UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act 1934
Date of Report (date of earliest event reported):
November 16, 2015
QKL STORES INC.
(Exact name of registrant as specified in
charter)
| Delaware |
033-10893 |
75-2180652 |
| (State of Incorporation) |
(Commission File No.) |
(IRS Employer
Identification No.) |
4
Nanreyuan Street
Dongfeng Road
Sartu District
163300 Daqing, PRC
(Address Of Principal Executive Offices)
(Zip Code)
(011) 86-459-460-7825
(Registrant’s Telephone Number, Including
Area Code)
(Former Name or Former Address, is Changed
Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
| ¨ | Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On November 16, 2015, QKL Stores Inc. issued a press release
regarding its financial results for the nine months ended September 30, 2015 and announcing a conference call regarding its financial
results for the same period. A copy of the press release is filed herewith as Exhibit 99.1 to this Current Report and is incorporated
herein by reference.
As provided in General Instruction B.2 of SEC Form 8-K, such
information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), or otherwise subject to the liabilities of that section, and it shall not be deemed incorporated
by reference in any filing under the Securities Act of 1933, as amended, or under the Exchange Act, whether made before or after
the date hereof, except as expressly set forth by specific reference in such filing to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. |
|
Description |
| |
|
|
| 99.1 |
|
Press release dated November 16, 2015 |
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 hereunto duly authorized.
| |
QKL STORES INC. |
| |
|
| |
|
|
| |
By: |
/s/Tsz-Kit Chan |
| |
Name: |
Tsz-Kit Chan |
| |
Title: |
Chief Financial Officer |
Date: November 17, 2015
Exhibit Index
| Exhibit No. |
|
Description |
| |
|
|
|
99.1 |
|
Press release dated November 16, 2015 |
Exhibit 99.1
QKL Stores Inc. Announces Third
Quarter 2015 Financial Results
-- 3Q15 Revenue decreased by 4.1% to $58.6 million from $61.1
million in 3Q14 --
-- 3Q15 Gross Profit decreased by 4.5% to $9.8 million from $10.3 million in 3Q14 --
DAQING, China, Nov. 16, 2015 /PRNewswire/ -- QKL Stores Inc.
(the "Company") (Nasdaq: QKLS), a leading regional supermarket chain in Northeastern China and Inner Mongolia, today
announced its financial results for the third quarter ended September 30, 2015.
Mr. Zhuangyi Wang, Chairman and CEO, said, "Our third quarter
results generally met our levels of expectation. The variety, value and freshness of our products continue to resonate with our
customers driving sales higher. This store growth was also driven by in-store promotional events such as store anniversary celebrations."
"The environment of retailing business is still challenging
mainly due to the rising costs and the emerging e-commerce channel. However, we are still confident on the domestic needs because
of the urbanization of the third and fourth tier cities that we will achieve a fundamental improvement in the consumer purchasing
power during the process."
"We look forward to the upcoming holiday season as we have
a number of exciting marketing initiatives planed. Our balance sheet is healthy with a strong cash position, low level of debt
and stable flow of cash from operations. We continue to make progress with our store operations and that can result in greater
sales and profits over time."
Third Quarter 2015 Financial Results
Revenue in 3rd quarter decreased by $2.5 million,
or 4.1%, to $58.6 million for the three months ended September 30, 2015 from $61.1 million for the three months ended September
30, 2014. 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 (42 stores) sales generated approximately $54.8 million in sales in the third quarter
of 2015, a decrease of $4.4 million, or 7.4% compared with $59.2 million in net sales in the third quarter of 2014. New store sales
increased, reflecting the opening of 3 new stores since January 1, 2014. These stores generated approximately $3.8 million in sales
in the third quarter of 2015. The number of stores including supermarkets/hypermarkets and department stores at September 30, 2015
was 45 versus 47 at September 30, 2014.
