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Richard Pearson, MoxReports (454 clicks)
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Investment overview

After releasing results that were actually in line with expectations last quarter, shares of Francesca's Holdings (FRAN) have now declined by around 25%. Following last quarter, management had hoped that aggressive promotions and discounting were coming to an end. But an analysis of these promotions shows that they have actually accelerated rather than declined. Given the premium valuation, a "miss" at Francesca's is likely to have a very dramatic effect on the share price. Francesca's comps Abercrombie & Fitch (ANF) along with Aeropostale (ARO) both showed one-day drops of around 20% based on very tiny misses announced in the past two weeks. As shown below, a miss by Francesca's is now almost a certainty and will likely take the stock down to the $16-19 level.

Background

For much of its life as a public company, Francesca's has been a Wall Street darling. The stock has commanded a notably premium price due to the company's ability to consistently deliver both blistering double digit growth along with dramatically outsized margins of nearly 60%.

Heading into last quarter, the stock was clearly priced for continued perfection, trading up to around $32.00. By this time, it was clear that delivering on high expectations was not enough. Additional "surprises" had become fully expected, and this would be necessary to support the share price.

In actuality, Francesca's did not even disappoint. Revenues were $79 million vs. expectations of $79.6 million. Net income was $10.9 million, just in line with expectations.

Yet despite the "in line" performance, the share price quickly dropped by 10-15% in the days that followed. Over the subsequent weeks, Francesca's has continued to drop and is now down by around 25% from its pre-earnings levels.

(click to enlarge)

Some of the more recent weakness has been due to the continued earnings disappointments from Francesca's peer group.

(click to enlarge)

General retailers such as Target (TGT) and Wal-Mart (WMT) have seen moderate overall declines. Competitors such as the Gap (GPS) and Express (EXPR) have seen declines of 7-10% despite strong results. Even Urban Outfitters (URBN) is down for the month, despite very strong results.

The sharpest decliners in the past week or so were Abercrombie & Fitch and Aeropostale, both of which showed one-day declines of 20% even though their earnings misses were rather mild. These sharp drops followed the already significant declines which had occurred over the past 60 days or so (which affected most retailers as a whole).

(click to enlarge)

One thing that has continued to support Francesca's share price from further declines has been the previous statements from management that:

As it relates to gross margin and the potential promotional cadence, clearly we will be much less promotional as the weather dynamic subsides…. And as a result, our merchandise margins should be substantially similar to what they might have been in the prior year quarter.

The ability to sell without heavy discounting has been of paramount importance in justifying the lofty share price of Francesca's.

In a research note to investors, JPMorgan stated that the "Secret Sauce" for Francesca's continues to be the fact that the markdown rate is "less than 10%." According to JPMorgan, "This compares to other mall based retailers that have 3-6 month lead times and buy much deeper and have markdown rates that are north of 30%."

But we can clearly see that this quarter has not been working out according to the hopes of both management and JPMorgan.

Following the statements on the last conference call, I began making in person visits and phone calls to a number of Francesca's stores so that I could personally monitor the progression of the discounting activities.

We can see that management clearly did have every intention of winding down the discounts.

In some cases, the promotional activities were originally being limited in their scope in a combination of three ways:

- limited time frame (including 1 day "flash sales")

- limited availability (internet purchases only)

- limited items (discounts apply to select items such as shoes only)

(click to enlarge)

But time has progressed, we can see that each of these limitations has fallen away.

- Short duration sales were repeatedly extended

- Internet only sales were expanded to all in-store locations

- Discounts were offered on all merchandise both via internet and in-stores

(click to enlarge)

Finding an extensive list of these promotions is easy and only requires readers Google the terms "Francesca's Discounts." They are listed everywhere. Alternatively, visiting a few Francesca's stores will reveal the same thing.

We can now see that during the last quarter, there were significant sales underway at almost every point in time.

With the majority of merchandise on sale and for the majority of days of the quarter, it now becomes mathematically impossible for Francesca's results to deliver the "less than 10% Secret Sauce" as described by JPMorgan. This is just a simple function of the math involved.

In general, we can see that the most common sale is the BOGO ("buy one get one") for 50% off.

We can also see other substantial discounts of 30% on a wide variety of items.

In general, for any given purchase made through Francesca's, the discounts have now accelerated to a point where customers can expect to get from 25-50% off the price. These discounts have applied to most of the merchandise and on most of the days in the quarter.

Overall, what we will almost certainly see this quarter is that the discount rate for Francesca's is coming in at around 25% - right in line with all of the other retail competitors. The fact that the "Secret Sauce" is no longer working will almost automatically cause shares of Francesca's to trade more in line with its peers, which implies a drop from current prices of at least 20-25%.

Christine Day, the former CEO of lululemon (LULU), once clarified the reason why lululemon never entered the slippery slope of sales and discounts. Once you start offering these discounts, you are effectively "training" your customers to expect them. It does not take long before customers will walk in to a store to find items that they like, and then walk right back out without purchasing them. They quickly learn to just wait for the sales which they know will be just around the corner.

