Vlov Inc (VLOV) research, news, and more from GeoInvesting

Company description

Thu, 25 Jun 2009 04:00:00 GMT

We are a leading apparel producer in People’s Republic of China (“PRC” or “China”) that designs, develops, manufactures, distributes and sells trendy casual apparel and cutting edge clothing products targeted toward fashion-conscious middle-class Chinese consumers under the brand name “V·LOV”. We seek to be a trendsetting leader in the design, marketing, distribution and sale of premium lifestyle apparel with affordable prices. Our products can be categorized as denim jeans, jackets, t-shirts, pants, sweaters, windbreakers, cotton wear, suits, and other clothing accessories.

We design and develop our apparel accessory products in our 120,000 square foot facility located in Yinlin in southeastern Fujian Province. As a part of our strategy, we plan to take full advantage of the robust consumer spending growth in China and the growth in the youth fashion market segment.

With regards to apparel, Chinese consumers are highly brand conscious and the ability to wear branded apparel is seen as a status symbol. For many consumer segments, particularly younger consumers, foreign brands that are well known are still regarded as superior and are seen as a status symbol. However, in recent years attitudes to domestic brands have changed as state-owned companies have been privatized and better quality products are produced. Pride in the nation’s accomplishments has resulted in many consumers preferring local brands. Although Chinese consumers are price sensitive, consumers are also increasingly concerned about product quality and customer service, particularly with respect to apparel. V·LOV’s favorable brand recognition and affordable prices appeal to a broad base of Chinese consumers.

Reverse Merger Filing

Investor Alert

Tue, 06 Aug 2013 04:00:00 GMT

Form 15-12 G

Securities registration termination.

Comments & Business Outlook

Mon, 20 May 2013 04:00:00 GMT

VLOV INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands, in U.S. Dollars- except for share and per share data)

(Unaudited)

	Three Months Ended March 31,
	2013		2012

Net sales	$	26,610	$	15,164
Cost of sales		15,072		7,387
Gross profit		11,538		7,777

Operating expenses:
Selling expenses		2,848		2,432
General and administrative expenses		1,108		998
		3,956		3,430

Income from operations		7,582		4,347

Other income (expenses):
Change in fair value of derivative liability		-		318
Interest income		-		17
		-		335

Income before provision for income taxes		7,582		4,682
Provision for income taxes		1,921		2,191

Net income		5,661		2,491

Other comprehensive income:
Foreign currency translation adjustment		420		355

Comprehensive income	$	6,081	$	2,846

Allocation of net income for calculating basic earnings per share:
Net income attributable to common shareholders		5,549		2,412
Net income attributable to preferred shareholders		112		79
Net income	$	5,661	$	2,491

Basic earnings per share- common	$	2.13	$	0.95

Diluted earnings per share	$	2.13	$	0.95

Weighted average number of common shares outstanding:
Basic		2,603,481		2,529,417
Diluted		2,656,078		2,613,294

Investor Alert

Tue, 23 Apr 2013 04:00:00 GMT

Item 8.01

Other Events.

On April 19, 2013, the registrant was informed that a complaint was served on such date on its agent for service of process in Nevada. The complaint was filed in the District Court for Clark County, Nevada, by ARC China Semper, LLC. The plaintiff purports to be an assignee of ARC Semper China Investments, Ltd. and ARC China Investment Funds, of their purported rights and obligations under a securities purchase agreement that the registrant entered into in October 2009 (the “SPA”). The complaint alleges that the registrant breached the SPA by failing to timely (i) file a registration statement, (ii) have such registration statement declared effective and (iii) appoint a bilingual chief financial officer. The complaint seeks monetary damages, specific performance to appoint a bilingual chief financial officer, and reimbursement of costs and fees.

It is the registrant’s policy to not disclose or discuss matters pertaining to pending or active litigation. Rather, the registrant will apprise and update the market periodically through disclosure in its quarterly financial reports, as filed. Litigation is an expensive avenue with uncertain results, and there can be no assurance regarding the final disposition of the matters asserted in the complaint. The registrant is currently evaluating the merits of the complaint and the allegations contained therein, and intends to defend itself vigorously as necessary based thereon.

