SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the month of April, 2009
Commission File Number: 333-132381
CHINA GRENTECH CORPORATION LIMITED
15th Floor, Block A, Guoren Building
Keji Central 3rd Road
Hi-Tech Park, Nanshan District
Shenzhen 518057, Peoples Republic of China
Tel: (86 755) 2663-8900
(Indicate by check mark whether the registrant files or will file annual reports under cover
of Form 20-F or
Form 40-F.)
Form 20-F
þ
Form 40-F
o
(Indicate by check mark whether the registrant by furnishing the information contained in this
form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.)
Yes
o
No
þ
(If Yes is marked, indicate below the file number assigned to registrant in connection with
Rule 12g3-2(b):
82-
.)
N/A
This Form 6-K consists of:
The
announcement of fourth quarter and fiscal year 2008 financial results of
China GrenTech Corporation Limited (the
Registrant), made by the Registrant in English on April 14, 2009.
3
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FOR IMMEDIATE RELEASE
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CHINA GRENTECH CORPORATION LIMITED ANNOUNCES FOURTH
QUARTER AND FISCAL YEAR 2008 FINANCIAL RESULTS
SHENZHEN, CHINA April 14, 2009
China GrenTech Corporation Limited (NASDAQ: GRRF, the
Company, or GrenTech), a leading China-based radio frequency (RF) technology and product
developer and a leading wireless coverage products and services provider, today announced its
unaudited financial results for the fourth quarter and fiscal year ended December 31, 2008.
Fourth Quarter 2008 Highlights
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Total revenue increased by 9.0% year-over-year to RMB514.4 million (US$75.4 million)
(1)
.
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Revenue from wireless coverage products and services decreased by 10.1% year-over-year
to RMB397.7 million (US$58.3 million).
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Revenue from base station RF products tripled as compared to the fourth quarter of
2007, and reached RMB116.8 million (US$17.1 million).
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Gross profit decreased by 47.6% year-over-year to RMB86.4 million (US$12.7 million).
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Operating loss was RMB63.9 million (US$9.4 million), compared to an operating profit of RMB91.3 million in the
fourth quarter of 2007.
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Net loss was RMB51.8 million (US$7.6 million), compared to a net income of RMB78.1 million in the corresponding
period in 2007.
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Diluted loss per ADS
(2)
was RMB2.14 (US$0.31), compared to diluted earnings per ADS
of
RMB3.13 in the fourth quarter of 2007.
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Fiscal Year 2008 Highlights
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Total revenue increased by 0.5% year-over-year to RMB984.7 million (US$144.3 million).
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Revenue from wireless coverage products and services decreased by 5.3% year-over-year
to RMB763.1 million (US$111.8 million).
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Revenue from base station RF products increased by 27.7% year-over-year to RMB221.6
million (US$32.5 million).
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Gross profit decreased by 36.6% year-over-year to RMB233.3 million (US$34.2 million).
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Operating loss was RMB102.5 million (US$15.0 million), compared to operating profit of RMB116.0 million in 2007.
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Net loss was RMB118.8 million (US$17.4 million), compared to net income of RMB82.5 million in 2007.
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Diluted loss per ADS was RMB4.87 (US$0.71), compared to diluted earnings per ADS of RMB3.30 in 2007.
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(1)
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The Companys reporting currency is Renminbi (RMB).
The translation of amounts from RMB to U.S. Dollars is solely for the
convenience of the reader. RMB numbers included in this press release have been
translated into U.S. Dollars at the noon buying rate for U.S. Dollars in effect
on December 31, 2008 in the City of New York for cable transfers in RMB per
U.S. Dollar as certified for customs purposes by the Federal Reserve Bank of
New York, which was US$1.00=RMB6.8225. No representation is made that RMB
amounts could have been, or could be, converted into U.S. Dollars at that rate
or at any other rate on December 31, 2008, or at any other date.
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(2)
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Each ADS represents 25 of our ordinary shares.
