China Digital Communications Group (CHID.ob), a Chinese manufacturer of battery shells and related technology for use in electronic products, including mobile phones, and digital cameras, announced Q4 and FY2004 results. The company provided few details, but did beat its own previous revenue guidance.
- China Digital acquired Shenzhen E'Jenie, a Chinese battery shell manufacturer in Q4 2004.
- Prior to that, China Digital was an inactive company with negligible revenue.
- It did not begin realizing sales until after the acquisition of Shenzhen E'Jenie.
- Sales and income for 2003 were not significant.
Comparisons discussed here relate solely to Shenzhen E'Jenie. China Digital has provided unaudited pro forma sales and income figures as if it had owned Shenzhen E'Jenie during both 2003 and all of 2004.
Q4 2004 pro forma unaudited results:
(all percentage changes and comparisons are year on year, unless stated otherwise)
- Revenue increased 192% to $2.34 million, compared to previous company guidance of $2 million.
FY 2004 pro forma unaudited results:
(all percentage changes and comparisons are year on year, unless stated otherwise):
- Revenue increased 151% to approximately $5.18 million, compared to previous company guidance of $4.5 million.
- Pro forma net income increased 86% to approximately $245,000.
CEO Yi Bo Sun comments on latest results:
....The latest financial results have exceeded our expectations for sales growth at Shenzhen E'Jenie. This testifies both to the rapid acceptance of E'Jenie battery shells and other components, and to the fast growth in our primary market, that of manufacturers of batteries for wireless phones and other consumer electronics in China. With E'Jenie showing such strong results after less than three years in operation, we expect continued robust expansion in the future.Quick thought: No other financial details were provided. For The China Stock Blog's profile of China Digital, click here.
China Digital's stock market performance:
Disclosure: I am LONG China Digital.