XING --
XING's news is no news, it won't put the company in any better shape since the company was/is already 100% exempt from PRC's income taxes from its S1 filing:
Taxation
From 1994 through 1996, the Company was exempt from PRC income tax pursuant to tax holidays that
reduced to partial exemptions in 1997 and terminated as of December 31, 1998. The Company is required to pay
taxes in the PRC at a full rate of 27% based on the income, if any, of its subsidiaries as this tax holiday expired.If the tax holiday did not exist, the Company?s income tax expenses (net of minority interests) would have been
increased by approximately RMB8,188,000, RMB9,554,000 and RMB7,386,000 (US$889,000) for the years
ended December 31, 1995, 1996 and 1997, respectively. See Note 16 to the Consolidated Financial Statements.
biz.yahoo.com
Qiao Xing Universal Telephone Inc. Named ``High- and New-Tech Enterprise' Resulting in Multi-Year Tax-Exempt Status
HUIZHOU, CHINA--(BUSINESS WIRE)--Jan. 31, 2000--Qiao Xing Universal Telephone Inc. (Nasdaq:XING - news) today announced that it has obtained the authorized title of ``High- and New-Tech Enterprise' from Guangdong Province government.
This new category entitles the company to up to 100 percent exemption from People's Republic of China enterprise income taxes for the next three years, and up to 50 percent exemption in the fourth to the sixth years, as well as up to 25 percent exemption from value added tax (VAT).
Commented Riu Lin Wu, chairman of Qiao Xing Universal Telephone: ``Naturally, we are very pleased to have received this title and its inherent tax-exempt status. The actual ratio of tax exemptions will need to be approved by the Tax Bureau and we hope to know Qiao Xing's ratio for the first three years by April 2000.
``We are pleased to be one of a small number of manufacturers in China to be named a 'High- and New-Tech Enterprise,' which we hope will give us the edge on the competition with regard to obtaining CDMA approval. Clearly the Guangdong Province government is extremely supportive of Qiao Xing, which is very gratifying to our hardworking and talented team.'
In 1997 and 1998, Qiao Xing Universal Telephone ranked No. 2 in telephone sales in China. The company currently produces 165 corded models and 25 cordless models, and has an extensive nationwide sales network that comprises 1,350 retail outlets in China. In 1995, Qiao Xing became the first telephone manufacturer in China to receive the ISO 9001 Quality System Accreditation award.
This news release contains ``forward-looking statements' regarding future revenues and operating information and their impact on future results. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. These risks and uncertainties include, but are not limited to, those relating to economic, political, legal and social conditions in the People's Republic of China, dependence upon key management personnel, competition, material factors relating to the operations of the business, and domestic and global general economic conditions.
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