China GrenTech Corporation Limited (GRRF) - 500 Beiträge pro Seite

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Profile:China GrenTech Corporation Limited and its subsidiaries primarily engage in the manufacture and sale of wireless coverage products and services to telecommunication operators in the People?s Republic of China. Its wireless coverage products include indoor coverage products and outdoor coverage products, as well as base station coverage extension products. Its indoor and outdoor coverage products receive and amplify signals from base stations and then transmit these signals to a designated coverage area, as well as base station coverage extension products work with base stations to amplify signals of these base stations directly to an extended area of coverage. These products comprise repeaters, base station amplifiers, trunk amplifiers, tower amplifiers, and related accessories, such as electronic cables and antennas. The company also offers wireless coverage services, which consist of design and development services; installation of wireless coverage products; and project warranty. In addition, China GrenTech manufactures and sells RF parts and components, and RF-based wireless access products to wireless operators and wireless communication equipment manufacturers. Its products comprise active modules, such as high-linear RF power amplifiers, low-noise amplifiers, frequency-hopping modules, and high-stability/low-phase noise vibrators; and passive modules, which include filters, duplexers, multifrequency splitters, and combiners and couplers. These products support a range of communication protocols, including CDMA, GSM, PHS, and 3G. Further, the company offers RF-based wireless access products, including W-LAN products and 5.8 GHz wireless access products to equipment manufacturers and wireless communication carriers. It offers its products and services through sales and marketing professionals. China GrenTech, formerly Powercom Holdings Limited, was founded in 1999 and is based in Shenzhen, the People?s Republic of China.


http://www.grentech.com.cn/en/index.asp

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China GrenTech Corporation Limited Announces Fourth Quarter and Fiscal Year 2006 Financial Results
Monday March 12, 6:09 am ET
Fourth Quarter 2006 Highlights
-- Revenue rose 19.1% YoY to RMB 450.3 million (US$57.7 million)(1)
-- Gross profit rose 2.8% YoY to RMB 209.2 million (US$26.8 million)
-- Operating profit was RMB 133.3 million (US$17.1 million)
-- Net income was RMB 114.4 million (US$14.7 million)
-- Diluted earnings per ADS were RMB 4.58 US$0.59
-- Net cash per ADS was RMB14.80 US$1.90
Fiscal 2006 Highlights
-- Revenue rose 16.3% YoY to RMB 832.8 million US$106.7 million
-- Gross profit rose 1.9% YoY to RMB395.8 million US$50.7 million
-- Operating profit was 179.2 million US$23.0 million
-- Net Income was RMB 148.8 million US$19.1 million
-- Diluted Earnings Per ADS were RMB 6.25 US$0.80


SHENZHEN, China, March 12 /Xinhua-PRNewswire/ -- China GrenTech Corporation Limited (Nasdaq: GRRF; ''China GrenTech'' or ''the Company''), a leading provider of wireless coverage products and services and a leading developer of radio frequency (''RF'') technology in the People's Republic of China (''China''), today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31,2006.

''We had a solid fourth quarter on a number of levels,'' commented Mr. Yingjie Gao, China GrenTech Chairman and Chief Executive Officer. ''Our fourth quarter has always been by far our strongest quarter due to the seasonal spending patterns of the Chinese telecom operators for wireless coverage products, and this year was no exception. Even with China Unicom, our largest customer, reducing their investment spending, we still achieved a 19.1% increase in our top line in the fourth quarter, which set a new quarterly record for us. However, due to intense competition in the market, the profitability in the overall wireless coverage industry fell. Additionally, in a strategic response, we expanded our marketing spending in an effort to aggressively strengthen our market share and we also increased our R&D spending for base station RF components and 3G-related products. Finally, we increased our spending in an effort to continue to enhance our management and internal control systems, particularly in light of the compliance requirements set by Sarbanes Oxley Section 404. These factors combined to drive our operating profit in the fourth quarter down 15.9% compared to the fourth quarter of 2005 and 20.4% compared to the full 2005 fiscal year. It also resulted in a 26.2% fall in net income compared to the fourth quarter of 2005 and an 18.0% drop from the full year last year. However, we believe the additional spending will help prepare the Company for expected growth in the 3G wireless coverage and base station RF components market in China. With strong increasing demand for base stations and growing visibility about the TD-SCDMA commercial trial network that is soon to start, we are fully confident about our prospects heading into 2007.''

Revenues for 4Q2006 were RMB450.3 million (US$57.7 million), an increase of RMB72.2 million (US$9.3 million) from RMB378.1 million in 4Q2005. The wireless coverage business continues to be China GrenTech's main source of revenue, with wireless coverage products accounting for 94.3% of total revenue in 4Q2006 and RF products accounting for the remaining 5.7%. Despite facing an unfavorable situation with China Unicom lowering its investment budget for CDMA network coverage, the Company made a concerted effort to diversify and balance its customer base by increasing marketing and promotional activities to China Mobile and the other operators. China GrenTech had strong increases in revenue from China Mobile, China Telecom, and China Netcom, though revenue from China Unicom dropped slightly by 1.0%. In 4Q2006, China Mobile, China Unicom, China Telecom, China Netcom, integrators, overseas customers and OEMs accounted for 38.4%, 26.6%, 10.7%, 8.9%, 9.3%, 0.4% and 5.7% respectively of total revenues.

For fiscal 2006, the Company reported revenues of RMB 832.8 million (US$106.7 million), compared to RMB 716.3 million in 2005, an increase of 16.3% YoY. China Unicom was still the Company's main customer in terms of revenue, accounting for 35.9% of total revenue. China Mobile, China Telecom, China Netcom, integrators, overseas customers and OEMs accounted for 33.3%, 10.7%, 8.3%, 6.8%, 1.2%and 3.8% respectively of total revenues.

For fiscal 2006, wireless coverage products accounted for 96.2% of total revenue, while RF modules accounted for 3.8%.


Revenue breakdown:

2005
Q4 FY
RMB'000 RMB'000
Wireless Coverage Products & Services
China Mobile 156,758 241,575
China Unicom 121,223 322,896
China Telecom 41,190 69,491
China Netcom 28,281 36,799
Integrators 17,595 23,441
Overseas customers 0 0
Subtotal 365,047 694,202
RF products
OEMs 13,020 22,068
Total 378,067 716,270


2006
Q4
RMB'000 US$'000 % of Revenue
Wireless Coverage Products & Services
China Mobile 172,780 22,140 38.40%
China Unicom 119,999 15,376 26.60%
China Telecom 48,305 6,190 10.70%
China Netcom 39,965 5,121 8.90%
Integrators 41,813 5,358 9.30%
Overseas customers 1,708 219 0.40%
Subtotal 424,570 54,404 94.30%
RF products
OEMs 25,724 3,296 5.70%
Total 450,294 57,700 100%


2006
FY

RMB'000 US$'000 % of Revenue
Wireless Coverage Products & Services
China Mobile 277,098 35,507 33.30%
China Unicom 298,693 38,274 35.90%
China Telecom 89,169 11,426 10.70%
China Netcom 69,175 8,864 8.30%
Integrators 56,607 7,253 6.80%
Overseas customers 10,026 1,285 1.20%
Subtotal 800,768 102,609 96.20%
RF products
OEMs 32,027 4,104 3.80%
Total 832,795 106,713 100%


Business Highlights

Wireless Coverage Products and Services
-- In 4Q2006, China GrenTech successfully won a bid from China Mobile
headquarters through its centralized bidding process for eight series
of GSM wireless coverage products. This qualifies the Company to supply
coverage equipment to China Mobile for its GSM network, which will
help increase the Company's market share from China Mobile.