Gross profit, or total revenue minus cost of sales, decreased
by $0.5 million, or 4.5%, to $9.8 million, or 16.7% of net sales, in the third quarter of 2015 from $10.3 million, or 16.8% of
net sales, in the third quarter of 2014. The change in gross profit was primarily attributable to a decrease in net sales of $2.5
million and a decrease in cost of sales of $2.0 million in the third quarter of 2015 compared to the third 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 decreased by $2.5 million, or 19.4%, to $10.5
million, or 18.0% of net sales, in the third quarter of 2015, and $13.1 million, or 21.4% of net sales, in the third quarter of
2014. In specific, labor costs decreased by $0.3 million or 5.2%, to $5.5 million in the third quarter of 2015 from $5.8 million
in the third quarter of 2014. Promotion expenses decreased by $0.3 million, or 20.0%, to $1.2 million in the third quarter
of 2015 from $1.5 million in the third quarter of 2014. Utilities decreased by $0.2 million, or 11.8%, to $1.5 million in
the first quarter of 2015 from $1.7 million in the third quarter of 2014. Preliminary expenses in relation to new store opening
was nil and $1.5 million in the third quarter of 2015 and 2014 respectively.
General and administrative expenses decreased by $0.1 million,
or 4.0%, to $2.0 million, or 3.3% of net sales, in the third quarter of 2015 from $1.9 million, or 3.3% of net sales, in the third
quarter of 2014. There is no significant change to our general and administrative expense.
For the three months ended September 30, 2014, our net loss
for the third quarter of 2015 was $3.8 million, or $2.53 per diluted share, from net loss of $5.5 million, or $3.60 per diluted
share in the prior year period. The number of shares used in the computation of diluted EPS was 1,522,326 for the third quarter
of 2015 and 2014.
Conference Call
The Company will conduct a conference call to discuss its third
quarter 2015 results on Monday, November 16, 2015 at 8:30 am ET. Listeners may access the call by dialing #1-719-325-2455. To participate,
please dial one of the local access numbers, listed below. The conference call identification number is 10046673.
| Participant Dial In (Toll Free): |
1-877-870-4263 |
| Participant International: |
1-412-317-0790 |
| Canadian Dial In (Toll Free): |
1-855-669-9657 |
| China (N) Toll Free: |
4001-201203 |
| China (S) Toll Free: |
4001-201203 |
| Hong Kong Toll Free: |
800-905945 |
About QKL Stores Inc.:
Based in Daqing, China, QKL Stores, Inc. is a leading regional
supermarket chain company operating in Northeastern China and Inner Mongolia. QKL Stores sells a broad selection of merchandise,
including groceries, fresh food, and non-food items, through its retail supermarkets, hypermarkets and department stores; the company
also has its own distribution centers that service its supermarkets. For more information, please access the Company's website
at: www.qklstoresinc.com.
Safe Harbor Statement
Certain statements in this release and other written or oral
statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities
laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs,
plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward
looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and
projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves
may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties. These statements
are based on our current expectations and speak only as of the date of such statements.
Contact Information
|
QKL Stores, Inc.
In China: |
| Mike Li, Investor Relations |
| +86-459-460-7987 |
QKL STORES INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
| | |
September 30,
2015 | | |
December 31,