This is what has now happened to Francesca's. And it really only took one quarter for the "training" to take full effect. In order to boost sales in Q1, Francesca's ended up "training" customers to wait for discounts. It is now the case that the use of these discounts is becoming more of a necessity in order to entice consumers to actually make a purchase.

Anyone who has been to a Francesca's store in the past 2-3 months will know that the sale and discount signs are now what lure in the customers. There are typically 2-3 large signs touting the deep discounts in all of the front store windows of any Francesca's. This is notably different than the situation just 9-12 months ago.

Concerns over same-store sales

The jet fuel behind Francesca's valuation has consisted of two things: stellar margins and exceptional growth.

The discounts are now having a visible impact on margins and that impact looks set to worsen. Francesca's margins have a long way to fall before normalizing. Last quarter, margins fell by 70 bps to around 52%. But margins for virtually every similar competitor sit somewhere around 32-38% - as much as 20% lower than Francesca's. Francesca's margins have declined from closer to 60% and continue to converge with those of the competition.

But the second part of this equation (growth) has also been cause for concern. Last quarter, Francesca's reported same-store sales growth of just 2%. Revenues showed a slight decrease (around 10%) vs. the previous quarter, but that decline was in part due to a 53 week accounting year which boosted Q4.

The real source of Francesca's growth continues to be the opening of new stores. In the first quarter alone, Francesca opened 56 new boutiques. This takes their planned boutique base up to 445, putting them at around 50% of their 900 store target.

The reason for concern here is obvious. It should be expected that opening new stores will add to revenues. But the complete stagnation of revenues from existing stores is highly problematic. Investors are aware that many of these stores were the result of the recent expansion and have been opened just recently. Yet within two years, they are already showing same-store growth which is dwindling towards zero.

If we look closer, the tiny 2% growth in same-store sales actually now includes the "direct sales" which come via the website. If we strip out those sales, then the performance of existing stores is actually showing almost no growth whatsoever.

If the stock were on a more normalized valuation, the impact of this trend might not be too severe. But with Francesca's still trading on a PE of around 22-24x, the stock could easily come down by 20-25% just due to the downtick in same-store sales alone.

Management has already given guidance that same-store sales is set to decrease even further to just 1-2%. Depending on the impact of direct sales, this could then actually be implying slight declines in same-store sales. This is a very challenging result for investors to digest for stores which have now only been open for around 2 years.

It is even more difficult to digest with Francesca's still trading on one of the highest multiples in the space.

Now it becomes very clear what is happening. Management is trying to juggle margin pressure vs. declining same-store sales growth. The only way to maintain any positive growth in SSS is to continue offering deeper discounts to lure in the shoppers.

With SSS quickly approaching zero, there is clearly more wiggle room with margins. As a result, the discounts and promotions have accelerated substantially.

Two years ago, same-store sales were hitting 15%. One year ago, they were still hitting 10%. Now they are basically hitting zero.

It is now becoming clear to investors that no one (including Francesca's) has a sustainable "secret sauce" which allows them to a) sell with abnormally high margins while b) growing sales at a lightening clip. In the end, investors are coming to terms with the fact that Francesca's is just another retailer which must cut prices (and margins) in order to maintain traffic.

With almost 450 stores, it is now the case that each store is only doing about $60,000 per month in revenues - only about $2,000 per day. Francesca's continues to invest heavily in new stores to grow revenues by this incremental $2,000 per day, but the existing stores are flattening out so quickly that there is very little room for any meaningful organic growth for the company.

Short interest reveals longer-term concerns over margins

Anyone who follows Francesca's is likely aware that it has been one of the most heavily shorted stocks on any US exchange. Total short interest has typically ranged from 30-40% of total shares outstanding. It is huge. At times, the value of the short bet has exceeded $600 million, indicating that it's institutions that have taken a deeply held view to the negative side.

Heading into earnings last quarter, the stock was rising strongly, briefly hitting $32.00. At that time, the short bets increased dramatically to over 14 million shares. The large short bets have paid off for those investors. With the stock now down by 25%, the short interest has fallen off a bit. But even with the stock now down by around 25%, the short has stayed stubbornly high. Despite the gains already banked, the shorts continue to bet on a much steeper decline than the 20-25% expected by an earnings miss next week.

Some of the larger concerns have already been touched upon by various articles in both Barron's, Seeking Alpha and other locations. But each of these articles only raised their own general concerns without actually delivering a conclusion.

Underlying various short theories is the fact that Francesca's largest suppliers have been owned by family members of the founding management of Francesca's. These suppliers have supplied roughly 20-25% of total inventory. But Francesca's has declined to disclose the purchase terms or margins of the products that it gets from these sources. It has disclosed that its suppliers are responsible for the ability to generate Francesca's ultra fast turnaround time of just 4-6 weeks.

