LOS ANGELES and SHENZHEN, China, May 15 /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 revenue for the first
quarter of 2006 increased 9.5% to $3,183,547, compared to
$2,907,512 in the first quarter of 2005. Net income was $736,783,
or $0.01 per fully diluted share, compared to $725,799, or $0.01
per fully diluted share in the first quarter a year ago. Interim
CEO and President of China Digital Communication Group Yu Xi Sun,
said, "We are continuing to grow our core business organically and
expand our product lines. With about 10% of China's highly
fractured lithium-ion battery component market, we currently have
the second largest market share in the world's fastest growing
major market. "We are also moving forward with our plans to close
the acquisitions of Galaxy View International and Shenzhen Zhuo
Tong Power Supply Industry Co. We expect to close both acquisitions
during the summer. We believe that these two acquisitions would
position China Digital Communications for future profitable growth
opportunities in China's fast-growing telecommunications market.
"We continue to project revenue of $30 million and net income of
$10 million, or $0.13 per fully diluted share, based on the
successful completion of the two acquisitions. We believe the
future of our business is very strong, and as I have stated
previously, I intend to purchase up to 1 million shares of the
company in the open market by June 20. I have already begun to buy
shares," Sun said. 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://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. CHINA DIGITAL COMMUNICATION GROUP AND SUBSIDIARIES
(FORMERLY JASMINE'S GARDEN) CONSOLIDATED BALANCE SHEET March 31,
2006 (Unaudited) ASSETS Current Assets Cash and cash equivalents
$3,610,109 Accounts receivable, net 1,297,433 Inventory 243,142
Prepaid expenses 235,466 Other receivables 10,462 Total Current
Assets 5,396,612 Property & equipment, net 641,522 Other Assets
Deposits 3,100 Cash advance for business acquisition 3,000,000
Goodwill 1,865,067 Total Other Assets 4,868,167 Total Assets
$10,906,301 LIABILITIES AND STOCKHOLDERS' EQUITY Current
Liabilities Accounts payable and accrued expenses $785,582 Income
tax payable 56,215 Loan payable to related party 174,600 Advances
1,965 Short term note payable 249,600 Total Current Liabilities
1,267,962 Long-term debt, net of current portion 3,000,000
Stockholders' Equity Common stock, $.001 par value, 140,000,000
shares authorized, 72,960,626, issued and outstanding 72,961
Additional paid in capital 12,514,614 Advance for business
acquisition (9,620,000) Statutory reserve 128,784 Other
comprehensive income 203,030 Retained earnings 3,338,950 Total
Stockholders' Equity 6,638,339 Total Liabilities and Stockholders'
Equity $10,906,301 CHINA DIGITAL COMMUNICATION GROUP AND
SUBSIDIARIES (FORMERLY JASMINE'S GARDEN) CONSOLIDATED STATEMENTS OF
INCOME FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2006 AND 2005
(UNAUDITED) 2006 2005 Sales, net $3,183,547 $2,907,512 Cost of
sales 2,209,267 1,967,596 Gross profit 974,280 939,916 Selling
expense 7,194 10,552 General and administrative expenses 164,773
165,958 Income from operations 802,313 763,406 Other (Income)
Expense Interest income (5,115) (50) Miscellaneous expense 268
(8,791) Interest expense 29,840 5,335 Total Other (Income) Expense
24,993 (3,506) Income before income taxes 777,320 766,912 Provision
for income taxes 40,537 41,113 Net income $736,783 $725,799 Other
comprehensive income Foreign currency translation 91,346 2,580
Comprehensive Income $828,129 $ 728,379 Net income (loss) per
share: Basic & diluted $0.01 $0.01 Weighted average number of
shares outstanding: Basic & diluted 63,710,626 54,460,626
Weighted average number of shares for dilutive securities has not
been taken since the effect of dilutive securities is
anti-dilutive. DATASOURCE: China Digital Communication Group
CONTACT: Roy Teng of China Digital Communication Group,
+1-310-461-1322, Web site: http://www.chinadigitalgroup.com/
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