3G Trial
-- China GrenTech completed its development of TD-SCDMA trunk amplifiers,
optical repeaters and radio repeaters for indoor coverage.
-- China GrenTech made progress on the development of Synchronous Control
technology, which is a key technology in TD-SCDMA repeaters.
-- The Company recently received first round regulatory approval for its
TD-SCDMA repeaters and trunk amplifiers. The Company is well prepared
for the full-scale production and launch of TD-SCDMA products, and a
staff of engineers has been trained to provide comprehensive support
services.

RF Products
-- With GSM capacity expansion and the launch of construction of the TD-
SCDMA enlarged commercial trial network construction in China, as well
as increasing demand for base stations from overseas markets, base
station OEMs are expanding orders for base station RF components.
-- The Company became a qualified supplier for six domestic and overseas
base station OEMs.
-- In Q4, the Company won a bid for two major CDMA RF modules from the
largest domestic base station OEM; Additionally, the Company won a bid
from a foreign-owned enterprise based in Shanghai for TD-SCDA filter.
China GrenTech has been supplying RF products in volume to three major
base station OEMs.

Financial Analysis

Cost of Revenue
The cost of revenues for 4Q2006 totalled RMB241.1 million (US$30.9 million), representing an increase of 38.2% from 4Q2005.

The cost of revenues for fiscal 2006 totalled RMB437.0 million (US$56.0 million), representing an increase of 33.2% from 2005.

The year-over-year increase in the cost of revenue was driven primarily by the greater number of units shipped, which coupled with a decrease in average selling price (''ASP'') for 2G wireless coverage products caused the gross margin in fiscal 2006 to decline to 47.5% from 54.2% in 2005. Furthermore, the Company's products that were sold to China Telecom and China Netcom were PHS products which have lower ASPs and gross margins compared to GSM and CDMA products. In addition, since the gross margin of RF products is lower than wireless coverage products, the increase in sales of RF products also caused a slight reduction in the Company's gross margin ratio.

Operating Expenses

Total operating expenses for 4Q2006 increased by RMB30.8 million, or 68.3%, from RMB45.1 million in 4Q2005 to RMB 75.9 million (US$9.7 million).

Total operating expenses for fiscal 2006 increased by RMB53.4 million, or 32.7%, from RMB163.2 million in 2005 to RMB216.6 million (US$27.8 million).

Research and development costs for 4Q2006 were RMB17.1 million (US$2.2 million), an increase of 64.2% from 4Q2005.

Research and development costs for fiscal 2006 were RMB47.7 million (US$6.1 million), an increase of 55.7% from 2005. The increase was primarily because the Company expanded its research & development team and increased spending on the development of base station RF products and 3G technologies.

Sales and distribution expenses for 4Q2006 were RMB36.3 million (US$4.7 million), an increase of 58.7% from 4Q2005.

Sales and distribution expenses for fiscal 2006 were RMB112.9 million (US$14.5 million), an increase of 23.5% from 2005. The increase was mainly due to an expansion of the sales & marketing team and increased marketing expenses as the Company continued to strengthen the relationships with its customers and broadened its customer base.

General and administrative expenses for 4Q2006 were RMB 22.5 million (US$2.9 million), an increase of 90.8% from 4Q2005.

General and administrative expenses for fiscal 2006 were RMB55.9 million (US$7.2 million), an increase of 36.3% from 2005. The year-over-year increase was primarily due to expenses related to enhancement in management and control systems, particularly in light of the Sarbanes Oxley Section 404 compliance requirements, and other expenses related to the listing, including legal, consulting and other logistical support.

Other Expenses/Income

Other expenses for 4Q2006 were RMB1.4 million (US$0.2 million), compared to other income of RMB13.8 million in the same period last year. The year- over-year change was due to decreasing of grant income and the fluctuation in foreign currency exchange gain.

Other expenses for fiscal 2006 were RMB10.8 million (US$1.4 million), which was almost unchanged from RMB10.4 million last year.

Interest income for 4Q2006 increased from RMB1.1 million in 4Q 2005 to RMB4.5 million (US$0.6 million) because of higher cash deposits and an increase in the deposit rate.

Interest income for fiscal 2006 increased from RMB3.2 million in 2005 to RMB19.2 million (US$2.5 million), for the same reason mentioned above.

Interest expense for 4Q2006 decreased 6.6% from RMB9.3 million in 4Q2005 to RMB8.7 million (US$1.1 million).

Interest expense for fiscal 2006 decreased 22.4% from RMB36.1 million in 2005 to RMB28.0 million (US$3.6 million).

The foreign currency exchange loss for 4Q2006 increased to RMB4.6 million (US$0.6 million) from an exchange gain of RMB5.6 million in 4Q2005, mainly because the proceeds from the IPO were kept as bank deposits denominated in US dollars, resulting in an exchange loss due to the appreciation of the Renminbi against the US dollar.

For the same reason, the foreign currency exchange loss for fiscal 2006 increased to RMB9.9 million (US$1.3 million) from an exchange gain of RMB5.6 million in 2005.

Grant income from government subsidies for 4Q2006 dropped by RMB8.9 million to RMB7.4 million (US$0.9 million) from RMB16.3 million in 4Q2005. The change was due to a decreasing number of grant applications having been approved and paid by the government authorities in the period.

For the same reason, grant income for fiscal 2006 decreased to RMB7.7 million (US$1.0 million) from RMB16.7 million in 2005

Earnings

Gross profit for 4Q2006 increased to RMB209.2 million (US$26.8 million) in 4Q2006, from RMB203.6 million in 4Q2005, representing an increase of RMB5.6 million (US$0.7 million). The gross margin was 46.5%, which decreased from 53.9% in the corresponding period last year.

Gross profit for fiscal 2006 increased by RMB7.6 million to RMB395.8 million (US$50.7 million), from RMB388.2 million in 2005. The gross margin was 47.5%, compared to 54.2% last year.

The operating profit for 4Q2006 decreased by RMB25.2 million, or 15.9%, from RMB 158.5 million in 4Q2005 to RMB 133.3 million (US$17.1 million) in 4Q2006. The operating margin was 29.6%, compared to 41.9% in 4Q2005.

The operating profit for fiscal 2006 decreased by RMB45.8 million, or 20.4%, to RMB179.2 million (US$23.0 million) from RMB 225.0 million in 2005. The operating margin was 21.5%, a decrease from 31.4% in 2005.

Net income for 4Q2006 decreased by RMB40.6 million, or 26.2%, from RMB155.0 million in 4Q2005 to RMB 114.4 million (US$14.7 million) in 4Q2006. The net margin was 25.4% in 4Q2006, a decrease from 41.0% in 4Q2005.