The suppliers involved are KJK Trading and Stony Leather. In total, around 20-25% of Francesca's purchases had come from these two suppliers. With KJK, it is clear that the company does not even have a single other customer aside from Francesca's.

The supplier only does business with Francesca's and no one else. KJK even operates out of the same building as Francesca's in Houston. Prior to the IPO, KJK did not even pay rent to Francesca's for the space. Following the IPO, a token rent of $1,000 was set. If we look further, we can see that Francesca's discloses that it does not even maintain supply contracts with these suppliers.

KJK has been owned and run by Ki Juing Gu. Mr. Gu is the brother-in-law of Ms. Insuk Koo, a founder of Francesca's as well as Kyong Gill, founder and former EVC of Francesca's. Mr. Gu also owns KKGM,which also supplies to Francesca's. Like KJK, KKGM does not have any other customers other than Francesca's. It is basically a captive supplier.

These are the details which Barron's and other Seeking Alpha articles failed to uncover.

So then KJK is owned by a relative. It does no business with anyone other than Francesca's and it even operates out of the same building as Francesca's. The parties see no need to maintain supply contracts.

Based on these facts, it feels very much like a de facto subsidiary.

Likewise, with Stony Leather, the company discloses that:

Chong Yi and Insuk Koo (two of the four Founders) own and operate Stony. Mr. Yi and Ms. Koo are brother and sister. Mr. Yi and Ms. Koo along with their sister Ms. Kyong Gill (our Executive Vice Chairperson and one of the four Founders) are stockholders of Francesca's. Our relationship with Stony is that of an independent third-party vendor.

(NOTE TO READERS: Gu and Koo are two different English ways of spelling the same exact name in Korean. These different spellings refer to the same last name which belongs to these members of the same family.)

For most businesses, such a contrived effort to maintain separate ownership would make no sense. However, there are certain benefits and activities which are only possible via a separate relationship (non subsidiary) such as this.

The shorts are well aware that this type of relationship persisted for a few years. During this time, Francesca's commanded a premium valuation.

Given that management was less than half way into a massive expansion up to 900 stores, many have felt that it was notably odd timing for management to exit the company in the past year.

Following their resignation from Francesca's, the family's involvement is now strictly with the suppliers to Francesca's, rather than with Francesca's itself.

Theory number one is that this arrangement has allowed Francesca's to import goods without declaring full value to customs. Francesca's could thereby obtain its goods at a much lower cost, boosting margins.

For the past year, KJK has bought 100% of its goods from a single supplier, Shen Li Wang. (Customs records are included as Appendix I).

Once again, Shen Li Wang appears to have almost no customers other than KJK and KKGM. KKGM also supplies to Francesca's, and is also owned by brother-in-law Gu.

Again, KJK supplies to just one company, Francesca's. In addition, KJK itself has just a single supplier, Shen Li Wang. And 95% of Shen Li Wang's business over the past two years has been with just two customers, KJK and KKGM. Both of these companies supply only to Francesca's and both are owned by Mr. Gu, the brother-in-law of the founder of Francesca's (Kyong Gill).

Likewise, Stony is run by the brother and sister of Ms. Gill.

Given that ownership is held exclusively by the brother-in-law of Francesca's founder and has no actual customers other than Francesca's, it raises the question of why this company needs to give the appearance of operating as a freestanding company. Why not just call them what they are - "subsidiaries?"

Clearly a publicly listed company such as Francesca's would never under-declare the value of imported goods to customs. They would simply have too much to lose and the consequences would be permanent.

But if its "separate" supplier were found to have under reported, there would be no consequences to Francesca's. The supplier would simply shut down and then reopen using a different name, continuing to supply to Francesca's. Since no one knows the ultimate location of the factories in China, there would be no way for anyone to claim that this was an identical company.

So far, this is just a theory among shorts and it is one of the reasons which explains the huge and persistent short interest in Francesca's. The bet is either that the scheme will unravel or else it will simply come to an end, now that the family members are no longer part of Francesca's.

Some of this theory has been supported with the difficulty in actually finding a permanent factory location for anything connected with ultimate sole supplier Shen Li Wang. It is also supported by the fact that the name of the supplier to KJK seems to change dramatically after 2 years. This can be seen in the customs records in Appendix I.

Theory number two is that the several suppliers from above (which are owned by family members) have simply been passing the goods on to Francesca's without making a profit themselves. This is clearly not sustainable.

The reason for engaging in this practice would be what is knows as "multiple arbitrage." The suppliers are private companies. A profit of $1,000 is just that, a benefit of $1,000. But Francesca's is a publicly traded company which trades on a high PE of 25-30x. As a result, a incremental profit of $1,000 results in a real incremental benefit of $25,000-$30,000.

By posting spectacular margins for the two years since coming public, founders of Francesca's caused the stock to trade at a premium price. Now that several years have passed as a public company, the founders are left owning little to no stock and have resigned from their positions at the company.