Comments & Business Outlook

Tue, 16 Apr 2013 04:00:00 GMT

VLOV INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands, in U.S. Dollars- except for share and per share data)

	Year Ended December 31,
	2012		2011

Net sales	$	94,547	$	88,826
Cost of sales		52,490		50,064
Gross profit		42,057		38,762

Operating expenses:
Selling expenses		11,645		15,619
General and administrative expenses		6,269		5,466
		17,914		21,085

Income from operations		24,143		17,677

Other income (expenses):
Change in fair value of derivative liability		673		639
Interest income		89		75
Interest expense		-		(8	)
		762		706

Income before provision for income taxes		24,905		18,383
Provision for income taxes		7,027		4,455

Net income		17,878		13,928

Other comprehensive income:
Foreign currency translation adjustment		433		1,616

Comprehensive income	$	18,311	$	15,544

Allocation of net income for calculating basic earnings per share:
Net income attributable to common shareholders		17,524		13,478
Net income attributable to preferred shareholders		354		450
Net income	$	17,878	$	13,928

Basic earnings per share- common	$	6.83	$	5.42

Diluted earnings per share	$	6.78	$	5.36

Weighted average number of common shares and participating preferred shares outstanding:

Basic		2,565,394		2,487,099

Diluted		2,635,123		2,600,897

Comments & Business Outlook

Wed, 07 Nov 2012 05:00:00 GMT

Third Quarter 2012 Results

Net sales for the three months ended September 30, 2012 increased by 41.0% to $22.5 million from $16.0 million in the same period in 2011.
Adjusted EPS for the three months ended September 30, 2012 were $1.11 vs $0.52 in the prior year period.

VLOV's Chairman and CEO of VLOV, Mr. Qingqing Wu, commented, "We are pleased with another quarter of double digit revenue growth, solid gross margins, as well as strong year-over-year increases in operating income and adjusted earnings per share. Our second consecutive appearance at The New York Fashion Week in September 2012 is a reflection of our ongoing brand investment. As a result, we anticipate our distributors will continue to update their older points of sales."

As of September 30, 2012, VLOV's products were sold by our distributors in 435 points of sale ("POS") throughout China, including counters, concessions, stand-alone stores and store-in-stores. Additionally, the Company owns and operates 19 company stores in Fujian Province. Fujian is one of China's wealthiest provinces and is home to the Company's headquarters.

Mr. Wu added, "Looking forward, we plan to continue allocating resources towards building our brand name and to deliver quality, high-end fashion to our discerning and fashion conscious customers."

Share Structure

Mon, 24 Sep 2012 04:00:00 GMT

XIAMEN, China, September 24, 2012 /PRNewswire-FirstCall/ -- VLOV Inc. (OTC Bulletin Board: VLOVD) ("VLOV" or the "Company"), which designs, sources and markets VLOV-brand casual, fashion-forward apparel for men in the People's Republic of China, today announced a 1-for-3 reverse split of its issued and outstanding common shares, effective as of September 24, 2012, for shareholders of record on September 24, 2012, and a proportional reduction of its authorized common shares. Immediately after the stock split, VLOV has 13,333,334 common shares authorized, of which 2,295,997 shares are issued and outstanding.

In connection with the stock split, VLOV's trading symbol as quoted on the OTC Bulletin Board has been temporarily changed from "VLOV" to "VLOVD" for 20 business days, and will revert back to "VLOV" thereafter. The new CUSP number for the Company's common stock is 918258302.

As a result of the stock split, the number of common shares convertible from the Company's series A convertible preferred stock outstanding as of September 24, 2012, has been adjusted proportionally, from 0.4 common share to 0.1333 common share for each preferred share to be converted. Similarly, the number of common shares that the Company's common stock purchase warrants outstanding as of September 24, 2012, are exercisable for has been adjusted proportionally, from 0.4 common share to 0.1333 common share for each warrant to be exercised, while the warrant exercise price has been adjusted from $8.575 per share to $25.725. Such adjustments have been made pursuant to the provisions of such warrants and of such preferred stock's Certificate of Designation.

