Contact Information: Contact: China Crescent Enterprises, Inc. ir@chinacrescent.com 214-722-3065
China Crescent Enterprises, Inc. Announces Plans to Increase Profitability From Systems Integration Operations in China
| Source: China Crescent Enterprises, Inc.
DALLAS, TX--(Marketwire - December 12, 2008) - China Crescent Enterprises, Inc. (OTCBB : CCSE )
today announced plans for the Company to increase its stake and
profitability in the Chinese market. United States gross domestic product
is expected to shrink by 0.8% in 2009, while China will grow at 8.8%. China
Crescent is a U.S. company that provides technology products and services
in China, with its primary office in Shanghai. China Crescent has reported
$30.3 million in revenue for the first nine months of this year and
reported $40 million in revenue in 2007.
As part of the initiative to grow its presence and profitability in China,
China Crescent plans to increase its ownership in one of its Chinese
operating subsidiaries by 25%. China Crescent currently has a 51% ownership
in the Chinese subsidiary and plans to acquire the increased position from
the Chinese operating subsidiary's minority shareholder. That subsidiary
currently focuses on hardware and software systems integration. Through the
Company's increased ownership in the Chinese operating subsidiary, net
income would correspondingly increase as the Company continues to mature.
China Crescent has focused on the growing need in China for computer
hardware and software since its inception in 2005. China, as with other
emerging markets, has a ravenous appetite for hardware and support services
to build out its nationwide computer infrastructure.
Forbes Says Look East for Growth
Forbes recently published an article addressing the need for U.S.-based
companies to look East, specifically to China and India for continued
growth. China's 2009 GDP is projected to be 8.8%, compared to the United
States' 0.8%. During past financial crises, China and India have not had
strong enough purchasing power to absorb the financial stress of other
international markets. But with a rapidly increasing middle class in those
countries, expected to reach 290 million in China by 2011, that is
changing.
To read the article in its entirety, go to:
http://www.forbes.com/2008/10/28/china-india-growth-oped-cx_rm_1029meredith.html.
Year-to-Date Financial Performance
China Crescent recently conducted its third quarter financial review
Webcast. China Crescent reported $30.3 million in revenue for the first
nine months of 2008 compared to $27.9 million in revenue for the same
period last year. Notably, net income increased over 1,300 percent to
$516,999 for the first nine months of 2008 compared to $36,010 for the same
period last year. The Company's 2008 revenue objective is $50 million. An
archive of the Webcast is available at www.chinacrescent.com.
Corporate E-mail Updates
To be added to China Crescent's e-mail database to receive company updates
or to obtain more information on the Company, please send an e-mail to
ir@chinacrescent.com or call 214-722-3065.
About China Crescent Enterprises, Inc. (www.chinacrescent.com)
China Crescent Enterprises, Inc. is a technology leader in the rapidly
developing Chinese market specializing today in software engineering, high
quality software development and digital multimedia outsourcing services
delivered to customers globally. At the same time, the firm is a systems
integrator and value added reseller of major global hardware brands in the
Chinese domestic market.
Headquartered in Dallas with operations in Shanghai and Beijing, China
Crescent bridges the gap between Western and Eastern business cultures to
assist western clients in realizing the advantages of the high quality, low
cost technology products and services available from China. China Crescent
also assists Western clients in localizing products and services to realize
the tremendous growth potential available by expanding into the Chinese
Market.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This press release contains forward-looking statements that involve risks
and uncertainties. The statements in this release are
forward-looking statements that are made pursuant to safe harbor provision
of the Private Securities Litigation Reform Act of 1995. Actual results,
events and performance could vary materially from those contemplated by
these forward-looking statements. These statements involve known and
unknown risks and uncertainties, which may cause China Crescent's actual
results in future periods to differ materially from results expressed or
implied by forward-looking statements. These risks and uncertainties
include, among other things, product demand and market competition. You
should independently investigate and fully understand all risks before
making investment decisions.