China GrenTech Corporation Limited Announces Fourth Quarter and Fiscal Year 2008 Financial Results
Posted on: Tuesday, 14 April 2009, 15:05 CDT
SHENZHEN, China, April 14 /PRNewswire-Asia-FirstCall/ -- China GrenTech
Corporation Limited (Nasdaq: GRRF, "the Company," or "GrenTech"), a leading
China-based radio frequency ("RF") technology and product developer and a
leading wireless coverage products and services provider, today announced its
unaudited financial results for the fourth quarter and fiscal year ended
December 31, 2008.
Fourth Quarter 2008 Highlights
-- Total revenue increased by 9.0% year-over-year to RMB514.4 million
(US$75.4 million)(1).
- Revenue from wireless coverage products and services decreased by
10.1% year-over-year to RMB397.7 million (US$58.3 million).
- Revenue from base station RF products tripled as compared to the
fourth quarter of 2007, and reached RMB116.8 million (US$17.1
million).
-- Gross profit decreased by 47.6% year-over-year to RMB86.4 million
(US$12.7 million).
-- Operating loss was RMB63.9 million (US$9.4 million), compared to an
operating profit of RMB91.3 million in the fourth quarter of 2007.
-- Net loss was RMB51.8 million (US$7.6 million), compared to a net income
of RMB78.1 million in the corresponding period in 2007.
-- Diluted loss per ADS(2) was RMB2.14 (US$0.31), compared to diluted
earnings per ADS of RMB3.13 in the fourth quarter of 2007.
Fiscal Year 2008 Highlights
-- Total revenue increased by 0.5% year-over-year to RMB984.7 million
(US$144.3 million).
- Revenue from wireless coverage products and services decreased by
5.3% year-over-year to RMB763.1 million (US$111.8 million).
- Revenue from base station RF products increased by 27.7%
year-over-year to RMB221.6 million (US$32.5 million).
-- Gross profit decreased by 36.6% year-over-year to RMB233.3 million
(US$34.2 million).
-- Operating loss was RMB102.5 million (US$15.0 million), compared to
operating profit of RMB116.0 million in 2007.
-- Net loss was RMB118.8 million (US$17.4 million), compared to net income
of RMB82.5 million in 2007.
-- Diluted loss per ADS was RMB4.87 (US$0.71), compared to diluted
earnings per ADS of RMB3.30 in 2007.
(1) The Company's reporting currency is Renminbi (''RMB''). The
translation of amounts from RMB to U.S. 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, 2008 in the City of New York for
cable transfers in RMB per U.S. Dollar as certified for customs
purposes by the Federal Reserve Bank of New York, which was
US$1.00=RMB6.8225. 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, 2008, or at any other date.
(2) Each ADS represents 25 of our ordinary shares.
Mr. Yingjie Gao, Chairman and Chief Executive Officer of GrenTech, said,
"In 2008, we met both challenges and opportunities. We benefited from the
tremendous opportunities brought by the completion of the restructuring of
China's telecommunications operators and renewed network construction projects.
These were, however, offset by challenges from uncertainties that arose during
the restructuring process earlier in the year and the disruption of network
construction projects during the Beijing Olympic Games.
"As announced last quarter, we committed to a set of strategic and
operational initiatives to strengthen our cash flow position and work toward
achieving long-term profitability. So far, results have been encouraging. We
made improving cash flow position a priority in 2008. We increased the
scrutiny of our order selection process and our settlement term improved
significantly after the implementation of centralized procurement policies by
our major operator customers. As a result, the collection of payments in 2008
increased by RMB276.8 million (US$40.6 million), or 34.9%, as compared to 2007
and accounts receivable came down by RMB35.9 million, resulting in an improved
operating cash flow position. We made a provision for a settlement discount of
RMB24.4 million as of December 31, 2008, which we offered to certain of our
customers in order to accelerate collection of aged accounts receivable.
Although these activities have slowed our revenue and profit in the short-term,
the resulting accounts receivable and the operating cash flow improvement will
strengthen our balance sheet over the long-term.