2014 | |
| | |
(Unaudited) | | |
| |
| ASSETS | |
| | | |
| | |
| Cash | |
$ | 18,789,468 | | |
$ | 9,013,006 | |
| Restricted cash | |
| 20,506,868 | | |
| 8,623,748 | |
| Accounts receivable | |
| 936,843 | | |
| 949,211 | |
| Inventories | |
| 42,851,508 | | |
| 62,605,754 | |
| Other receivables | |
| 19,565,180 | | |
| 21,375,611 | |
| Prepaid expenses | |
| 11,232,673 | | |
| 12,114,028 | |
| Advances to suppliers | |
| 8,524,899 | | |
| 8,653,037 | |
| Deferred income tax assets -- current portion | |
| 2,828,440 | | |
| 2,839,714 | |
| Total current assets | |
| 125,235,879 | | |
| 126,174,109 | |
| Property, plant and equipment, net | |
| 34,335,416 | | |
| 37,843,171 | |
| Land use rights, net | |
| 637,764 | | |
| 684,375 | |
| Deferred income tax assets -- non-current portion | |
| 59,570 | | |
| 61,681 | |
| Other assets | |
| 11,886 | | |
| 11,880 | |
| Total assets | |
$ | 160,280,515 | | |
$ | 164,775,216 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |
| | | |
| | |
| Short-term loans | |
$ | 70,712,467 | | |
$ | 60,201,757 | |
| Accounts payable | |
| 35,689,016 | | |
| 37,206,633 | |
| Cash card and coupon liabilities | |
| 14,489,950 | | |
| 14,539,728 | |
| Customer deposits received | |
| 1,968,447 | | |
| 2,005,136 | |
| Accrued expenses and other payables | |
| 22,665,590 | | |
| 23,147,611 | |
| Income taxes payable | |
| 32,516 | | |
| 241,189 | |
| Total current liabilities | |
| 145,557,986 | | |
| 137,342,054 | |
| Total liabilities | |
| 145,557,986 | | |
| 137,342,054 | |
| | |
| | | |
| | |
| Shareholders' equity | |
| | | |
| | |
Common stock, $0.001 par value per share, authorized 100,000,000 shares, issued and
outstanding 1,522,326 shares at September 30, 2015 and December 31, 2014 | |
| 1,522 | | |
| 1,522 | |
Series A convertible preferred stock, par value $0.01, authorized 10,000,000 shares, issued and
outstanding 529,412 shares at September 30, 2015 and December 31, 2014 | |
| 5,294 | | |
| 5,294 | |
| Additional paid-in capital | |
| 93,746,014 | | |
| 93,746,014 | |
| Retained earnings -- appropriated | |
| 8,338,153 | | |
| 8,338,153 | |
| Retained earnings | |
| (102,088,725 | ) | |
| (89,116,190 | ) |
| Accumulated other comprehensive income | |
| 14,720,271 | | |
| 14,458,369 | |
| Total shareholders' equity | |
| 14,722,529 | | |
| 27,433,162 | |
| Total liabilities and shareholders' equity | |
$ | 160,280,515 | | |
$ | 164,775,216 | |
QKL STORES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
| | |
(Unaudited) | | |
(Unaudited) | |
| | |
Three Months
Ended September 30, | | |
Nine Months
Ended September 30, | |
| | |
2015 | | |
2014 | | |
2015 | | |
2014 | |
| Net sales | |
$ | 58,624,419 | | |
$ | 61,121,016 | | |
$ | 207,615,214 | | |
$ | 198,809,303 | |
| Cost of sales | |
| 48,825,220 | | |
| 50,855,098 | | |
| 173,493,113 | | |
| 165,124,579 | |
| Gross profit | |
| 9,799,199 | | |
| 10,265,918 | | |
| 34,122,101 | | |
| 33,684,724 | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | |
| Selling expenses | |
| 10,523,974 | | |
| 13,062,967 | | |
| 37,361,946 | | |
| 35,800,120 | |
| General and administrative expenses | |
| 1,940,631 | | |
| 2,022,426 | | |
| 6,492,514 | | |
| 7,219,674 | |
| Total operating expenses | |
| 12,464,605 | | |
| 15,085,393 | | |
| 43,854,460 | | |
| 43,019,794 | |
| Loss from operations | |
| (2,665,406 | ) | |
| (4,819,475 | ) | |
| (9,732,359 | ) | |
| (9,335,070 | ) |
| Non-operating expense: | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
| 250,179 | | |
| 241,800 | | |
| 540,008 | | |
| 726,416 | |
| Interest expense | |
| (1,432,582 | ) | |
| (891,855 | ) | |
| (3,760,497 | ) | |
| (3,670,486 | ) |
| Total non-operating expense | |
