2009 total revenue increased by 62.8%; 2009 gross profit increased by 62.4%
SHENZHEN, China, March 31 /PRNewswire-Asia/ -- China GrenTech Corporation Limited (Nasdaq: GRRF, "the Company", or "GrenTech"), a leading China-based provider of radio frequency ("RF") and wireless coverage products and services, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2009.
Fourth Quarter 2009 Financial Highlights
-- Total revenue decreased by 2.9% year-over-year to RMB499.6 million
(US$73.2 million)(1)
-- Revenue from wireless coverage products and services decreased by
2.0% year-over-year to RMB389.7 million (US$57.1 million).
-- Revenue from base station RF products decreased by 5.9%
year-over-year to RMB109.9 million (US$16.1 million).
-- Gross profit increased by 9.7% year-over-year to RMB94.8 million
(US$13.9 million).
-- Operating loss was RMB10.0 million (US$1.5 million), as compared to an
operating loss of RMB91.5 million in the fourth quarter of 2008.
-- Net loss attributable to the equity shareholders of GrenTech was RMB7.1
million (US$1.0 million), compared to a net loss attributable to the
equity shareholders of GrenTech of RMB79.4 million in the fourth
quarter of 2008.
-- Diluted net loss per ADS(2) was RMB0.30 (US$0.04), compared to a
diluted net loss per ADS of RMB3.28 in the fourth quarter of 2008.
Fiscal Year 2009 Highlights
-- Total revenue increased by 62.8% year-over-year to RMB1,602.9 million
(US$234.8 million).
-- Revenue from wireless coverage products and services increased by 56.7%
year-over-year to RMB1,196.0 million (US$175.2 million).
-- Revenue from base station RF products increased by 83.7% year-over-year
to RMB407.0 million (US$59.6 million).
-- Gross profit increased by 62.4% year-over-year to RMB379.0 million
(US$55.5 million).
-- Operating income was RMB60.4 million (US$8.8 million), compared to an
operating loss of RMB130.1 million in 2008.
-- Net income was RMB32.7 million (US$4.8 million), compared to net loss
of RMB146.4 million in 2008.
-- Diluted income per ADS(2) was RMB1.35 (US$0.20), compared to diluted
loss per ADS of RMB6.00 in 2008.
Mr. Yingjie Gao, Chairman and Chief Executive Officer of GrenTech, commented, "We are very pleased to have achieved the upper end of our expected guidance for fiscal year 2009, resulting in revenue growth of over 62%. Our team was able to drive rapid revenue growth across all of our business lines for the year, capitalizing on strong demand derived from the Chinese telecommunications operators' committed investment programs. As the operators deploy their 3G networks and enhance their 2G networks, we have made significant progress in expanding the scale of all of our business lines and further solidifying our market leadership positions.
"In addition to substantial top-line growth, a significant achievement in 2009 was the enhancement of our accounts receivable collection, which resulted in a reduction in accounts receivable days close to 40%. This has substantially improved our cash flow and working capital efficiency and further solidified our business fundamentals.
"Moving forward, we will continue to strive to enhance our leading position in the markets for wireless coverage and base station RF products, and to refine our business efficiency as we execute our growth plan and build sustainable shareholder value."
Senior Management Transition
In order to further strengthen GrenTech's management structure to support its fast growing business, the Company has realigned responsibilities of senior management. Ms. Rong Yu, Chief Financial Officer since 2005, will assume a more active role in investor relations. Mr. Qingchang Liu, Vice President, who was formerly responsible for investor relations and corporation finance, will assume the management of the RF business, with Mr. Qi Wang, Vice President, taking the leadership to drive GrenTech's wireless coverage business.
Financial Analysis for the Fourth Quarter and Fiscal Year 2009
Revenues
Total revenues for the fourth quarter of 2009 decreased year-over-year by RMB14.9 million (US$2.2 million), or 2.9%, to RMB499.6 million (US$73.2 million), primarily due to particularly high revenue in the fourth quarter of 2008 as the Chinese telecommunication operators increased their spending after the completion of industry restructure. Beginning in early 2009, due to the issuance of 3G licenses by the PRC government, the seasonal revenue trends for GrenTech began to smooth; this decreased seasonality impact was also a factor in the year-over-year revenue decline. Revenues from wireless coverage products and services for the fourth quarter of 2009 decreased year-over-year by 2.0% to RMB389.7 million (US$57.1 million). For the fourth quarter of 2009, revenues from base station RF products decreased year-over-year by 5.9% to RMB109.9 million (US$16.1 million).