Now that they are gone, margins have been coming steadily down and are approaching those of other competitors in the business.

In the end, it doesn't really matter WHY Francesca's had constructed the contrived "independent" relationship with its suppliers. What really matters to the shorts is that the relationships are clearly controlled by family members who had every incentive to provide Francesca's with unsustainable, non-market prices in order to help margins.

The real "secret sauce" for Francesca's has come from its ability to obtain goods at such a low cost that it can maintain gross margins of 50-60% while obtaining 4-6 week turnaround times. The suppliers are the actual secret sauce.

Yet in the years that followed the IPO (and while the founders were still involved at Francesca's), these suppliers refused to do business with anyone other than Francesca's. This was the case even though they had no supply contract with Francesca's to ensure future business OR to prevent the suppliers from doing business elsewhere.

The founding family management has left Francesca's and no longer has any meaningful equity stake in Francesca's. Instead, they now have a stake in the suppliers.

But what it really comes down to is the fact that Francesca's has somehow been able to achieve spectacular margins of 50-60% in a business where every other competitor seems to come in at a nearly identical 32-38%.

It is also the case that Francesca's has historically obtained a large portion of the goods it sells from family members who engage in no other business other than selling to Francesca's through their small private companies.

Now that the founding management family has left Francesca's, we have begun to see consecutive quarters of margin contraction.

As shown above, this margin contraction is also suffering from the demand side of the equation, with Francesca's cutting prices at an accelerating rate in order to maintain same-store sales growth.

The factors all point to the same conclusion: that Francesca's does not have the "secret sauce" to maintain huge margins and spectacular growth.

This is almost certain to make itself apparent on Francesca's earnings call next week and the stock will almost certainly take note.

Meeting expectations last quarter led to a 25% decline in the stock price. The only thing supporting the stock at current levels is the hope which was communicated by management that the use of discounts would be declining in this quarter, helping to support margins. But once we see that discounts have actually increased, we can be almost assured that Francesca's will by default miss earnings.

Appendix I - Customs Records for Francesca's Suppliers

The following table shows all imports into the United States from Shen Li Wang Ltd over the past two years. More than 95% of the imports are to just two companies (KJK and KKGM) both of which are controlled by Mr. Gu, and both of which supply only to Francesca's.

SHIPPER

CONSIGNEE

BILL OF LADING

ARRIVAL DATE

WEIGHT (LB)