"We also divested two subsidiaries in Quanzhou to improve short-term
liquidity and streamline the manufacturing process. We wrote-off RMB43.6
million (US$6.4 million) of bad debt incurred from wireless equipment sales to
non-operator customers. We made a one-time provision of RMB42.0 million
(US$6.2 million) for inventory that is no longer suitable for future network
construction, due to rapid advancement in wireless coverage technology and the
rollout of large-scale 3G network construction. This write-off is necessary so
that we can align our stock with market demands, and capitalize on the growing
network construction opportunities. Finally, we cut administration expenses by
reducing our senior management team from eight to five positions and
streamlining middle management.
"We strengthened our RF business development and made breakthroughs in key
customer accounts in 2008. We boosted sales to certain leading domestic base
station manufacturers, became a qualified supplier for two leading global base
station manufacturers, and commenced bulk supply for one of these global base
station manufacturers. The RF business contributed 22.5% of our revenue in
2008, as compared to 17.7% in 2007.
"While we are actively pursuing the opportunities presented by the
resumption of network construction and expect strong top-line growth in the
coming quarters, in light of global financial crises and softened economic
conditions, we will continue to prepare for the possibility of further
disruptions by continuing our focus on improving our customer mix,
streamlining our cost base and operations, and strengthening our balance sheet.
We believe the measures that we have implemented will effectively sharpen our
competitive edge and enhance our ability to capture future 3G network
construction opportunities. Most importantly, we are committed to steadily
strengthening our cash flow position as we move toward profitability in the
long-term," concluded Mr. Gao.
Financial Analysis for the Fourth Quarter and Fiscal Year 2008
Revenue
Revenue for the fourth quarter of 2008 increased RMB42.7 million (US$6.3
million), or 9.0%, to RMB514.4 million (US$75.4 million) from RMB471.8 million
in the fourth quarter of 2007. The primary driver was the telecommunications
operator spending growth following the completion of the industry
restructuring in the fourth quarter. China Telecom commenced CDMA equipment
bidding immediately after the restructuring plan was announced, and China
Mobile followed by opening the bid for its TD-SCDMA phase II network
construction. Accelerated network expansion led to greater base station
equipment demand and thus increased the Company's sales from domestic base
station manufacturers. As a result, fourth quarter of 2008 revenue from base
station RF products tripled over the fourth quarter of 2007. Fourth quarter
2008 revenue from wireless coverage products and services decreased by 10.1%
year-over-year, which was mainly due to the disruption of network construction
projects during the Beijing Olympic Games and the operator restructuring
process; the Company's initiatives to attract higher quality orders also
caused a decrease in its fourth quarter sales volume in the wireless coverage
business.
Total fiscal year 2008 revenue was roughly in line with 2007 revenue; the
0.5% increase was the result of a 27.7% year-over-year RF revenue increase and
a 5.3% year-over-year wireless coverage revenue decrease.
Revenue breakdown:
2007 2008
Q4 FY Q4 FY
% of
RMB'000 RMB'000 RMB'000 US$'000 RMB'000 US$'000 Revenue
Wireless Coverage Products & Service
China Mobile 201,749 317,735 171,523 25,141 390,266 57,203 39.6 %
China Unicom 230,699 377,785 136,180 19,960 244,455 35,831 24.8 %
China
Telecom 3,374 49,636 64,235 9,415 75,440 11,058 7.7 %
China Netcom 1,550 20,515 0 0 5,105 748 0.5 %
Overseas 269 11,591 3,300 484 8,128 1,191 0.8 %
Non-operators 4,677 28,495 22,431 3,288 39,697 5,818 4.1 %
Subtotal 442,318 805,757 397,669 58,288 763,091 111,849 77.5 %
RF Products
OEMs 29,460 173,545 116,780 17,117 221,566 32,476 22.5 %
Total 471,778 979,302 514,449 75,405 984,657 144,325 100.0 %
Cost of Revenues and Gross Profit
The cost of revenue for the fourth quarter of 2008 increased by RMB121.0
million, or 39.4%, to RMB428.1 million (US$62.7 million) from RMB307.1 million
in the fourth quarter of 2007.
The cost of revenue for fiscal year 2008 increased by RMB139.9 million, or
22.9%, to RMB751.4 million (US$110.1 million) from RMB611.4 million in 2007.