"We undertook the reverse stock split as part of our plan to list our common stock for trading with a senior exchange," commented CEO, Mr. Qing Qing Wu. "We are hopeful that this will bring us one step closer to that goal."

Pump and Dump Watch

Wed, 05 Sep 2012 04:00:00 GMT

Disclosure: GeoInvesting is providing this information for your edification and in no way has any affiliation with any promoters and/or newsletters disseminating information on VLOV, nor is GeoInvesting being paid to post this information. At times, the GeoTeam may trade P&D's on a long or short basis, depending on how we feel the momentum of the stocks will be affected by the efforts of stock promoters and any ensuing dumps.

Investor Presentations

Wed, 22 Aug 2012 04:00:00 GMT

Investor presentation from 8/21/2012

Comments & Business Outlook

Mon, 13 Aug 2012 04:00:00 GMT

First Quarter 2012 Financial Results

Net Sales for the quarter were $25.3 vs $20.6 in prior year period
Adjusted EPS for the quarter were $0.59 vs $0.44 in prior year period

Mr. Qingqing Wu, Chairman and CEO of VLOV, commented, "We are pleased to report another quarter of double-digit revenue growth, which reflects strong consumer acceptance of our contemporary, fashion-forward designs. At the same time, we delivered solid gross margins, as well as strong year-over-year increases in operating income and adjusted earnings per share. Given our brand strength, we anticipate that our distributors will update their older points of sales as we look to add more Company owned stores in Fujian Province."

As of June 30, 2012, VLOV's products were sold by our distributors in 414 points of sale ("POS") throughoutChina, including counters, concessions, stand-alone stores and store-in-stores. Additionally, the Company owns and operates 18 stores in Fujian Province. Fujian is one of China's wealthiest provinces and is home to the Company's headquarters.

Mr. Wu added, "We are very excited that VLOV's recognition from the China Fashion Designer's Association resulted in their recommendation to have VLOV participate in New York Fashion Week for the second consecutive year." VLOV will showcase its 2013 Spring/Summer collection at Mercedes-Benz Fashion Week inNew York City on September 8, 2012.

Comments & Business Outlook

Wed, 16 May 2012 04:00:00 GMT

First Quarter 2012 Financial Results

Net Sales for the quarter were $15.2 vs $21.2 in prior year period
Adjusted EPS for the quarter were $0.28 vs $0.54 in prior year period

As of March 31, 2012, VLOV's products were sold by our distributors in 393 points of sale ("POS") throughout China, including counters, concessions, stand-alone stores and store-in-stores. Additionally, the Company owns and operates 20 stores in Fujian Province. Fujian is one of China's wealthiest provinces and is home to the Company's headquarters. As of March 31, 2011, VLOV's distributors operated 552 store locations reflecting a period-over-period decrease of 25.2% in total POS operated.

Mr. Qingqing Wu, Chairman and CEO of VLOV, commented, "We are continuing to deliver more upscale product offerings and to work closely with our distributors to sell VLOV brand goods in higher-end stand-alone stores and store-in-stores rather than through counters and concessions. While the short term impact of lower-end point-of-sale closures by our distributors has resulted in decreases in revenue and operating income, we expect that our more upscale and exclusive offerings will enable us to generate sales growth, improve profitability and capture increased market share over the long-term."

Investor Alert

Wed, 02 May 2012 04:00:00 GMT

Crowe Horwath LLP resigned as the registrant’s independent auditors effective as of April 18, 2012. T

he reports of Crowe Horwath LLP on the registrant’s financial statements as of December 31, 2011 and 2010 and for the years ended December 31, 2011 and 2010 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope, or accounting principles.

Comments & Business Outlook

Fri, 13 Apr 2012 04:00:00 GMT

Fourth Quarter 2011 Results

Net Sales for the quarter were $31.0 vs $24.7 in prior year period
Adjusted EPS for the quarter were $0.55 vs $0.57 in prior year period

"Fiscal 2011 was a year of important accomplishments and successes," commented Qingqing Wu, Chairman and CEO of VLOV. "We had record revenue while broadening global awareness of our brand by presenting at Mercedes Benz Fashion Week in both Beijing and New York City."

