For the first quarter of 2011, the Company currently anticipates revenue in the range of RMB200-RMB205 million ($30.3-$31.1 million), gross margin of approximately 41-42%, net income of approximately RMB43-RMB44 million ($6.5-$6.7 million) and diluted EPS of approximately RMB0.44-RMB0.45 ($0.07). Approximately 22 new retail stores are expected to be opened by distributors in the first quarter of 2011.
Revenue in the first half of 2011 is expected in the range of RMB415-RMB425 million ($62.9-$64.4 million). Gross margin is expected to be in the 41-42% range in the first half of 2011, with additional gross margin and ASP growth expected in second half of 2011 due to an expected increase in wholesale prices to Company’s distributors.
Conference Call InformationZuoan’s management will host an earnings conference call on April 14, 2011 at 8:30 a.m. U.S. Eastern Time. Listeners may access the call by dialing #1-201-689-8471. A webcast will also be available via www.viavid.net. A replay of the call will be available through April 21, 2011. Listeners may access the replay by dialing #1-858-384-5517, access code: 370479. Exchange Rate This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB6.6 to US$1.00, as set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2010. About Zuoan Fashion Limited Zuoan Fashion Limited is a leading design-driven fashion casual menswear company in China. Zuoan offers a wide range of products, including men’s casual apparel, footwear and lifestyle accessories, primarily targeting urban males between the ages of 20 and 40 who prefer stylish clothing that represents a sophisticated lifestyle. Through extensive networks of distributors and retail stores, Zuoan sells its products in 27 of China’s 32 provinces and municipalities. As of December 31, 2010, Zuoan had 1,101 stores located in China.