The increase in cost of revenues was driven primarily by the increased
sales volume. In addition, the management has made a one-time write-off of
RMB42.0 million (US$6.2 million) for inventory in 2008, which was charged to
cost of revenues.
Gross margin decreased from 37.6% in 2007 to 23.7% in 2008. The decrease
in gross margin was mainly due to the inventory provision, declining wireless
coverage equipment average selling price and the increased revenue
contribution from RF base station products, which have a lower gross margin.
Excluding the RMB42.0 million inventory provision, the Company's gross margin
in 2008 would have been 28.0%.
Gross profit for the fourth quarter of 2008 decreased by RMB78.3 million,
or 47.6%, to RMB86.4 million (US$12.7 million) from RMB164.7 million in the
fourth quarter of 2007.
Gross profit for fiscal year 2008 decreased by RMB134.6 million, or 36.6%,
to RMB233.3 million (US$34.2 million) from RMB367.9 million in 2007.
Operating Expenses
Total operating expenses for the fourth quarter of 2008 increased by
RMB76.9 million, or 104.8%, to RMB150.3 million (US$22.0 million) from RMB73.4
million in the fourth quarter of 2007.
Total operating expenses for fiscal year 2008 increased by RMB83.9 million,
or 33.3%, from RMB251.8 million in 2007 to RMB335.8 million (US$49.2 million).
Research and development costs for the fourth quarter of 2008 increased
37.6% to RMB21.6 million (US$3.2 million) from RMB15.7 million in the fourth
quarter of 2007.
Research and development costs for fiscal year 2008 increased 24.2% to
RMB70.2 million (US$10.3 million) from RMB56.5 million in 2007. The
year-over-year increase was mainly due to development initiatives for base
station models and 3G wireless coverage products. In 2008, the Company filed a
total of 235 technology and product patent applications in China. To date, the
Company has developed a number of TD-SCDMA and WCDMA trunk amplifiers and
repeaters, and has commenced bulk supply of Radio Remote Unit (RRU) products
to one of the key domestic base station manufacturers. In the base station RF
module segment, the Company developed RF modules for two leading global base
station manufacturers, and has commenced trial supply for one of them. R&D
costs accounted for 7.1% of total revenue in 2008, which represents a 1.4%
year-over-year increase.
Sales and distribution expenses for the fourth quarter of 2008 increased
58.5% to RMB51.9 million (US$7.6 million) from RMB32.7 million in the fourth
quarter of 2007.
Sales and distribution expenses for fiscal year 2008 increased 9.2% to
RMB138.5 million (US$20.3 million) from RMB126.8 million in 2007. This was due
to increased wireless coverage business travel and communications expenses as
telecommunications operators revitalized investments in the fourth quarter
2008. Sales and distribution expenses accounted for 14.1% of total revenue in
2008, as compared to 12.9% in 2007.
General and administrative expenses for the fourth quarter of 2008
increased 207.7% to RMB76.8 million (US$11.3 million) from RMB25.0 million in
the fourth quarter of 2007.
General and administrative expenses for fiscal year 2008 increased 85.4%
to RMB127.0 million (US$18.6 million) from RMB68.5 million in 2007. The
year-over-year increase was mainly attributable to the write-off of RMB43.6
million (US$6.4 million) of bad debt incurred from wireless equipment sales to
non-operators. In addition, costs for stock option issuance and expenses
associated with the Company's new Sarbanes-Oxley compliance system each added
RMB3.2 million (US$0.5 million) to the general and administrative expenses.
General and administrative expenses accounted for 12.9% of total revenue in
2008, as compared to 7.0% in 2007.
Total Other Expenses/Income
Total other income for the fourth quarter of 2008 was RMB22.3 million
(US$3.3 million), compared to total other expenses of RMB4.6 million in the
same period last year. This change is due to an increased amount of grant
income from government subsidies and a gain from the disposal of two
subsidiaries.
Total other expenses for fiscal year 2008 decreased by 42.4% to RMB13.9
million (US$2.0 million) from RMB24.2 million in 2007. This year-over-year
decrease is primarily due to increased interest income and grant income, a
gain from the disposal of two subsidiaries and the decrease of foreign
currency exchange loss, these factors were partially offset by an increase in
interest expense.
