Ningbo Bird, once the top Chinese mobile handset maker, has released its semi-annual report which says the company realized revenue of about CNY1.29 billion in the first six months of 2008, a year-on-year decrease of 39.32%, but a loss of CNY22.08 million in net profit.
According to the financial report, from January to June 2008, the Ningbo City, Zhejiang Province-based handset manufacturer realized revenue of about CNY1.29 billion, a year-on-year decrease of 39.32%. Of the total revenue, Bird's domestic handset revenue amounted to CNY600 million, a year-on-year decrease of 33%, while the overseas market contributed CNY660 million, a year-on-year decrease of 44%.
Compared with the CNY593 million losses in the same period in 2007, Bird's losses were a substantial decline in the first half of 2008. However, the company is still expected to lose money in the third quarter of 2008.
The company says that the strong competition in the Chinese market was the main reason for the sales decline of Bird. In addition, its export income was reduced because of the sale of its stake in a joint venture with French-based Sagem Mobiles.
At the same time, the report says that Bird has started to adjust its marketing strategies and it plans to shut down all subsidiaries to cut costs and improve profitability. So far, 15 of its subsidiaries have completed closures in their local industry and commerce departments and another 14 subsidiaries are undergoing liquidations.