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LJ INTERNATIONAL TO EXPAND
MACAU MEGA-STORE BY TWO THOUSAND ADDITIONAL SQUARE
FEET
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, LJ International, Inc. (LJI)
(Nasdaq/NMS: 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. Only a small section of the
store is currently open for busimess, the Company
expects the store will be in full operation by the
third quarter of 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 open by the
end of the year.
Details on the Macau mega-store,
including coverage of the grand opening ceremonies and
interviews with key government and corporate
officials, are available to the broadcast media in a
video news release (VNR). Please contact Please
contact Mark Hirsch or Ike Mcfadden at
mhirsch@tvamediagroup.com or
imcfadden@tvamediagroup.com for access.
“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.”
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
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 revenues from the ENZO Division to total
at least $2 million for last year, should grow
significantly this year as it steadily builds towards
its goal of at least $40 million in annual revenues by
2008. 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
htajyar@irintl.com.
About LJ International Inc.
LJ International, Inc. (LJI) (Nasdaq/NMS:
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
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. |
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