Total fiscal year 2009 revenue increased year-over-year by 62.8% to RMB1,602.9 million (US$234.8 million). This increase is primarily driven by the issuance of 3G licenses by the PRC government in 2009, which led to the three major Chinese telecommunication operators' increased expenditure for large-scale network construction during the year. Revenues from wireless coverage products and services for fiscal year 2009 increased year-over-year by 56.7% to RMB1,196.0 million (US$175.2 million), primarily due to 3G network deployment, which increased customer demand, and the Company's expansion of its product portfolio and services. For fiscal year 2009, revenues from base station RF products increased year-over-year by 83.7% to RMB407.0 million (US$59.6 million), due to 3G network construction projects, increased procurement demand from domestic base station manufacturers, and the Company's successful bid wins from various original equipment manufacturers ("OEMs"), as well as increased demand from overseas customers.
2008
Q4 FY
RMB'000 RMB'000
Wireless Coverage Products & Service
China Mobile 171,523 390,266
China Unicom 136,180 244,455
China Telecom 64,235 75,440
China Netcom -- 5,105
Overseas 3,300 8,128
Non-operators 22,431 39,697
Subtotal 397,669 763,091
Radio Frequency Products
OEMs 116,780 221,566
Total 514,449 984,657
2009
Q4
RMB'000 US$'000
Wireless Coverage Products & Service
China Mobile 108,092 15,836
China Unicom 142,361 20,856
China Telecom 113,929 16,691
China Netcom -- --
Overseas 4,614 676
Non-operators 20,705 3,033
Subtotal 389,701 57,092
Radio Frequency Products
OEMs 109,883 16,097
Total 499,584 73,189
2009
FY
RMB'000 US$'000 % of Revenue
Wireless Coverage Products & Service
China Mobile 390,902 57,267 24.4%
China Unicom 518,246 75,923 32.3%
China Telecom 241,198 35,336 15.0%
China Netcom -- -- --
Overseas 17,054 2,498 1.1%
Non-operators 28,574 4,186 1.8%
Subtotal 1,195,974 175,210 74.6%
Radio Frequency Products
OEMs 406,969 59,622 25.4%
Total 1,602,943 234,832 100.0%
Growth Rate %
Q4'09 YoY FY09 YoY
Wireless Coverage Products & Service
China Mobile -37.0% 0.2%
China Unicom 4.5% 112.0%
China Telecom 77.4% 219.7%
China Netcom -- --
Overseas 39.8% 109.8%
Non-operators -7.7% -28.0%
Subtotal -2.0% 56.7%
Radio Frequency Products
OEMs -5.9% 83.7%
Total -2.9% 62.8%
Cost of Revenues
Cost of revenues in the fourth quarter of 2009 decreased year-over-year by RMB23.3 million, or 5.4%, to RMB404.8 million (US$59.3 million), primarily due to the decline in total revenue and a reduced inventory written off.
Cost of revenues for fiscal year 2009 increased year-over-year by RMB472.6 million, or 62.9%, to RMB1,224.0 million (US$179.3 million), driven primarily by the expansion of the Company's revenue base for fiscal year 2009.
Operating Expenses
Total operating expenses for the fourth quarter of 2009 decreased year-over-year by RMB71.5 million (US$10.5 million), or 40.2%, to RMB106.4 million (US$15.6 million).
For fiscal year 2009, total operating expenses decreased year-over-year by 11.4% to RMB321.9 million (US$47.2 million).
Research and development ("R&D") expenses for the fourth quarter of 2009 decreased year-over-year by 18.9% to RMB17.5 million (US$2.6 million). As a percentage of total revenues, R&D expenses for the fourth quarter of 2009 decreased to 3.5% from 4.2% in the fourth quarter of 2008.
For fiscal year 2009, R&D expenses decreased year-over-year by 14.7% to RMB59.9 million (US$8.8 million). This decrease was mainly the result of a relatively stable pipeline of R&D projects in addition to enhanced R&D efficiency and effectiveness. As a percentage of revenues, R&D expenses for fiscal year 2009 decreased to 3.7% from 7.1% in the fiscal year 2008.
