Chinese mobile phone manufacturer Bird is suffering a big loss with its net profit in the first half of this year dropping by 859.26% compared with that of the same period last year.
According to the company's latest report, in the first half of this year, the company suffered a total loss of CNY237 million, which was 859.26% less than the same period of 2006. The company attributes the loss to several reasons, including fierce market competition and tough price wars. Bird estimates that its net profit for the period between January and September of this year will also see big losses.
Bird's report says that in order to reduce costs and change the current capital crisis, Bird will sell stakes in three of its affiliates, including Ningbo Sagem Bird Development and Research Company, a joint venture company between it and French Sagem, in exchange for CNY25 million.
In addition, it will transfer 24% of its stake at Chongqing Bird in which it holds a 70% stake in total to Chongqing Runside Technology and 73% of the stake of Chongqing Bird Information to an unnamed individual for CNY3 million.