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4
Mr. Yingjie Gao, Chairman and Chief Executive Officer of GrenTech, said, In 2008, we met both
challenges and opportunities. We benefited from the tremendous opportunities brought by the
completion of the restructuring of Chinas telecommunications operators and renewed network
construction projects. These were, however, offset by challenges from uncertainties that arose
during the restructuring process earlier in the year and the disruption of network construction
projects during the Beijing Olympic Games.
As announced last quarter, we committed to a set of strategic and operational initiatives to
strengthen our cash flow position and work toward achieving long-term profitability. So far,
results have been encouraging. We made improving cash flow position a priority in 2008. We
increased the scrutiny of our order selection process and our settlement term improved
significantly after the implementation of centralized procurement policies by our major operator
customers. As a result, the collection of payments in 2008 increased by RMB276.8 million (US$40.6
million), or 34.9%, as compared to 2007 and accounts receivable came down by RMB35.9 million,
resulting in an improved operating cash flow position. We made a provision for a settlement
discount of RMB24.4 million as of December 31, 2008, which we offered to certain of our customers
in order to accelerate collection of aged accounts receivable. Although these activities have
slowed our revenue and profit in the short-term, the resulting accounts receivable and the
operating cash flow improvement will strengthen our balance sheet over the long-term.
We also divested two subsidiaries in Quanzhou to improve short-term liquidity and streamline the
manufacturing process. We wrote-off RMB43.6 million (US$6.4 million) of bad debt incurred from
wireless equipment sales to non-operator customers. We made a one-time provision of RMB42.0 million
(US$6.2 million) for inventory that is no longer suitable for future network construction, due to
rapid advancement in wireless coverage technology and the rollout of large-scale 3G network
construction. This write-off is necessary so that we can align our stock with market demands, and
capitalize on the growing network construction opportunities. Finally, we cut administration
expenses by reducing our senior management team from eight to five positions and streamlining
middle management.
We strengthened our RF business development and made breakthroughs in key customer accounts in
2008. We boosted sales to certain leading domestic base station manufacturers, became a qualified
supplier for two leading global base station manufacturers, and commenced bulk supply for one of
these global base station manufacturers. The RF business contributed 22.5% of our revenue in 2008,
as compared to 17.7% in 2007.
While we are actively pursuing the opportunities presented by the resumption of network
construction and expect strong top-line growth in the coming quarters, in light of global financial
crises and softened economic conditions, we will continue to prepare for the possibility of further
disruptions by continuing our focus on improving our customer mix, streamlining our cost base and
operations, and strengthening our balance sheet. We believe the measures that we have implemented
will effectively sharpen our competitive edge and enhance our ability to capture future 3G network
construction opportunities. Most importantly, we are committed to steadily strengthening our cash
flow position as we move toward profitability in the long-term, concluded Mr. Gao.
5
Financial Analysis for the Fourth Quarter and Fiscal Year 2008
Revenue
Revenue for the fourth quarter of 2008 increased RMB42.7 million (US$6.3 million), or 9.0%, to
RMB514.4 million (US$75.4 million) from RMB471.8 million in the fourth quarter of 2007. The primary
driver was the telecommunications operator spending growth following the completion of the industry
restructuring in the fourth quarter. China Telecom commenced CDMA equipment bidding immediately
after the restructuring plan was announced, and China Mobile followed by opening the bid for its
TD-SCDMA phase II network construction. Accelerated network expansion led to greater base station
equipment demand and thus increased the Companys sales from domestic base station manufacturers.
As a result, fourth quarter of 2008 revenue from base station RF products tripled over the fourth
quarter of 2007. Fourth quarter 2008 revenue from wireless coverage products and services decreased
by 10.1% year-over-year, which was mainly due to the disruption of network construction projects
during the Beijing Olympic Games and the operator restructuring process; the Companys initiatives
to attract higher quality orders also caused a decrease in its fourth quarter sales volume in the
wireless coverage business.
Total fiscal year 2008 revenue was roughly in line with 2007 revenue; the 0.5% increase was the
result of a 27.7% year-over-year RF revenue increase and a 5.3% year-over-year wireless coverage
revenue decrease.
