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China Digital Communication Group Announces Revenue Growth of over 150% in Operating Subsidiary Wednesday March 30, 9:15 am ET Company's Subsidiary, Battery Component Maker Shenzhen E'Jenie, Reports 86% Year-over-Year Gain in Net Income
LOS ANGELES and SHENZHEN, China--(BUSINESS WIRE)--March 30, 2005-- China Digital Communication Group (OTCBB:CHID - News), one of the fastest growing battery production companies in China, today announced financial results for the fourth quarter and full year ended December 31, 2004. Here are highlights of the report:
Company experienced significant revenue growth in E'Jenie operating subsidiary. Shenzhen E'Jenie unaudited pro forma sales for fiscal year 2004 totaled approximately $5.18 million, up 151% from approximately $2.06 million in 2003. Shenzhen E'Jenie unaudited pro forma net income was approximately $245,000 for 2004, compared to net income of $132,000 in 2003. Unaudited Pro Forma Results Show Shenzhen E'Jenie Growth
China Digital acquired E'Jenie Science & Technology Co. Ltd. (Shenzhen E'Jenie), one of China's leading makers of shells and related parts for batteries used in mobile phones and other electronic devices, during the fourth quarter on November 15, 2004. Prior to that, China Digital (formerly known as Jasmine's Garden) was an inactive company with negligible revenue, and it did not begin realizing any sales until after the acquisition of Shenzhen E'Jenie, in the fourth quarter. Sales and income for 2003 were also not significant. Consequently, the comparisons discussed in this press release relate solely to Shenzhen E'Jenie. China Digital has therefore provided unaudited pro forma sales and income figures as if it had owned Shenzhen E'Jenie during both 2003 and all of 2004.
On an unaudited pro forma basis, fourth-quarter revenue for China Digital was approximately $2.34 million, up 192% from approximately $794,000 reported by Shenzhen E'Jenie in the fourth quarter of 2003. Full-year 2004 revenue for China Digital was approximately $5.18 million, up 151% from approximately $2.06 million in 2003. Sales specifically for the Shenzhen E'Jenie unit were substantially identical, also up 151% year-over-year. The pro forma net income for 2004 was approximately $245,000, up 86% from net income of approximately $132,000 in 2003. Both the quarterly and annual sales results for China Digital exceeded earlier guidance by approximately 15%.
"The latest financial results have exceeded our expectations for sales growth at Shenzhen E'Jenie," said Yi Bo Sun, China Digital's Chairman and Chief Executive Officer. "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."
Mr. Sun noted that, since the end of 2004, China Digital has significantly expanded its production capacity by moving to a new Shenzhen plant that enables it to increase its production capacity by at least 40%. It also has expanded its research and development operations in Shenzhen and has opened a new U.S. headquarters in Los Angeles to gain greater access both to battery-component markets and the U.S. investment community.
To be added to China Digital's investor e-mail list, please contact Zack Noory of Investor Relations International at znoory@irintl.com.
About China Digital Communication Group
China Digital Communication Group (OTCBB:CHID - News), through its subsidiary Shenzhen E'Jenie, is a rapidly growing manufacturer of battery shells and related parts for use in electronic products, primarily mobile phones. Since December 2003, the Company has adopted the approach of using licenses, joint ventures, mergers and acquisitions to gain market share for its products among battery and telecom equipment makers in China and overseas. The Company's battery products now power digital cameras, camera phones, PDAs and laptop computers in East Asia and beyond. China Digital is continuing its expansion across China while also seeking distribution partners in the U.S.
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