HONG KONG, May 13 /PRNewswire-FirstCall/ -- China Premium Lifestyle Enterprise, Inc. (OTCBulletinBoard:CPLY) today reported its 2008 fiscal first quarter results for the quarter ended March 31, 2008.
For the quarter ended March 31, 2008, the Company reported net sales increased 26% to approximately $21,447,000 compared to approximately $17,011,000 for the same period ended March 31, 2007. The Company reported gross profit increased by approximately $943,000 to approximately $3,462,000. The Company reported a net loss of $229,320 a reduction from last year's net loss of $259,999.
Although the company reported a net loss, management emphasized that historically the first quarter of the year is the company's least profitable. Traditionally the company's strongest quarter is the fourth quarter. "We continue to have strong cash flow, our operation generating cash resources of approximately $1,688,000 for the period," said Joseph Wong, CFO of China Premium Lifestyle Enterprise. He added that the company had repaid approximately $2.7 million debt in this quarter, and this will further lower the finance costs of the company.
The company attributed the growth in sales to increased sales from its new and used vehicle trading segment. This was primarily due to the increasing deliveries of the "Maserati" 8-cylinder, two-door 2+2 coupe, the "GranTurismo" which was launched in the last quarter of 2007. The increase in parts and service sales was mainly attributed to the increase in deliveries of Ferrari and Maserati cars to customers during the last few years.
Richard Lee, Chairman and CEO, stated: "I am pleased to again report continued revenue growth on the back of our profitable 2007 fiscal year. We continue to show high growth in our sales of new models and current cars as well as the beginning of growth in parts sales and service as a consequence. This strong foundation continues to enable us to incorporate other high end brands into our platform as we continue to develop China Premium Lifestyle Enterprise, Inc. With the recent launch of our first two John Richmond clothing stores in Hong Kong including the flagship location just announced the other day, we remain very optimistic about 2008!"
China Premium Lifestyle Enterprise, through its 49%-owned entity, has established itself as a leading Ferrari and Maserati importer, distributor and dealer in Hong Kong and dealer in China, having been affiliated with Ferrari and Maserati since 1992 and 1994 respectively. The company is expanding its offerings to include other luxury brands and goods from around the world, which it markets to its already established base of wealthy Chinese individuals.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by the Company may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this release that are not purely historical are forward-looking statements, beliefs, plans, expectations or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining prices, and other economic factors. The Company assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. Investors should independently investigate and fully understand all risks before making investment decisions.
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Source: China Premium Lifestyle Enterprise, Inc.