S.W. LAM, INC. REPORTS RESULTS FOR THREE AND SIX
MONTHS ENDED SEPTEMBER 30, 2001
HONG KONG, December 7, 2001, S.W. Lam, Inc. (the "Company") (OTCBB: CHRM) today
reported unaudited consolidated financial results for the three and six months
ended September 30, 2001.
The Company reported net income of $321,000 for the three months, and $871,000
for the six months, ended September 30, 2001 as compared to a loss of $8.7
million for the three months, and $7.5 million for the six months, ended
September 30, 2000.
The results reflect the reclassification of Hang Fung Gold Technology Limited
("Hang Fung Gold"), the Company's principal operating subsidiary, as an
affiliate as of August 23, 2001 as a result of an acquisition and issuance of
shares by Hang Fung Gold which reduced the Company's ownership interest to less
than 50%. As a result of the reclassification of Hang Fung Gold, the Company
reports its proportionate interest in the operating results of Hang Fung Gold as
a single line entry.
Included with this release is a copy of a press release issued by Hang Fung Gold
in Hong Kong setting out its operating results for the three and six months
ended September 30, 2001.
S.W. Lam, Inc., through its affiliate, Hang Fung Gold, is a Hong Kong-based
designer, manufacturer and marketer of a broad range of gold products, other
precious metal products and jewelry products.
The foregoing discussion, including the discussions included in the accompanying
press release of Hang Fung Gold, contains forward looking statements which are
based on current expectations. Actual results, including the future propects
discussion of Hang Fung Gold and the sufficiency of the financial resources as
discussed in the financial position of Hang Fung Gold, may differ materially due
to risks and uncertainties beyond the Company's control.
S.W. LAM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(US$,000, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
2000 2001 2000 2001
-------- -------- -------- ---------
Total revenues $ 16,291 $ 0 $ 43,502 $ 0
Cost of sales and services (13,246) 0 (35,175) 0
-------- -------- -------- --------
Gross profit 3,045 0 8,327 0
Selling, general and
administrative expenses (1,374) (31) (3,728) (31)
Interest expenses, net (143) 0 (508) 0
Loss on dilution of equity interests
in subsidiaries (9,611) 0 (9,611) 0
Share of profit of affiliates 149 360 149 999
-------- --------- ---------- -------
Income (loss) before income taxes
and minority interests (7,934) 329 (5,371) 968
Provision for income taxes (135) (8) (340) (97)
-------- --------- --------- --------
Income (loss) before minority interests (8,069) 321 (5,711) 871
Minority interests (680) 0 (1,785) 0
-------- -------- -------- ---------
Net income (loss) $(8,749) $ 321 $(7,496) $ 871
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Basic income (loss) per share $(0.68) $ 0.03 $(0.59) $ 0.07
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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