Sales and distribution expenses for the fourth quarter 2009 increased year-over-year by 13.6% to RMB58.9 million (US$8.6 million). As a percentage of revenues, sales and distribution expenses for the fourth quarter of 2009 increased to 11.8% from 10.1% in the fourth quarter of 2008.
For fiscal year 2009, sales and distribution expenses increased 30.3% year-over-year to RMB180.5 million (US$26.4 million). This increase was mainly due to increase in sales activities and distribution expenses driven by the increased sales volume. However, as percentage of revenues, sales and distribution expenses for fiscal year 2009 decreased to 11.3% from 14.1% in the fiscal year 2008.
General and administrative ("G&A") expenses for the fourth quarter of 2009 decreased year-over-year by 60.9% to RMB30.0 million (US$4.4 million). As percentage of revenues, fourth quarter G&A expenses decreased to 6.0% in 2009 from 14.9% in 2008.
For the fiscal year 2009, G&A expenses decreased year-over-year by 35.8% to RMB81.5 million (US$11.9 million). This decrease was mainly due to a reduction in bad debt allowances. As percentage of revenues, G&A expenses decreased to 5.1% from 12.9% in the fiscal year 2008.
Other Income / Expense
Interest income for the fourth quarter of 2009 remained stable at RMB16.2 million (US$2.4 million), as compared to RMB16.5 million for the fourth quarter of 2008.
For fiscal year 2009, interest income increased year-over-year by 31.2% to RMB41.0 million (US$6.0 million). This increase in interest income is primarily related to long-term accounts receivable interest income.
Interest expense increased year-over-year by 10.2% to RMB13.5 million (US$2.0 million), primarily due to increased bank loan balances.
For fiscal year 2009, interest expense increased year-over-year by 3.5% to RMB56.8 million (US$8.3 million), primarily due to increased bank loan balances, the impact of which was partially offset by the decrease in average borrowing rate.
Foreign currency exchange gains were RMB0.2 million (US$0.02 million), compared to a gain of RMB0.5 million in the fourth quarter of 2008, primarily due to decreased foreign currency deposits.
For fiscal year 2009, the foreign currency exchange loss was RMB0.2 million (US$0.03 million), as compared to a loss of RMB10.4 million in 2008, primarily due to smaller foreign currency deposits and the relatively stable exchange rate between RMB to U.S. dollar in 2008.
Grant income for the fourth quarter of 2009 was RMB0.9 million (US$0.1 million), compared to RMB13.0 million for the fourth quarter of 2008.
For fiscal year 2009, grant income was RMB6.3 million (US$0.9 million), compared to RMB15.2 million for fiscal year 2008.
Earnings
Gross profit for the fourth quarter of 2009 increased year-over-year by RMB8.4 million, or 9.7%, to RMB94.8 million (US$13.9 million). Gross margin for the fourth quarter of 2009 was 19.0%, compared to a gross margin of 16.8% in the fourth quarter of 2008.
Gross profit for fiscal year 2009 increased year-over-year by RMB145.7 million, or 62.4%, to RMB379.0 million (US$55.5 million). Gross margin for fiscal year 2009 was 23.6%, compared to a gross margin of 23.7% for fiscal year 2008.
Operating loss for the fourth quarter of 2009 was RMB10.0 million (US$1.5 million), as compared to a fourth quarter 2008 operating loss of RMB91.5 million.
For fiscal year 2009, operating income was RMB60.4 million (US$8.8 million), as compared to an operating loss of RMB130.1 million for fiscal year 2008.
Net loss attributable to the equity shareholders of GrenTech was RMB7.1 million (US$1.0 million) in the fourth quarter of 2009, compared to a net loss attributable to the equity shareholders of GrenTech of RMB79.4 million for the fourth quarter of 2008.
For fiscal year 2009, net income attributable to the equity shareholders of GrenTech was RMB32.7 million (US$4.8 million), compared to a net loss for fiscal year 2008 of RMB146.4 million.
Diluted loss per ADS for the fourth quarter of 2009 was RMB0.30 (US$0.04), compared to a diluted loss per ADS of RMB3.28 for the fourth quarter of 2008.
Diluted earnings per ADS for fiscal year 2009 was RMB1.35 (US$0.20), compared to a diluted loss per ADS for fiscal year 2008 of RMB6.00.
Balance Sheet
Cash, cash equivalents and pledged time deposits were RMB572.5 million (US$83.9 million) as of December 31, 2009, an increase of 37.7% as compared to December 31, 2008, primarily attributable to cash generated from operations, especially enhanced accounts receivable collections.