Interest income for the fourth quarter of 2008 increased by 6.3% to
RMB16.5 million (US$2.4 million) from RMB15.6 million in the fourth quarter of
2007.
Interest income for fiscal year 2008 increased by 40.1% to RMB31.3 million
(US$4.6 million) from RMB22.3 million in 2007. The increase interest primarily
arose from the amortization of discounted income from prior years' accounts
receivable.
Interest expense for the fourth quarter of 2008 decreased by 14.6% to
RMB12.3 million (US$1.8 million) from RMB14.4 million in the fourth quarter of
2007.
Interest expense for fiscal year 2008 increased by 55.2% to RMB54.8
million (US$8.0 million) from RMB35.3 million in 2007, primarily due to an
increased average bank loans balance and an increase in the effective interest
rate.
The foreign currency exchange gain for the fourth quarter of 2008 was
RMB0.5 million (US$0.1 million), compared to a foreign currency exchange loss
of RMB8.7 million in the fourth quarter of 2007, primarily due to the slight
depreciation of the RMB to U.S. dollar exchange compared to the fourth quarter
of 2007.
The foreign currency exchange loss for fiscal year 2008 decreased by 44.6%
to RMB10.4 million (US$1.5 million) from RMB18.8 million in 2007, primarily
due to the lower foreign currency deposit and less appreciation of the RMB to
U.S. dollar exchange rate compared to 2007.
Grant income from government subsidies for the fourth quarter of 2008
increased by RMB10.1 million to RMB13.0 million (US$1.9 million) from RMB2.9
million in 2007.
Grant income for fiscal year 2008 increased by RMB7.9 million to RMB15.2
million (US$2.2 million) from RMB7.4 million in 2007. This increase was the
result of additional projects for which the Company received government grants
in 2008 compared to 2007.
Earnings
The fourth quarter 2008 operating loss was RMB63.9 million (US$9.4
million), as compared to an operating profit of RMB91.3 million in the fourth
quarter of 2007.
Operating loss for fiscal year 2008 was RMB102.5 million (US$15.0 million),
as compared to an operating profit of RMB116.0 million in 2007.
Net loss for the fourth quarter of 2008 was RMB51.8 million (US$7.6
million), as compared to a net income of RMB78.1 million in the fourth quarter
of 2007.
Net loss for fiscal year 2008 was RMB118.8 million (US$17.4 million), as
compared to a net income of RMB82.5 million in 2007.
Diluted loss per ADS for the fourth quarter of 2008 was RMB2.14 (US$0.31),
as compared to diluted earnings per ADS for the fourth quarter of 2007 of
RMB3.13.
Diluted loss per ADS for fiscal year 2008 was RMB4.87 (US$0.71), as
compared to diluted earnings per ADS for fiscal year 2007 of RMB3.30.
Balance Sheet
Cash and cash equivalents and pledged time deposits as of December 31,
2008 decreased by RMB160.8 million, or 27.9%, to RMB415.7 million (US$60.9
million) from RMB576.6 million as of December 31, 2007, mainly attributable to
higher cash outlays for raw material purchases, as well as increased operating
expenses, R&D expenses and construction expenses for the manufacturing and
research facility.
Total accounts receivable as of December 31, 2008 decreased by RMB35.9
million, or 2.7%, to RMB1.279 billion (US$187.5 million) from RMB1.315 billion
as of December 31, 2007. This decrease was mainly attributable to the
Company's efforts to obtain sales orders from higher quality customers and
initiatives to improve collection time.
Inventories as of December 31, 2008 decreased by RMB21.5 million, or 4.0%,
to RMB520.6 million (US$76.3 million) from RMB542.1 million as of December 31,
2007.
Total assets as of December 31, 2008 decreased by RMB130.7 million, or
4.4%, to RMB2.867 billion (US$420.2 million) from RMB2.997 billion as of
December 31, 2007. The decrease was mainly due to the write-off of
uncollectible accounts receivable and inventories that were considered
obsolete.
Total liabilities as of December 31, 2008 were RMB1.401 billion (US$205.4
million), which was in line with RMB1.405 billion as of December 31, 2007.