Revenue breakdown:
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2007
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2008
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Q4
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FY
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Q4
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FY
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% of
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RMB000
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RMB000
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RMB000
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US$000
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RMB000
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US$000
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Revenue
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Wireless Coverage Products & Service
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China Mobile
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201,749
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317,735
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171,523
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25,141
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390,266
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57,203
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39.6
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%
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China Unicom
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230,699
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377,785
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136,180
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19,960
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244,455
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35,831
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24.8
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%
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China Telecom
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3,374
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49,636
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64,235
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9,415
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75,440
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11,058
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7.7
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%
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China Netcom
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1,550
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20,515
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0
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0
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5,105
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748
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0.5
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%
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Overseas
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269
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11,591
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3,300
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484
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8,128
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1,191
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0.8
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%
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Non-operators
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4,677
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28,495
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22,431
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3,288
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39,697
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5,818
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4.1
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%
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Subtotal
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442,318
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805,757
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397,669
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58,288
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763,091
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111,849
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77.5
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%
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RF Products
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OEMs
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29,460
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173,545
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116,780
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17,117
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221,566
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32,476
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22.5
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%
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Total
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471,778
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979,302
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514,449
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75,405
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984,657
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144,325
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100.0
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%
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6
Cost of Revenues and Gross Profit
The cost of revenue for the fourth quarter of 2008 increased by RMB121.0 million, or 39.4%, to
RMB428.1 million (US$62.7 million) from RMB307.1 million in the fourth quarter of 2007.
The cost of revenue for fiscal year 2008 increased by RMB139.9 million, or 22.9%, to RMB751.4
million (US$110.1 million) from RMB611.4 million in 2007.
The increase in cost of revenues was driven primarily by the increased sales volume. In addition,
the management has made a one-time write-off of RMB42.0 million (US$6.2 million) for inventory in
2008, which was charged to cost of revenues.
Gross margin decreased from 37.6% in 2007 to 23.7% in 2008. The decrease in gross margin was mainly
due to the inventory provision, declining wireless coverage equipment average selling price and the
increased revenue contribution from RF base station products, which have a lower gross margin.
Excluding the RMB42.0 million inventory provision, the Companys gross margin in 2008 would have
been 28.0%.
Gross profit for the fourth quarter of 2008 decreased by RMB78.3 million, or 47.6%, to RMB86.4
million (US$12.7 million) from RMB164.7 million in the fourth quarter of 2007.
Gross profit for fiscal year 2008 decreased by RMB134.6 million, or 36.6%, to RMB233.3 million
(US$34.2 million) from RMB367.9 million in 2007.
Operating Expenses
Total operating expenses for the fourth quarter of 2008 increased by RMB76.9 million, or 104.8%, to
RMB150.3 million (US$22.0 million) from RMB73.4 million in the fourth quarter of 2007.
Total operating expenses for fiscal year 2008 increased by RMB83.9 million, or 33.3%, from RMB251.8
million in 2007 to RMB335.8 million (US$49.2 million).
Research and development costs for the fourth quarter of 2008 increased 37.6% to RMB21.6 million
(US$3.2 million) from RMB15.7 million in the fourth quarter of 2007.
Research and development costs for fiscal year 2008 increased 24.2% to RMB70.2 million (US$10.3
million) from RMB56.5 million in 2007. The year-over-year increase was mainly due to development
initiatives for base station models and 3G wireless coverage products. In 2008, the Company filed a
total of 235 technology and product patent applications in China. To date, the Company has
developed a number of TD-SCDMA and WCDMA trunk amplifiers and repeaters, and has commenced bulk
supply of Radio Remote Unit (RRU) products to one of the key domestic base station manufacturers.
In the base station RF module segment, the Company developed RF modules for two leading global base
station manufacturers, and has commenced trial supply for one of them. R&D costs accounted for 7.1%
of total revenue in 2008, which represents a 1.4% year-over-year increase.
