16.9% in 2006.

The slight decrease in margin was due to an increase in the amount of lower-margin orders accepted from major customers, as the Company sought to expand its business.

Operating expenses increased 32.2% to $4.0 million in 2007. This increase was primarily due tohigher general and administrative expenses resulting from the purchase of new equipment and supplies for the Company's new headquarters and new housing tax expenses, higher payroll expense resulting from an increase in staff for the Company's business expansion and increased depreciation expense related to the completion of the new manufacturing facility. Operating expenses as a percentage of net sales were 5.7% in 2007, down from 5.9% in 2006, due to the benefits of scale.

Operating income for the 2007 fiscal year was $7.3 million, an increase of 30.7% from operating income of $5.6 million in 2006. Operating income as a percentage of sales was 10.4%, compared to 11.0% in 2006.

For the 2007 fiscal year, net income was $6.8 million, or $0.94 per fully diluted share, an increase of 34.4% from $5.0 million, or $0.44 per fully diluted share, in 2006, as the Company experienced greater revenue growth as a result of the acquisitions of New-Tailun and Catch-Luck. Earnings per share for both periods have been adjusted for a 10-for-1 reverse split effective December 3, 2007.


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