Net income for fiscal 2006 decreased by RMB32.6 million, or 18.0%, from RMB181.4 million in 2005 to RMB 148.8 million (US$19.1 million). The net margin was 17.9%, compared to 25.3% in 2005.


Diluted Earnings per ADS for 4Q2006 were RMB 4.58(US$0.59).
Diluted Earnings per ADS for fiscal 2006 were RMB 6.25 US$0.80 .

Balance Sheet
Total cash(2) increased from RMB204.9 million as of December 31, 2005 to RMB706.0 million (US$90.5million) as of December 31, 2006, an increase of RMB501.1 million or 244.6%, which was mainly attributable to the net proceeds from the IPO. Cash and cash equivalents increased to RMB 467.4 million (US$59.9 million) from RMB 128.6 million as of December 31, 2005; Pledged time deposits increased by RMB162.4 million to RMB238.6 million (US$30.6 million).

Total accounts receivable (A/R)(3) increased by 45.4% from RMB 699.4 million as of December 31, 2005 to RMB1,016.8 million (US$130.3 million) as of December 31, 2006. This increase was mainly attributable to the growth in revenues and an increase in long-term accounts receivable.

Inventories increased from RMB 370.1 million as of December 31, 2005 to RMB 434.4 million (US$55.7 million) as of December 31, 2006, an increase of 17.4%. The increase was mainly due to an increase in finished goods inventories which are in the process of installation with customers.

Total assets increased by RMB940.4 million, or 63.7%, from RMB2,416 million as of December 31, 2005 to RMB2,416 million (US$309.6 million) as of December 31, 2006. The increase was mainly attributable to the increased total cash as well as the increase in accounts receivable.

Total liabilities decreased by RMB39.2 million, or 4.3%, from RMB905.6 million as of December 31, 2005 to RMB866.4 million (US$111.0 million) as of December 31, 2006. Current liabilities increased RMB127.8 million, or 17.3%, from RMB 738.6 million as of December 31, 2005 to RMB 866.4 million (US$111.0 million) as of December 31, 2006. The increase was primarily due to an increase in short-term bank loans of RMB175.4 million which was obtained by us to finance our increased working capital requirements. Currently, there are no long-term debts outstanding, as the long term debts of RMB 167 million outstanding as of December 31, 2005 were fully converted into ordinary shares upon completion of the IPO during 2006.

Business Outlook

With the enlarged commercial trial for TD-SCDMA services and expansion of 2G network capacity in 2007, China GrenTech believes that demand for wireless coverage products in China will continue to expand in 2007. In addition, the Company believes that base station OEMs will accelerate their purchasing of RF modules in China. China GrenTech believes it will benefit from both trends. The Company currently estimates an increase in the Company`s revenues from wireless coverage products in high teens in 2007, and revenues from the RF components business to grow by 300% to 400% in 2007. Looking out to the first quarter of 2007, driven by strong demand for RF component , the Company currently estimates a substantial increase in total revenue in the range of RMB 28.0 million to RMB 32.0 million as compared to revenues of RMB14.8 million in the first quarter of 2006, which equates to year-over-year growth of 89%-116%.

Conference Call and Webcast

The Company's management team will conduct a conference call on Monday, March 12, 2007 at 8:00 am Eastern Time. A webcast of the conference call will be accessible on the Company's web site at http://www.GrenTech.com.cn .

About China GrenTech

China 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 area and outdoor area, such as buildings, highways, railways, tunnels and remote regions. China GrenTech's wireless coverage services include design, development, 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. China GrenTech is a qualified supplier of RF parts and components to six major base station manufacturers such as Huawei Technologies, ZTE etc. For more information, please visit our website at http://www.GrenTech.com.cn

''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 Company's actual results to differ materially from its current expectations. Factors that could cause the Company's results to differ materially from those set forth in these forward-looking statements include the Company's reliance on business relationships with the Chinese telecom operators and base station OEMs; 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; uncertainty as to future profitability and the Company's 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 technology and keep up with changes in RF technology; risks associated with possible defects and errors in its wireless coverage products or RF products; uncertainty as to the Company's ability to protect and enforce its intellectual property rights; and uncertainty as to the Company's ability to attract and retain qualified executives and personnel, particularly in its research and development department. Other factors that may cause the Company's 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 Company's filings with the Securities and Exchange Commission, including its Registration Statement on Form F-1 related to its initial public offering. The Company undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or changed assumptions or circumstances.

Notes:

(1) The Company's functional and reporting currency is Renminbi (''RMB''). The translation of amounts from RMB to United States Dollars (''U.S. dollars'') is solely for the convenience of the reader. RMB numbers included in the press release have been translated into U.S. dollars at the noon buying rate for U.S. dollars in effect on December 31, 2006 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 at US$1.00 = RMB7.8041. 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 certain rate on December 31, 2006, or at any other date.

(2) Total cash = cash and cash equivalents + time deposit + pledged time deposits.

(3) Total accounts receivable = accounts receivable, net + Long-term accounts receivable


FINANCIAL TABLES TO FOLLOW


China GrenTech Corporation Limited and subsidiaries
Selected Unaudited Consolidated Balance Sheets Items
as of December 31, 2005 and 2006
(RMB and US$ expressed in thousands)

December 31, December 31, December 31,
2005 2006 2006
RMB RMB US$
Assets
Cash and cash equivalents 128,608 467,423 59,895
Pledged time deposits 76,250 238,618 30,576
Accounts receivable, net 537,321 747,859 95,829
Inventories 370,136 434,406 55,664
Total current assets 1,172,072 1,948,407 249,665
Long-term accounts receivable 162,032 268,957 34,464
Total assets 1,475,469 2,415,834 309,560

Liabilities and shareholders'
equity
Short-term bank loans 160,614 336,050 43,061
Total current liabilities 738,551 866,435 111,023
Long-term debt 167,053 -- --
Total liabilities 905,604 866,435 111,023
Ordinary shares US$0.00002 par
value; 2,500,000,000 shares
authorized, 466,365,500 issued
and outstanding and 625,000,000
shares issued and outstanding as
of December 31, 2005 and 2006,
respectively 77 103 13
Total shareholders' equity 506,720 1,530,428 196,106
Total liabilities and shareholders'
equity 1,475,469 2,415,834 309,560


China GrenTech Corporation Limited and subsidiaries
Selected Unaudited Consolidated Statements of Income Items for Three-month Periods and Years Ended December 31, 2005 and 2006(RMB and US$


expressed in thousands, except per share data)