Sales and distribution expenses for the fourth quarter of 2008 increased 58.5% to RMB51.9 million
(US$7.6 million) from RMB32.7 million in the fourth quarter of 2007.
7
Sales and distribution expenses for fiscal year 2008 increased 9.2% to RMB138.5 million (US$20.3
million) from RMB126.8 million in 2007. This was due to increased wireless coverage business travel
and communications expenses as telecommunications operators revitalized investments in the fourth
quarter 2008. Sales and distribution expenses accounted for 14.1% of total revenue in 2008, as
compared to 12.9% in 2007.
General and administrative expenses for the fourth quarter of 2008 increased 207.7% to RMB76.8
million (US$11.3 million) from RMB25.0 million in the fourth quarter of 2007.
General and administrative expenses for fiscal year 2008 increased 85.4% to RMB127.0 million
(US$18.6 million) from RMB68.5 million in 2007. The year-over-year increase was mainly attributable
to the write-off of RMB43.6 million (US$6.4 million) of bad debt incurred from wireless equipment
sales to non-operators. In addition, costs for stock option issuance and expenses associated with
the Companys new Sarbanes-Oxley compliance system each added RMB3.2 million (US$0.5 million) to
the general and administrative expenses. General and administrative expenses accounted for 12.9% of
total revenue in 2008, as compared to 7.0% in 2007.
Total Other Expenses/Income
Total other income for the fourth quarter of 2008 was RMB22.3 million (US$3.3 million), compared to
total other expenses of RMB4.6 million in the same period last year. This change is due to an
increased amount of grant income from government subsidies and a gain from the disposal of two
subsidiaries.
Total other expenses for fiscal year 2008 decreased by 42.4% to RMB13.9 million (US$2.0 million)
from RMB24.2 million in 2007. This year-over-year decrease is primarily due to increased interest
income and grant income, a gain from the disposal of two subsidiaries and the decrease of foreign
currency exchange loss, these factors were partially offset by an increase in interest expense.
Interest income for the fourth quarter of 2008 increased by 6.3% to RMB16.5 million (US$2.4
million) from RMB15.6 million in the fourth quarter of 2007.
Interest income for fiscal year 2008 increased by 40.1% to RMB31.3 million (US$4.6 million) from
RMB22.3 million in 2007. The increase interest primarily arose from the amortization of discounted
income from prior years accounts receivable.
Interest expense for the fourth quarter of 2008 decreased by 14.6% to RMB12.3 million (US$1.8
million) from RMB14.4 million in the fourth quarter of 2007.
Interest expense for fiscal year 2008 increased by 55.2% to RMB54.8 million (US$8.0 million) from
RMB35.3 million in 2007, primarily due to an increased average bank loans balance and an increase
in the effective interest rate.
8
The foreign currency exchange gain for the fourth quarter of 2008 was RMB0.5 million (US$0.1
million), compared to a foreign currency exchange loss of RMB8.7 million in the fourth quarter of
2007, primarily due to the slight depreciation of the RMB to U.S. dollar exchange compared to the
fourth quarter of 2007.
The foreign currency exchange loss for fiscal year 2008 decreased by 44.6% to RMB10.4 million
(US$1.5 million) from RMB18.8 million in 2007, primarily due to the lower foreign currency deposit
and less appreciation of the RMB to U.S. dollar exchange rate compared to 2007.
Grant income from government subsidies for the fourth quarter of 2008 increased by RMB10.1 million
to RMB13.0 million (US$1.9 million) from RMB2.9 million in 2007.
Grant income for fiscal year 2008 increased by RMB7.9 million to RMB15.2 million (US$2.2 million)
from RMB7.4 million in 2007. This increase was the result of additional projects for which the
Company received government grants in 2008 compared to 2007.
Earnings
The fourth quarter 2008 operating loss was RMB63.9 million (US$9.4 million), as compared to an
operating profit of RMB91.3 million in the fourth quarter of 2007.
