Jade Art Group Inc. (OTCBB:JADA; "Jade Art" or the "Company"), a seller and distributor of raw jade in China, announced today its financial results for the year ended December 31, 2009.
2009 Key Items
2009 Results Commentary
- Revenue of $25.3 million represents a 17% decrease from $30.5 million in 2008.
- Gross profit was $20.6 million, compared to $25.3 million in 2008.
- Income from continuing operations was $18.7 million, compared to $22.5 million in 2008.
- Net income in 2009 was $13.2 million, compared to $15.4 million in 2008, excluding the gain in 2008 from discontinued operations of $55.4 million.
- Fully diluted earnings per share decreased to $0.16 from $0.19, excluding the gain from discontinued operations of $0.69 in 2008.
Revenue for 2009 was $25.3 million, representing a 17% decrease from the $30.5 million of revenue recorded in 2008. The decrease was primarily due to the global economic downturn that has reduced the demand for luxury goods such as jade. In addition, the Company’s management believes that the adverse weather condition also impacted the ability to transport product in 2009.
The resulting gross profit for 2009 was $20.6 million, which represented approximately 81.4% of revenue, compared to $25.3 million for 2008, which represented approximately 82.9% of revenue. This decrease in gross profit primarily resulted from the decrease in the Company’s sales revenue.
Selling, general and administrative expenses were $1.9 million for 2009, representing a 33.4% decrease from $2.8 million recorded in 2008. The reduction of sales revenue resulted in a decrease of sales commissions, which lowered expenses compared to the expenses for 2008.
The 2009 net income of $13.2 million, resulting in earnings per diluted share of $0.16, represents a decrease from the 2008 net income level of $15.4 million, excluding $55.4 million of income from discontinued operations in 2008 from the Company’s wood carving business, with related earnings per diluted share in 2008 of $0.19.