For the Three-month Period Ended
December 31,
2005 2006 2006
RMB RMB US$
Revenues 378,068 450,294 57,700
Cost of revenues (174,471) (241,089) (30,893)
Gross profit 203,597 209,205 26,807
Research and development costs (10,406) (17,090) (2,190)
Sales and distribution expenses (22,865) (36,299) (4,651)
General and administrative expenses (11,789) (22,491) (2,882)
Total operating expenses (45,060) (75,880) (9,723)
Operating income 158,537 133,325 17,084
Interest income 1,132 4,458 571
Interest expense (9,310) (8,697) (1,114)
Investment income
Foreign currency exchange
gain/(loss) 5,584 (4,643) (595)
Grant income 16,382 7,443 954
Total other income/(expense) 13,788 (1,439) (184)
Income tax expense (14,283) (15,582) (1,997)
Income before minority interests 158,042 116,303 14,903
Net income 155,020 114,410 14,660
Net income available to ordinary
shareholders 154,233 114,410 14,660
- Basic 0.33 0.18 0.02
- Diluted 0.31 0.18 0.02
Weighted average number of ordinary
shares
- Basic 466,365,500 625,000,000 625,000,000
- Diluted 500,000,000 625,000,000 625,000,000


For the Year Ended December 31,
2005 2006 2006
RMB RMB US$
Revenues 716,270 832,795 106,712
Cost of revenues (328,064) (437,040) (56,001)
Gross profit 388,206 395,755 50,711
Research and development costs (30,616) (47,671) (6,108)
Sales and distribution expenses (91,489) (112,948) (14,473)
General and administrative expenses (41,057) (55,944) (7,169)
Total operating expenses (163,162) (216,563) (27,750)
Operating income 225,044 179,193 22,961
Interest income 3,213 19,186 2,458
Interest expense (36,105) (28,026) (3,591)
Investment income 159 238 30
Foreign currency exchange
gain/(loss) 5,584 (9,875) (1,265)
Grant income 16,732 7,670 983
Total other income/(expense) (10,417) (10,807) (1,385)
Income tax expense (26,097) (18,277) (2,342)
Income before minority interests 188,530 150,108 19,234
Net income 181,444 148,841 19,072
Net income available to ordinary
shareholders 179,016 148,292 19,002
- Basic 0.38 0.25 0.03
- Diluted 0.36 0.25 0.03
Weighted average number of ordinary
shares
- Basic 466,365,500 584,580,799 584,580,799
- Diluted 500,000,000 593,150,684 593,150,684



China GrenTech Corporation Limited and subsidiaries
Selected Unaudited Consolidated Statements of Cash Flows Items
for the Years Ended December 31, 2005 and 2006
(RMB and US$ expressed in thousands)

For The Year Ended December 31,
2005 2006 2006
RMB RMB US$

Net cash used in operating
activities (112,611) (114,778) (14,706)
Net cash used in investing
activities (20,900) (243,150) (31,157)
Net cash (used in)/provided by
financing activities (40,813) 708,514 90,787
Effect of exchange rate changes
on cash -- (11,771) (1,508)
Net (decrease)/ increase in
cash and cash equivalents (174,324) 338,815 43,415


For more information, please contact:

Investor and Media Inquiries:

Mr. Qingchang Liu
China GrenTech Corporation Limited
Tel: [phone]
Email: [e-mail]

Mr. Tip Fleming
Christensen
Tel: [phone]
Email: [e-mail]




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Source: China GrenTech Corporation Limited

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[50bager]

GRRF: Q1 EPS (23c) vs (25c) Meets (23c) Est

Monday , May 14, 2007 09:16ET

QUARTER RESULTS
China Grentech Corp Ltd (GRRF) reported Q1 results ended March 2007. Q1 Revenues were $4.05M; +118.92% vs yr-ago; BEATING revenue consensus by +3.05%. Q1 EPS was (23c); +8.00% vs yr-ago; MATCHING earnings consensus.

Q1 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $4.05M $1.85M +118.92% $3.93M +3.05%
---------- ------------ ------------ ---------- ------------ ----------
EPS: (23c) (25c) +8.00% (23c) 0.00%
---------- ------------ ------------ ---------- ------------ ----------


ORIGINAL EARNINGS RELEASE
Consensus estimate data provided by Reuters.
Visit Knobias.com for more indepth earnings information.

[panik]

China GrenTech Announces Pricing of Secondary Offering of 3.3 Million ADSs
Tuesday July 31, 12:05 am ET


SHENZHEN, China, July 31 /Xinhua-PRNewswire-FirstCall/ -- China GrenTech Corporation Limited ("China GrenTech" or the "Company") (Nasdaq: GRRF - News), a leading China-based wireless coverage products and services provider and radio frequency, or RF, technology developer, announced after the close of trading in New York on July 30, 2007 that the secondary offering by two of its pre-IPO private equity investors of a total of 3,296,114 American Depositary Shares ("ADSs") was priced at US$9.65 per ADS. The US$31.8 million offering represents a sale of approximately 13.18% of the Company's outstanding ordinary shares. China GrenTech will not receive any of the proceeds from the sale of the ADSs by the selling shareholders, Actis China Investment Holdings No. 1 Limited and Standard Chartered Private Equity Limited.
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This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering of the securities is made only by means of a prospectus, copies of which, when available, may be obtained from Bear, Stearns & Co. Inc., the sole bookrunner of the offering, at 383 Madison Avenue, New York, New York 10179, Attention: Prospectus Department.

About China GrenTech

China GrenTech is a leading RF technology developer and a leading provider of wireless coverage products and services to telecommunication operators 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. China GrenTech derives most of its revenues from wireless coverage products and services.

Based on its in-house RF technology platform, the Company also develops and produces base station RF parts and components for base station equipment manufacturers. China GrenTech is a qualified supplier of RF parts and components to major base station equipment manufacturers such as Huawei Technologies Co., Ltd., ZTE Corporation and Datang Mobile Communications Equipment Co., Ltd.


For more information, please contact:

Investor Contact:
Dora Li
IR Director
China GrenTech Corp Ltd.
Tel: [phone]
Email: [e-mail]

Investor Relations (HK):
Ruby Yim
Taylor Rafferty
Tel: [phone]
Email: [e-mail]

Investor Relations (US):
Delia Cannan
Taylor Rafferty
Tel: [phone]
Email: [e-mail]

Media Contact:
John Dooley
Taylor Rafferty
Tel: [phone]
Email: [e-mail]




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Source: China GrenTech Corporation Limited

[panik]

China GrenTech Corporation Limited Announces Second Quarter 2007 Results
Tuesday August 14, 6:40 am ET


SHENZHEN, China, Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- China GrenTech Corporation Limited (Nasdaq: GRRF; "the Company", or "GrenTech"), a leading China-based wireless coverage products and services provider and radio frequency, or RF, technology and product developer, today announced its unaudited financial results for the second quarter ended June 30, 2007.

Second Quarter 2007 Financial Highlights:

-- Total revenue increased 12.8% over the second quarter of 2006 to
RMB203.0 million (US$26.7million)(1)
-- Revenue from base station RF business increased 28 times over the
second quarter of 2006 to RMB55.0 million (US$7.2 million)
-- Revenue from wireless coverage products and services was RMB148.0
million (US$19.4 million), a decreased of 16.9% from the second
quarter of 2006
-- Research and development expenses and general and administrative
expenses increased 72.5% and 42.7% respectively over the second quarter
of 2006, due to continued investment in base station RF business
-- Gross profit was RMB82.6 million (US$10.9 million), a decreased of 7.6%
from the second quarter of 2006
-- Net income was RMB16.2 million (US$2.1 million), a decreased of RMB23.2
million (US$3.1 million) from the second quarter of 2006
-- Diluted earnings per ADS(2) were RMB0.65 (US$0.08)

Mr. Yingjie Gao, Chairman and Chief Executive Officer of GrenTech, commented, "I am pleased to report another quarter of solid business development, driven by continued execution of our second stage strategic initiative to develop our base station RF parts and components business, as well as further consolidating our leading position as a provider of wireless coverage equipment and integrated service for top tier Chinese carriers."

