SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of December 2002
LJ International Inc.
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(Translation of registrant's name into English)
Unit #12, 12/F, Block A
Focal Industrial Centre
21 Man Lok Street, Hung Hom, Hong Kong
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(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
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[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
LJ International Inc.
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(Registrant)
Date: December 16, 2002 By: /s/ NG HON TAK RINGO
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NG HON TAK RINGO,
Chief Financial Officer
FOR
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LJ INTERNATIONAL INC.
(NATIONAL MARKET SYSTEM: JADE)
CONTACTS
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BETTY HO GREGORY A. McANDREWS
LJ International Inc. Greg McAndrews & Associates
011 (852) 2170-0001 (310) 301-3035
FOR IMMEDIATE RELEASE
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LJ INTERNATIONAL SALES UP 43% IN SECOND QUARTER;
NET INCOME OF $1.1M, 13 CENTS PER SHARE EARNINGS
HONG KONG, Dec. 16, 2002 - LJ International Inc. (NMS: JADE) today
announced sales of $14,907,000 for the second quarter ended October 31, up 43%
from the second quarter sales last year of $10,423,000 with current quarter net
income of $1,104,000, equal to 13 cents per share, compared with a net loss of
$371,000, or a net loss of four cents per share, in the prior year's second
quarter.
Due to very strong marketing to top retailers of colored gem and
diamond jewelry in the most recent three-month period, LJI's six months sales
jumped to $23,676,000 from $18,768,000 in the first half of the prior fiscal
year. Net income rebounded to $748,000, or nine cents per share, compared with a
net loss of $276,000, or a net loss of three cents per share.
Second quarter financial results were at the high end of all forecasts
in the Company's guidance: sales from $14 to $15 million; net income from $1.0
to $1.2 million; and net income per share from 11 to 14 cents. Also, early
holiday sales indicate that financial results are in a general uptrend.
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NEWS RELEASE - JADE--SECOND QUARTER FINANCIAL RESULTS
DECEMBER 16, 2002
PAGE 2
The balance sheet remained strong with total current assets of $37.1
million, total assets of $48.9 million, cash of $829,000, cash and cash
equivalents of $6.5 million, total stockholders' equity of $23.7 million and
stockholders' equity per share of $2.74.
The gross profit margins for both the second quarter and first half
remained steady at 30% as sales improved for LJI compared to recent quarters. In
addition, selling, general and administrative expenses were reduced to 19% for
the quarter and 21% for the first half as belt-tightening measures in place
since September 2001 are taking full effect.
FINANCIAL HIGHLIGHTS
(UNAUDITED)
FOR THE THREE MONTHS ENDED
OCTOBER 31,
2002 2001
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Revenues $14,907,000 $10,423,000
Net Income (Loss) $ 1,104,000 $ (371,000)
Net Income (Loss) per Share $ 0.13 $ (0.04)
Weighted Average Shares Outstanding 8,671,615 8,671,615
FOR THE SIX MONTHS ENDED
OCTOBER 31,
2002 2001
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Revenues $23,676,000 $18,768,000
Net Income (Loss) $ 748,000 $ (276,000)
Net Income (Loss) per Share $ 0.09 $ (0.03)
Weighted Average Shares Outstanding 8,671,615 8,671,615
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NEWS RELEASE - JADE--SECOND QUARTER FINANCIAL RESULTS
DECEMBER 16, 2002
PAGE 3
Segment Information is as follows:
Marketing & Point of
distributing sales of Trading of
of Jewelry Jewelry giftware Total
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USD'000 USD'000 USD'000 USD'000
Three Months Ended October 31,2002
Net sales 14,820 41 46 14,907
EBITDA 1,855 (194) (140) 1,521
Depreciation & amortization (210) (113) (1) (324)
Finance cost, net (142) (2) (1) (145)
Net income (loss) 1,503 (265) (134) 1,104
Capital expenditures 677 48 6 731
Segment assets 47,579 1,269 131 48,979
Three Months Ended October 31,2001
Net sales 10,423 - - 10,423
EBITDA 35 - - 35
Depreciation & amortization (246) - - (246)
Finance cost, net (160) - - (160)
Net income (loss) (371) - - (371)
Capital expenditures 207 - - 207
Segment assets 50,368 - - 50,368
The continuing role of the "giftware" and "point of sale" segment
product lines will be evaluated prior to April 30, 2003 as pointed out in the
Company's guidance.
LJ International Inc. (NMS: JADE) is a leading publicly-owned company
engaged in designing, branding, marketing and distributing a full range of fine
jewelry, which has been built on a vertical integration strategy and an
unwavering commitment to quality and service. Website: www.ljintl.com.
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NEWS RELEASE - JADE--SECOND QUARTER FINANCIAL RESULTS
DECEMBER 16, 2002
PAGE 4
(Forward looking statement: Except for the historical information, the
matters discussed in this news release may contain forward-looking statements,
including, but not limited to, factors relating to future sales. These
forward-looking statements may involve a number of risks and uncertainties.
Actual results may vary significantly based on a number of factors, including,
but not limited to, uncertainties in product demand, the impact of competitive
products and pricing, changing economic conditions around the world, release and
sales of new products and other risk factors detailed in the company's most
recent annual report and other filings with the Securities and Exchange
Commission.)
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