XI'AN, China, March 2 /Xinhua-PRNewswire/ -- ALONG Mobile
Technologies Inc. (OTC Pink Sheets: AGMB), a leading provider of wireless
interactive entertainment products and services in China, today announced its
audited annual financial results, ending December 31, 2006.
Total Revenue for fiscal 2006 was $6,427,893, an increase of 42.4% as
compared with Net Revenue of $4,515,395 for fiscal 2005. Net Income for fiscal
2006 was $3,258,133, or $0.046 per share, an increase of 381.4% as compared
with Net Income of $676,789 for fiscal 2005, or $0.012 per share.
"The large portion of the increase in revenues in fiscal 2006 was
primarily due to the success of ALONG's efforts to expand to an additional
1200 downloading terminals in five provinces of northwest part of China from
the third and fourth quarters of 2006," pointed Mr. Li Jianwei, the CEO of
ALONG Mobile.
"Our gross profit for the year ending December 31, 2006 was $5,119,425, an
increase of $2,083,610 as compared with $3,035,815 for the year ending
December 31, 2005, with the corresponding overall gross profit margin
increasing from 67.23% for fiscal year 2005 to 79.64% for fiscal year 2006.
This was the best year we've ever seen for the overall operating performance!
We ceased all the hardware products business in 2006, and our revenue is
recognized from wireless application products. This along with expanding our
downloading network significantly increased our revenue. Getting rid of the
hardware business also significantly reduced our costs," said Mr. Wang Zhen,
the CFO of ALONG Mobile.
"As part of the strategic planning process we completed in the third and
fourth quarters, we have committed to improving returns and maximizing value
from our continual expansion in the years ahead. Accordingly, we have decided
with regard to our use of cash flow going forward, to continue to demonstrate
the balanced approach to investing those funds that we showed in 2006 as well
as we will still focus on improving our operations and financial performance,"
said Mr. Wang Zhen.
Financial Tables for reference:
ALONG MOBILE TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(Stated in US Dollars)
As of December 31,
2006 2005
ASSETS
Current Assets
Cash and cash equivalents $6,561,239 $6,476,651
Accounts receivable (net of allowance
for doubtful accounts of $382 in 2006,
$Nil in 2005) 64,076 147,899
Inventories 32,421 54,505
Deposits paid 2,750,240 -
Note receivable - 1,237,624
Other receivables 35,319 14,177
Total Current Assets 9,443,295 7,930,856
Property and equipment, net 4,186,065 1,866,865
Intangible assets, net 2,119,030 925,925
TOTAL ASSETS $15,748,390 $10,723,646
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $10,726 $10,377
Receipt in advance 31,903 -
Deposits received 447,713 -
Other payables and accrued liabilities 752,729 533,961
Value added tax payable 788,602 633,342
Other taxes payable 163,546 44,123
Accrued dividends payable - 309,406
TOTAL LIABILITIES 2,195,219 1,531,209
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY
Common stock 70,600 70,000
Additional paid-in capital 8,045,085 7,409,685
Retained earnings 3,949,214 1,188,360
Statutory and other reserves 1,045,174 547,895
Accumulated other comprehensive income (loss) 443,098 (23,503)
TOTAL STOCKHOLDERS' EQUITY 13,553,171 9,192,437
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $15,748,390 $10,723,646
ALONG MOBILE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Stated in US Dollars)
Year ended December 31,
2006 2005
Revenues $6,427,893 $4,515,395
Cost of revenues (1,308,468) (1,479,580)
Gross profit 5,119,425 3,035,815
Operating expenses
Selling and distribution 837,404 453,673
General and administrative 900,655 534,530
Professional fees 107,080 130,000
Consultancy fees - 1,173,000
Depreciation 95,616 85,929
Total expenses 1,940,755 2,377,132
Income before the following items and taxes 3,178,670 658,683
Interest income 23,759 18,106
Other income 55,832 -
Finance cost (128) -
Income before income taxes 3,258,133 676,789
Income taxes - -
Net income $3,258,133 $676,789
Earnings per share - basic and diluted $0.046 $0.012
Weighted average number of common stock
outstanding 70,207,123 58,060,882
ALONG MOBILE TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Stated in US Dollars)
Year ended December 31,
2006 2005
Cash flows from operating activities
Net income $3,258,133 $676,789
Adjustments to reconcile net income to net
cash provided by operating activities:
In-kind contribution - 30,927
Amortization on intangible assets 148,981 120,773
Depreciation on property and equipment 217,189 85,929
Issuance of common stock for services - 1,173,000
Changes in operating assets and liabilities
Accounts receivable 86,961 (11,686)
Inventories 23,422 253,383
Deposits paid (2,693,598) -
Other receivables (20,241) (9,304)
Accounts payable - (2,253)
Receipt in advance 31,246 -
Deposits received 438,493 -
Other payables and accrued liabilities 200,924 264,967
Value added tax payable 131,234 282,696
Other taxes payable 115,513 19,784
Accrued dividends payable - 7,474
Net cash flows provided by operating
activities 1,938,257 2,892,479
Cash flows from investing activities
Payments to acquire property and equipment (2,381,535) (55,487)
Payments to acquire intangible assets (627,861) -
Repayments of note receivable 1,252,836 -
Increase in note receivable - (512,986)
Net cash flows used in investing activities (1,756,560) (568,473)
Cash flows from financing activities
Contribution by a stockholder - 1,281
Dividend paid (313,209) -
Net cash flows (used in) provided by
financing activities (313,209) 1,281
Effect of foreign currency translation on
cash and cash equivalents 216,100 125,962
Net increase in cash and cash equivalents 84,588 2,451,249
Cash and cash equivalents, beginning of year 6,476,651 4,025,402
Cash and cash equivalents, end of year $6,561,239 $6,476,651
Forward looking statement
Certain information contained in these materials is "forward-looking"
information, such as projections, estimates, pro formas, or statements of
intentions, expectations or plans. All forward-looking information is subject
to known and unknown risks and uncertainties, many of which are outside of the
control of the company. Consequently, actual results may, and probably will,
differ materially from the results contemplated in such forward-looking
information.
About ALONG
ALONG Mobile Technologies, Inc. is a mobile value-added services provider
in the PRC. The Company designs, produces, publishes, manufactures, provides
and distributes proprietary wireless entertainment applications such as ring-
tones, games, images, videos and e-books to its customers. Our Wireless
Applications are intended to be downloaded by our customers on a fee-basis by
means of our proprietary public downloading terminals which are installed by
us in strategic locations such as shopping centers, universities,
entertainment centers, cinemas, hotels, airports, restaurants and parks.
Interaction enriches your life. For more information about ALONG, please visit
http://www.alonggame.com . Our customers will soon be able to download our
games via the internet from the website http://www.whatplay.cn .
For more information, please contact:
ALONG Mobile Technologies Inc.
Michael Wang
Tel: +86-29-8836-0097
Fax: +86-29-8836-0090
Email: michaelwang@alonggame.com
Web: http://www.alonggame.com
