LOS ANGELES, May 12, 2020 (GLOBE NEWSWIRE) -- Nova LifeStyle, Inc. ( NVFY) (Nova LifeStyle or the Company) today announced financial results for fiscal year ended December 31, 2019.
Key Financial Highlights:
- Revenues for the year ended December 31, 2019 were $21.9 million, as compared to $81.1 million in the fiscal year for 2018.
- Gross Profit was $1.2 million in 2019, as compared to $15.3 million in 2018.
- Net loss from continuing operations was $6.1 million in 2019, as compared to a $5.2 million profit in 2018.
The key financial highlights exclude Bright Swallow International Group Limited. As of December 31, 2019, operations of Bright Swallow were reported as discontinued operations in the consolidated financial statements for all periods presented. Accordingly, assets, liabilities, revenues, expenses and cash flows related to Bright Swallow have been reclassified in the consolidated financial statements as discontinued operations for all periods presented. Information with respect to the sale of Bright Swallow is included in Form 10-K. The information in this press release is subject to the more complete presentation set forth in in our Annual Report on Form 10-K for the period ended December 31, 2019 which was filed with the Securities and Exchange Commission on May 12, 2019.
Tawny Lam, Chairperson and Chief Executive Officer of Nova LifeStyle, stated, I am pleased to announce the second half of 2019 was strong and in-line with our business plan moving forward. As we shifted our business to higher margin product lines throughout 2019, we believe our company to be in a position to take advantage of market opportunities as we are moving forward.
I am very proud of and would like to congratulate our entire organization for always putting safety first. The entire team has shown real dedication during the pandemic by quickly and effectively implementing new protocols to promote the safety and welfare of our employees and the communities in which we serve, stated Ms. Lam. As we continue to transition to higher margin products, we are working with our suppliers, distributors and manufacturers to ensure we provide the best products at a price point that will be well-received by consumers.
We finished 2019 with a strong balance sheet to support our business plan moving forward and we implemented a number of initiatives to mitigate the impact of the COVID-19 outbreak on our business operations. In 2019 we initiated a plan to increase the number of products to be offered in 2020 by 25%, and up to 40% in certain furnishing categories. Our manufacturers have experienced production delays due to COVID-19, but we continue to work with our partners to ensure quality and scheduled delivery under these difficult circumstances, concluded Ms. Lam.
About Nova LifeStyle
Nova LifeStyle, Inc. is a well-established, innovative designer and distributor of modern lifestyle furniture; primarily sofas, dining room furniture, cabinets, office furniture and related components, bedroom furniture, and various accessories, in matching collections. Nova LifeStyles product lines include the Nova Brands and Diamond Sofa (www.diamondsofa.com). Nova's products feature urban contemporary styles that integrate comfort and functionality, incorporating upscale luxury designs which appeal to middle and upper middle-income consumers in the USA, China, Europe, and elsewhere in the world.
Visit Nova LifeStyle's website at www.NovaLifeStyle.com.
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, our expected future growth prospects, our ability to capitalize on future market opportunities, and our exploration of acquisition opportunities. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as anticipate, estimate, believe, continue, could, intend, may, plan, potential, predict, should, will, expect, objective, projection, forecast, goal, guidance, outlook, effort, target, trajectory or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2019 and our other reports and filings with SEC.