Operating loss for fiscal year 2008 was RMB102.5 million (US$15.0 million), as compared to an
operating profit of RMB116.0 million in 2007.
Net loss for the fourth quarter of 2008 was RMB51.8 million (US$7.6 million), as compared to a net
income of RMB78.1 million in the fourth quarter of 2007.
Net loss for fiscal year 2008 was RMB118.8 million (US$17.4 million), as compared to a net income
of RMB82.5 million in 2007.
Diluted loss per ADS for the fourth quarter of 2008 was RMB2.14 (US$0.31), as compared to diluted
earnings per ADS for the fourth quarter of 2007 of RMB3.13.
Diluted loss per ADS for fiscal year 2008 was RMB4.87 (US$0.71), as compared to diluted earnings
per ADS for fiscal year 2007 of RMB3.30.
Balance Sheet
Cash and cash equivalents and pledged time deposits as of December 31, 2008 decreased by RMB160.8
million, or 27.9%, to RMB415.7 million (US$60.9 million) from RMB576.6 million as of December 31,
2007, mainly attributable to higher cash outlays for raw material purchases, as well as increased
operating expenses, R&D expenses and construction expenses for the manufacturing and research
facility.
Total accounts receivable as of December 31, 2008 decreased by RMB35.9 million, or 2.7%, to
RMB1.279 billion (US$187.5 million) from RMB1.315 billion as of December 31, 2007. This
decrease was mainly attributable to the Companys efforts to obtain sales orders from higher
quality customers and initiatives to improve collection time.
9
Inventories as of December 31, 2008 decreased by RMB21.5 million, or 4.0%, to RMB520.6 million
(US$76.3 million) from RMB542.1 million as of December 31, 2007.
Total assets as of December 31, 2008 decreased by RMB130.7 million, or 4.4%, to RMB2.867 billion
(US$420.2 million) from RMB2.997 billion as of December 31, 2007. The decrease was mainly due to
the write-off of uncollectible accounts receivable and inventories that were considered obsolete.
Total liabilities as of December 31, 2008 were RMB1.401 billion (US$205.4 million), which was in
line with RMB1.405 billion as of December 31, 2007. Current liabilities as of December 31, 2008
increased by RMB17.5 million, or 1.4%, to RMB1.267 billion (US$185.7 million) from RMB1.249 billion
as of December 31, 2007, primarily due to a long-term bank loan in the amount of RMB20 million that
will be due in 2009 and thus became a portion of current liabilities in the fourth quarter of 2008.
Business Outlook
Wireless Coverage Products and Services
While the Chinese governments economic stimulus plan accelerated large scale 3G network
construction projects, the management believes that the continued and increasing 3G network
investments by Chinas leading telecommunications operators will present the Company with new
market opportunities. At the same time, management believes that the 2G network will remain a key
income source for operators in the near term. Under the new competitive landscape created by the
restructuring, the three operators must also continue to improve network quality, investing in 2G
networks to remain competitive. With its leading market position, management plans to vigorously
develop 3G network coverage products in order to increase its 3G market share, while maintaining
market share in the traditional 2G market. At the same time, management will continue to evolve its
revenue mix to increase contribution from integration and maintenance services to offset the impact
of declining equipment prices, and therefore drive further growth and profitability in 2009 and
beyond.
Base Station RF Products
As operators accelerate large-scale 3G network construction, base station demand has strengthened.
During the WCDMA and CDMA network construction projects, the Companys two key customers, which are
leading base station manufacturers in China, have picked up substantial market share for base
station products. As their major supplier for the WCDMA and CDMA modules, GrenTech believes it will
benefit from their rapid business growth.
With respect to the development of international customers, GrenTech is now a qualified supplier
for two leading global base station manufacturers and has commenced bulk supply for one of them,
and provided trial supply to the other. Management believes that revenue from overseas customers
will increase considerably over the medium-term.
10
Guidance for First Quarter 2009
Management estimates that revenue for the first quarter of 2009 will range between RMB280 million
and RMB310 million.
Conference Call and Webcast
Following the earnings announcement, GrenTech senior management will host a conference call at 8:00
am (Eastern) / 5:00 am (Pacific) / 8:00 pm (Beijing/Hong Kong) on Wednesday, April 15, 2009 to
discuss its 2008 fourth quarter and full year financial results and recent business activity. To
access the live teleconference, please dial 1 866 713-8563 (U.S.), 800 96 3844 (Hong Kong) or 1 617
597-5311 (International), and enter the passcode GRENTECHCALL. Please dial in approximately 10
minutes before the scheduled time of the call.
A replay of the conference call will be available through 10:00 am, Wednesday, April 22, 2009
(Eastern) by dialing 1 888 286-8010 or 1 617 801-6888 and entering the passcode: 75499595.
A webcast replay of the conference call will be available on the investor relations page of
GrenTechs website at http://www.grentech.com.cn/en/Earnings_Announcements.asp.
About GrenTech
GrenTech is a leading developer of radio frequency (RF) technology in China and a leading
provider of wireless coverage products and services in China. The Company uses RF technology to
design and manufacture wireless coverage products, which enable telecommunication operators to
expand the reach of their wireless communication networks to indoor and outdoor areas, such as
buildings, highways, railways, tunnels and remote regions. GrenTechs wireless coverage services
include design, installation and project warranty services. The Company also tailors the design and
configuration of its wireless coverage products to the specific requirements of its customers.
Based on its in-house RF technology platform, the Company also develops and produces base station
RF parts and components sold to base station manufacturers. GrenTech is a qualified supplier of RF
parts and components to the global and domestic major base station manufacturers including Huawei
Technologies and ZTE Corporation. For more information, please visit
www.GrenTech.com.cn
.
11
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained in this press release that are not historical facts are forward-looking
statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, including financial projections and forecasts, involve risks and
uncertainties that could cause the Companys actual results to differ materially from its current
expectations. Factors that could cause the Companys results to differ materially from those set
forth in these forward-looking statements include: the Companys reliance on business
relationships with the Chinese telecom operators and base station manufacturers; the risk that the
Company will continue to experience downward pressure on the pricing of its products and services
due to the telecom operators bidding policies or other factors; the risk that the telecom
operators in China will not expand or maintain their spending on 2G, 3G, WLAN or other network
projects; uncertainty as to the future demand for base station RF products by domestic or
international base station manufacturers, including the risk that demand in China or elsewhere for
base stations may not grow as the Companys management anticipates; risks associated with large
accounts receivable, long collection periods and accounts receivable cycles; fierce competition in
the wireless communication industry; growth of, and risks inherent in, the wireless communication
industry in China, including uncertainties regarding the timing and nature of any future
restructuring of the telecom operators in China and the risks that such restructuring will not
result in expanded investments to expand network coverage or quality; uncertainty as to future
profitability and the Companys ability to obtain adequate financing for its planned capital
expenditure requirements; its reliance on third parties to carry out the installation of its
wireless coverage products; uncertainty as to its ability to continuously develop and manufacture
new RF technologies and keep up with changes in RF technologies; risks associated with possible
defects and errors in its wireless coverage products or RF products; uncertainty as to the
Companys ability to protect and enforce its intellectual property rights; and uncertainty as to
the Companys ability to attract and retain qualified executives and personnel, particularly in its
research and development department. Other factors that may causes the Companys actual results to
differ from those set forth in the forward-looking statements contained in this press release and
that may affect its prospects in general are described in the Companys filings with the Securities
and Exchange Commission, including its Registration Statement on Form F-1 related to its initial
public offering and its annual reports on Form 20-F. The Company undertakes no obligation to update
or revise forward-looking statements to reflect subsequent events or changed assumptions or
circumstances.
|
|
|
Investor Contact:
|
|
Investor Relations (US):
|
Kent Lo, Investor Relations Manager
|
|
Delia Cannan
|
China GrenTech Corp Ltd.
