ZHEJIANG PROVINCE, China, Nov. 6 /PRNewswire-FirstCall/ -- China 3C Group (OTC Bulletin Board: CHCG - News), a major retailer and distributor of consumer and business products, today reported revenue for the third quarter ended Sept. 30, 2006 increased 48.7% to $42,573,920, compared to $28,618,196 in the second quarter ended June 30, 2006. Net income was $3,223,854, or $0.07 per share, an increase of 42.5% compared to $2,262,695 in the second quarter, or $0.05 per share.
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For the nine months ended Sept. 30, China 3C reported revenue of $84,642,865. Net income was $6,400,098, or $0.14 per basic and diluted shares.
China 3C CEO Mr. Zhenggang Wang said, "This has been a strong quarter for our company. Our financial results benefited from our newly acquired subsidiary, Sanhe Electronic Technology, which we acquired in the third quarter. The increase in our net sales was due to increased sales volume from new products and existing products as well as the inclusion of the acquisition. Income from operations for the third quarter was $4,946,870, or 11.62% of net sales, compared to income from operations of $3,366,915, or 12.12% of net sales, in the second quarter ended June 30, 2006. This increase was also due to costs of sales and selling and administrative costs and the inclusion of the newly acquired subsidiary.
"Even after the acquisition, cost of sales for the quarter remained stable at $35,974,772, or approximately 84.5% of net sales, compared to $24,347,343, or approximately 85.08% in the second quarter. Gross profit margin was 15.5%, compared to 14.92% in the second quarter, which also remained steady through the acquisition.
"General and administrative expense for the three third quarter totaled $1,652,278, or approximately 3.88% of net sales, compared to $903,938 or approximately 3.16% for the three months ended June 30, 2006. The increase of 0.72% was due to the inclusion of the newly acquired subsidiary during the quarter," Wang said.
China 3C will hold a conference call with key members of the management team on Tuesday, Nov. 7 at 11 a.m. Eastern Time. The call will cover the company's third quarter results and will include a question-and-answer session. To participate, call (877) 407-8033 any time after 10:50 a.m. Eastern Time. International and local callers should dial (201) 689-8033. While in conference, if callers should experience any difficulty or require operator assistance, they can press the (*) followed by the (0) button. This will call an operator to the line.
A live webcast of the call will be available at vcall.com and will be accessible for 90 days. Viewers will need Windows Media Player or Real Player to listen to the broadcast. To download Media Player, go to microsoft.com.
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, information technology and digital) 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. For more information, visit china3cgroup.com. |
