SHANTOU, China, May 15, 2013 /PRNewswire/ -- Big Tree Group, Inc. (OTCQB: BIGG), a company that serves as a "one stop shop" for the sourcing, distribution and specialty manufacturing of toys and related products, announced today our financial results for the full year of 2012 ended December 31, 2012.
For the full year of 2012, total revenues reached $33.9 million, an increase of 115% compared to total revenues of $15.8 million recorded in 2011. The increase in revenues was primarily due to revenues from our Brunei subsidiary, Big Tree International Co., Ltd. ("BT Brunei"), which was operational for the full year in 2012 compared to seven months in 2011. Big Tree Group formed BT Brunei in 2011 as part of a strategy to increase our customer base for export sales of toys which are not subject to PRC income taxes at a rate of 25%. This competitive cost structure enabled the Company to increase our sales as well as our customer base from 178 customers in 2011 to 259 customers in 2012. Our shift to lower margin export sales through BT Brunei led to overall gross margins of 10.4% in 2012 compared to 13.9% in 2011. Operating expenses to support our business growth increased to $1.8 million in 2012, up from $0.5 million in 2011. For the full year of 2012 we recorded net income of $1.6 million or $0.16 per basic and diluted share on 10.1 million weighted average shares outstanding as compared to net income of $1.6 million or $0.25 per basic and diluted share on 6.5 million weighted average shares outstanding in 2011.