| (1,182,403 | ) | |
| (650,055 | ) | |
| (3,220,489 | ) | |
| (2,944,070 | ) |
| Loss before income taxes | |
| (3,847,809 | ) | |
| (5,469,530 | ) | |
| (12,952,848 | ) | |
| (12,279,140 | ) |
| Income taxes | |
| 656 | | |
| 11,357 | | |
| 19,687 | | |
| 21,096 | |
| Net loss | |
$ | (3,848,465 | ) | |
$ | (5,480,887 | ) | |
$ | (12,972,535 | ) | |
$ | (12,300,236 | ) |
| Comprehensive income statement: | |
| | | |
| | | |
| | | |
| | |
| Net loss | |
$ | (3,848,465 | ) | |
$ | (5,480,887 | ) | |
$ | (12,972,535 | ) | |
$ | (12,300,236 | ) |
| Foreign currency translation adjustment | |
| (335,070 | ) | |
| 675,064 | | |
| 261,902 | | |
| (57,107 | ) |
| Comprehensive loss | |
$ | (4,183,535 | ) | |
$ | (4,805,823 | ) | |
$ | (12,710,633 | ) | |
$ | (12,357,343 | |
| Weighted average number of shares outstanding: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 1,522,326 | | |
| 1,522,326 | | |
| 1,522,326 | | |
| 1,522,326 | |
| Diluted | |
| 1,522,326 | | |
| 1,522,326 | | |
| 1,522,326 | | |
| 1,522,326 | |
| Losses per share: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (2.53 | ) | |
$ | (3.60 | ) | |
$ | (8.52 | ) | |
$ | (8.08 | ) |
| Diluted | |
$ | (2.53 | ) | |
$ | (3.60 | ) | |
$ | (8.52 | ) | |
$ | (8.08 | ) |
QKL STORES INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
| | |
(Unaudited) | |
| | |
Nine Months Ended September 30, | |
| | |
2015 | | |
2014 | |
| CASH FLOWS FROM OPERATING ACTIVITIES: | |
| | | |
| | |
| Net loss | |
$ | (12,972,535 | ) | |
$ | (12,300,236 | ) |
| Depreciation | |
| 3,023,678 | | |
| 5,084,837 | |
| Amortization | |
| 23,903 | | |
| 24,173 | |
| Share-based compensation | |
| - | | |
| 306,309 | |
| Deferred income tax | |
| (88,564 | ) | |
| (8,770 | ) |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
| Accounts receivable | |
| (20,739 | ) | |
| 233,589 | |
| Inventories | |
| 18,546,323 | | |
| 16,845,228 | |
| Other receivables | |
| 1,111,685 | | |
| 2,599,829 | |
| Prepaid expenses | |
| 481,141 | | |
| 2,916,696 | |
| Advances to suppliers | |
| (173,189 | ) | |
| 2,829,497 | |
| Accounts payable | |
| (251,754 | ) | |
| (1,606,320 | ) |
| Cash card and coupon liabilities | |
| 461,646 | | |
| (293,403 | ) |
| Customer deposits received | |
| 32,921 | | |
| 212 | |
| Accrued expenses and other payables | |
| 319,512 | | |
| 211,765 | |
| Income taxes payable | |
| (206,596 | ) | |
| 32,248 | |
| Net cash provided by operating activities | |
| 10,287,432 | | |
| 16,875,654 | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |
| | | |
| | |
| Purchases of property, plant and equipment | |
| (742,895 | ) | |
| (3,229,057 | ) |
| Increase of restricted cash | |
| (12,553,657 | ) | |
| - | |
| Net cash used in investing activities | |
| (13,296,552 | ) | |
| (3,229,057 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |
| | | |
| | |
| Repayment of bank borrowings | |
| (71,758,322 | ) | |
| (16,259,555 | ) |
| Bank loan borrowing | |
| 84,716,935 | | |
| 35,771,021 | |
| Net cash provided by financing activities | |
| 12,958,613 | | |
| 19,511,466 | |
| Effect of foreign currency translation | |
| (173,031 | ) | |
| 202,404 | |
| Net increase in cash | |
| 9,949,493 | | |
| 33,360,467 | |
| Cash -- beginning of period | |
| 9,013,006 | | |
| 9,245,212 | |
| Cash -- end of period | |
$ | 18,789,468 | | |
$ | 42,605,679 | |
| Supplemental disclosures of cash flow information: | |
| | | |
| | |
| Interest paid | |
$ | 3,760,497 | | |
$ | 3,670,486 | |
| Income taxes paid | |
$ | 228,360 | | |
$ | 65,184 | |
SOURCE QKL Stores Inc.
QKL Stores (CE) (USOTC:QKLS)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
QKL Stores (CE) (USOTC:QKLS)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