"As one of our core competencies and key growth drivers, our base station RF business has gained significant traction with a revenue increase of 4.3 times over last quarter and 28 times year-over-year, reaching RMB55.0 million (US$7.2 million) in second quarter of 2007. I am greatly encouraged by this strong performance in the second quarter of 2007, which I attribute to our focus and commitment on executing the following steps of our RF strategy: First, expand market share via mass production of passive modules for domestic base station OEMs to drive top line growth; Second, strengthen our position in the domestic market while expanding into global markets to continue diversifying and broadening our customer base; Third, enhance profitability and market share by developing and offering active modules to deepen penetration among domestic and global OEMs; and finally, build scalability by expanding manufacturing capacity and consolidating R&D capabilities to further support sales growth and improve bottom-line results."

Mr. Gao continued, "We are currently working on expanding sales to base station equipment manufacturers in China and elsewhere to enhance our leadership position in this space. As part of the implementation of our RF strategy, we made significant investments in the second quarter to further consolidate our leading technology position in R&D capabilities by establishing the largest RF research and development team in China, with 51% of such team engaged in base station RF modules, and 32% of our total employees engaged in base station RF business. In June 2007, we have already expanded our manufacturing capacity to US$3.9 million from an average of US$0.5 million per month in the first quarter of 2007. In addition, we have recently acquired a piece of land, which will be used to further expand our manufacturing capacity, to meet the anticipated rapid growth in RF product demand. While our RF business did not contribute to our bottom line in the second quarter of 2007, due in large part to our continuous investment in research and development, we believe that this part of our business will achieve profitability as revenue from base station RF parts and components continues to grow."

"Turning to our wireless coverage business, we won important bids from China Mobile in the second quarter of 2007. Although our sales revenue from these products and services in the second quarter was affected by an unexpected delay in Chinese carriers' capital expenditure, we believe the carriers will accelerate their investment in the third quarter of 2007 as the bidding process is expected to reach completion."

"Overall, our total revenue in the second quarter of 2007 increased by 12.8% compared to the second quarter of 2006. We expect revenue from base station RF parts and components will continue to grow steadily and the revenue from wireless coverage will recover in next quarter."

"This second quarter demonstrates our ability to execute our strategic plan, our commitment to invest for the long term growth of the business and our focus on growth, operational efficiency and profitability, which we believe will ultimately generate positive returns for shareholders."


Business Highlights

Base Station RF Parts and Components
-- Production capacity for base station RF parts and components has
reached RMB30 million (US$3.9 million) in June from RMB4 million in the
first quarter of 2007, and is expected to remain at similar level in
the following months in order to support the increasing demand from
customers in the third quarter and the rest of the year.
-- The Company became a major supplier of base station passive RF modules
for ZTE Corporation.
-- The Company began bulk production of base station passive RF modules to
Huawei Technologies Co., Ltd.
-- The Company started development of the TD-SCDMA RRU product for next
generation 3G networks with Potevio Co., Ltd.

Wireless Coverage Products and Services
-- By the end of the second quarter of 2007, actual investment in wireless
coverage products and services by Chinese carriers was behind their
previously budgets. The major reasons for the investment delays are 1)
a change in China Mobile's centralized procurement policy, the
implementation of which will take time to be reflected among its
subsidiaries; 2) centralized bidding for China Mobile's TD-SCDMA
coverage equipment and bidding for integrated service suppliers to
local subsidiaries were postponed to the second quarter of 2007; and 3)
as a result of the "calling-party-pay" (CPP) policy, China Netcom's
and China Telecom's PHS network revenue decreased, leading to reduced
PHS investments from China Netcom and China Telecom.
-- The Company won contracts from China Mobile to provide coverage
equipment and integrated services in the first TD-SCDMA expanded
technique trial network bidding.
-- The Company won contracts from China Telecom to provide coverage
equipment and integrated services in the first TD-SCDMA expanded
technique trial network bidding.
-- The Company qualified as an integrated service provider for China
Netcom in its TD-SCDMA expanded technique trial network.
-- The Company secured a contract to supply coverage equipments and
services for the China Mobile Olympic WLAN network through China
Mobile's centralized bidding process.
-- The Company successfully won the bid to provide wireless coverage for
No. 1 Subway Line from Beijing Subway Co. Ltd.

Second Quarter 2007 Unaudited Financial Results:

Revenues

Revenue in the second quarter of 2007 was RMB203.0 million (US$26.7 million), an increase of RMB23.0 million (US$3.0 million) from RMB180.0 million in the second quarter of 2006, representing a 12.8% year-over-year increase. This is primarily due to strong demand for the Company's base station RF parts and components.

Revenue from base station RF parts and components increased by RMB53.1 million (US$7.0 million), from RMB1.9 million in the second quarter of 2006 to RMB55.0 million (US$7.2 million) in the second quarter of 2007. This was mainly attributable to strong demand from base station original equipment manufacturers. In addition to sales to ZTE Corporation, the Company also began bulk production for Huawei Technologies Co., Ltd in the second quarter of 2007.

Revenue from wireless coverage products and services decreased by RMB30.1 million (US$4.0 million) from RMB178.1 million in the second quarter of 2006 to RMB148.0 million (US$19.4 million) in the second quarter of 2007. Despite increased revenue from China Telecom due to regional market expansion, revenue from China Mobile, China Unicom and China Netcom decreased compared to the second quarter of 2006 because of delays in wireless coverage investments.




Three Months Ended June 30, Year-
2006 2007 over-
Revenue Revenue Revenue % of Total Year
(RMB'000)(RMB'000) (US$'000) Revenue Change
Wireless Coverage
Products
China Mobile 52,738 37,672 4,949 18.6 % -28.6 %
China Unicom 75,479 63,859 8,389 31.5 % -15.4 %
China Telecom 20,809 29,371 3,859 14.5 % 41.1 %
China Netcom 19,324 9,592 1,260 4.7 % -50.4 %
Overseas 3,225 5,028 661 2.4 % 55.9 %
Non-operators 6,530 2,518 330 1.2 % -61.4 %
Subtotal 178,105 148,040 19,448 72.9 % -16.9 %
Base Station RF Products
OEMs 1,871 54,984 7,223 27.1 % 2838.7 %
Total 179,976 203,024 26,671 100.0 % 12.8 %


Cost of Revenues

Cost of revenue was RMB120.4 million (US$15.8 million), compared to RMB90.5 million in the second quarter of 2006, representing an increase of RMB29.9 million (US$3.9 million), or 33.0%. The increase was primarily due to an increase in total revenue and a rapid increase in revenue contribution from lower-margin RF parts and components.