Total accounts receivable including long-term accounts receivable as of December 31, 2009 was RMB1,344.3 million (US$196.9 million), an increase of 5.1% versus December 31, 2008, primarily due to increased revenue in fiscal 2009. However, total accounts receivable turnover days decreased to 291 days, as compared to 469 days as of December 31, 2008, primarily due to the adoption of business contracts with more stringent payment terms, as well as enhanced collection efforts. In addition, long-term accounts receivable balance as of December 31, 2009 was RMB452.2 million (US$66.2 million), a decline of 18.0% when compared to the balance as of December 31, 2008.
Inventories as of December 31, 2009 compared to December 31, 2008 increased by 48.1% to RMB771.2 million (US$113.0 million), primarily due to the increased revenue in fiscal year 2009. However, inventory turnover days decreased to 190 days, as compared to 255 inventory turnover days as of December 31, 2008, primarily due to improved supply chain management efficiency.
Business Outlook
Moving forward, GrenTech expects growth to continue in all of its product lines; however, GrenTech expects the growth trajectory to resume to normal in comparison to 2009. This is because that the completion of telecommunication industry restructure in the late 2008 and the 3G license issuances by the PRC government in early 2009 created an exceptional environment for the year, driving extraordinarily strong demand from all three telecommunications operators in China in 2009.
Wireless Coverage Products and Services
The Company believes that the following factors will help maintain growth momentum in 2010:
-- GrenTech anticipates that China Mobile's capital expenditure for
wireless coverage infrastructure will continue to increase, enabling
GrenTech to expand its wireless coverage service market share.
-- All three telecom operators plan to begin their centralized procurement
bidding programs soon. During this process, the Company will leverage
its advanced technical solutions, innovative product portfolio and
nationwide service support in its effort to win bids that will
contribute to future revenue growth.
-- GrenTech will continue its commitment to new product development, new
business expansion, and full solution integration.
However, due to the exceptional first quarter 2009 performance, the first quarter 2010 revenues are expected to be normal, which is lower than the year-ago period.
Base Station RF Products
GrenTech believes that demand for its base station RF products will grow due to continued demand from key domestic base station manufacturers. The Company believes that the following factors throughout 2010 will continue to drive sustainable growth:
-- In its base station RF modules procurement bids in the first half of
2010, GrenTech has obtained a larger share of market value from one of
the largest domestic base station manufacturers.
-- GrenTech has commenced strategic initiatives and efforts in developing
RF products and solutions for telecommunication operators, in addition
to the OEMs GrenTech is currently servicing.
-- GrenTech believes that demand for its base station RF products from
overseas base station manufacturers will remain stable.
However, primarily due to the current delay of the telecommunication operators' 3G network build-out compared to the first quarter of 2009, GrenTech expects that the revenue from RF products for the first quarter 2010 to be lower compared to a year-ago period.
Guidance for First Quarter 2010
Management estimates that revenue for the first quarter of 2010 will be in the range of RMB130 million to RMB160 million.
Conference Call and Webcast
GrenTech senior management will host a conference call at 5:00 am (Pacific) / 8:00 am (Eastern) / 8:00 pm (Beijing/ Hong Kong) on Thursday, April 1, 2010 to discuss the Company's 2009 fourth quarter and full year financial results and the recent business activity. To access the live teleconference, please dial +1 617 213 8859 (US) or +1 866 831 6272 (International), with passcode GRENTECHCALL. Please dial in approximately 10 minutes before the scheduled time of the call.
A replay of the conference call will be available from 11:00 am (Eastern) on Thursday, April 1, 2010, by dialing +1 888 286 8010 (International callers use +1 617 801 6888) and entering passcode 72492863.
A live webcast of the conference call and replay will also be available on the investor relations page of GrenTech's website at:
http://www.grentech.com.cn/en/Earnings_Announcements.asp .
About China GrenTech
GrenTech is a leading China-based provider of radio frequency ("RF") and wireless coverage products and services. The Company uses RF technology to design and manufacture wireless coverage products, which enable telecommunication operators to expand the reach of their wireless communication networks to indoor and outdoor areas, such as buildings, highways, railways, tunnels and remote regions. GrenTech's wireless coverage services include design, installation and project warranty services. The Company also tailors the design and configuration of its wireless coverage products to the specific requirements of its customers.
