Ever-Glory makes major progress in European market
27 Dec '07
3 min read
Ever-Glory International Group Inc, a leading apparel manufacturer in the People's Republic of China (PRC) announced its financial results for the third quarter ended September 30, 2007.
Third Quarter 2007 Results: In the third quarter ended September 30, 2007, net sales increased 27.9% to $19.5 million from $15.2 million in the same quarter of 2006. The increase was primarily the result of an overall increase to Europe, Japan and the U.S., where sales rose 38%, 21% and 16%, respectively, from the same period a year ago.
'We made major progress in the European market and continued to make inroads into the U.S. We received a new $4 million production order from U.K.-based NEXT PLC and began filling additional orders with Walls Industries and QVC,' said Mr. Yihua Kang, Chairman and Chief Executive Officer of Ever- Glory. 'With the elimination of Europe's export quota limit by year end, we look forward to additional sales growth in the coming year.'
Gross profit during the quarter was $3.1 million, or 15.8% of sales, up 22.2% from gross profit of $2.5 million, or 16.5% of sales, a year ago. The slight decline in gross margin was caused by an increase in the purchase price of raw materials related to appreciation of the Chinese RMB against the dollar, which could not be completely passed on to customers.
During the third quarter, operating expenses were $1.0 million, compared to $0.8 million in the same quarter the prior year. The increasewas primarily caused by a $0.2 million increase in general and administrative expenses related to higher management salaries and the purchase of new office equipment as the business expanded, as well as increased depreciation and amortization expenses related to the completion of new manufacturing facilities. Operating expenses totaled 5.2% of revenues during the third quarter of 2007, compared to 5.0% of sales a year ago.
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