As of December 31, 2011, VLOV's products were sold by our distributors in 393 Points of Sale ("POS") throughout China, including counters, concessions, stand-alone stores and store-in-stores. In the fourth quarter, our distributors continued to close counter and concession-style POS while opening higher-end store-in-store and stand-alone store locations, which we believe are more effective in showcasing our upscale brand image. Additionally, the Company currently owns and operates 20 stores in Fujian Province: 13 store locations that the Company acquired on June 30, 2011 from its Fujian distributor and 7 additional stores opened since the acquisition. Fujian is one of China's wealthiest provinces and is home to the Company's headquarters.

Mr. Wu continued, "We were able to achieve significant growth in both revenue and earnings during the fourth quarter despite fewer store locations collectively operated by our distributors. We remain committed to working closely with our distributors who have been extremely pleased with our initiatives to build VLOV's global brand image and who are making investments to further elevate their VLOV stores. We also plan to open additional stores in Fujian and most importantly, continue to provide our customers with fashion-forward designs that embody their successful lifestyle."

Comments & Business Outlook

Mon, 09 Jan 2012 05:00:00 GMT

XIAMEN, China, January 9, 2012 /PRNewswire-Asia-FirstCall/ -- VLOV, Inc. (OTC Bulletin Board: VLOVD) ("VLOV" or the "Company"), which designs, sources and markets VLOV-brand casual, fashion-forward apparel for men in the People's Republic of China, today announced the opening of its Beijing distributor's flagship store in the Chao Yang District of Beijing.

The newly opened flagship store is located on the 3rd floor of the ShiMao GuoJi ZhongXin Shopping Center, a larger shopping mall in Beijing City. The shopping mall is near Sanlitun Village, home of popular high-street fashion brands as well as local designer boutiques. The store, over 1,800 square feet, showcases VLOV's latest clothing and accessories.

"Our distributor's opening in this [higher end] Beijing shopping center gives our brand greater exposure and existing VIP and new customers a better shopping experience," commented Mr. Richard Wu, CEO and Chairman of VLOV.

"Our distributor's investment in opening this flagship store further reflects the results of VLOV's increased spending on marketing and advertising over the past year and we will continue to make such brand investments in the coming years," continued Mr. Wu.

Although the Beijing flagship store is owned and operated by its distributor, VLOV designs all flagship store locations for its distributors and creates all marketing campaigns for its distributor to promote their store openings.

Comments & Business Outlook

Fri, 06 Jan 2012 05:00:00 GMT

XIAMEN, China, January 6, 2012 /PRNewswire-Asia-FirstCall/ -- VLOV, Inc. (OTC Bulletin Board: VLOVD) ("VLOV" or the "Company"), which designs, sources and markets VLOV-brand casual, fashion-forward apparel for men in the People's Republic of China, today announced the opening of its Liaoning distributor's flagship store in Shenyang City.

The newly opened flagship store is located at the 1st floor of the Longzhimeng Shopping Center, one of the largest retail shopping centers in Shenyang City, the capital of Liaoning Province. The store, over 3,000 square feet, provides a large selection of men's apparel and related products.

"We are extremely excited about the opening," commented Mr. Richard Wu, CEO and Chairman of VLOV. "The Shenyang flagship store will give our customers the best possible shopping experience while further enhancing and evolving our brand image.

"This flagship store is also a testament to the significant brand investment that we have made through marketing and advertising, including VLOV's appearances at the Mercedes-Benz Fashion Weeks Spring/Summer 2012 in New York City and Beijing, and will continue to make in the years to come," continued Mr. Wu.

Investor Presentations

Fri, 16 Dec 2011 05:00:00 GMT

The presentation materials attached hereto as Exhibits 99.1 and 99.2 are being filed in connection with potential investor presentations by the registrant

Notable Share Transactions

Mon, 12 Dec 2011 05:00:00 GMT

XIAMEN, China, Dec.12, 2011 /PRNewswire-Asia-FirstCall/ -- VLOV, Inc. (OTC Bulletin Board: VLOVD) ("VLOV" or the "Company"), which designs, sources and markets VLOV-brand casual, fashion-forward apparel for men in the People's Republic of China, today announced a 1-for-2.5 reverse split of its issued and outstanding common shares, effective as of December 9, 2011, for shareholders of record on November 16, 2011, and a proportional reduction of its authorized common shares. Immediately after the stock split, VLOV has 7,574,314 common shares issued and outstanding and 40,000,000 common shares authorized.