Operating Expenses

Total operating expenses increased RMB15.9 million (US$2.1 million), or 34.8%, from RMB45.9 million in the second quarter of 2006 to RMB61.8 million (US$8.1 million) in the second quarter of 2007. This was due to an increase in research and development expenses and general and administrative expenses which were primarily related to further investments in the Company's base station RF parts and components business. Sales and distribution expenses also increased in the second quarter of 2007.

Research and development expenses grew by RMB6.0 million (US$0.8 million), or 72.5%, from RMB8.3 million in the second quarter of 2006 to RMB14.3 million (US$1.9 million) in the second quarter of 2007. The increase was mainly due to the Company's expansion of its research and development team and increased investments in research and development. As a result, compared to the second quarter of 2006, salary and compensation for research and development staff increased by RMB4.0 million (US$0.5 million), office expenses increased by RMB1.0 million (US$0.1 million), and depreciation expenses increased by RMB0.5 million (US$0.1 million).

Sales and distribution expenses were RMB31.8 million (US$4.2 million) in the second quarter of 2007, an increase of RMB5.2 million (US$0.7 million), or 19.7%, from RMB26.6 million in the second quarter of 2006. The increase was mainly due to strengthened marketing efforts with China Mobile and an expanded sales and marketing team, which led to an increase of RMB0.9 million (US$0.1 million) in salary and compensation, an increase of RMB2.9 million (US$0.4 million) in travelling and entertainment expenses, as well as an increase of RMB1.4 million (US$0.2 million) in other office expenses.

General and administrative expenses were RMB15.7 million (US$2.1 million) in the second quarter of 2007, an increase of RMB4.7 million (US$0.6 million), or 42.7%, from RMB11.0 million in the second quarter of 2006. The year-over- year increase was primarily due to an increase of RMB3.4 million (US$0.4 million) in salary and compensation and an increase of RMB1.0 million (US$0.1 million) in connection with other office expenses.

Other Expenses/Income

Total other expenses were RMB4.1 million (US$0.5 million) in the second quarter of 2007, compared to RMB0.5 million in the second quarter of 2006, an increase of RMB3.6 million (US$0.5 million). This is primarily due to a decrease in interest income and an increase of exchange loss.

Interest income was RMB1.8 million (US$0.2 million) in the second quarter of 2007, a decrease of RMB4.0 million (US$0.5 million), or 69.2%, from RMB5.8 million in the second quarter of 2006. This decrease is mainly due to a decrease in bank deposits as portions of the proceeds from the Company's initial public offering were used to fund working capital and capital expenditure needs.

Interest expense increased from RMB6.3 million in the second quarter of 2006 to RMB6.5 million (US$0.9 million), a slight increase of RMB0.2 million, or 2.4%. This resulted from an increase in bank loans.

Exchange loss amounted to RMB2.9 million (US$0.4 million) in the second quarter of 2007. This was primarily due to the fact that a portion of the proceeds from the Company's initial public offering were kept as bank deposits denominated in US dollars, which suffered an exchange loss resulting from the appreciation of Renminbi against the US dollar.

Grant income was RMB3.3 million (US$0.4 million) in the second quarter of 2007, compared to RMB0.1 million in the second quarter of 2006. These grants are made by the Chinese government to encourage research and development activities.

Earnings

Gross profit was RMB82.6 million (US$10.9 million) in the second quarter of 2007, a decrease of RMB6.8 million (US$0.9 million), or 7.6%, from RMB89.4 million in the second quarter of 2006. Gross margin was 40.7%, compared to 49.7% in the second quarter of 2006. The decrease in gross margin was primarily due to an increasing portion of lower-margin RF product sales in the overall product mix and a decrease in wireless coverage product unit pricing as a result of intense market competition.

Operating income was RMB20.8 million (US$2.7 million), a decrease of RMB22.8 million (US$3.0 million), or 52.3%, from RMB43.6 million in the second quarter of 2006. This is mainly due to the decrease in gross margin and increase in operating expenses.

Net income was RMB16.2 million (US$2.1 million), a decrease of RMB23.2 million (US$3.1 million), or 59.0%, from RMB39.4 million in the second quarter of 2006.

Diluted earnings per ADS were RMB0.65 (US$0.08) in the second quarter of 2007.

Balance Sheet

Total cash(3) decreased from RMB706.0 million as of December 31, 2006 to RMB531.7 million (US$69.9 million) as of June 30, 2007, a decrease of RMB174.3 million (US$22.9 million), or 24.7%. This decrease was mainly attributable to use of cash for purchase of base station RF module production and research equipment, capital expenditures of RMB75.9 million (US$10.0 million) for the purchase of a land use right for future production capacity expansion, as well as other working capital payments. Cash and cash equivalents decreased to RMB303.6 million (US$39.9 million) as of June 30, 2007, from RMB467.4 million as of December 31, 2006. Pledged time deposits decreased by RMB10.5 million (US$1.4 million) to RMB228.1 million (US$30.0 million) as of June 30, 2007 from RMB238.6 million as of December 31, 2006.

Total accounts receivable(4) were RMB1,088.6 million (US$143.0 million) as of June 30, 2007, an increase of RMB71.8 million (US$9.4 million), or 7.1%, from RMB1,016.8 million as of December 31, 2006. This is mainly due to the revenue increase from RF parts and components in the second quarter of 2007 and that revenue has not been collected yet.

Inventory increased from RMB434.4 million as of December 31, 2006 to RMB582.9 million (US$76.6 million) as of June 30, 2007, an increase of RMB148.5 million (US$19.5 million), or 34.2%. This is primarily due to an increase in raw materials related to the expansion of production capacity for the base station RF parts and components and an increase in wireless coverage finished goods that are in the process of customer installation.

Total assets increased by RMB245.9 million (US$32.3 million), or 10.2%, from RMB2,415.8 million as of December 31, 2006 to RMB2,661.7 million (US$349.7 million) as of June 30, 2007. The increase was mainly attributable to the increase in inventory, total accounts receivable, and property, plant and equipment.

Total liabilities increased by RMB275.6 million (US$36.2 million), or 31.8%, from RMB866.4 million as of December 31, 2006 to RMB1,142.0 million (US$150.0 million) as of June 30, 2007. The increase was mainly due to an increase in long-term debt to fund new production facilities construction and an increase in short-term bank loans for working capital needs.

Business Outlook

GrenTech estimates that revenue in the third quarter of 2007 will be in the range of RMB260 million to RMB295 million. This forecast reflects GrenTech's current preliminary view, which is subject to change.

The Company expects to benefit from increasing market demand for base station RF parts and components. GrenTech believes it has sufficient orders on hand to potentially lead to increased revenue from its RF parts and components in the third quarter of 2007. In particular, the Company anticipates that sales to Huawei Technologies Co., Ltd and ZTE Corporation will continue to increase.

In addition, the Company believes that China Mobile, as the major investor in the wireless coverage market in China, will accelerate its wireless coverage construction after completing the bidding process, and the deployment of large scale construction of the TD-SCDMA expanded commercial trial network. China Unicom is also expected to increase its spending in wireless coverage from the third quarter of 2007.

