China Digital Communication Group Reports Year-End Revenue Gain of 146% to $12.7M
30 Março 2006 - 8:30PM
PR Newswire (US)
2005 Net Income up 165% to $0.05 Per Share on Stronger Battery
Component Sales LOS ANGELES and SHENZHEN, China, March 30
/PRNewswire-FirstCall/ -- China Digital Communication Group
(OTC:CHID) (BULLETIN BOARD: CHID) , one of the largest and fastest
growing battery components manufacturers in China, today reported
financial results for the year ended December 31, 2005. Revenue for
2005 totaled $12,742,088, compared to $5,182,122 for 2004, an
increase of $7,559,966, or approximately 146%. Cost of sales for
2005 totaled $8,971,859, or approximately 70.4% of net sales,
compared to $3,629,238, or approximately 70% of net sales, for
2004. The company reported 2005 net income of $2,624,279, or $0.05
per fully diluted share, up from $453,041, or $0.01 per fully
diluted share, in 2004. Chang Chun Zheng, CEO and chairman of China
Digital Communication Group, said, "This was an important year for
the development of our company. The strong increases in revenue and
net income were attributable to the successful expansion of our
product lines to meet the needs of existing and new customers.
These results exceeded our guidance issued last April. Revenue was
11% greater than our previously announced revenue guidance of $11.4
million. This growth reflected the continued demand for our
lithium-ion battery shell and cap products from the lithium-ion
battery cells manufacturers, as well as expanded production
capacity, which increased by more than 40%, resulting from the
relocation of our wholly owned manufacturing subsidiary Shenzhen
E'Jenie to a larger plant in the Xing Lian Industrial Zone. This
resulted in increased manufacturing efficiencies and new customer
orders. The corresponding increase in cost of sales as a percentage
of revenue was attributable to increases in material costs due to
the introduction of new product lines." Zheng also said, "We are
optimistic about the year ahead. As previously reported, we have
two pending acquisitions that, if completed, we expect will place
us strongly into the component market for new 3G telecommunications
devices. In addition, our battery component business, currently our
core business, is quite robust and we fully expect to realize
continued good results from that business in 2006. We intend to
update our 2006 forward guidance in the near future." About China
Digital Communication Group China Digital Communication Group,
through its wholly owned subsidiary, Shenzhen E'Jenie Science and
Technology Co., Ltd. (E'Jenie), is one of China's leading
manufacturers and developers of advanced telecommunications
equipment. E'Jenie sells advanced high-quality lithium-ion battery
shell and cap products to all major lithium-ion battery cell
manufacturers in China. E'Jenie's products are used to power mobile
phones, MP3 players, laptops, digital cameras, PDAs, camera
recorders and other consumer electronic digital devices. China
Digital Communication Group is continuing its expansion across East
Asia, while also seeking distribution partners and acquisitions in
new global markets, including the United States. For more
information, visit http://www.chinadigitalgroup.com/. To contact
the company, call Roy Teng, China Digital Communication Group,
(310) 461-1322, e-mail: . An investment profile on China Digital
Communication Group may be found at http
://http://www.hawkassociates.com/chinadigital/profile.htm. For
investor relations information regarding China Digital
Communication Group, contact Frank Hawkins or Ken AuYeung, Hawk
Associates, at (305) 451- 1888, e-mail: . An online investor kit
including press releases, current price quotes, stock charts and
other valuable information for investors may be found at
http://www.hawkassociates.com/ and
http://www.americanmicrocaps.com/. Forward-looking statement:
Except for the historical information, the matters discussed in
this news release may contain forward-looking statements,
including, but not limited to, factors relating to future sales.
These forward-looking statements may involve a number of risks and
uncertainties. Actual results may differ materially based on a
number of factors, including, but not limited to, uncertainties in
product demand, risks related to doing business in China, the
impact of competitive products and pricing, changing economic
conditions around the world, release and sales of new products and
other risk factors detailed in the company's most recent annual
report and other filings with the Securities and Exchange
Commission. DATASOURCE: China Digital Communication Group CONTACT:
Frank Hawkins or Ken AuYeung of Hawk Associates for China Digital
Communication Group, at +1-305-451-1888, Web site:
http://www.chinadigitalgroup.com/
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