SHANGHAI, Aug. 22, 2005 (PRIMEZONE) -- China Digital Wireless, Inc. (OTCBB:CHDW), a leading distributor of mobile phones and provider of digital television advertising in Shanghai, People's Republic of China, announced its financial results for the second quarter ended June 30, 2005.
The Company reported Net Income of $601,541 versus a loss of ($190,401) in the second quarter of 2004. However, the 2004 period included costs associated with the Company's one time non-cash expenses of $1,014,000 related to the Company's reverse merger.
The Company's out-of-home digital media advertising business net sales increased to $736,787 in the second quarter from $387,954 in the first quarter of 2005 -- an increase of approximately 90%.
For the six months ended June 30, 2005 total sales revenues increased by $519,345 or approximately 4.8% as compared to the year earlier six months.
"We are pleased that we are maintaining reasonable growth in both revenue and profits as we continue our business model transition. To a great extent, the decline in revenues and profitability of our value added information service due to the sluggish Chinese stock market along with inactive stock exchanges has been offset by the rapid growth of our out-of-home Digital Television Advertising business, which has the highest profit margins of any of the Company's business segments. Also, the shift in our mobile phone sales to our related party distribution company, Shanghai Shantian, as well as the addition of certain Nokia mobile phone products are contributing to our continued profitability during this transition period," said Mr. Tai Caihua, Chairman of China Digital Wireless.
About China Digital Wireless, Inc.
China Digital Wireless distributes various mobile phone models in the Shanghai, China region and provides out-of-home digital television advertising in commercial locations throughout Shanghai.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.Contact: