BVI-registered Qiao Xing Universal Telephone, Inc. has reported its financial results for the first quarter of 2008. The unaudited results were announced for the three months ended March 31, 2008. According to the main highlights, net sales made RMB 764.4 mln (USD 109 mln) compared to RMB 870 mln for the same period of the year 2007. Gross profit made RMB 214 mln (USD30.5 mln) versus RMB 145 mln for the year-ago period. Sales revenue was primarily contributed by company’s major operating subsidiary CEC Telecom Company Limited (CECT), involved in the mobile phone handset business, as the volume of mobile phone handsets increased 12.4% compared to the first quarter of 2007. Although sales revenue from the sale of CECT-branded handsets decreased in spite of the increase in sales volume, gross margin increased to a high level of 31.4% of revenue in the first quarter of 2008.
Gross profit and income from operations of the CECT-branded handset business increased 14.1% and 13.3% respectively, from the same period of the last year.
Gross margins in the first quarter of the year 2008 made 28% of net sales, versus 22% for the year-ago period. This improvement was mainly due to an increase in the sales of higher-margin differentiated CECT-branded mobile phone handsets produced by CECT.
Income from operations reported by the BVI company was RMB 158.6 mln (USD 22.6 mln) compared to net loss of 145.0 mln for the year-ago period. Net income made RMB 46.2 mln (USD 6.6 mln) versus net loss of 97.5 mln for the first quarter last year.