Archive for the ‘China 3C Group CHCG’ Category

China 3C Group (CHCG.OB) Completes Acquisition of Jinhua Baofa Logistic, Ltd.

Tuesday, July 7th, 2009

China 3C Group, a leading wholesale distributor and retailer of computers, communication products and consumer electronics in China, recently announced that the company has completed the acquisition of Jinhua Baofa Logistic, Ltd., a transportation logistics company in Eastern China.

The transaction was structured as an acquisition through the company’s subsidiaries, Zhejiang Yong Xin Digital Technology Co., Ltd. and Yiwu Yong Xin Communication Ltd., for a cash consideration of RMB 120 million (approximately US$17.4 million). With revenue of $10.5 million and net income of $1.9 million, Jinhua Baofa Logistics’ services cover more than 20 cities in Eastern China, including Shanghai, Hangzhou and Nanjing. Mr. Hongfei Guo, chief executive officer of Jinhua, will continue to manage the business following the closing of this acquisition.

Mr. Zhenggang Wang, chairman and chief executive officer of China 3C, commented, “We are pleased to complete our acquisition of Jinhua and expand our logistical capabilities. We have combined Jinhua’s transportation network with our distribution network, which we believe will result in enhanced service and operating efficiency as we expand our operations into new geographic areas in China.” He continued, “Jinhua’s gross margin is significantly higher than our other business segments, and we believe that Jinhua can contribute at least $10 million in revenue and $2 million in net income to our business annually.”

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China 3C Group (CHCG.OB) Announces Financial Results for Fourth Quarter and Full Year 2008

Wednesday, March 25th, 2009

China 3C Group, a retailer and wholesale distributor of consumer and business products in China, reported its financial results for the fourth quarter and full year of 2008. Net sales for the fourth quarter of 2008 totaled $84.9 million, a 22.9% increase compared to $69.1 million for the same period of the prior year. The company’s retail business accounted for approximately 68% of sales while the wholesale business generated approximately 32% of sales.

Net sales for last year increased 13% to $310.6 million, versus $276.0 million for 2007. General and administrative expenses for the year totaled $14.1 million, or approximately 4.5% of sales, compared to $13.6 million, or 4.9% of sales, in 2007. Income from operations for 2008 was $34.5 million, a slight decrease from the prior year. Net income was $26.8 million (or $0.51 diluted earnings per share) for 2008, compared to $22.9 million (or $0.44 diluted earnings per share) in 2007.

Mr. Zhenggang Wang, Chairman and Chief Executive Officer, commented, “We are very pleased to report solid full year and fourth quarter 2008 financial results, particularly as our fourth quarter results exceeded our preliminary revenue, net income and diluted EPS results announced in mid-January 2009. We believe that China 3C Group continues to benefit uniquely from its size and scale, strong customer and supplier relationships, its product breadth and selection and its pricing, all of which, in our view, have allowed us to expand our market position even during these challenging economic times.”

”We continue to see steady improvement to our balance sheet. We finished the year with over $32 million in cash. This was an increase from both the prior year and prior quarter and also takes into account a partial cash payment of approximately $7.3 million for the acquisition of Jinhua Boafa announced in late December 2008. We are pleased with the efficiencies of our operations, which are best demonstrated by our inventory turns, which turned 24 times in 2008. In addition, we have no debt, were cash flow positive from operations and ended 2008 with a book value per share of $1.66,” he added.

In conclusion, Wang commented, ”We believe that 2009 will be another solid year for China 3C Group. Consumer demand for our products remains steady and we continue to focus on expanding profits and minimizing operating expenses within our store-in-store locations. We also expect to see growth coming from our direct and franchise stores we expect to open this year. With the establishment of our franchise business, we believe that we have a great opportunity to increase our sales and profitability, create additional operating leverage and improve our brand visibility. We look forward to further establishing China 3C Group as a leading retailer and distributor of consumer electronic products in the eastern China region.”

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China 3C Group (CHCG.OB) Inks Definitive Agreement to Acquire Jinhua Baofa Logistic Ltd.

Monday, December 29th, 2008

Today, China 3C Group announced that it has agreed to acquire 100% of Jinhua Baofa Logistic Ltd. (“Jinhua”), a well-known logistic company in Eastern China. The agreed amount for this transaction is RMB 120 million (approximately $17.4 million). The company anticipates completing the acquisition by March 31, 2009.

Jinhua was founded in 2001 and currently employs about 350 people. With 280 customers and a fleet of more than 70 trucks, the company had sales of RMB 54.2 million (approximately $7.85 million), net income of RMB 11.7 million (approximately $1.69 million), and gross margin of 32.2% for the nine months ended September 30, 2008.

