Net sales for the second quarter 2008 is expected to be in the range of $81.5-$82.5 million, which would be a 26%-28% increase compared to the prior year second quarter results of $64.5 million.
Net income for the second quarter 2008 is expected to be in the range of $7.3-$7.4 million, which would be a 33%-35% increase compared to the prior year second quarter results of $5.5 million. Second quarter 2008 diluted earnings per share is expected to be approximately $0.14 compared to $0.10 in the same period last year.
Mr. Zhenggang Wang, Chairman and Chief Executive Officer commented, “We are very pleased with our preliminary second quarter results, which exceeded our internal plan. Our sales growth benefitted from a net increase in new doors, healthy demand for electronic products in most of our key categories, a broader product selection from the prior year period as well as from certain, new consumer-oriented programs that focus on service and increasing awareness of our expanding portfolio of brands.
Our net income improved largely due to increased sales results, the exit from unproductive doors as well as a lower tax rate in the second quarter compared to the prior year. We also anticipate a sequential improvement in gross margin for the second quarter. Overall, we are encouraged with our second quarter performance and continue to work aggressively to further enhance our position in China’s electronic consumer industry,” concluded Wang.
CHCG.OB as of close on July 15 - 2008
This stock has in no shape or form been the best preformer in my portoflio, as a matter a fact it's been the worst preforming equity I've owned in the past year and a half. Nevertheless, I have remained patient and vigilent with this company knowing that when global financial markets finally begin to recover and Chinese equities and markets pick up once again... the mainstream investment community will once again take note China 3C Group.
CHCG is a sort of mini version of Best Buy, operating small electronic retail stores within larger retailers of China. CHCG currently has over 900 stores within stores in operation, and hopes with their recently agreement with Yongle, they will achieve their long time goal of having 1,000 stores in operation. Some of its retail partners include Carrefour (French), Bestbuy (US), Wal-Mart (US), Lotour (Chinese), Yongle (Chinese) among others.
*** Click on the links above to access articles describing CHCG's agreement with each particular company.
2008 was undoubebly a tough year for all equities. CHCH was no exception. After receiving a great deal of hype from articles published in the Wall Street Journal, Barrons and other financial publications; the stock failed to ever IPO and saw its share price plummit from around $8/ per share in the summer of 2007, to under $2/ per share this year.
I feel the stock is unfairly priced, with the market pricing in too high a risk factor on the equity. The company has virtually no liabailities (that means little or no debt), it slowed down the pace of opening its long time goal of 1000 + stores in order to consolidate its current operations, closing various stores throughout 2008 and focusing its energies on the more profitable operations.
CHCG also receives revenue from its distributions services to larger retails, which it is highly acredited for doing efficiently. With the backing of many well known foreign retailers, big names in China and continued profits this equity looks like a good play to me.
Although I don't condone any action on the part of readers, this is a micro-cap, speculative investment which could continue to preform badly if markets overall continue this bear market, which has been one of the major reasons this equity has failed this past year.
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