China 3C Group Expects to Report a Significant Increase in Revenue and Net Income for Third Quarter 200631 August 2006
China 3C Group (OTC Bulletin Board: CHCG.OB), the parent company of Zhejiang Yong Xin Digital Technology Co., Ltd., today announced that it expects to report significantly higher revenue and net income for its third quarter ending September 30, 2006 over the previous year's third quarter.
Revenues for the third quarter are expected to be $35.25 million, compared to revenues of $8.1 million for third quarter 2005, an increase of 335%. The Company expects to report net income of $2.51 million, or $0.05 per share, compared to a net income of $502,000, or $0.01 per share for the same quarter last year, an increase of 400%.
This expected increase in revenue would represent a sequential increase of 23% over second quarter 2006 revenue of $28.61 million, and an 11% increase in net income over net income of $2.26 million reported for the same period.
Mr. Zhenggang Wang, Chief Executive Officer, stated, "We have experienced spectacular growth in the first half of 2006 due to our successful transition to a retail chain operator from a channel distributor. Through our acquisition of Hangzhou Sanhe, we now have more than 600 retail stores with our business line increasing to home electronics. In order to expand our business to Southern China and Beijing, we will look to acquire another equally successful retail chain with a strong presence in these geographic areas."
About China 3C Group
China 3C Group is a leading retail chain operating over 600 independent stores in Eastern China. The Company specializes in selling 3C products (communication products, information technology products, and digital products) in China through its subsidiary Zhejiang Yong Xin Digital Technology Co., Ltd. Among China 3C's primary attributes is its efficient distribution network and rapid logistics system. The Company's goal is to become the number one retailer of 3C products in China.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995.
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the recent economic slow down affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our Annual Report on Form 10-KSB, recent and forthcoming Quarterly Reports on Form 10-QSB, recent Current Reports on Forms 8-K and 8- K/A, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
At Company At Financial Relations Board
Jincheng (Jason) Yuan Marilynn Meek, General - 212-827-3773
Vice President Julie Tu, Analysts - 212-827-3776
Tel: 201-963-6764
Fax: 201-963-6794
Email: jasonyuan@china3cgroup.com
Website: http://www.China3CGroup.com
Source: prnewswire
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