Based on its in-house RF technology platform, the Company also develops and produces base station RF parts and components sold to base station manufacturers. GrenTech is a qualified supplier of RF parts and components to the global and domestic major base station manufacturers including Ericsson (China) Corporation Ltd, Nokia Siemens Network, Huawei Technologies and ZTE Corporation. For more information, please visit http://www.GrenTech.com.cn .
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Statements contained in this press release that are not historical facts are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including financial projections and forecasts, involve risks and uncertainties that could cause the Company's actual results to differ materially from its current expectations. Factors that could cause the Company's results to differ materially from those set forth in these forward-looking statements include the Company's reliance on business relationships with the Chinese telecommunication operators and base station manufacturers; the risk that the Company will continue to experience downward pressure on the pricing of its products and services due to the telecommunication operators' bidding policies or other factors; the risk that the telecommunication operators in China will not expand or maintain their spending on 2G, 3G, WLAN or other network projects; uncertainty as to the future demand for base station RF products by domestic or international base station manufacturers, including the risk that demand in China or elsewhere for base stations may not grow as the Company's management anticipates; risks associated with large accounts receivable, long collection periods and accounts receivable cycles and uncertainty as to whether new operator policies will improve such cycles in the long-term; fierce competition in the wireless communication industry; uncertainty as to future profitability and the Company's ability to obtain adequate financing for its planned capital expenditure requirements; uncertainty as to its ability to continuously develop and manufacture new RF technologies and keep up with changes in RF technologies; risks associated with possible defects and errors in its wireless coverage products or RF products; uncertainty as to the Company's ability to protect and enforce its intellectual property rights; and uncertainty as to the Company's ability to attract and retain qualified executives and personnel, particularly in its research and development department. Other factors that may causes the Company's actual results to differ from those set forth in the forward-looking statements contained in this press release and that may affect its prospects in general are described in the Company's filings with the Securities and Exchange Commission, including its Registration Statement on Form F-1 related to its initial public offering and its annual reports on Form 20-F. The Company undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or changed assumptions or circumstances.
For more information, please contact:
Investor Contact:
Cat Zhang, Investor Relations Manager
China GrenTech Corp Ltd.
Tel: +86-755-2650-3007
Email: investor@grentech.com.cn
Investor Relations (HK):
Ruby Yim
Taylor Rafferty
Tel: +852-3196-3712
Email: GrenTech@Taylor-Rafferty.com
Investor Relations (US):
Delia Cannan
Taylor Rafferty
Tel: +1-212-889-4350
Email: GrenTech@Taylor-Rafferty.com
Media Contact:
Jason Marshall
Taylor Rafferty
Tel: +1-212-889-4350
Email: GrenTech@Taylor-Rafferty.com
(1) The Company’s reporting currency is Renminbi (“RMB”). The
translation of amounts from RMB to United States dollars is solely for
the convenience of the reader. RMB numbers included in this press
release have been translated into U.S. dollars at the noon buying rate
for U.S. Dollars in effect on December 31, 2009 as set forth in the
H.10 statistical release of the U.S. Federal Reserve Board, which was
US$1.00=RMB6.8259. No representation is made that RMB amounts could
have been, or could be, converted into U.S. Dollars at that rate or at
any other rate on December 31, 2009.
(2) Each ADS represents 25 of the Company’s ordinary shares.