Mr. Zhenggang Wang, CEO of China 3C Group, stated, “We are extremely excited about the acquisition of Jinhua and believe this acquisition can increase the competitiveness of China 3C group within the existing regions we conduct business and potentially beyond. China 3C’s logistical network will be more complete through the combination of Jinhua’s transportation network with China 3C’s existing distribution network. The addition of Jinhua can result in faster, safer and more reliable logistic services as well as provide China 3C with annual logistic expense savings.”

“While Jinhua has a strong presence in Eastern China, we also believe that it can assist 3C in developing a logistics platform that can allow us to expand into other major geographic regions in China. We are pleased to acquire a business with gross margins that are roughly double that of our current operations and believe that Jinhua can add at least $10 million in revenue and $2 million in net income to our business annually going forward,” he continued.

Mr. Hongfei Guo, CEO of Jinhua Baofa Logistic Ltd, commented, “We are very excited to join China 3C Group and believe China 3C can further diversify Jinhua’s customer base, provide strong managerial support and add financial strength to our business, enabling us to expand China 3C’s growth more quickly while also allowing us to pursue additional growth opportunities with other new and existing customers.”

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China 3C Group (CHCG.OB) Connects With Retail Seller, LiQun

Saturday, October 18th, 2008

China 3C Group (CHCG) announced it will be opening its first mobile phone retail counter, after signing an agreement with the China Intime Group. China Intime operates a chain of 11 department stores in China. The CHCG retail location is in the high-end LiQun Department Store, in Hangzhou City.

“Our agreement with China Intime is our first with a high-end retailer,” said Zhenggang Wang, China 3C Group Chairman and CEO. “We believe our penetration into its flagship store can further diversify our customer base and maximize sales of our leading mobile phone brands.”

China 3C will sell about 20 brands and 100 models of mobile phones, including those from Nokia, Samsung, Sony-Ericsson and Motorola. The company, overall, is a retailer and wholesale distributor of consumer and business products in China. Its goal is to become the number one retailer of communities, creation and connectedness (3C) products in China.

“It’s a pleasure to work with a highly professional, well-organized retailer like China 3C Group that can offer specialized consumer electronics retailer products to our growing customer base,” said Mr. Wang Wei, general manager of the LiQun department store. “We look forward to strengthening our relationship in the coming months.”

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China 3C Group (CHCG.OB) Unveils Retail Strategy with Leading Chinese Advertising Agency

Monday, July 21st, 2008

China 3C Group (OTCBB: CHCG) is a wholesale distributer of consumer and business products throughout China, including its “3C” merchandise portfolio consisting of computers, communication products and consumer electronics. The company today announced a strategic agreement with advertising agency Hangzhou Hansi Brand Design Ltd. in Eastern China.

Per the agreement, Hangzhou Hansi’s clients’ brand advertising will be on the shelves of China 3C’s chain stores. After a trial period during the second quarter of this year, the companies launched the full arrangement on July 15, 2008.

According to both companies, the agreement will benefit customers and advertising clients through improved advertising means. Hangzhou Hansi’s clients now have the opportunity to advertise on China 3C’s customer packaging bags, promotional posters, direct mailers and TV panels. The agreement will enable the company to profit from the advertising revenue and boost business opportunity.

”We are very happy to form a strategic alliance with Hangzhou Hansi. This agreement represents our interest in enriching the shopping experience for our retail customers, increasing the visibility of our consumer electronic brands and generating additional revenue opportunities for our business,” Wang Zhenggang, CEO of China 3C stated in the press release.

Current customers of China 3C include manufacturers of mobile phones, fax machines and home electronic equipment. These companies are the types of companies expected to advertise through China 3C’s locations.

”We are pleased to be entering into this agreement with China 3C. Our cooperation with China 3C can greatly improve the efficiency and effectiveness of our advertising campaigns with our select group of consumer electronic customers. China 3C has a significant number of ”store-in-store” locations that can provide our customers access to a large pool of consumers in which to target,” Si Haiwen, CEO of Hangzhou Hansi stated.

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China 3C Group (CHCG.OB) Signs Exclusive Agreement with ACA (Zhuhai) Limited Company

Thursday, April 24th, 2008

China 3C Group (CHCG.OB), a leading retailer and distributor of consumer and business products in China, recently announced that the company has signed an exclusive sales agreement with ACA (Zhuhai) Limited Company, a leading manufacturer of household appliances with worldwide distribution channels.

China 3C’s wholly owned subsidiary, Zhejiang Sanhee Electronic Technology Limited Company, has been authorized to exclusively sell ACA’s products in eight Wumart stores in the Zhejiang Province. Wumart Group is one of the leading grocery chains in China. This agreement further strengthens China 3C Group’s goal of maximizing the amount of product sold per retail location, including household appliances and rice cookers. The company will also introduce new, in-demand products, such as toasters and ovens, to these existing retail locations to optimize sales opportunities at each retail outlet.