Current liabilities as of December 31, 2008 increased by RMB17.5 million, or
1.4%, to RMB1.267 billion (US$185.7 million) from RMB1.249 billion as of
December 31, 2007, primarily due to a long-term bank loan in the amount of
RMB20 million that will be due in 2009 and thus became a portion of current
liabilities in the fourth quarter of 2008.
Business Outlook
Wireless Coverage Products and Services
While the Chinese government's economic stimulus plan accelerated large
scale 3G network construction projects, the management believes that the
continued and increasing 3G network investments by China's leading
telecommunications operators will present the Company with new market
opportunities. At the same time, management believes that the 2G network will
remain a key income source for operators in the near term. Under the new
competitive landscape created by the restructuring, the three operators must
also continue to improve network quality, investing in 2G networks to remain
competitive. With its leading market position, management plans to vigorously
develop 3G network coverage products in order to increase its 3G market share,
while maintaining market share in the traditional 2G market. At the same time,
management will continue to evolve its revenue mix to increase contribution
from integration and maintenance services to offset the impact of declining
equipment prices, and therefore drive further growth and profitability in 2009
and beyond.
Base Station RF Products
As operators accelerate large-scale 3G network construction, base station
demand has strengthened. During the WCDMA and CDMA network construction
projects, the Company's two key customers, which are leading base station
manufacturers in China, have picked up substantial market share for base
station products. As their major supplier for the WCDMA and CDMA modules,
GrenTech believes it will benefit from their rapid business growth.
With respect to the development of international customers, GrenTech is
now a qualified supplier for two leading global base station manufacturers and
has commenced bulk supply for one of them, and provided trial supply to the
other. Management believes that revenue from overseas customers will increase
considerably over the medium-term.
Guidance for First Quarter 2009
Management estimates that revenue for the first quarter of 2009 will range
between RMB280 million and RMB310 million.
Conference Call and Webcast
Following the earnings announcement, GrenTech senior management will host
a conference call at 8:00 am (Eastern) / 5:00 am (Pacific) / 8:00 pm
(Beijing/Hong Kong) on Wednesday, April 15, 2009 to discuss its 2008 fourth
quarter and full year financial results and recent business activity. To
access the live teleconference, please dial 1-866-713-8563 (U.S.), 800-96-3844
(Hong Kong) or 1-617-597-5311 (International), and enter the passcode
GRENTECHCALL. Please dial in approximately 10 minutes before the scheduled
time of the call.
A replay of the conference call will be available through 10:00 am,
Wednesday, April 22, 2009 (Eastern) by dialing 1-888-286-8010 or 1-617-801-
6888 and entering the passcode: 75499595.
A webcast replay of the conference call will be available on the investor
relations page of GrenTech's website at
http://www.grentech.com.cn/en/Earnings_Announcements.asp .
About GrenTech
GrenTech is a leading developer of radio frequency ("RF") technology in
China and a leading provider of wireless coverage products and services in
China. 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 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 telecom
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 telecom operators' bidding policies or other factors; the
risk that the telecom 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; fierce competition in the wireless communication
industry; growth of, and risks inherent in, the wireless communication
industry in China, including uncertainties regarding the timing and nature of
any future restructuring of the telecom operators in China and the risks that
such restructuring will not result in expanded investments to expand network
coverage or quality; uncertainty as to future profitability and the Company's
ability to obtain adequate financing for its planned capital expenditure
requirements; its reliance on third parties to carry out the installation of
its wireless coverage products; 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.