Conference Call and Webcast

The Company's management team will conduct a conference call on August 14, 2007 at 5:00 am (Pacific) / 8:00 am (Eastern) / 8:00 pm (Beijing/Hong Kong). A webcast of the conference call will be accessible on the Company's website at http://www.grentech.com.cn .

About China GrenTech

GrenTech is a leading radio frequency or RF, technology developer and a leading provider of wireless coverage products and services to telecommunication operators 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. GrenTech derives most of its revenues from wireless coverage products and services.

Based on its in-house RF technology platform, the Company also develops and produces base station RF parts and components sold to base station equipment manufacturers. China GrenTech is a qualified supplier of RF parts and components to six major base station equipment manufacturers such as Huawei Technologies and ZTE Corporation. For more information, please visit our website at http://www.grentech.com.cn .

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 Company's actual results to differ materially from its current expectations. Factors that could cause the Company's results to differ materially from those set forth in these forward-looking statements include the Company's reliance on business relationships with the Chinese telecom operators, in particular China Mobile, and base station OEMs; the risk that demand for base station RF parts and components will not continue to grow rapidly for whatever reason; the risk that the Company will not win the bid for China Mobile's TD-SCDMA indoor wireless coverage equipment or any other bids it participates in whether due to pricing, product performance or other factors; risk that the telecommunication operators in China will not accelerate their capital expenditures on wireless coverage products and services; risks associated with large account receivable, long collection periods and accounts receivable cycles; fierce competition in the wireless communication industry including the risk that the Company will continue to experience downward pressure of the pricing of its products; uncertainty as to future profitability and the Company's 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 technology and keep up with changes in RF technology; uncertainty as to the issuance of 3G licenses by the PRC governmental authorities; future changes to the regulations and policies governing the telecommunications industry in China, including possible future industry restructuring; limitation on the Company's production capacity for RF products; risks associated with possible defects and errors in its wireless coverage products or RF products; uncertainty as to the Company's ability to protect and enforce its intellectual property rights; and uncertainty as to the Company's ability to attract and retain qualified executives and personnel, particularly in its research and development department. Other factors that may cause the Company's actual results to differ from those set forth in the forward-looking statement contained in this press release and that may affect its prospects in general are described in the Company's fillings with the Securities and Exchange Commission, including its Registration Statement on Form F-1 related to its initial public offering, and its annual report 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.


(1) The Company's functional and reporting currency is Renminbi ("RMB").
The translation of amounts from RMB to United States 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 June 30, 2007 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=RMB7.612. 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 June 30, 2007, or at any other date.
(2) Each ADS represents 25 of our ordinary shares.
(3) Total cash = cash and cash equivalents + pledged time deposit.
(4) Total accounts receivable = accounts receivable, net + long-term
accounts receivable.

- FINANCIAL TABLES TO FOLLOW -


China GrenTech Corporation Limited and subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of December 31, 2006 and June 30, 2007
(RMB and US$ expressed in thousands, except share and per share data)


December June 30, June 30,
31, 2006 2007 2007
RMB RMB US$
Assets
Cash and cash equivalents 467,423 303,642 39,890
Pledged time deposits 238,618 228,065 29,961
Accounts receivable, net 747,859 806,760 105,985
Inventories 434,406 582,934 76,581
Total current assets 1,948,407 1,999,177 262,635
Long-term accounts receivable 268,957 281,830 37,024
Total assets 2,415,834 2,661,738 349,676

Liabilities and shareholders'
equity
Short-term bank loans 336,050 426,050 55,971
Total current liabilities 866,435 992,003 130,321
Long-term debt -- 150,000 19,706
Total liabilities 866,435 1,142,003 150,027
Ordinary shares US$0.00002 par
value;
2,500,000,000 shares authorized,
625,000,000 shares issued and
outstanding as of December 31,
2006 and June 30, 2007,
respectively 103 103 14
Total shareholders' equity 1,530,428 1,501,790 197,292
Total liabilities and
shareholders' equity 2,415,834 2,661,738 349,676



China GrenTech Corporation Limited and subsidiaries
Unaudited Condensed Consolidated Statements of Income
(RMB and US$ expressed in thousands, except share and per share data)

For Three Months Ended June 30,
2006 2007 2007
RMB RMB US$
Revenues 179,976 203,024 26,671
Cost of revenues (90,505) (120,378) (15,814)
Gross profit 89,471 82,646 10,857
Research and
development costs (8,306) (14,326) (1,882)
Sales and distribution
expenses (26,606) (31,854) (4,185)
General and
administrative
expenses (10,967) (15,655) (2,057)
Total operating
expenses (45,879) (61,835) (8,123)
Operating
income/(loss) 43,592 20,811 2,734
Interest income 5,761 1,776 233
Interest expense (6,369) (6,525) (857)
Investment income -- 318 42
Exchange gain/(loss) -- (2,941) (387)
Grant income 100 3,310 435
Total other expense (508) (4,062) (534)
Income tax
(benefit)/expense (3,583) (1,360) (179)
Income/(loss) before
minority interests 39,501 15,389 2,022
Net income/(loss) 39,433 16,173 2,125
Net income/(loss) per
share available to
ordinary
shareholders:
- Basic 0.06 0.03 0.00
- Diluted 0.06 0.03 0.00
Weighted average
number of ordinary
shares:
- Basic 619,770,291 625,000,000 625,000,000
- Diluted 620,879,121 625,000,000 625,000,000




For Six Months Ended June 30,
2006 2007 2007
RMB RMB US$
Revenues 194,772 234,310 30,782
Cost of revenues (97,292) (138,678) (18,218)
Gross profit 97,480 95,632 12,564
Research and development costs (16,699) (27,527) (3,616)
Sales and distribution expenses (50,744) (60,453) (7,942)
General and administrative expenses (22,076) (29,060) (3,818)
Total operating expenses (89,519) (117,040) (15,376)
Operating income/(loss) 7,961 (21,408) (2,812)
Interest income 6,620 4,232 556
Interest expense (15,266) (12,587) (1,654)
Investment income 238 318 42
Exchange gain/(loss) 1,101 (5,729) (753)
Grant income 227 3,430 451
Total other expense (7,080) (10,336) (1,358)
Income tax (benefit)/expense 2,348 2,081 273
Income/(loss) before minority
interests 3,229 (29,663) (3,897)
Net income/(loss) 3,694 (28,638) (3,762)
Net income/(loss) per share
available to ordinary
shareholders:
- Basic 0.01 -0.05 -0.01
- Diluted 0.01 -0.05 -0.01
Weighted average number of ordinary
shares:
- Basic 543,491,666 625,000,000 625,000,000
- Diluted 560,773,481 625,000,000 625,000,000




China GrenTech Corporation Limited and subsidiaries
Unaudited Condensed Consolidated Statements of Cash Flows
(RMB and US$ expressed in thousands)

For Six-months Ended June 30,
2006 2007 2007
RMB RMB US$

Net cash (used in) operating
activities (147,830) (198,654) (26,097)
Net cash (used in) investing
activities (100,123) (180,792) (23,751)
Net cash provided by financing
activities 767,096 217,628 28,590
Effect of exchange rate changes on
cash -- (1,963) (258)
Net increase / (decrease) in cash
and cash equivalents 519,143 (163,781) (21,516)



For more information, please contact:

Investor Contact:
Dora Li, IR Director
China GrenTech Corp Ltd.
Tel: [phone]
Email: [e-mail]

Investor Relations (US):
Delia Cannan
Taylor Rafferty
Tel: [phone]
Email: [e-mail]

Investor Relations (HK):
Ruby Yim
Taylor Rafferty
Tel: [phone]
Email: [e-mail]

Media Contact:
John Dooley
Taylor Rafferty
Tel: [phone]
Email: [e-mail]




--------------------------------------------------------------------------------
Source: China GrenTech Corporation Limited

[Blume_des_Propheten]

da ging es ja seit juni kräftig abwärts!
gründe?