US PORT

SHENLIWANG LIMITED

G.B.Y.M.,INC

RWRD113300019724

08/17/2013

6644

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1307059F

08/12/2013

2142.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1307021D

08/10/2013

3273.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1307050C

08/10/2013

3278

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1307038E

08/03/2013

3990.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1306047D

07/06/2013

1337.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1306047E

07/06/2013

1223.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1306040C

07/01/2013

569.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1306023C

06/25/2013

633.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1306015D

06/23/2013

4074.4

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1306015E

06/23/2013

2384.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1305045B

06/03/2013

127.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1305034E

06/01/2013

1254

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1305034F

06/01/2013

2899.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1305026E

05/27/2013

1359.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1305026F

05/27/2013

1599.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1305017G

05/25/2013

4188.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304050G

05/20/2013

154

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304037E

05/13/2013

1619.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304030F

05/07/2013

228.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1304028H

05/06/2013

1271.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1304028G

05/06/2013

1654.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304012D

04/30/2013

6538.4

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1304012E

04/30/2013

1621.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304020B

04/30/2013

492.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1304020C

04/30/2013

312.4

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1304006F

04/23/2013

644.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304010D

04/22/2013

831.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

GLLFPNC1303018D

03/29/2013

2497

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

GLLFPNC1303018C

03/29/2013

5583.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1303012J

03/27/2013

1738

Long Beach, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1303012K

03/27/2013

4897.2

Long Beach, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1303009E

03/22/2013

1713.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1302028I

02/23/2013

4125

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1302011C

02/18/2013

7343.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1302012H

02/18/2013

2585

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1302006D

02/15/2013

1735.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1302006E

02/15/2013

11750.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301048D

02/11/2013

550

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1301048E

02/11/2013

3322

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301031D

02/11/2013

1647.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1301025F

02/01/2013

7733

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1301025G

02/01/2013

2354

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301020D

01/28/2013

910.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1301013B

01/25/2013

5814.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1301013C

01/25/2013

1403.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301008E

01/21/2013

7158.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1301008G

01/21/2013

1025.2

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1301001K

01/14/2013

2855.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301001L

01/14/2013

2450.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1212058F

01/11/2013

739.2

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1212058G

01/11/2013

176

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1212050G

01/07/2013

1540

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1212031C

12/28/2012

5524.2

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1212022B

12/26/2012

3361.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1212022C

12/26/2012

5108.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1212018D

12/21/2012

633.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1212008B

12/18/2012

4081

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1212008C

12/18/2012

3429.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211042C

12/10/2012

4166.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1211035C

12/09/2012

1306.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1211035B

12/09/2012

13798.4

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1211012D

12/05/2012

3372.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1211012E

12/05/2012

7605.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211028C

12/03/2012

1130.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211018F

11/26/2012

730.4

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1211018G

11/26/2012

2576.2

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1211008B

11/19/2012

908.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211008C

11/19/2012

1410.2

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1211001F

11/16/2012

2239.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211001G

11/16/2012

7187.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1210048D

11/12/2012

1709.4

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1210048E

11/12/2012

6190.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1210038H

11/09/2012

1821.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1210048H

11/09/2012

1821.6

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1210011F

10/26/2012

1449.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1210003E

10/19/2012

926.2

Long Beach, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1210003F

10/19/2012

10527

Long Beach, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1210003E

10/19/2012

926.2

Long Beach, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1210003F

10/19/2012

10527

Long Beach, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1209051H

10/12/2012

6952

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209051I

10/12/2012

8707.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1209040D

10/05/2012

4400

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209033G

10/01/2012

4199.8

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1209033H

10/01/2012

1276

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209030E

09/25/2012

1568.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC.

SXPKPNC1209026H

09/24/2012

1755.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209026I

09/24/2012

6344.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1209017D

09/22/2012

13547.6

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1209017E

09/22/2012

3225.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209008D

09/17/2012

14280.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209009E

09/17/2012

8181.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1209001C

09/14/2012

2048.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1208040E

09/07/2012

5381.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1208023F

08/27/2012

1078

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1208012E

08/20/2012

1113.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

GLLFPNC1208004B

08/17/2012

37428.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1207048E

08/13/2012

7271

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1207044F

08/10/2012

2021.8

Los Angeles, California

SHENLIWANG LIMITED

DAMO TEXTILES INC

OSTIPNC1207032F

08/03/2012

3863.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1207032G

08/03/2012

1905.2

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1207012F

07/20/2012

2127.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1207012E

07/20/2012

16766.2

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

OSTIPNC1206052H

07/06/2012

928.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1206052I

07/06/2012

717.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1206048F

07/02/2012

972.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1206039A

06/29/2012

6534

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1206028H

06/25/2012

3902.8

Los Angeles, California

SHENLIWANG LIMITED

DAMO TEXTILES INC

SXPKPNC1206028I

06/25/2012

5918

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1206020G

06/22/2012

3548.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1206005N

06/15/2012

1117.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1205060K

06/08/2012

1403.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1205052J

06/04/2012

822.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1205050G

06/01/2012

3858.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1205038L

05/28/2012

1782

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1205028J

05/25/2012

2609.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1205001I

05/14/2012

2257.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1204050J

05/05/2012

1581.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1204038I

04/30/2012

858

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1204030F

04/28/2012

8184

Los Angeles, California

SHENLIWANG LIMITED

KKGM INC

SXPKPNC1204013E

04/21/2012

990

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1204013F

04/21/2012

1667.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1203066I

04/10/2012

3678.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

BNTCPNC1203047E

04/02/2012

1276

Los Angeles, California

The following table shows all imports into the United States being received by KJK Trading. Over the past year, KJK has received 100% of its imports from a single supplier, Shen Li Wang. KJK had previously made use of a supplier known as BB Fashion. At that time, KJK was again BB Fashion's only customer. (See additional records below).