China GrenTech Corporation Limited and subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2007 and 2008
(RMB and US$ expressed in thousands, except share and per share data)
December December December
31, 2007 31, 2008 31, 2008
RMB RMB US$
Assets
Cash and cash equivalents 316,778 293,353 42,998
Pledged time deposits 259,786 122,368 17,936
Accounts receivable, net 925,838 728,260 106,744
Inventories 542,094 520,619 76,309
Other current assets 63,195 115,066 16,866
Total current assets 2,107,691 1,779,666 260,853
Long-term accounts receivable 389,505 551,210 80,793
Other non-current assets 500,103 535,683 78,517
Total assets 2,997,299 2,866,559 420,163
Liabilities and shareholders' equity
Short-term bank loans 456,050 480,207 70,386
Other current liabilities 793,031 786,410 115,266
Total current liabilities 1,249,081 1,266,617 185,652
Long-term debt 150,000 130,000 19,055
Other non-current liabilities 5,938 4,752 697
Total liabilities 1,405,019 1,401,369 205,404
Minority interest 5,763 4,354 638
Total shareholders' equity 1,586,517 1,460,836 214,121
Total liabilities and shareholders'
equity 2,997,299 2,866,559 420,163
China GrenTech Corporation Limited and subsidiaries
Unaudited Condensed Consolidated Statements of Income
For Three-month Periods and Years Ended December 31, 2007 and 2008
(RMB and US$ expressed in thousands, except share and per share data)
For Three Months Ended December 31,
2007 2008 2008
RMB RMB US$
Revenues 471,778 514,449 75,405
Cost of revenues (307,124) (428,096) (62,748)
Gross profit 164,654 86,353 12,657
Research and development costs (15,712) (21,612) (3,168)
Sales and distribution expenses (32,727) (51,859) (7,601)
General and administrative expenses (24,965) (76,829) (11,261)
Total operating expenses (73,404) (150,300) (22,030)
Operating income/(loss) 91,250 (63,947) (9,373)
Interest income 15,556 16,539 2,424
Interest expense (14,362) (12,263) (1,797)
Investment income -- 4,577 671
Foreign currency exchange
gain/(loss) (8,693) 489 72
Grant income 2,925 12,978 1,902
Total other expense/(income) (4,574) 22,320 3,272
Income tax expense (8,586) (10,289) (1,509)
Income/(loss) before minority
interests 78,090 (51,916) (7,610)
Net income/(loss) 78,052 (51,775) (7,588)
Net income/(loss) per share:
- Basic 0.13 (0.09) (0.01)
- Diluted 0.13 (0.09) (0.01)
Weighted average number of ordinary
shares:
- Basic 623,499,408 605,773,317 605,773,317
- Diluted 623,499,408 605,773,317 605,773,317
For the Year Ended December 31,
2007 2008 2008
RMB RMB US$
Revenues 979,302 984,657 144,325
Cost of revenues (611,436) (751,367) (110,131)
Gross profit 367,866 233,290 34,194
Research and development costs (56,525) (70,232) (10,294)
Sales and distribution expenses (126,816) (138,524) (20,304)
General and administrative expenses (68,498) (127,028) (18,618)
Total operating expenses (251,839) (335,784) (49,216)
Operating income/(loss) 116,027 (102,494) (15,022)
Interest income 22,313 31,257 4,581
Interest expense (35,347) (54,844) (8,039)
Investment income 318 4,873 714
Foreign currency exchange
gain/(loss) (18,791) (10,418) (1,527)
Grant income 7,355 15,209 2,229
Total other expense/(income) (24,152) (13,923) (2,042)
Income tax expense (10,321) (3,157) (463)
Income/(loss) before minority
interests 81,554 (119,574) (17,527)
Net income/(loss) 82,536 (118,778) (17,410)
Net income/(loss) per share:
- Basic 0.13 (0.19) (0.03)
- Diluted 0.13 (0.19) (0.03)
Weighted average number of ordinary
shares:
- Basic 624,624,852 610,158,841 610,158,841
- Diluted 624,624,852 610,158,841 610,158,841
For further information, please contact:
Investor Contact:
China GrenTech Corp Ltd.
Kent Lo, Investor Relations Manager
Tel: +86-755-2650-3007
Email: kentlo@GrenTech.com.cn
Investor Relations (US):
Taylor Rafferty
Delia Cannan
Tel: +1-212-889-4350
Email: GrenTech@taylor-rafferty.com
Investor Relations (HK):
Taylor Rafferty
Ruby Yim
Tel: +852-3196-3712
Email: GrenTech@taylor-rafferty.com
Media Contact:
Taylor Rafferty
Jason Marshall
Tel: +1-212-889-4350
Email: GrenTech@taylor-rafferty.com
SOURCE China GrenTech Corporation Limited
Source: PR Newswire
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