HONG KONG, Aug. 13 /PRNewswire-FirstCall/ -- China Premium Lifestyle Enterprise, Inc. (OTC Bulletin Board: CPLY) today reported its 2008 fiscal second quarter results for the quarter ended June 30, 2008.
For the quarter ended June 30, 2008, the Company reported net sales increased 24% to approximately $31,248,000, compared with approximately $25,116,000 for the same period of 2007. The increase was primarily attributable to the increased sales from our new and used vehicle trading segment. The increase in sales of vehicles was primarily due to the launch of the Ferrari 8-cylinder sports car, the "430 Scuderia," and an increase in 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.
Gross profit margin for three months ended June 30, 2008 increased by 1.9% from 14.7% for the same period of 2007 to 16.6% for the current period and the gross profit increased by approximately $1,506,000 to approximately $5,200,000 for the three months ended June 30, 2008. This increase is mainly attributed to the new and used vehicles trading segment. Gross profit margin increase in the second quarter of 2008 was mainly due to deliveries of the "GranTurismo" and the "430 Scuderia."
Net total sales for six months ended June 30, 2008 increased by approximately $10,568,000 or 25.1% to approximately $52,695,000, compared with approximately $42,127,000 for the same period of 2007. Gross profit margin for six months ended June 30, 2008 increased by 1.7% from 14.7% for the same period of 2007 to 16.4% for the current period and the gross profit increased by approximately $2,449,000 to approximately $8,662,000 for the six months ended June 30, 2008.
Joseph Wong, Chief Financial Officer, stated: "We continue to have strong cash flow, our operation generating cash resources of approximately $588,000 for the first six months of 2008." He added, "The Company had repaid approximately $1.5 million debt in this period, and this will further lower the finance costs of the company."
Richard Lee, Chairman and CEO, stated, "I am pleased to again report continued revenue growth and profitability 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."
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.