SHIPPER

CONSIGNEE

BILL OF LADING

ARRIVAL DATE

WEIGHT

US PORT

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1307059F

08/12/2013

2142.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1307021D

08/10/2013

3273.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1307050C

08/10/2013

3278

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1306047E

07/06/2013

1223.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1306040C

07/01/2013

569.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1306015D

06/23/2013

4074.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1305045B

06/03/2013

127.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1305034F

06/01/2013

2899.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1305026E

05/27/2013

1359.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1305017G

05/25/2013

4188.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304050G

05/20/2013

154

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304037E

05/13/2013

1619.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304030F

05/07/2013

228.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1304028G

05/06/2013

1654.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304012D

04/30/2013

6538.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304020B

04/30/2013

492.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1304010D

04/22/2013

831.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

GLLFPNC1304001D

04/16/2013

400.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

GLLFPNC1303018C

03/29/2013

5583.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1303012K

03/27/2013

4897.2

Long Beach, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1303009E

03/22/2013

1713.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1302011C

02/18/2013

7343.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1302006E

02/15/2013

11750.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301048D

02/11/2013

550

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301031D

02/11/2013

1647.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1301025F

02/01/2013

7733

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301020D

01/28/2013

910.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1301013B

01/25/2013

5814.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301008E

01/21/2013

7158.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1301001L

01/14/2013

2450.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1212058F

01/11/2013

739.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1212050G

01/07/2013

1540

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1212031C

12/28/2012

5524.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1212022C

12/26/2012

5108.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1212018D

12/21/2012

633.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1212008B

12/18/2012

4081

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211042C

12/10/2012

4166.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1211035B

12/09/2012

13798.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1211012E

12/05/2012

7605.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211028C

12/03/2012

1130.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211018F

11/26/2012

730.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211008C

11/19/2012

1410.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1211001G

11/16/2012

7187.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1210048D

11/12/2012

1709.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1210038H

11/09/2012

1821.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1210048H

11/09/2012

1821.6

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1210011F

10/26/2012

1449.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1210003F

10/19/2012

10527

Long Beach, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1210003F

10/19/2012

10527

Long Beach, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209051I

10/12/2012

8707.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209033G

10/01/2012

4199.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209030E

09/25/2012

1568.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209026I

09/24/2012

6344.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1209017D

09/22/2012

13547.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209008D

09/17/2012

14280.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1209009E

09/17/2012

8181.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1209001C

09/14/2012

2048.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1208040E

09/07/2012

5381.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1208023F

08/27/2012

1078

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1208012E

08/20/2012

1113.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

GLLFPNC1208004B

08/17/2012

37428.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1207048E

08/13/2012

7271

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1207044F

08/10/2012

2021.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1207032G

08/03/2012

1905.2

Los Angeles, California

SHENLIWANG LIMITESHENLIWANG LIMITED

KJK TRADING

OSTIPNC1207021I

07/27/2012

6228.2

Los Angeles, California

CUMEE

KJK TRADING

SXPKPNC1207016G

07/23/2012

378.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1207012E

07/20/2012

16766.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1207006F

07/16/2012

2215.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1206052I

07/06/2012

717.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1206048F

07/02/2012

972.4

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1206048G

07/02/2012

726

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1206039A

06/29/2012

6534

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1206039B

06/29/2012

1113.2

Los Angeles, California

CUMEE

KJK TRADING

SXPKPNC1206039C

06/29/2012

418

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1206039D

06/29/2012

398.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1206028F

06/25/2012

1289.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1206028H

06/25/2012

3902.8

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1206028J

06/25/2012

1183.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1206020G

06/22/2012

3548.6

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

OSTIPNC1206020H

06/22/2012

8379.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1206020F

06/22/2012

2862.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1206015C

06/18/2012

1348.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1206005N

06/15/2012

1117.6

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

OSTIPNC1206005O

06/15/2012

1595

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1206005P

06/15/2012

1018.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1205068E

06/11/2012

426.8

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1205068F

06/11/2012

849.2

Los Angeles, California

SEPIA

KJK TRADING

SXPKPNC1205068G

06/11/2012

330

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1205060K

06/08/2012

1403.6

Los Angeles, California

CUMEE

KJK TRADING CO. DBA? VIEWON

MIGCMILZ1205120C

06/08/2012

651.2

Los Angeles, California

CUMEE

KJK TRADING CO. DBA? VIEWON

MIGCMILZ1205066C

06/04/2012

532.4

Los Angeles, California

CUMEE

KJK TRADING CO. DBA? VIEWON

MIGCMILZ1205100C

06/04/2012

459.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1205052H

06/04/2012

259.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1205052J

06/04/2012

