QKLS is the largest retail company in Heilongjiang Province of China.
QKLS has 54 stores in Northeast China and Inner Mongolia area with formats of Hypermarket, Supermarket and Department Stores.
QKLS was awarded “Top 10 Potential Enterprises” in 2004, joined IGA in 2005, listed in America on 1st April, 2008, and up-grade to NASDAQ in October 21,2009.
QKLS guarantees “Fresh, Convenient, Inexpensive and Quality” merchandise to all customers; we will do our best to offer quality products at low prices. Based on it's well-known fresh products and extensive non-food, QKL gains compliments from both suppliers and customers.
With the overseas financing capability, qualified personnel and resources and unique marketing position, QKLS remains confident in its expansion strategy and looks forward to furthering the company's success.
The company's vision is to be the No.1 multi-format retailer in Northeast China.
QKLS recently announced its financial results for the second quarter ended June 30, 2015.
Mr. Zhuangyi Wang, Chairman and CEO, said, "In the second quarter, we were more active with the level of promotional activities among our existing stores opened at least one year in order to strengthen our competitive position. We plan to slow down the pace of our new store openings. Currently, we expect to open two new supermarket stores this year. We maintain confidence in our strategy of strengthening our store presence in Tier 4 and 5 cities in northeastern China as well as in our core region of operation around Daqing where the majority of our older stores are based."
"As QKL expands its market presence in northeast China, we are uniquely positioned against our local competitors through our large product offering, strong supplier relationships, efficient distribution network and state-of-the-art IT system. We are comfortable with our opportunities in the second half of the year and believe we'll see an improvement in operating expenses and net result from the current quarter."
Second Quarter 2015 Financial Results
Net sales increased by $4.8 million, or 9.2%, to $56.4 million for the three months ended June 30, 2015 from $51.7 million for the three months ended June 30, 2014. The change in net sales was primarily attributable to the following: Same store sales represents sales from stores that were opened for at least one year before the beginning of the comparison period, or by January 1, 2014. Same store (41 stores) sales generated approximately $49.1 million in sales in the second quarter of 2015, a decrease of $0.8 million, or 1.6%, compared with $49.9 million in net sales in the second quarter of 2014. New store sales increased, reflecting the opening of 4 new stores since January 1, 2014. These stores generated approximately $4.4 million in sales in the second quarter of 2015. The number of stores including supermarkets/hypermarkets and department stores at June 30, 2015 was 45 versus 46 at June 30, 2014.
Gross profit, or total revenue minus cost of sales, increased by $0.4 million, or 4.3%, to $9.1 million, or 16.1% of net sales, in the second quarter of 2015 from $8.7 million, or 16.8% of net sales, in the second quarter of 2014. The change in gross profit was primarily attributable to a increase in net sales of $4.8million and a increase in cost of sales of $4.4 million in the second quarter of 2015 compared to the second quarter of 2014.The decrease in gross profit relative to net sales was due to competitions arising from the increasing challenge from the online shopping that have significant pricing pressure on our selling of high margin products.
Selling expenses increased by $1.0 million, or 11.1%, to $10.5 million, or 18.6% of net sales, in the second quarter of 2015, and $9.5 million, or 18.3% of net sales, in the second quarter of 2014. In specific, labor costs increased by $0.4 million or 7.3%, to $5.9 million in the second quarter of 2015 from $5.5 million in the second quarter of 2014. Promotion expenses increased by $0.3 million, or 37.5%, to $1.1 million in the second quarter of 2015 from $0.8 million in the second quarter of 2014. Utilities increased by $0.2 million, or 13.3%, to $1.7 million in the first quarter of 2015 from $1.5 million in the first quarter of 2014.
General and administrative expenses increased by $78,343, or 4.0%, to $2.0 million, or 3.6% of net sales, in the second quarter of 2015 from $2.0 million, or 3.8% of net sales, in the second quarter of 2014.There is no significant change to our general and administrative expense.
Our net loss for the second quarter of 2015 was $4.5 million, or $2.98 per diluted share, from net loss of $3.8 million, or $2.47 per diluted share in the prior year period. The number of shares used in the computation of diluted EPS was1,522,326 for the second quarter of 2015 and 2014.
Technical Analysis:
Experts tell us that the worst of the Chinese financial crisis appears to be over, and we believe that QKLS is ready to rally hard on the speculation of a strong economic rebound.
On September 17th, we alerted QKLS when it was trading at $1.26 per share.
In just one day of trading, shares of QKLS jumped up +86% all the way to a high of $2.34!
QKLS has since retraced back under the $1.00 mark, and we believe the next epic rally is about to take place.
QKLS boasts a 52-week high price of $4.19 per share, which is +332% more than its current price of $0.97.
The float on QKLS's float is listed at just 629.83K, which means the slightest burst in volume could send its share price through the roof!
Now we can't guarantee that QKLS will be a huge winner, but its past performance speaks for itself.
Can this proven winner once again deliver massive profits for traders? We think so!
Don't hesitate another second.
Put QKLS on your trading screen right now!
(*Remember to use a Stop-loss Order to protect your gains, as well as limit possible losses.)
For more information on QKLS, please visit their website: www.QKLStoresInc.com
