S.W. LAM, INC. REPORTS RESULTS FOR THREE AND NINE
MONTHS ENDED DECEMBER 31, 2001
HONG KONG, March 22, 2002, S.W. Lam, Inc. (the "Company") (OTCBB: CHRM) today
reported unaudited consolidated financial results for the three and nine months
ended December 31, 2001.
The Company reported net income of $301,000 for the three months, and $1,172,000
for the nine months, ended December 31, 2001 as compared to a net income of
$805,000 for the three months, and a loss of $6.7 million for the nine months,
ended December 31, 2000.
The results reflect the reclassification of Hang Fung Gold Technology Limited
("Hang Fung Gold"), the Company's principal operating subsidiary, as an
affiliate as of August 23, 2001 as a result of an acquisition and issuance of
shares by Hang Fung Gold which reduced the Company's ownership interest to less
than 50%. As a result of the reclassification of Hang Fung Gold, the Company
reports its proportionate interest in the operating results of Hang Fung Gold as
a single line entry.
Included with this release is a copy of a press release issued by Hang Fung Gold
in Hong Kong setting out its operating results for the three and nine months
ended December 31, 2001.
S.W. Lam, Inc., through its affiliate, Hang Fung Gold, is a Hong Kong-based
designer, manufacturer and marketer of a broad range of gold products, other
precious metal products and jewelry products.
S.W. LAM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(US$,000, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
---------------------------- ----------------------------
2000 2001 2000 2001
------------ ------------ ------------ ------------
Total revenues $ 0 $ 0 $ 43,502 $ 0
Cost of sales and services 0 0 (35,175) 0
------------ ------------ ------------ ------------
Gross profit 0 0 8,327 0
Selling, general and
administrative expenses (6) (16) (3,734) (47)
Interest expenses, net 0 0 (508) 0
Loss on dilution of equity interests
in subsidiaries 0 0 (1,157) 0
Share of profit (loss) of affiliates 892 356 (7,413) 1,355
------------ ------------ ------------ ------------
Income (loss) before income taxes
and minority interests 886 340 (4,485) 1,308
Provision for income taxes (81) (39) (421) (136)
------------ ------------ ------------ ------------
Income (loss) before minority interests 805 301 (4,906) 1,172
Minority interests 0 0 (1,785) 0
------------ ------------ ------------ ------------
Net income (loss) $ 805 $ 301 $ (6,691) $ 1,172
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Basic income (loss) per share $ 0.06 $ 0.02 $ (0.52) $ 0.09
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Weighted average shares
outstanding 12,800,000 12,865,000 12,800,000 12,865,000
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Contact: Issac Choi -- S.W. Lam, Inc.
011 852 2362 3034