In connection with the stock split, VLOV's trading symbol as quoted on the OTC Bulletin Board has been temporarily changed from "VLOV" to "VLOVD" for 20 business days, and will revert back to "VLOV" thereafter. The new CUSIP number for the Company's common stock is 918258203.

As a result of the stock split, the number of common shares convertible from the Company's series A convertible preferred stock outstanding as of December 9, 2011 has been adjusted proportionally, from 1 common share to 0.4 common share for each preferred share to be converted. Similarly, the number of common shares that the Company's common stock purchase warrants outstanding as of December 9, 2011 are exercisable for has been adjusted proportionally, from 1 common share to 0.4 common share for each warrant to be exercised, while the warrant exercise price has been adjusted from $3.43 per share to $8.575. Such adjustments have been made pursuant to the provisions of such warrants and of such preferred stock's Certificate of Designation.

"We undertook the reverse stock split as part of our plan to list our common stock for trading with a senior exchange," commented CEO, Qingqing Wu. "We are hopeful that this will bring us one step closer to that goal."

Comments & Business Outlook

Sun, 20 Nov 2011 05:00:00 GMT

VLOV, INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited; amounts in thousands - except for share and per share data)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2011		2010			2011			2010

Net sales	$	15,955	$	13,063		$	57,820		$	49,105
Cost of sales		9,445		7,643			32,690			29,918
Gross profit		6,510		5,420			25,130			19,187

Operating expenses:
Selling expenses		3,153		1,399			9,375			5,442
General and administrative expenses		1,622		702			3,896			2,602
		4,775		2,101			13,271			8,044

Income from operations		1,735		3,319			11,859			11,143

Other income (expenses):
Change in fair value of derivative liability		258		992			837			818
Interest income		15		18			72			61
Interest expense		-		(15	)		(8	)		(52	)
		273		995			901			827

Income before provision for income taxes		2,008		4,314			12,760			11,970
Provision for income taxes		400		884			2,950			2,992

Net income		1,608		3,430			9,810			8,978

Other comprehensive income:
Foreign currency translation adjustment		547		441			1,374			540

Comprehensive income	$	2,155	$	3,871		$	11,184		$	9,518

Allocation of net income for calculating basic earnings per share:
Net income attributable to common shareholders		1,549		3,149			9,450			8,127
Net income attributable to preferred shareholders		59		281			360			851
Net income	$	1,608	$	3,430		$	9,810		$	8,978

Basic earnings per share- common	$	0.08	$	0.18		$	0.51		$	0.47

Diluted earnings per share	$	0.08	$	0.18		$	0.50		$	0.47

Weighted average number of common shares and participating preferred shares outstanding:

Basic		18,637,927		17,874,371			18,586,727			17,199,755

Diluted		19,502,928		19,472,376			19,499,220			19,001,350

GeoTeam® Note: Third Quarter 2011 vs. 2010 Adjusted EPS was $0.07 vs. $0.13

We have continued to upscale our product offerings to our distributors and have been working with our distributors to sell our products primarily via stand-alone stores and store-in-stores which we believe strengthen our brand image with consumers, rather than through counters and concessions. Additionally, we have significantly increased our advertising expense as well as our presence at international fashion shows including the Mercedes-Benz New York Fashion Week in September 2011. We believe that this increased expenditure towards our brand has been the primary driver of our increased revenues.

Margins Pressure:

Selling expenses for the three months ended September 30, 2011 increased by 125.4% to $3,153 as compared to the same period in 2010, and increased by 72.3% to $9,375 for the nine months ended September 30, 2011 as compared to for the same periods in 2010. The increase was mainly due to increased spending on advertising, including nationwide advertising, as well as fashion events including the Mercedes-Benz New York Fashion Week held during the third quarter. We expect that our selling expenses will continue to increase as we continue our marketing efforts to support our existing distribution network and penetrate potential new markets in these regions as well as establish our brand amongst our target demographic, men aged 20-45. As we completed the acquisition of our Fujian distributor’s retail network on June 30, 2011, we believe that our selling expenses will also increase as a percentage of total revenue and in absolute dollars.

