Coolpad Group Limited — Earnings Release 2005

Aug 22, 2005

Listed Company Information

Listed Company Information
CHINA WIRELESS<02369> - Results Announcement China Wireless Technologies Limited announced on 22/08/2005: (stock code: 02369 ) Year end date: 31/12/2005 Currency: HKD Auditors' Report: N/A Interim report reviewed by: Audit Committee (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/01/2005 from 01/01/2004 to 30/06/2005 to 30/06/2004 Note ('000 ) ('000 ) Turnover : 172,396 102,046 Profit/(Loss) from Operations : 40,284 20,533 Finance cost : (1,815) (1,085) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 32,626 16,856 % Change over Last Period : +94 % EPS/(LPS)-Basic (in dollars) : 0.08 0.06 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 32,626 16,856 Interim Dividend : $0.01 N/A per Share (Specify if with other : N/A N/A options) B/C Dates for Interim Dividend : 12/09/2005 to 15/09/2005 bdi. Payable Date : 29/09/2005 B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. BASIS OF PREPARATION The interim financial statements have been prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"), Hong Kong Accounting Standard ("HKAS") 34 "Interim financial reporting" issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). 2. Turnover For the six months ended 30 June 2005, the Group accomplished a turnover of HK$172,396,000, representing a growth of 68.9% over that of the same period of 2004. The increase was the result of a shift of business focus of the Group to smartphone products in response to market demand, which led to a large increase in smartphone sales from HK$63,875,000 in 2004 to HK$160,384,000 in 2005. During the period under review, over 45,000 units of smartphone have been sold, which number is comparable to the 2004 full year sales figures. In terms of revenue mix, during the period under review, turnover from smartphones accounted for 93% of the Group's turnover, as compared with 63% for the corresponding period in 2004. Contribution from sales of wireless coverage system decreased from 11% for the six months ended 30 June 2004 to 4% over the corresponding period in 2005, and turnover from integrated telecom business platform increased by about HK$ 1 million compared with that of the corresponding period of 2004, but representing a slight decrease of 1% in the revenue mix in 2005 in view of the strong growth in overall turnover of the Group. The Group ceased the sales of other terminal products for the six months ended 30 June 2005, which sales have accounted for 14% of the turnover for the same period in 2004, for the following reasons : (1) the fixed wireless terminal market in the PRC is vanishing; and (2) a shift of the Group's business focus to the smartphone market. 3. Net Profit For the six months ended 30 June 2005, the Group recorded a net profit of HK$32,626,000, representing an increase of 94% over 2004. The net profit margin raised from 16.5% for the six months ended 30 June 2004 to 19.0% for the corresponding period in 2005. The major reasons for such increase during the period under review include: (1) economy of scale resulting from the enlarged operations of the Group which lead to a lower average cost of sales ; (2) the Group effectively adopted measures to improve administrative efficiency and to control administrative cost. As a result, the proportion of administrative expenses to turnover decreased by 3% in the first half of 2005 as compared to the corresponding period in 2004. 4. EARNINGS PER SHARE The calculation of basic earnings per share for the report period is based on the profit from ordinary activities attributable to shareholders of HK$32,626,000 and the weighted average number of 400,000,000 ordinary shares in issue during the report period. No diluted earnings per share amounts for the six months ended 30 June 2005 have been presented as the Company did not have any dilutive potential ordinary shares during the report period. 5. DIVIDEND The Directors resolved to recommend the payment of an interim dividend of HK$0.01 per share in respect of the six months ended 30 June 2005 to shareholders whose names appear on the register of members of the Company by close of business on 15 September 2005. (Six months ended 30 June 2004: Nil). For these purposes, the register of members of the Company will be closed from 12 September 2005 to 15 September 2005 (both days inclusive) during which no transfer of share(s) will be effected.