Shantou, China--Big Tree Group, Inc. (OTCQB: BIGG), a company that serves as a "one stop shop" for the sourcing and distribution of toys and related products, announced today our financial results for the second quarter and first six months ended June 30, 2013.
For the second quarter of 2013, total revenues reached $11.9 million, an increase of 99% compared to total revenues of $6.0 million recorded in 2012. The increase in revenues was primarily due to a shift in revenue mix toward full service sales where we managed the entire sales process from order through shipment and an increase in overall sales. Gross margins declined to 7.5% in the second quarter of 2013 as compared to 13.5% in the second quarter of 2012. The decrease in gross margins in the second quarter of 2013 was mainly a result of the continuance of a more aggressive pricing strategy to increase international market share as well as revenue recognition policies associated with the increase in full service sales which are recorded on a gross basis as compared sales which are recorded on a net basis. Our operations resulted in second quarter 2013 gross profit of $889,000 compared to gross profit of $806,000 in the second quarter of 2012. Operating expenses increased to $453,000, up from $305,000 in the second quarter of 2012, largely due to increased staffing and the opening of our second showroom in Shantou. Net income for the second quarter of 2013 was $333,000 or $0.03 per basic and diluted share on $10.4 million shares outstanding. Net income in the second quarter of 2012 was $518,000 or $0.05 per basic and diluted share on $10.0 million shares outstanding. For the first six months of 2013, we recorded revenues of $19.3 million with net income of $399,000 or $0.04 per basic and diluted share on 10.3 million shares outstanding. For the first six months of 2012, revenues were $10.7 million with net income of $747,000 or $0.07 per basic and diluted share on 10.0 million shares outstanding.
At June 30, 2013, total assets were $13.4 million and shareholders' equity was $1.6 million. At December 31, 2012, total assets were $8.7 million and shareholders' equity was $2.6 million.
Commenting on our results for the second quarter of 2013, Mr. Wei Lin, Chairman and CEO of Big Tree Group, stated, "We are very pleased with our performance in the quarter as we increased volume and managed more full service international and domestic sales for our customers. We also have now opened our new showroom and have done all of this while maintaining our profitability. We believe we have laid the foundation to continue to accelerate our top line growth and now expand our net operating results for the remainder of 2013 and in the years to come as we grow our company for the benefit of our stockholders."
About Big Tree Group, Inc.
Big Tree Group, Inc., headquartered in Shantou, China, a city known in the toy industry as the premier location for toy manufacturing in China, serves as a "one stop shop" for the sourcing and distribution of toys and related products. We act as an authorized agent for over 8,000 toy manufacturers in China offering in excess of 300,000 varieties of toy products including remote control toys, digital toys, sports toys, play sets, educational toys, dolls, and infant toys. We showcase these products at our two expansive showrooms in Shantou where we also facilitate orders and combine shipments to destinations across the globe. Customers can also order via our website knowing that the products we represent have undergone rigorous quality control tests at our in-house testing facility. Additionally, we market a line of proprietary construction toys known as the Big Tree -Magic Puzzle which we sell on our websites as well as through domestic retail store channels. For more information please visit http://www.bigtreegroup.net/.
Big Tree Group, Inc.
SOURCE: Big Tree Group, Inc.