Qiao Xing Mobile's (QXM) revenues in the first quarter of 2007 increased to CNY718.2 million, representing a 44.1% increase from the corresponding period in 2006.
"The first quarter of 2007 marked a strong start to the year," commented David Li, CEO of Qiao Xing Mobile. "We sold 753,000 handsets and started to see the benefit of new distribution outlets that we added to the business. Specifically, we started selling one of our newest phones, the C1000 model that features ultra-long life in standby mode, through China Seven Star, one of the leading infomercial companies in China. We have found that this has not only become a key sales channel, but it has also turned into a great marketing outlet because it allows consumers to see the differentiated features that our handsets offer."
Handset shipments in the first quarter of 2007 were 753,000 units, an increase of 40.8 % compared to 535,000 units in the first quarter of 2006 and an increase of 7.0% compared to 704,000 units in the fourth quarter of 2006.
Gross profit was CNY166.4 million in the first quarter of 2007, or 23.2% of revenues, which was an increase from a gross profit of CNY86.3 million, or 17.3 % of revenues in the first quarter of 2006, and 36.5% higher sequentially from CNY121.9 million, or 16.1% of revenues in the fourth quarter of 2006.
Operating profit was CNY134.1 million in the first quarter of 2007, representing an increase of 101.4% from CNY66.6 million in the year-ago quarter and an increase of 129.5% from CNY58.4 million in the fourth quarter of 2006. Net income was CNY105.1 million in the first quarter of 2007, representing a 117.0% increase from the first quarter of 2006 and a 175.5% increase from the fourth quarter of 2006.