822.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

OSTIPNC1205050G

06/01/2012

3858.8

Los Angeles, California

CUMEE

KJK TRADING CO. DBA? VIEWON

MIGCMILZ1205084D

06/01/2012

1586.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1205038I

05/28/2012

2554.2

Los Angeles, California

SEPIA

KJK TRADING

SXPKPNC1205038J

05/28/2012

695.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1205038L

05/28/2012

1782

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1205038M

05/28/2012

1553.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1205028I

05/25/2012

2989.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1205028J

05/25/2012

2609.2

Los Angeles, California

SEPIA

KJK TRADING

SXPKPNC1205028L

05/25/2012

429

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1205018G

05/21/2012

4019.4

Los Angeles, California

CUMEE

KJK TRADING CO. DBA? VIEWON

MIGCMILZ1205020G

05/19/2012

352

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1205001I

05/14/2012

2257.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1204050J

05/05/2012

1581.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1204050K

05/05/2012

1097.8

Los Angeles, California

CUMEE

KJK TRADING CO. DBA? VIEWON

MIGCMILZ1204109A

05/05/2012

477.4

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1204038I

04/30/2012

858

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1204038K

04/30/2012

1346.4

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1204038L

04/30/2012

712.8

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1204030F

04/28/2012

8184

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1204030H

04/28/2012

2406.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1204030I

04/28/2012

1628

Los Angeles, California

CUMEE

KJK TRADING CO. DBA? VIEWON

MIGCMILZ1204059A

04/28/2012

2734.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1204018F

04/23/2012

2530

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1204013D

04/21/2012

880

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1204013F

04/21/2012

1667.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1204013H

04/21/2012

2996.4

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1204003A

04/16/2012

1183.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1203076F

04/13/2012

1810.6

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1203076G

04/13/2012

1148.4

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1203066G

04/10/2012

1225.4

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1203066H

04/10/2012

1183.6

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

SXPKPNC1203066I

04/10/2012

3678.4

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1203058E

04/06/2012

781

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1203028F

04/02/2012

2840.2

Los Angeles, California

SHENLIWANG LIMITED

KJK TRADING

BNTCPNC1203047E

04/02/2012

1276

Los Angeles, California

SEPIA

KJK TRADING

BNTCPNC1203047D

04/02/2012

2714.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1203040J

03/30/2012

1617

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

OSTIPNC1203040K

03/30/2012

3449.6

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1203040L

03/30/2012

12042.8

Los Angeles, California

CUMEE

KJK TRADING CO. DBA? VIEWON

MIGCMILZ1203085H

03/30/2012

1628

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1203017E

03/30/2012

1454.2

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1203017F

03/30/2012

794.2

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1203008L

03/20/2012

2587.2

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1203008M

03/20/2012

411.4

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1202035B

03/13/2012

743.6

Long Beach, California

THE BB FASHION

KJK TRADING

SXPKPNC1203002G

03/12/2012

3075.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1203002H

03/12/2012

3522.2

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1203002I

03/12/2012

6487.8

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

CHQFPNC1202019C

03/08/2012

567.6

Long Beach, California

THE BB FASHION

KJK TRADING

OSTIPNC1201039E

02/03/2012

3454

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1201039F

02/03/2012

1188

Los Angeles, California

CUMEE

KJK TRADING DBA? VIEWON

MIGCMILZ1201062C

01/30/2012

715

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1201035F

01/30/2012

6773.8

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1201027D

01/27/2012

5247

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1201027F

01/27/2012

3691.6

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1201027G

01/27/2012

932.8

Los Angeles, California

CUMEE

KJK TRADING

MIGCMILZ1201022G

01/23/2012

789.8

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

HDMUGJWB0602362B

01/23/2012

2851.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

HDMUGJWB0602362C

01/23/2012

609.4

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1201011B

01/20/2012

6039

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1201011C

01/20/2012

1663.2

Los Angeles, California

CUMEE

KJK TRADING CO. DBA: VIEWON

MIGCMILZ1201011C

01/20/2012

409.2

Los Angeles, California

CUMEE

KJK TRADING CO. DBA: VIEWON

MIGCMILZ1201004G

01/16/2012

952.6

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1201002A

01/16/2012

5447.2

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1112049D

01/13/2012

5183.2

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1112049F

01/13/2012

3449.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1112049G

01/13/2012

2288

Los Angeles, California

CUMEE

KJK TRADING CO. DBA: VIEWON

SXPKPNC1112040E

01/09/2012

2686.2

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1112023D

01/02/2012

3086.6

Los Angeles, California

The BB Fashion

KJK TRADING

SXPKPNC1112023E

01/02/2012

924

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1112018G

12/30/2011

2688.4

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1112018H

12/30/2011

935

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1112012F

12/26/2011

550

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADIND

OSTIPNC1112010I

12/23/2011

1056

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADIND

OSTIPNC1112010H

12/23/2011

1504.8

Los Angeles, California

CUMEE

KJK TRADING CO.DBA:VIEWON

MIGCMILZ1112039A

12/23/2011

319

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1112004A

12/19/2011

682

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1112004B

12/19/2011

1773.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1112001H

12/16/2011

2787.4

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1112001I

12/16/2011

1980

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1112001J

12/16/2011

2488.2

Los Angeles, California

CUMEE

KJK TRADING CO.DBA:VIEWON

MIGCMILZ1111131F

12/12/2011

833.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1111048H

12/09/2011

1749

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1111048I

12/09/2011

1232

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

BNTCHTS1111017D5

11/29/2011

292.6

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1111017B

11/25/2011

706.2

Los Angeles, California

CUMEE

KJK TRADING

MIGCMILZ1110080E

11/20/2011

844.8

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1111010A

11/20/2011

873.4

Los Angeles, California

CUMEE

KJK TRADING

MIGCMILZ1111026A

11/20/2011

184.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1111006B

11/18/2011

1247.4

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1111002A

11/14/2011

1760

Los Angeles, California

NANTONG LONG SAILING IMP.&EXP.

