China Expert Technology Has Its Mojo Working

Jun.26.07 | About: China Expert (CXTI)

China Expert Technology (OTC:CXTI) still has its mojo working. Today, the company announced three new contracts:

  1. Guigang City, located in the Guangxi Province, with contract sum of $25.8 million
  2. Zhangping County, located in the Fujian Province, with contract sum of $24.7 million
  3. Longyan City, located in the Fujian Province, with contract sum of $33.1 million
The company places the total net value of these contracts (which I believe excludes hardware purchases and Chinese value added tax) at $72.9 million. A 5% commission, payable in stock, is also due to the consultants who helped land the three contracts.

We continue to sign new contracts and grow backlog with customers located both in our core Fujian market, in addition to new Provinces which we believe represent significant future growth opportunities," commented Mr. Zhu Xiao Xin, CEO of China Expert. "The momentum we have created in the market is based on our ability to reinforce the need for e-government solutions to cities and municipalities while leveraging our expertise to implement reliable and scalable solutions on time and within budget. The industry drivers remain in place as many municipalities and cities begin to comply with the stated Central Government goal of processing at least 50 percent of government administrative approvals electronically by 2010. As the pace of compliance accelerates China Expert is well positioned to capture incremental contracts from both our existing and new customers.

DISCLOSURE: I have no position in CXTI.OB.