|
|
Taylor Rafferty
|
+86 755 2650 3007
|
|
+1 212 889 4350
|
kentlo@GrenTech.com.cn
|
|
GrenTech@taylor-rafferty.com
|
|
|
|
Investor Relations (HK):
|
|
Media Contact:
|
Ruby Yim
|
|
Jason Marshall
|
Taylor Rafferty
|
|
Taylor Rafferty
|
+852 3196 3712
|
|
+1 212 889 4350
|
GrenTech@taylor-rafferty.com
|
|
GrenTech@taylor-rafferty.com
|
FINANCIAL TABLES TO FOLLOW
12
China GrenTech Corporation Limited and subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2007 and 2008
(RMB and US$ expressed in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2007
|
|
|
2008
|
|
|
2008
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
316,778
|
|
|
|
293,353
|
|
|
|
42,998
|
|
Pledged time deposits
|
|
|
259,786
|
|
|
|
122,368
|
|
|
|
17,936
|
|
Accounts receivable, net
|
|
|
925,838
|
|
|
|
728,260
|
|
|
|
106,744
|
|
Inventories
|
|
|
542,094
|
|
|
|
520,619
|
|
|
|
76,309
|
|
Other current assets
|
|
|
63,195
|
|
|
|
115,066
|
|
|
|
16,866
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
2,107,691
|
|
|
|
1,779,666
|
|
|
|
260,853
|
|
Long-term accounts receivable
|
|
|
389,505
|
|
|
|
551,210
|
|
|
|
80,793
|
|
Other non-current assets
|
|
|
500,103
|
|
|
|
535,683
|
|
|
|
78,517
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
2,997,299
|
|
|
|
2,866,559
|
|
|
|
420,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank loans
|
|
|
456,050
|
|
|
|
480,207
|
|
|
|
70,386
|
|
Other current liabilities
|
|
|
793,031
|
|
|
|
786,410
|
|
|
|
115,266
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
1,249,081
|
|
|
|
1,266,617
|
|
|
|
185,652
|
|
Long-term debt
|
|
|
150,000
|
|
|
|
130,000
|
|
|
|
19,055
|
|
Other non-current liabilities
|
|
|
5,938
|
|
|
|
4,752
|
|
|
|
697
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
1,405,019
|
|
|
|
1,401,369
|
|
|
|
205,404
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest
|
|
|
5,763
|
|
|
|
4,354
|
|
|
|
638
|
|
Total shareholders equity
|
|
|
1,586,517
|
|
|
|
1,460,836
|
|
|
|
214,121
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity
|
|
|
2,997,299
|
|
|
|
2,866,559
|
|
|
|
420,163
|
|
|
|
|
|
|
|
|
|
|
|
13
China GrenTech Corporation Limited and subsidiaries
Unaudited Condensed Consolidated Statements of Income
For Three-month Periods and Years Ended December 31, 2007 and 2008
(RMB and US$ expressed in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Three Months Ended December 31,
|
|
|
For the Year Ended December 31,
|
|
|
|
2007
|
|
|
2008
|
|
|
2008
|
|
|
2007
|
|
|
2008
|
|
|
2008
|
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
US$
|
|
Revenues
|
|
|
471,778
|
|
|
|
514,449
|
|
|
|
75,405
|
|
|
|
979,302
|
|
|
|
984,657
|
|
|
|
144,325
|
|
Cost of revenues
|
|
|
(307,124
|
)
|
|
|
(428,096
|
)
|
|
|
(62,748
|
)
|
|
|
(611,436
|
)
|
|
|
(751,367
|
)
|
|
|
(110,131
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
164,654
|
|
|
|
86,353
|
|
|
|
12,657
|
|
|
|
367,866
|
|
|
|
233,290
|
|
|
|
34,194
|
|
Research and development costs
|
|
|
(15,712
|
)
|
|
|
(21,612
|
)
|
|
|