General and administrative expenses increased by 131.1% from $702 for the three months ended September 30, 2010 to $1,622 for the same period in 2011, and increased by 49.7% from $2,602 for the nine months ended September 30, 2010 to $3,896 for the same period in 2011. The higher general and administrative expenses for the three and nine months ended September 30, 2011 resulted from costs of operating a U.S. publicly traded company as well as increased research and development costs. As we are now operating the retail network of our Fujian distributor which we acquired on June 30, 2011, as well as additional stores that we have opened, we expect our general and administrative expenses will also increase as a percentage of our net sales and in absolute dollars.

Comments & Business Outlook

Tue, 23 Aug 2011 04:00:00 GMT

Second Quarter 2011 Results

Net sales for the three months ended June 30, 2011 were $20,588, an increase of 14.72% from $17,946 for the same period in 2010.
Adjusted net income increased by 48.0% or $1,104 from $2,301 from the three months ended June 30, 2010 to $3,405 for the three months ended June 30, 2011.
Non GAAP fully diluted EPS for the Second Quarter 2011 was $0.17 vs $0.11 in 2010

Qingqing Wu, Chairman and CEO of VLOV, commented, "We are pleased to report another quarter of solid financial performance, which reflects strong consumer response to our designs and increasing excitement around our brand. As part of our strategy to further evolve the VLOV brand to appeal to upscale consumers, we made the decision to acquire 13 VLOV store locations from our Fujian distributor. We believe direct ownership of these stores -- located near our corporate and design headquarters -- will allow us to showcase VLOV's design aesthetic and brand image, while at the same time further educating the Company's distributors about our brand DNA."

As of June 30, 2011, VLOV's products were sold through 556 points of sales ("POS") throughout China, including counters, concessions, stand-alone stores and store-in-stores. During the quarter, the Company's Chinese subsidiary, Dong Rong (China) Co., Ltd., entered into an agreement with VLOV's Fujian distributor to acquire the distributor's retail distribution network of 13 stores for $6,684,000 (RMB 44,100,000), including 2 stand-alone stores and 11 store-in-stores. The acquisition was completed on June 30, 2011.

Mr. Wu added, "We are pleased to see that our initiatives to enhance and evolve the VLOV brand over the past 18 months are continuing to generate strong financial results, as well as accolades from the industry. We are thrilled that VLOV's recognition from the China Fashion Designer's Association resulted in their recommendation to have VLOV participate in New York Fashion Week next month." VLOV will showcase its 2012 Spring/Summer collection at Mercedes-Benz Fashion Week in New York City on September 12, 2011 at 3 p.m. in the Stage venue at Lincoln Center.

Liquidity Requirements

Mon, 16 May 2011 04:00:00 GMT

We presently finance our operations primarily from the cash flow from our operations, and we anticipate that this will continue to be our primary source of funds to finance our short-term cash needs.

On November 19, 2009, we incorporated China Dong Rong with $8,000 in registered capital of which $4,000 was funded. There was no restriction on the funds contributed, and therefore such contribution is not reflected as a statutory reserve. The remaining $4,000 in registered capital, which is required to be contributed by November 19, 2011, was funded on March 10, 2011.

Comments & Business Outlook

Mon, 16 May 2011 04:00:00 GMT

Results for the three months ended March 31, 2011 as compared to the three months ended March 31, 2010

Net Sales (amounts in thousands, in U.S. Dollars, except for percentages)

Net sales were $21,172 for the three months ended March 31, 2011, compared with $18,067 for the same period in 2010, an increase of $3,105 or 17.19%. We generate revenue primarily from the sales of our apparel products to our 12 distributors, who retail them at their POS throughout northern, central and southern China. The increase in our net sales was primarily attributable to increases in sales to our distributors in Beijing, Zhejiang and Fujian and an increase in the average unit price of 144.3% period over period.

