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 first quarter ended March 31, 2010.
2010 First Quarter Financial Highlights
First Quarter 2010 Financial Results
- Revenue of $5.9 million represents a 19% increase over revenue of $5.0 million recorded in the first quarter of 2009.
- Gross profit was $4.8 million, compared to $3.9 million in the first quarter of 2009.
- Net income in the first quarter of 2010 was $3.2 million, an increase of 32% compared to net income of $2.4 million in the first quarter of 2009.
- Fully diluted earnings per share in the first quarter of 2010 increased to $0.04 from $0.03 in the first quarter of 2009.
Jade Art Group's first quarter 2010 revenue was $5.9 million, representing a 19% increase over the $5.0 million of revenue recorded in the comparable period in 2009. The increase in revenue resulted from an increase in orders for raw jade as the Company’s customers were responding to the better economic environment, and reflects a nearly 14% increase in the tons of jade shipped and a 5% increase in the average price per ton. Having previously experienced a slowing in its growth rate, Chinese economy now appears to be recovering and showing improvement. This is having a positive impact on the commercial and residential construction markets and the jewelry market into which the Company sells raw jade. Also, comparing to the first quarter of 2009, the weather conditions in the first quarter of 2010 have been less disruptive, enabling the mining and delivery of the jade to proceed more smoothly.
Gross profit was $4.8 million compared to $3.9 million for the same period last year, an increase of 23%, reflective of the increase in revenue. Gross profit margin for the first quarter of 2010 was 81%, slightly increased as compared to 78% for the same period last year, due to the benefit of spreading fixed costs over a higher sales level.