Nova LifeStyle, Inc. Declares Second Quarter FY 2021

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LOS ANGELES, Aug. 16, 2021 (GLOBE NEWSWIRE) – Nova LifeStyle, Inc. (NASDAQ: NVFY) (“Nova LifeStyle” or the “Company”) today announced its financial results for the second quarter ended June 30, 2021.

Key financial highlights:

Operating results for the three months ended June 30, 2021

  • Net sales for the three months ended June 30, 2021 were $ 3.6 million, up 55% from $ 2.3 million for the same period in 2020.
  • Gross profit (loss) was ($ 4.0 million) compared to $ 0.9 million in profit for the same period in 2020. Gross profit (loss) for the period ended June 30, 2021 excluding depreciation for slowly changing inventories of $ 5.53 million, would have cost $ 1.5 million.
  • The net loss was ($ 6.3 million) compared to ($ 0.5 million) loss for the same period in 2020.

Operating results for the six months ended June 30, 2021

  • Net sales for the six months ended June 30, 2021 were $ 6.9 million, up 53% from $ 4.5 million for the same period in 2020.
  • Gross profit (loss) was ($ 2.6 million) compared to $ 1.7 million in profit for the same period in 2020. Gross profit (loss) for the period ended June 30, 2021 excluding the Slowly moving inventory write-off of $ 5.53 million would have been $ 2.9 million.
  • The net loss from continuing operations was ($ 7.1 million) compared to ($ 1.5 million) loss for the same period in 2020.

Tawny Lam, Nova LifeStyle’s chairman and chief executive officer, said, “This has been a good quarter for the company and a strong first half. As the Covid pandemic continues to cause disruptions in the supply chains, we have been able to increase sales, which is all due to our inventory build-up over the past 18 months. Some of our customers who suspended or significantly reduced operations in response to the pandemic have resumed operations and we have worked with them to provide products. We continue to work with our suppliers and manufacturers to ensure we are able to meet our customers’ needs as they gradually bring their operations back to pre-pandemic levels. “

“During the quarter ended June 30, 2021, we had 5.53 million. This inventory consisted primarily of jade mats that were intended to be marketed primarily in Malaysia through showrooms we established in Malaysia and medical clinics in Malaysia. The Malaysia pandemic lockdowns virtually eliminated pedestrian traffic to retail locations and medical clinics, ultimately leading to the write-off. We cannot predict when or if these conditions in Malaysia will improve. “

“The company continues to implement its business plan, particularly offering products with higher margins. Sales have increased this year and we expect a strong pipeline for the remainder of the year. We believe that the investments we have made in inventory and improvements to our online presence since the pandemic began will enable us to support our existing customers and also enable our marketing and business development team to generate new leads. Therefore, we look forward to continuing our sales growth. I am very grateful to our team and our partners for their efforts to accomplish this feat in the current environment, “concluded Ms. Lam.

About Nova LifeStyle

Nova LifeStyle, Inc. is an established, innovative designer and distributor of modern lifestyle furniture; mainly sofas, dining room furniture, cupboards, office furniture and related components, bedroom furniture and various accessories in matching collections. The Nova LifeStyle product lines include the Nova and Diamond Sofa brands (www.diamondsofa.com). Nova’s products feature urban, contemporary styles that incorporate comfort and functionality and incorporate upscale luxury design that appeals to middle- and upper-middle-income consumers in the US, China, Southeast Asia and elsewhere in the world.

Visit the Nova LifeStyle website at www.NovaLifeStyle.com.

Forward-Looking Statements

This press release may contain 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, but not limited to, our ability to keep our operations and financial health, our anticipated future growth prospects. All statements that are not historical facts are forward-looking statements or can be viewed as such. In some instances, forward-looking statements may be made through the use of forward-looking terms such as “anticipate”, “estimate”, “believe”, “further”, “could”, “intend”, “may”, “plan”, “potential”, “predict” “,” Should “,” will “,” expect “,” target “,” forecast “,” forecast “,” target “,” guide “,” outlook “,” effort “,” target “,” trajectory “, “Focus”, “Working”, “Trying”, “Pursuing” 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 analyzes that we have made in the light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors that we believe to be appropriate under the given circumstances.

Investor Relations
Contact
Andrew Barwicki
516-662-9461
andrew@barwicki.com
ir@novalifestyle.com