For the second quarter of 2008, the company’s gross profit decreased RMB163.5 million from RMB312.2 million for the second quarter of 2007 to RMB148.7 million for the second quarter of 2008. Income from operations amounted to RMB70.2 million for the second quarter of 2008 compared to RMB237 million for the same period of 2007.
In the second quarter of 2008, handset shipments were approximately 566,000 units, representing a decrease of 46.4% compared to 1.05 million units in the second quarter of 2007.
Wu Lin, chairman of Qiao Xing Universal Telephone, said: The performances of both XING and QXM (Qiao Xing Mobile) were negatively impacted by the recession of the macro-economic environment. With the earthquake in Sichuan Province and the increase of Consumption Price Index, the consumption in Chinese consumer market was slowed down. However, a delay in the release of new product, VEVA S60, by CEC Telecom Company, a subsidiary of QXM, also contributed to the decline in sales in the second quarter.
