China Digital Communication Group Announces Preliminary Year End Results
08 March 2006 - 12:00AM
PR Newswire (US)
Issues Guidance for Accelerated Growth in 2006 LOS ANGELES and
SHENZHEN, China, March 7 /PRNewswire-FirstCall/ -- China Digital
Communication Group (OTC:CHID) (BULLETIN BOARD: CHID) , one of the
fastest growing battery components manufacturers in China, today
announced its preliminary results for the year ended December 31,
2005 that exceeded its previously announced guidance issued on
April 25, 2005. China Digital reported preliminary total revenues
of $12.7 million for the year ended December 31, 2005, an increase
of 145% from total revenues of $5.2 million for the year ended
December 31, 2004, and 11% greater than its previously announced
revenue guidance of $11.4 million. China Digital reported
preliminary net income of $2.7 million, or $0.05 per fully diluted
share, for the year ended December 31, 2005, an increase of 517%
from net income of $440,496, or $0.008 per fully diluted share, for
the year ended December 31, 2004, and 4% greater than its
previously announced net income guidance of $2.6 million. China
Digital attributed its growth to continued, robust demand for its
lithium ion battery shell product line from mobile phone
manufacturers, expanded production capacity by more than 40% as a
result of relocating its wholly owned manufacturing subsidiary
Shenzhen E'Jenie to a larger plant in the Xing Lian Industrial
Zone, increased manufacturing efficiencies, and new customer orders
as compared to 2004. Guidance for the Year Ending December 31, 2006
The following projections are on a consolidated, pro-forma basis
and include the acquisition of Zhuo Tong, which is expected to
close in the second quarter of 2006. In order to present an
accurate picture of revenue and profit trends, the results stated
for 2006 consist of sales and profit from Zhuo Tong, as if China
Digital had owned the subsidiary for the entire year. For fiscal
year 2006, China Digital projects total revenues of $26.5 million
and net income of $7.6 million, or $0.10 per fully diluted share.
Chang Chun Zheng, CEO and Chairman of the Board of China Digital,
said, "We have created a scalable operating platform that allows
our two subsidiaries, E'Jenie and Zhuo Tong, greater access to
shared resources, as well as provides significant cross-marketing
and referral opportunities, which we believe can increase revenues
by 100% year-over-year in 2006. If 3G systems are readily adopted
in China, as we anticipate they will be, our initial projections
for 2006 could be significantly higher due to increased demand for
3G components to power various telecommunicatons equipment and
lithium ion mobile phone batteries. In addition to new markets,
China Digital will continue to pursue business opportunities with a
focus on achieving profitability through additional mergers and
acquisitions within the telecommunication equipment and new energy
industry fields." About China Digital Communication Group Through
its two wholly owned subsidiary companies, China Digital
Communication Group is one of China's leading manufacturers and
developers of advanced telecommunications equipment. Its Shenzhen
E'Jenie Science and Technology Co., Ltd. ("E'Jenie") subsidiary
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's Shenzhen Zhuo
Tong ("Zhuo Tong") subsidiary specializes in manufacturing and
distributing high-frequency power supply and reversible power
supply equipment for communication equipment producers in the IT,
power, and radio and television broadcast industries. Zhuo Tong is
also a leading developer of third generation (3G) power supply
technologies and equipment. China Digital 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/. 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. At the Company: China Digital Communication Group Roy
Teng 310-461-1322 E-mail: http://www.chinadigitalgroup.com/
Investor Relations: OTC Financial Network Peter Clark 781-444-6100,
x629 http://www.otcfn.com/chid DATASOURCE: China Digital
Communication Group CONTACT: Roy Teng of China Digital
Communication Group, +1-310-461-1322, ; or Investors: Peter Clark
of OTC Financial Network, +1-781-444-6100, ext. 629, Web site:
http://www.chinadigitalgroup.com/ http://www.otcfn.com/chid
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