Additionally, this agreement with ACA will add a strong brand name to the company’s current list of manufacturers. As China 3C Group’s relationship with ACA matures, the company intends to expand its sales opportunities of toasters and ovens to over 900 retail outlets in the Eastern China region.

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HotOtc Featured Company: China 3C Group Inc. (CHCG.OB) Meets Company’s Forecasts with 103% Net-Income Growth and No Debt on its Balance Sheet

Wednesday, April 9th, 2008

Being able to step-up when the opportunity presents itself is a sign of a company’s solid positioning and ability to ramp from an average position to an outstanding position. In many respects, timing plays a large part in being ready to step up, but so does understanding how the local/regional game is played. Putting the two together, when the chance presents itself, means a company is likely to be getting larger sooner rather than later.

China 3C Group Inc., a leading wholesale distributor and retailer in Eastern China, offers a range of products to its over 900 retail stores. In the very near future, it will also begin to offer small electronic products in Wal-Mart China Stores. The company works primarily with electronic products as its main base but offers a full range of products to suit every need. It is noted for its far-reaching distribution network within eastern China, and its ability to respond quickly to changing trends and reported issues within the network.

In many respects, the company’s partnering with Wal-Mart is a perfect fit. The companies have a similar product base and appear to operate with the same business principles. The first steps of this particular alliance are limited to small electronic items such as small home appliances, computers and computer peripherals. How long the companies intend to keep the relationship at this level is anybody’s guess, although given that China 3C Group has a wide selection of wholesale items to offer, the two companies are likely to find more common ground quickly.

The company is fairly well established within the eastern portions of China. These regions, or provinces, are the principle centers of population within China and the regions where a new middle-class of Chinese is forming. From an economic standpoint, the rapid formation of this middle-class also leads to quick adaptation to existing and established trends found in the Western consumer. With this in mind, it is not that great a leap to suggest that Wall-Mart’s entry into the market – and China 3C Group’s association with this model (which has been successful in the West) – will also be successful in this burgeoning, Chinese middle-class. If recent economic history is an indicator, China 3C Group is positioned to be a big winner, as China permits access to a “new” Western-style retail experience.

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China 3C Group (CHCG.OB) Signs Wholesale Supply Agreement with Wal-Mart China

Tuesday, April 8th, 2008

China 3C Group, a leading wholesale distributor and retailer operating over 900 retail outlets in Eastern China, entered into a supply agreement with Wal-Mart stores in Zhejiang Province to sell audio electronic equipment, including radios, stereo equipment and CD players, at all six Wal-Mart stores starting April 2008. This allows China 3C Group the possibility of expanding its distribution into other Wal-Mart stores that are located in Eastern China as well as other near provinces in the future. Wal-Mart currently has eighty-one stores in China with thirteen of those stores located in Eastern China.

Mr. Wang Zheng-gang, Chairman and Chief executive Office of China 3C said, “We are thrilled that Wal-Mart is working with China 3C to sell our audio products in their stores. While this agreement is initially expected to have a limited material impact to our business, we believe there is an opportunity to expand our relationship with this retailer in the future to include a broader range of products and increase the total number of stores we have with this partner. Our business is well-suited to work with leading retailers such as Wal-Mart due to our broad product selection, competitive pricing and our ability to operate in a large number of store outlets. Wal-Mart has a strong brand presence and operating capability in China, which we believe can provide China 3C with a very good platform for growth in the Zhejiang province and in other surrounding provinces in the future. We believe this supply agreement further validates the strength of our operating model.”

Mr. Michael Chen, Wal-Mart’s District Manager for the Zhejiang province commented, “Wal-Mart is pleased to reach an agreement with China 3C Group to sell its products in our six stores in the Zhejiang province. China 3C Group is a major provider of electronic consumer goods in Eastern China with many leading consumer brands in its portfolio. We believe the presence of their products in our stores has the opportunity to enhance the overall product offering and enrich the shopping experience for our customers. We look forward to strengthening our relationship with China 3C in the months ahead.”

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Stock Guru Featured Client: China 3C Group (CHCG.OB)

Monday, April 7th, 2008

China 3C Group (CHCG) is a leading retail chain operator in Eastern China with over 600 independent stores. The company is focused on selling its communication, information technology and digital products in China through its subsidiary, Zhejiang Yong Xin Digital Technology Co., Ltd.

China 3C Group is the parent company for Yiwu Yong Xin Telecommunication Company Limited and Hangzhou Wang Da Electronics. Both subsidiaries are authorized sales agents for communication, IT, and digital products in China. Some of their products include: fax machines, cord phone products, cell phone products, laptop computers, digital cameras, digital camcorders, MP3 players, and PDAs.

