BEIJING, Aug. 20 /PRNewswire-FirstCall/ -- NextMart, Inc. (BULLETIN BOARD: NXMR.OB) , a Chinese direct sales company, today reported its first quarter fiscal 2008 financial results.
For the fiscal quarter ended June 30, 2007, NextMart reported gross revenue of $1,803,071, of which $1,790,596 (or 99.3% of total revenue) was derived from the Company's Transactional Services and $12,475 (or 0.7% of total revenues) was derived from the Company's Marketing and Information Services. NextMart's gross profit for the quarter was $413,998 before all consulting, general and administrative, depreciation and amortization costs. After all operating expenses and other income for the quarter ended June 30, 2007, the Company reported a comprehensive loss of 1,186,588 or $0.01 per outstanding share. For more detailed information on the Company's results of operations and other information, please refer to the Company's Form 10-QSB filing for the period ended June 30, 2007 which can be found at http://www.sec.gov/.
Mr. Ren Huiliang, Chief Executive Officer of NextMart, Inc. commented, "Although we experienced a loss this quarter, we had a productive quarter in enhancing our focus on the women's apparel business. We began putting more efforts into growing our B2B client base abroad and creating strategic partnerships to enhance our apparel sales and marketing capabilities in Mainland China. We believe that, over time, our new initiatives will pave the way to new revenues and lead us closer to our goal of building China's largest shopping community for online wholesale distribution and retail shopping in the women's fashion and apparel sector.
Recent Highlights for the quarter ended June 30, 2007 and the current quarter include:
-- The Company entered into agreement to purchase the Peeress Brand and
its design database which contains over 12,000 clothing designs.
-- The Company formed a strategic partnership with Guifuren Garment Co.
Ltd to obtain nationwide retail store space and usage rights to the
Guifuren (Chinese name of Peeress) mature women's apparel brand.
-- The Company formed a strategic joint venture with Her Village Media to
develop China's largest online catalogue service, NextMart Online
Catalogues.
-- The Company continued to center its operations around its Shanghai-
based apparel subsidiary William's Brand Administer Co., Ltd. The
company announced that it plans to complete the relocation of its
corporate headquarters from Beijing to Shanghai by October 1, 2007.
Going forward, NextMart will remain focused on streamlining its business development efforts of the women's apparel business into: (1) Creating organic growth in its existing wholesale distribution/business-to-business ("B2B") operations and (2) Creating new growth within the retail shopping/business-to- consumer ("B2C") sector by building out the company's online and offline sales and marketing channels through targeted strategic partnerships and acquisitions. In addition to developing the initiatives announced to date, the Company is pursuing opportunities to break into China's offline direct mail- order catalogue service sector.
Conference Call
NextMart Inc. management will hold a conference call on August 24, 2007 at 8:00 AM EDT to discuss financial results. Listeners may access the call by dialing 1-877-493-9121 or 1-973-582-2750 for international callers. A replay of the call will be available after 1:00 PM ET through August 31, 2007. Listeners may access the replay by dialing 1-877-519-4471 or 1-973-341-3080 for international callers. The replay pass code is 9152636.
About NextMart, Inc.
NextMart is a China-based women's apparel enterprise that aims to develop China's largest shopping community for wholesale distribution and retail shopping, primarily in area of women's fashion and apparel. The Company has core business operations in fashion branding, design, production, sourcing and wholesale distribution in China and globally. It has supporting operations in electronic parts and components distribution. Since April 2007, NextMart has centered its operations around William's Brand Apparel Co. Ltd, its Shanghai- based apparel subsidiary. The Company has focused its efforts on expanding its business client base for outsourced wholesale production. The Company also has launched initiatives to create its own private label brands to sell women's apparel to urban consumers nationwide using an integrated offline/online direct sales model. Learn more at http://corporate.nextmart.net/.
This press release includes statements that may constitute 'forward- looking' statements, usually containing the word 'believe,' 'estimate,' 'project,' 'expect,' 'plan,' 'anticipate' or similar expressions. Forward- looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of NextMart's product and services in the marketplace, competitive factors and changes in regulatory environments. These and other risks relating to NextMart's business are set forth in NextMart's Annual Report on Form 10-KSB for the period ended March 31, 2007 filed with the Securities and Exchange Commission on July 16, 2007, and other reports filed from time to time with the Securities and Exchange Commission. By making these forward-looking statements, NextMart disclaims any obligation to update these statements for revisions or changes after the date of this release.
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