(3,168
|
)
|
|
|
(56,525
|
)
|
|
|
(70,232
|
)
|
|
|
(10,294
|
)
|
Sales and distribution expenses
|
|
|
(32,727
|
)
|
|
|
(51,859
|
)
|
|
|
(7,601
|
)
|
|
|
(126,816
|
)
|
|
|
(138,524
|
)
|
|
|
(20,304
|
)
|
General and administrative expenses
|
|
|
(24,965
|
)
|
|
|
(76,829
|
)
|
|
|
(11,261
|
)
|
|
|
(68,498
|
)
|
|
|
(127,028
|
)
|
|
|
(18,618
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
(73,404
|
)
|
|
|
(150,300
|
)
|
|
|
(22,030
|
)
|
|
|
(251,839
|
)
|
|
|
(335,784
|
)
|
|
|
(49,216
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income/(loss)
|
|
|
91,250
|
|
|
|
(63,947
|
)
|
|
|
(9,373
|
)
|
|
|
116,027
|
|
|
|
(102,494
|
)
|
|
|
(15,022
|
)
|
Interest income
|
|
|
15,556
|
|
|
|
16,539
|
|
|
|
2,424
|
|
|
|
22,313
|
|
|
|
31,257
|
|
|
|
4,581
|
|
Interest expense
|
|
|
(14,362
|
)
|
|
|
(12,263
|
)
|
|
|
(1,797
|
)
|
|
|
(35,347
|
)
|
|
|
(54,844
|
)
|
|
|
(8,039
|
)
|
Investment income
|
|
|
|
|
|
|
4,577
|
|
|
|
671
|
|
|
|
318
|
|
|
|
4,873
|
|
|
|
714
|
|
Foreign currency exchange
gain/(loss)
|
|
|
(8,693
|
)
|
|
|
489
|
|
|
|
72
|
|
|
|
(18,791
|
)
|
|
|
(10,418
|
)
|
|
|
(1,527
|
)
|
Grant income
|
|
|
2,925
|
|
|
|
12,978
|
|
|
|
1,902
|
|
|
|
7,355
|
|
|
|
15,209
|
|
|
|
2,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other expense/(income)
|
|
|
(4,574
|
)
|
|
|
22,320
|
|
|
|
3,272
|
|
|
|
(24,152
|
)
|
|
|
(13,923
|
)
|
|
|
(2,042
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
(8,586
|
)
|
|
|
(10,289
|
)
|
|
|
(1,509
|
)
|
|
|
(10,321
|
)
|
|
|
(3,157
|
)
|
|
|
(463
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income/(loss) before minority interests
|
|
|
78,090
|
|
|
|
(51,916
|
)
|
|
|
(7,610
|
)
|
|
|
81,554
|
|
|
|
(119,574
|
)
|
|
|
(17,527
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
|
|
|
78,052
|
|
|
|
(51,775
|
)
|
|
|
(7,588
|
)
|
|
|
82,536
|
|
|
|
(118,778
|
)
|
|
|
(17,410
|
)
|
Net income/(loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.13
|
|
|
|
(0.09
|
)
|
|
|
(0.01
|
)
|
|
|
0.13
|
|
|
|
(0.19
|
)
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
0.13
|
|
|
|
(0.09
|
)
|
|
|
(0.01
|
)
|
|
|
0.13
|
|
|
|
(0.19
|
)
|
|
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary
shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
623,499,408
|
|
|
|
605,773,317
|
|
|
|
605,773,317
|
|
|
|
624,624,852
|
|
|
|
610,158,841
|
|
|
|
610,158,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
623,499,408
|
|
|
|
605,773,317
|
|
|
|
605,773,317
|
|
|
|
624,624,852
|
|
|
|
610,158,841
|
|
|
|
610,158,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
China GrenTech Corporation Limited
/s/ Rong Yu
Name: Rong Yu
Title: Director, Chief Financial Officer and Principal Accounting Officer
Date: April 15, 2009
China Grentech Corp. Limited ADS, Each Representing 25 Ordinary Shares (MM) (NASDAQ:GRRF)
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China Grentech Corp. Limited ADS, Each Representing 25 Ordinary Shares (MM) (NASDAQ:GRRF)
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