China GrenTech Corporation Limited and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2008 and December 31, 2009
(RMB and US$ expressed in thousands)
December 31, December 31 December 31,
2008 2009 2009
RMB RMB US$
Assets
Current assets
Cash and cash
equivalents 293,353 469,454 68,775
Pledged time deposits 122,368 103,035 15,095
Accounts receivable, net 728,260 892,149 130,701
Inventories 520,619 771,236 112,987
Other current assets 115,066 116,793 17,110
Total current assets 1,779,666 2,352,667 344,668
Long-term accounts
receivable 551,210 452,191 66,246
Other non-current assets 508,094 532,489 78,010
Total assets 2,838,970 3,337,347 488,924
Liabilities
Current liabilities
Short-term bank loans 480,207 613,378 89,860
Other current
liabilities 786,410 1,142,441 167,368
Total current
liabilities 1,266,617 1,755,819 257,228
Long-term debt 130,000 110,000 16,115
Other non-current
liabilities 4,752 4,679 686
Total liabilities 1,401,369 1,870,498 274,029
Total GrenTech's
shareholders equity 1,433,247 1,462,509 214,259
Non controlling
interests 4,354 4,340 636
Total liabilities and
equity 2,838,970 3,337,347 488,924
China GrenTech Corporation Limited and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
(RMB and US$ expressed in thousands, except share and per share data)
For Three Months Ended December 31,
2008 2009 2009
RMB RMB US$
Revenues 514,449 499,584 73,189
Cost of revenues (428,096) (404,827) (59,307)
Gross profit 86,353 94,757 13,882
Other revenue -- 1,664 244
Operating expenses:
Research and development
costs (21,612) (17,524) (2,567)
Sales and distribution
expenses (51,859) (58,906) (8,630)
General and administrative
expenses (76,829) (30,004) (4,396)
Impairment of goodwill (27,589) -- --
Total operating expenses (177,889) (106,434) (15,593)
Operating (loss) / income (91,536) (10,013) (1,467)
Other income / (expense):
Interest income 16,539 16,240 2,379
Interest expense (12,263) (13,515) (1,980)
Investment income 4,577 -- --
Foreign currency exchange
gain /(loss) 489 162 24
Grant income 12,978 920 135
Total other expense 22,320 3,807 558
(Loss)/earnings before income
tax (69,216) (6,206) (909)
Income tax (10,289) (883) (129)
Net (loss)/income (79,505) (7,089) (1,038)
Less net loss attributable to
non-controlling interests 141 14 2
Net (loss) /income
attributable to the
equity shareholders of
GrenTech (79,364) (7,075) (1,036)
(Loss) /earnings per share
available to the equity
shareholders of GrenTech:
- Basic (0.13) (0.01) (0.002)
- Diluted (0.13) (0.01) (0.002)
Weighted average number of
ordinary shares outstanding:
- Basic 605,773,317 590,137,125 590,925,175
- Diluted 605,773,317 593,783,108 593,783,108
For Year Ended December 31,
2008 2009 2009
RMB RMB US$
Revenues 984,657 1,602,943 234,832
Cost of revenues (751,367) (1,223,973) (179,313)
Gross profit 233,290 378,970 55,519
Other revenue -- 3,344 490
Operating expenses:
Research and development
costs (70,232) (59,899) (8,775)
Sales and distribution
expenses (138,524) (180,525) (26,447)
General and administrative
expenses (127,028) (81,506) (11,941)
Impairment of goodwill (27,589) -- --
Total operating expenses (363,373) (321,930) (47,163)
Operating (loss) / income (130,083) 60,384 8,846
Other income / (expense):
Interest income 31,257 40,997 6,006
Interest expense (54,844) (56,766) (8,316)
Investment income 4,873 -- --
Foreign currency exchange
gain /(loss) (10,418) (211) (31)
Grant income 15,209 6,322 926
Total other expense (13,923) (9,658) (1,415)
(Loss)/earnings before income
tax (144,006) 50,726 7,431
Income tax (3,157) (18,068) (2,647)
Net (loss)/income (147,163) 32,658 4,784
Less net loss attributable to 796 14 2
non-controlling interests
Net (loss) /income
attributable to the
equity shareholders of
GrenTech (146,367) 32,672 4,786
(Loss) /earnings per share
available to the equity
shareholders of GrenTech:
- Basic (0.24) 0.05 0.008
- Diluted (0.24) 0.05 0.008
Weighted average number of
ordinary shares outstanding:
- Basic 610,158,841 595,536,733 595,536,733
- Diluted 610,158,841 604,781,041 604,781,041
China GrenTech Corporation Limited and Subsidiaries
Unaudited Consolidated Cash Flow Information
For the Year ended December 31, 2008 and 2009
(RMB and US$ expressed in thousands)
For Year Ended December 31,
2008 2009 2009
RMB RMB US$
Net cash provided by operating
activities 5,056 90,731 13,292
Net cash provided by / (used in)
investing activities 28,113 (45,338) (6,642)
Net cash (used in) / provided by
financing activities (52,085) 130,919 19,180
Effect of exchange rate changes on
cash (4,509) (211) (31)
Net (decrease)/increase in cash
and cash equivalents (23,425) 176,101 25,799
Cash at beginning of the year 316,778 293,353 42,976
Cash at end of the year 293,353 469,454 68,775