We have continued to upscale our product offerings to our distributors and have been working with our distributors to sell our products primarily via stand-alone stores and store-in-stores and not through counters and concessions as we believe that stand-alone stores and store-in-stores strengthen our brand image with consumers. As of March 31, 2011, our distributors operated 552 POS that included 36 stand-alone store locations, as compared to 742 POS as of March 31, 2010.

Net Income Attributable to Common Shareholders (amounts in thousands, in U.S. Dollars, except for percentages)

Net income attributable to our common shareholders was $4,242 for the three months ended March 31, 2011, compared with $917 of net income attributable to common shareholders from the three months ended March 31, 2010, an increase of 362.60%.

Adjusted Net Income (non-GAAP) (amounts in thousands in U.S. Dollars, except for percentages).

Adjusted net income increased by 24.09% or $822 from $3,412 from the three months ended March 31, 2010 to $4,234 for the three months ended March 31, 2011. Adjusted net income for the three months ended March 31, 2011 excludes $222 of gains related to the derivative warrant liability while adjusted net income excludes $2,341 of losses from the derivative warrant liability.

Resolution of Legal Issues

Mon, 04 Apr 2011 04:00:00 GMT

Recall the excerpt from on of our prior research notes:

On November 19, 2009, HK Dong Rong incorporated Dong Rong (China) Co., Ltd. in the PRC as its wholly-owned subsidiary (“China Dong Rong”), with registered capital of $8 million. As of September 30, 2010, $4 million has been contributed to China Dong Rong and the remaining registered capital will be contributed within two years after the date of incorporation. It is the intention of the Company and the equity owners of Yinglin Jinduren to transfer the business operations of Yinglin Jinduren to China Dong Rong; however, such transfer had not yet occurred as of September 30, 2010.

VLOV has now put this issue to rest:

On November 19, 2009, China Dong Rong was established as the wholly-owned subsidiary of HK Dong Rong, with registered capital of $8 million, all of which has been funded as of the date of this report

Comments & Business Outlook

Fri, 01 Apr 2011 04:00:00 GMT

2010 Results:

Qingqing Wu, Chairman and CEO of VLOV, commented, "The strength of our fourth quarter financial results is attributable to our continuing efforts to offer more upscale products, with an emphasis on higher margin goods. Our Spring sales fair, held in December, met with exceptional response from our distributors, resulting in higher than anticipated orders at the end of the fourth quarter. At the same time, we have maintained a sharp focus on controlling costs, which helped drive operating margins of 23.5%."

Full Year

Net Sales of $73.8m vs. $63.3 the year before.
Adjust Net Income of $12.6m vs. $9.4m
Adjusted EPS $0.65 vs. $0.59

Fourth Quarter:

Net Sales of $24.7m vs. $18.5m.
Adjust Net Income of $4.5m vs. $0.6m
Adjusted EPS $0.23 vs. $0.04

"In the third quarter of 2010 we began to outsource 100% of our manufacturing, which allows the Company to focus more resources on design, marketing and advertising. As part of this initiative, our distributors continue to be very supportive by closing counter- and concession-type points of sale and opening stand-alone VLOV stores that more effectively showcase our enhanced, premium brand image. We are confident this strategy will enable the Company to generate improved gross profit and gross margin over the long-term. As of December 31, 2010, our distributors operated 526 POS and 36 stand-alone store locations.

Liquidity Requirements

Thu, 18 Nov 2010 05:00:00 GMT

We presently finance our operations primarily from the cash flow from our operations, and we anticipate that this will continue to be our primary source of funds to finance our short-term cash needs.

Investor Presentations

Thu, 16 Sep 2010 04:00:00 GMT

September 14, 2010 presentation at the Rodman & Renshaw Annual Global Investment Conference.

Research

Fri, 03 Sep 2010 04:00:00 GMT

We are speculating that VLOV will attempt to raise capital in the near future:

On November 19, 2009, HK Dong Rong incorporated Dong Rong (China) Co., Ltd. in the PRC as its wholly-owned subsidiary (“China Dong Rong”), with registered capital of $8 million. China Dong Rong, which currently conducts no business activities, is deemed to be a wholly foreign owned enterprise, or WFOE, as its direct parent company, HK Dong Rong, is not a PRC company. $4 million of the registered capital has been funded, with the balance to be funded within two years from the incorporation date. It is our intention and that of the equity owners of Yinglin Jinduren to transfer all of the business operations currently conducted by Yinglin Jinduren to China Dong Rong sometime in 2010.

