YIWU, China, Aug. 15, 2014 /PRNewswire/ -- Yosen Group, Inc. (stock symbol: YOSN) ("Yosen", or "the Company") announced today its financial results for the second quarter ended June 30, 2014.
Net sales, gross profit, gross profit margin and selling, general and administrative expenses ("SG&A") shown for the periods presented all exclude discontinued operations.
Net sales for the second quarter 2014 were reported at $3,053,135, a 7.7% year-over-year increase over $2,834,839 for the second quarter 2013. Net sales for the six months ended June 30, 2014 were $7,316,160, a 22.0% year-over-year increase over $5,997,873 for the six months ended June 30, 2013. The increase was primarily attributable to the new revenue generated from our international trade business in New York.
Gross profit for the three months ended June 30, 2014 was $291,064, an increase of 69.6% compared to $171,641 for the three months ended June 30, 2013. Gross profit for the six months ended June 30, 2014 was $620,322, an increase of 99.4% compared to $311,108 for the six months ended June 30, 2013.
Profit margin for the three and six months ended June 30, 2014 was 9.5% and 8.5% compared to 6.1% and 5.2% for the three months and six months ended June 30, 2013. The international trade business again contributed to the higher profit margin.
SG&A expenses for the three months ended June 30, 2014 were $288,149, a decrease of 47.3% compared to $546,646 for the three months ended June 30, 2013. SG&A expenses for the six months ended June 30, 2014 were $576,361, a decrease of 53.0% compared to $1,227,541 for the six months ended June 30, 2013. The decrease in SG&A expenses was the result of reduction in staff related cost and store management fees.
Net income from continuing operations was $64,826 and $178,601 respectively for the three and six months ended June 30, 2014 compared to net loss of $357,219 and $885,047 for the three and six months ended June 30, 2013.
Net income excluding non-cash stock-based compensation expense (a non-GAAP measure) for the three and six months ended June 30, 2014 was $94,968 and $218,078, compared to net loss of $310,886 and $847,030 for the three and six months ended June 30, 2013.
Net income for the three and six months ended June 30, 2014 was $7,468 and $31,626 compared to net loss $414,219 and $1,053,696 for the three and six months ended June 30, 2013.
Yosen's CEO Mr. Zhenggang Wang commented, "We are very pleased that Yosen continues to be profitable during the second quarter. This time of the year is usually a slow season for 3C products (Computers, Communication, Consumer Electronics), and neither Apple nor Samsung introduced any heavyweight new products at this time. However, thanks to Yosen's strategic repositioning over the last few years and strict cost control measures, the Company was able to maintain its profitability. We anticipate the Company to continue to grow significantly in both sales and profitability, and receive increased subsidies from China Telecom as a result of our proven cooperative model.
"Yosen's U.S. subsidiary, Yosen Trading, has been growing very nicely despite that it is still young. We plan to open our second warehousing facility in New York in the near future. The cross-border e-commerce platform that Yosen has been developing jointly with China Commodity City has already attracted many potential customers and prospective cooperation partners from Zhejiang and Fujian provinces as well as from the U.S. We anticipate this e-commerce platform co-developed with yiwugou.com, as well as Yosen's own B2B and B2C cross-border trading platforms, will go live online later this year. We believe these vehicles will become Yosen's major source of profitability in the future."
Earlier this year, Yosen announced that it signed an agreement with a subsidiary of China Commodity City Group Ltd. to cooperate exclusively in cross border trade, e-commerce, warehousing and logistics in four major states in the U.S. (New York, New Jersey, Connecticut, and Pennsylvania). Yosen launched its international trade and wholesale business at the end of last year through its U.S. subsidiary, and has made clear breakthrough within a short period of time. The Company anticipates further progress in the field and will update shareholders accordingly.
About Yosen Group, Inc.
Yosen Group, Inc. ("Yosen Group", or "Yosen") was founded in Yiwu City, Zhejiang Province, in 1997. Yosen is a leading retailer of 3C merchandise (Computers, Communication products and Consumer electronics) in Eastern China. The Company partners with China's three dominant telecommunication operators including China Telecom, China Mobile, and China Unicom, and operates 3C specialty stores within mass merchandisers at prime locations. Yosen distributes the best-selling products of Apple, Samsung, among others. Yosen Group, though its corporate headquarters in China and its wholly-owned U.S. subsidiary, is committed to building cross-border sales channels for bringing the world's best consumer products to China and, simultaneously, introducing China's most competitive products to the overseas markets. Yosen Group is China Commodity City Group's exclusive partner in the Greater New York area. The Company operates under the "Yosen" and "Yong Xin" brand names.
For more information, visit http://www.yosn.com.
Safe Harbor Statement
Certain statements in this press release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding the Company's future performance. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the periodic reports that are filed with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. The Company undertakes no duty to update these forward-looking statements except as required by law.
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SOURCE Yosen Group, Inc.