[panik]

GRRF: Q2 EPS 8c; Rev $26.67M Beats 4c Est

Tuesday , August 14, 2007 08:57ET

QUARTER RESULTS
China Grentech Corp Ltd (GRRF) reported Q2 results ended June 2007. Q2 Revenues were $26.67M; +18.48% vs yr-ago; BEATING revenue consensus by +0.95%. Q2 EPS was 8c; BEATING earnings consensus by +100.00%.

Q2 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $26.67M $22.51M +18.48% $26.42M +0.95%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 8c N/A N/A 4c +100.00%
---------- ------------ ------------ ---------- ------------ ----------

[panik]

GrenTech Won Bid to Provide Wireless Coverage Solution for PTML'S GSM Expansion Project In Pakistan
Friday September 7, 5:14 am ET


SHENZHEN, China, Sept. 7 /Xinhua-PRNewswire-FirstCall/ -- China GrenTech Corporation Limited (Nasdaq: GRRF; "the Company" or "GrenTech"), a leading China based RF technology and product developer and a leading provider of wireless coverage products and services, today announced that it has won the indoor coverage subcontract from Huawei Technologies Co. Ltd. ("Huawei") to provide 70% of the wireless indoor coverage solution for PTML GSM 900/1800 expansion project (phase 5) that Huawei is constructing in Pakistan.
PTML, operating under the brand name of Ufone, is the second largest wireless communication operator in Pakistan and a subsidiary of Etisalat, a world leading multinational telecommunication operator.

The cooperation between Huawei, one of the largest base station equipment manufacturers in China, and Ufone commenced last year. Huawei will map out nationwide GSM network in Pakistan. Upon completion, Ufone's expanded GSM network will cover over 1,500 cities and towns throughout Pakistan. GrenTech as a qualified supplier for Huawai will apply its accumulated experiences in wireless coverage solution to Ufone's GSM expansion project and provide high quality products and services to customers in Pakistan.

About China GrenTech Corporation Limited

GrenTech is a leading radio frequency ("RF") technology and product developer and a leading provider of wireless coverage products and services to telecommunication operators 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.

Based on its in-house RF technology platform, the Company also develops and produces base station RF parts and components sold to base station equipment manufacturers. China GrenTech is a qualified supplier of RF parts and components to six major base station equipment manufacturers such as Huawei Technologies, ZTE, Datang Mobile, etc. For more information, please visit our website at http://www.grentech.com.cn .


For more information, please contact:

Investor Contact:
Dora Li
IR Director
China GrenTech Corp Ltd.
Tel: [phone]
Email: [e-mail]

Investor Relations (HK):
Ruby Yim
Taylor Rafferty
Tel: [phone]
Email: [e-mail]

Investor Relations (US):
Delia Cannan
Taylor Rafferty
Tel: [phone]
Email: [e-mail]

Media Contact:
John Dooley
Taylor Rafferty
Tel: [phone]
Email: [e-mail]




--------------------------------------------------------------------------------
Source: China GrenTech Corp Ltd.

[panik]

GrenTech Obtains Orders to Provide RF Modules for China's Largest Base Station OEM for the Second Half Of 2007
Tuesday September 11, 5:01 am ET


SHENZHEN, China, Sept. 11 /Xinhua-PRNewswire-FirstCall/ -- China GrenTech Corporation Limited (Nasdaq: GRRF; "the Company" or "GrenTech"), a leading China based RF technology and product developer and a leading provider of wireless coverage products and services, today announced that it won a bid from the largest domestic base station equipment manufacturers for the procurement of RF parts and components during the second half of 2007. GrenTech obtained the largest share of the overall arrangement and will provide CDMA and WCDMA filters for this customer.

Bidding from domestic base station equipment manufacturers for RF parts and components typically occurs every six months. The contract is subject to a Non-Disclosure Agreement ("NDA") which prevents China GrenTech from disclosing the name of the customer. This was GrenTech's second contract win from this base station equipment manufacturer; the Company first obtained orders from this customer at the end of first quarter of 2007.

Mr. Yingjie Gao, Chairman and Chief Executive Officer commented, "GrenTech is dedicated to the research and development of RF technology, and has accumulated extensive experience in the development of RF technology. We own many registered patents, including a low-cost production patent. Our technology leadership not only enables us to keep an integrated business model to develop, design and manufacture base station RF parts and components, but also to maintain our leading profit margins."

Mr. Gao continued, "As more global base station equipment manufacturers start to procure base station RF parts and components in China, and domestic base station equipment manufacturers like Huawei and ZTE expand their businesses, the landscape for base station RF parts and components in China demonstrates increasing promise. The strong market demand provides great growth opportunities for suppliers that have a comprehensive strength in RF technology and product development, such as GrenTech."

"Leveraging our leadership in RF technology, GrenTech developed our wireless coverage business as the first stage of our strategic development; now, the Company is in the second stage of its strategic development, which is to grow our base station RF business. The Company has the largest RF research and development team in China, and is the fastest growing RF module supplier with the most compelling comprehensive strength. Now the Company is currently a qualified supplier of RF parts and components to major domestic and global base station equipment manufacturers, and can develop and manufacture different types of base station RF parts and components for customers. The order quantity obtained this time is larger than that of the first half of the year, indicating our progress toward achieving our goal of quickly growing our base station RF business for this year," Mr. Gao concluded.

About China GrenTech Corporation Limited

GrenTech is a leading radio frequency ("RF") technology and product developer and a leading provider of wireless coverage products and services to telecommunication operators 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.

Based on its in-house RF technology platform, the Company also develops and produces base station RF parts and components sold to base station equipment manufacturers. China GrenTech is a qualified supplier of RF parts and components to six major base station equipment manufacturers such as Huawei Technologies, ZTE, Datang Mobile, etc. For more information, please visit our website at http://www.grentech.com.cn .


For more information, please contact:

Investor Contact:
Dora Li, IR Director
China GrenTech Corp Ltd.
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Email: [e-mail]

Investor Relations (HK):
Ruby Yim
Taylor Rafferty
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Email: [e-mail]

Investor Relations (US):
Delia Cannan
Taylor Rafferty
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Email: [e-mail]

Media Contact:
John Dooley
Taylor Rafferty
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Source: China GrenTech Corporation Limited

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