HUIZHOU, Guangdong, China, Nov. 27 /Xinhua-PRNewswire/ -- Qiao Xing
Universal Telephone, Inc. (Nasdaq: XING) today provides a preliminary review
of the financial performance of its operations, for the three months ended
September 30, 2006 ahead of the release of more detailed financial
information including earnings per share.
The total sales revenue for the three months ended September 30 is
estimated to reach RMB 841.9 million (USD 106.5 million).
Sales revenue from the Mobile phone segment is estimated to reach RMB
768.3Million (USD97.3 million), driven primarily by the popularity of the
“CECT” branded ‘A1000’ and ‘IP1000’ Models. These mobile phones with
ultra-long standby batteries provide about 1,000 hours of standby time and
are not available in any of our competitors’ products. ‘COSUN’ branded
mobile handsets introduced in the second half of 2004, also benefited from
the increasing brand recognition and the expanding distribution network.
Sales revenue for the indoor, or land-line phones is estimated to reach
RMB 73.6 (USD 9.3 million) for the three months ended September 30, 2006.
With the standard of living in China on the rise, households are disposed to
replace old land-line phone sets with new ones with value-added functions.
Gross profit of the XING Group is estimated to reach RMB 195.4 (USD 24.7
million) for the third quarter of 2006, driven primarily by “CECT” branded
mobile phone sales.
The operating expenses of the XING Group are expected to be RMB 26.2
million (USD 3.3 million) in the third quarter of 2006.
Income from operations of the XING Group is expected to reach RMB 169.1
million (USD 21.4 million) for the three months ended September 30, 2006.
Mr. Wu Rui Lin, Chairman of XING, said, “Great progress in income from
operations has been made in the third quarter of 2006. This would contribute
towards the attainment of satisfying whole-year financial results.”
Forward-looking statements
This press release contains forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995 including those as to the
anticipated operating results for the third quarter of 2006. These
statements present management’s expectations, beliefs, plans and objectives
regarding future financial performance and are subject to change. Any
discussions contained in this press release, except to the extent that they
contain historical facts, are forward-looking and accordingly involve
estimates, assumptions, judgments and uncertainties. There are a number of
factors that could cause actual results or outcomes to differ materially from
those addressed in the forward-looking statements. Such factors are detailed
in the Company’s Annual Report on Form 20-F for the fiscal year ended
December 31, 2005 and subsequent reports filed with the Securities and
Exchange Commission.
About Qiao Xing Universal Telephone, Inc.
Qiao Xing Universal Telephone, Inc. is one of China’s largest
manufacturers and distributors of telecommunications products. The Company
conducts is operations primarily through two subsidiaries: CEC Telecom Co.,
Ltd. (“CECT”), its primary subsidiary, and Huizhou Qiao Xing Communication
Industry, Limited (“HZQXCI”). CECT sells “CECT” branded cell phones and
HZQXCI sell indoor phones and “Cosun” branded mobile phones. The Company’
s product portfolio includes telecommunications terminals and related
products, including fixed wireless phones, VoIP telephones, advanced mobile
phones, PDAs and consumer electronic products, including MP3 players, cash
registers and set-top-box products. This includes the world’s first model
of dual mode and dual call waiting GSM/CDMA smartphone, the ‘CECT CoolPAD
728’, and a model of multi-media PDA phone that enjoys 1000 hours stand by
time, the ‘A100’. The Company has established co-operative relationships
with leading telecom and software companies for their China strategy,
including Microsoft and Palm, aiding success for its ‘High End Mobile Phone
Strategy’. XING has launched more than 120 models of mobile phones and has
established more than 250 wholesales outlets and more than 350 after sales
service centres in 31 provinces and municipalities. In indoor business area,
XING currently distributes over 300 models of corded and cordless telephones
and is one of China’s largest distributors of indoor phones. For its indoor
phone segment, the Company has built a strong distribution network comprised
of more than 5,000 retail stores throughout China and has established
partnerships with major retailers in Europe, North America and Latin America,
including Bellsouth and Wal-mart. For more details, please visit
http://www.cosun-xing.com .