Comments & Business Outlook

Thu, 19 Aug 2010 04:00:00 GMT

Summary Financials

Second Quarter Results (Unaudited):

	Q2 2010	Q2 2009	Change
Sales	$17.9 million	$14.1 million	+27%
Gross Profit	$6.8 million	$5.1 million	+35%
Income from Operations	$3.2 million	$3.3 million	-3%
GAAP Net Income	$4.4 million	$2.3 million	+93%
Adjusted Net Income *	$2.3 million	$2.3 million	0%

GAAP EPS (Diluted)	$0.26	$0.14	+86%
Adjusted EPS (Diluted) *	$0.13	$0.14	-8%
Weighted Average Diluted Shares	17,384,002	16,000,000	+9%

* Excluding $2.2 million of non-cash gain related to the fair value of the Company's warrants.

First Six Months of 2010 Results (Unaudited):

	2010	2009	Change
Sales	$36.0 million	$31.9 million	+13%
Gross Profit	$13.8 million	$11.5 million	+20%
Income from Operations	$7.8 million	$8.4 million	-7%
GAAP Net Income	$5.5 million	$6.1 million	-9%
Adjusted Net Income **	$5.7 million	$6.1 million	-6%

GAAP EPS (Diluted)	$0.32	$0.39	-15%
Adjusted EPS (Diluted) **	$0.33	$0.39	-14%
Weighted Average Diluted Shares	17,197,674	15,657,901	+10%

** Excluding $0.2 million of non-cash loss related to the fair value of the Company's warrants.

"We are pleased with the business trends and financial results during the quarter," stated Mr. Qingqing Wu, Chairman and CEO of VLOV. Mr. Wu continued, "We are executing on our strategy to upscale our brand image amongst our target demographic by working with our distributors to move towards operating stand alone stores and store-in-stores and away from counters and concessions which lessen the value of our brand. Our distributors are presently operating 519 points of sale and plan to open between 30 and 40 high-end stand alone store locations by the end of 2010." Mr. Wu concluded, "Even with our distributors closing over 200 counters and concessions this year, we were able to achieve top line revenue growth during the quarter of 27%. We are reconfirming our July 2010 guidance of $71 to $75 million top line revenue and adjusted net income of between $13.2 and $14.2 million."

Comments & Business Outlook

Tue, 18 May 2010 04:00:00 GMT

Mr. Qingqing Wu, Chairman and CEO of VLOV, stated, "Although first quarter sales were impacted by soft performance in some of our southern regions, we anticipate improved overall sales trends during the balance of the year. We are focused on three key initiatives to drive sales: 1) We are working closely with all of our distributors to strengthen their existing VLOV points of sale, including potentially refurbishing select locations and increasing local marketing efforts. 2) As part of our strategy to evolve VLOV's lifestyle brand positioning and extend our reach to higher income consumers, we have enhanced our design aesthetic to be more stylish and chic. Similarly, the newest generation of VLOV POS reflects a contemporary, stylish and sophisticated image. At the same time, we have raised our price points, which we expect will drive continued increases in gross margin performance this year. 3) We are implementing targeted advertising and marketing programs, including advertising the VLOV brand in key fashion publications such as GQ and Men's Vogue, hosting VLOV fashion shows and sponsoring events that resonate with our target demographic. In particular, we are focused on northeastern China, including Beijing, Shandong and Liaoning, which have a number of Tier II and Tier III cities that represent strong potential markets for the VLOV brand.

"Looking at the balance of 2010, we believe the Company is well-positioned to achieve sales growth and continued gross margin expansion while building long-term brand value through increased marketing and advertising efforts. VLOV's target customers have high discretionary income levels, they are discerning about the brands they buy and seek the stylish, chic, fashion-forward look that VLOV offers."

Mr. Qingqing Wu concluded, "We are enthusiastic about our upcoming sales preview being held in Xiamen at the end of May. We believe our designs will meet with excellent response from both our distributors and the fashion press and look forward to providing our investors with feedback from this important event."