KJK TRADING

EFSVSH1110A00379

11/12/2011

708.4

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1110046F

11/11/2011

3641

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1110046G

11/11/2011

2505.8

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1110046H

11/11/2011

1540

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1110023F

11/08/2011

2063.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1110023G

11/08/2011

4283.4

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1110023H

11/08/2011

1566.4

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1110036E

11/08/2011

1192.4

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1110036F

11/08/2011

1135.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1110026E

11/03/2011

3344

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1110026F

11/03/2011

2657.6

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1110026G

11/03/2011

690.8

Los Angeles, California

CUMEE

KJK TRADING

MIGCMILZ1110058I

11/03/2011

3240.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1110015E

10/27/2011

4477

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1110015F

10/27/2011

2156

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1110001A

10/15/2011

2633.4

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1110001B

10/15/2011

602.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1109026C

10/06/2011

679.8

Los Angeles, California

The BB Fashion

KJK TRADING

SXPKPNC1109026D

10/06/2011

380.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1109020G

10/03/2011

242

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1109020H

10/03/2011

4862

Los Angeles, California

CUMEE

KJK TRADING CO.DBA:VIEWON

GLNKSZXYTLA9034I

10/03/2011

1084.6

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1109018B

10/01/2011

5359.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1109018C

10/01/2011

3229.6

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1109012A

09/26/2011

1106.6

Long Beach, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1109012D

09/26/2011

873.4

Long Beach, California

CUMEE

KJK TRADING CO DBA VIEWON

OSTIPNC1109012E

09/26/2011

1936

Long Beach, California

NANTONG LONG SAILING IMP.&EXP.

KJK TRADING

EFSVSH1109A00046

09/23/2011

558.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1109002A

09/15/2011

5623.2

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1109002C

09/15/2011

554.4

Los Angeles, California

SUZHOU HENGRUI IMP & EXP CO.,LTD

KJK TRADING

EFSVSH1108A01088

09/13/2011

1012

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1108034D

09/12/2011

1012

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1108034E

09/12/2011

365.2

Los Angeles, California

NANTONG LONG SAILING IMP.&EXP.

KJK TRADING

EFSVSH1108A00955

09/09/2011

255.2

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1108030F

09/08/2011

2862.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1108030H

09/08/2011

1575.2

Los Angeles, California

CUMEE

KJK TRADING

MIGCMILZ1108130H

09/08/2011

561

Los Angeles, California

CUMEE

KJK TRADING

MIGCMILZ1108117D

09/06/2011

563.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1108025F

09/06/2011

127.6

Los Angeles, California

The BB Fashion

KJK TRADING

SXPKPNC1108025G

09/06/2011

576.4

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1108025K

09/06/2011

1782

Los Angeles, California

CUMEE

KJK TRADING

MIGCMILZ1108100C

09/01/2011

1062.6

Los Angeles, California

SHENFENG CO LIMITED

KJK TRADING

OSTIPNC1108016F

09/01/2011

5739.8

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

OSTIPNC1108016H

09/01/2011

1449.8

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1108016I

09/01/2011

363

Los Angeles, California

SUIZHOU LI FUNG KNITTING CO LTD

KJK TRADING

OSTISIGZ1108LA39

09/01/2011

552.2

Los Angeles, California

KWANG JIN CORPORATION

KJK TRADING

SXPKPNC1108013E

08/30/2011

1401.4

Los Angeles, California

SHENFENG CO., LIMITED

KJK TRADING

SXPKPNC1108013F

08/30/2011

2222

Los Angeles, California

The table below shows that for the time that they were doing business, BB Fashion had only one customer. BB Fashion only ever did business with KJK Trading and no one else.

SHIPPER

CONSIGNEE

BILL OF LADING

ARRIVAL DATE

WEIGHT

US PORT

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1206048G

07/02/2012

726

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1206039B

06/29/2012

1113.2

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1206028J

06/25/2012

1183.6

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

OSTIPNC1206020H

06/22/2012

8379.8

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

OSTIPNC1206005O

06/15/2012

1595

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1205068F

06/11/2012

849.2

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1205038M

05/28/2012

1553.2

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1204038L

04/30/2012

712.8

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1204030H

04/28/2012

2406.8

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1204013D

04/21/2012

880

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1204003A

04/16/2012

1183.6

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

SXPKPNC1203066H

04/10/2012

1183.6

Los Angeles, California

THE BB FASHION LIMITED

KJK TRADING

OSTIPNC1203040K

03/30/2012

3449.6

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1203008M

03/20/2012

411.4

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1203002G

03/12/2012

3075.6

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1201039E

02/03/2012

3454

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1201027G

01/27/2012

932.8

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1201011C

01/20/2012

1663.2

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1112049F

01/13/2012

3449.6

Los Angeles, California

The BB Fashion

KJK TRADING

SXPKPNC1112023E

01/02/2012

924

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1112001J

12/16/2011

2488.2

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1110046H

11/11/2011

1540

Los Angeles, California

THE BB FASHION

KJK TRADING

SXPKPNC1110023H

11/08/2011

1566.4

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1110026G

11/03/2011

690.8

Los Angeles, California

The BB Fashion

KJK TRADING

SXPKPNC1109026D

10/06/2011

380.6

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1108030F

09/08/2011

2862.2

Los Angeles, California

The BB Fashion

KJK TRADING

SXPKPNC1108025G

09/06/2011

576.4

Los Angeles, California

THE BB FASHION

KJK TRADING

OSTIPNC1108016I

09/01/2011

363

Los Angeles, California

Source: Francesca's: Investors In For Nasty Surprise Next Week