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SOKO Fitness & Spa Group Announces Third Quarter FY2009 Financial Results
Date:4/15/2009

m 22.6%. This increase was mainly driven by the high cost of being a public company as well as the start-up costs for building management teams for our new facilities.

We have reclassified some direct labor costs from operating expenses to cost of sales. The impact of this change is to lower gross margins and lower operating expenses/sales. The reclassification has no impact on either sales or net income. The numbers below for both 2008 and 2009 reflect the impact of the reclassification and are comparable with each other.

"We are very pleased with the results of our business," Mr. Liu Tong, Chairman of SOkO commented. "We focus our business on Northeast, which is the most famous traditional industry base of China, and expect to open more spas and fitness centers in the future. We believe we have significant opportunities for expansion, and look forward to becoming the dominant company in the fitness and beauty business in the northeast."



                            SOKO INCOME STATEMENT

                        FOR THE NINE MONTHS ENDED  FOR THE THREE MONTHS ENDED
                         FEBRUARY 28, FEBRUARY 29,  FEBRUARY 28,  FEBRUARY 29,
                               2009          2008          2009          2008

    Net Sales           $13,996,019    $9,048,287    $5,110,861    $3,593,350

    Cost of Sales        (4,822,521)   (3,330,316)   (1,807,084)   (1,347,769)

    Gross Profit          9,173,498     5,717,971     3,303,777     2,245,581

    Gross Margin              65.54%        63.19%        64.64%        62.49%

    Operating Expenses    3,839,238     2,251,863     1,438,622       810,904

    Operating Income      5,334,260     3,466,108     1,865,155     1,434,677

    Net Income           $5,175,220    $3,464,687    $1,855,474    $1,433,961

    Diluted Income per
     common share             $0.30         $0.32         $0.11         $0.13

    Weighted average
 
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SOURCE SOKO Fitness & Spa Group, Inc.
Copyright©2009 PR Newswire.
All rights reserved

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