LJ International to Expand Macau Mega-store by Two Thousand Additional Square Feet
February 08 2006 - 8:00AM
PR Newswire (US)
Company's 10,000 Square-Foot Jewelry Store to be Asia's Largest;
Expected Store to Contribute Revenues of at Least $2-$3 Million in
its First Year of Full Operation HONG KONG and LOS ANGELES, Feb. 8
/Xinhua-PRNewswire-FirstCall/ -- LJ International, Inc. (LJI)
(NASDAQ:JADE), one of the fastest-growing jewelry companies in the
world, today announced that it will be expanding its ENZO retail
mega-store in Macau by an additional two-thousand square feet in
anticipation of higher than expected demand. As previously
reported, the Company held its soft opening for its Macau store on
New Year's Eve, 2005, in conjunction with the grand opening of
Macau's new Fisherman's Wharf retail and entertainment center.
Including the additional expansion, the store is expected to be in
full operation by the third quarter of this year. "The opening of
our Macau store is truly a significant milestone in the execution
of our ENZO growth strategy in Greater China," said LJI Chairman
and CEO Yu Chuan Yih. "As the 'Las Vegas of Asia,' Macau is prime
destination not only for gambling but for other recreation as well
-- including shopping, dining and other family activities. As a
result, it expected to draw at least 15 million to 20 million
visitors just in its first year and steadily grow from there. Our
new mega-store places ENZO in a prime position to offer a full
range of products to millions of affluent customers throughout the
year. We are also pleased to be able to execute a faster track
record of new store openings than all of our foreign competitors
put together, including Tiffany & Co., which recently announced
plans to open a 2,000 square foot store in Macau later this year."
The Macau store, at 10,000 square feet, will represent the largest
jewelry retail store so far in LJI's rapidly expanding ENZO
division of retail jewelry stores in Greater China as well as the
largest in all of Asia. At the end of January 2006, ENZO had 20
retail stores in operation -- one in Hong Kong, one in Macau, and
18 in key cities elsewhere in Mainland China. This pace of
expansion, which so far has been well ahead of schedule, is
expected to continue in 2006, with at least 40 stores opened by the
end of the year. Macau: Ideal Location for ENZO Macau is the gaming
center of Asia and one of the region's most important tourist
centers. The ENZO store is located at one of the former colony's
prime destinations, the new Macau Fisherman's Wharf. This project,
Macau's largest since the former Portuguese colony was ceded to the
People's Republic of China in 1999, has been co-developed by
renowned magnate Dr. Stanley Ho and by David Chow, a current
legislative member of Macau, with a total investment expected to be
about $150 million. Among its attractions are restaurants, souvenir
shops, a theme park and even a man-made volcano. Macau Store to Add
New Revenue Stream to LJI The Macau mega-store is expected to add a
new and higher margin revenue stream to LJI's financials in 2006
and beyond. As was announced in August, 2005, the Company projects
sales from the new store to possibly double or triple the
$80,000-per-month initial volume of the ENZO flagship store in
Shanghai. This would translate into annual sales of between $1.9
million to $2.9 million based only on this one store, exceeding
prior projections. Based on preliminary estimates, LJI expects its
ENZO Division to significantly grow its revenues and achieve
breakeven financial results, at least at EBITDA level, this year.
The Company also noted that it is well-ahead of its schedule of
opening at least 100 stores by 2008, which would result in the
contribution of at least $40 million in additional annual revenues
to LJI. These higher-margin revenues coupled with the Company's
core business of selling jewelry in volume to some of the largest
retailers in the U.S. is expected to accelerate the Company's
financial growth going forward. If you would like to be added to
LJI's investor email lists or have additional questions, please
contact Haris Tajyar with Investor Relations International at .
Video News Release Accessible to Media Details on ENZO's Macau
mega-store, plus comments from a well-respected financial analyst
and Mr. Yih, are available to the broadcast media via a video news
release (VNR). This can be accessed today, Wednesday, February 8,
2005, via Satellite Feed from 14:00-14:15 EST at: IA-5C Transponder
9, Downlink: 3880 MHz (V). Or contact Mark Hirsch or Ike McFadden
at 561-750-7590 for immediate access. About LJ International Inc.
LJ International, Inc. (LJI) (NASDAQ:JADE), based in Hong Kong and
the U.S., is engaged in the designing, branding, marketing and
distribution of a full range of jewelry. It has built its global
business, currently one of the fastest-growing in the jewelry
industry, on a vertical integration strategy and an unwavering
commitment to quality and service. LJI distributes to fine
jewelers, department stores, national jewelry chains and electronic
and specialty retailers throughout North America and Western
Europe, with a growing retail presence in China through its ENZO
stores. Its product lines incorporate all major categories sought
by major retailers, including earrings, necklaces, pendants, rings
and bracelets. For more information on LJI, please visit
http://www.ljintl.com/ . 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 revenues. 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 revenues 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. AT LJI: AT IRI: Betty Ho Haris Tajyar VP, Corp.
Develop. Managing Partner Tel: 011-852-2170-0001 Tel: 818-382-9702
Email: Email: ATTN MEDIA: Video News Release Available See
Satellite Coordinates Above DATASOURCE: LJ International, Inc.
CONTACT: Betty Ho of LJ International, 011-852-2170-001, or ; Haris
Tajyar of Investor Relations Intl, 818-382-9702 or , for LJ
International Web site: http://www.ljintl.com/
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