The company also offers an efficient distribution network and a rapid logistics system. It expects IT and digital to become a larger part of the business, but still plans to maintain its dominant fax machine distribution status. China 3C intends to become the leading retailer of 3C products sold in the China markets.

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China 3C Group (CHCG.OB) Has Named Mr. Yong Wu VP and Director of Sales

Wednesday, April 2nd, 2008

China 3C Group, a leading retail chain operating approximately 908 retail outlets in Eastern China, announced April 2 that it has named Mr. Yong Wu VP and Director of Sales. Mr. Wu’s role is to be responsible for China 3C’s overall sales strategy, and will involve overseeing a 500-member sales and support staff as well as analyzing data, marketing and customer service.

Mr. Yong Wu said, “I am very honored to join a great company like China 3C and look forward to working with the rest of the management team to expand future sales opportunities. I intend to utilize my experience working in China’s consumer industry to strengthen the Company’s overall sales infrastructure and maximize 3C’s performance at leading consumer electronic retail outlets in Eastern China.”

Mr. Wu served as a sales manager for East China at CR Vanguard Limited and prior to that he worked as a sales manager for East China at Trust-Mart Department Stores Co. from 2000 – 2005. Mr. Wu began his career in 1996 working for COFCO Le Conte Food Co., Ltd, which is one of China’s largest candy manufacturers. He rose to General Manager of East China, which is the most important sales region for that company. Mr. Wu is also a graduate from Zhejiang University of Economics and Management.

Mr. Zhenggang Wang, Chairman and Chief Executive Officer commented, ”We are pleased to welcome Wu to this newly created position at China 3C Group. As we continue to broaden our presence in China, it is important to ensure that the lead sales managers at each of our four operating subsidiaries report to one centralized individual. We believe that having Wu in this role will streamline our operations more efficiently, better service the needs of our customer base and allow us to take advantage of the retail market opportunities for China 3C ahead. He has rich sales management experience and we anticipate that he will have the ability to analyze and enhance the sales structure at our company. We look forward to Wu’s future contributions to our business and believe he will play a significant role in our growth ahead.”

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China 3C Group (CHCG.OB) Announces Cooperation Agreement with Lotour Company to Increase Store Count

Friday, January 11th, 2008

China 3C Group (CHCG.OB), a retailer and distributor of consumer and business products in China, announced that the company has entered into an agreement with the Lotour Company. Under the terms of this agreement, Lotour is to open China 3C mobile phone booths in particular Lotour stores.

Chairman and CEO Zhenggang Wang commented, “This agreement opens a new chapter in our expansion of the 3C market in China. Most of our stores now are located in large department stores or large electronics retailers. The arrangement with Lotour enables us to also expand our relationships with a company that is solely focused on the sale of 3C products.

Wang added, “Additionally, this will also increase the number of locations where China 3C’s products are sold. Going forward, when Lotour opens a new store, China 3C will be able to sell its mobile phones through the Lotour store. Lotour has set an internal target of 100 new stores for 2008.”

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China 3C Group (CHCG.OB) to Open Stores in Carrefour

Thursday, January 3rd, 2008

China 3C Group (CHCG.OB), a major distributor and retailer of consumer and business products, announced that the company has signed an agreement to open their stores in Carrefour, China. Carrefour has often been considered one of the largest retail hubs in the world.

This agreement further emphasizes China 3C’s strategic initiative to capitalize on the growing Chinese economy. By partnering with global brands, China 3C will be able to grow immensely.

Zhenggang Wang, CEO of China 3C Group, stated, “We are very pleased to be increasing our presence in one of the globe’s foremost retailers, Carrefour. This further validates our strategy of dealing with top brand-name retailers and cooperating for mutual benefit.”

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China 3C Group (CHCG.OB) Partners with Electronics Giant

Thursday, June 14th, 2007

Share prices for China 3C Group (OTCBB: CHCG) rose sharply this morning, only to sink back down by mid-afternoon today, resulting in a total increase of 5.60 percent – 39 cents to $7.35. Even more impressively, the company’s volume topped the OTC Bulletin Board for the day, reaching 1,385,194 shares, a dollar value of $10,173,524.The sudden jump in the stock price this morning came right after the company released information that it had signed an agreement to provide products and services for North America-based electronics powerhouse Best Buy (NYSE: BBY).

“Our agreement with Best Buy further increases our presence and recognition as a reliable distributor of quality merchandise,” Zhenggang Wang, CEO of China 3C Group, said in the press release. “We are pleased to be selected as a supplier of electronic goods to Best Buy, a company recognized as one of the world’s foremost consumer electronics retailers.

“We expect this year-long agreement will have beneficial results,” Wang added.

China 3C Group specializes in 3C products (communication, information technology and digital) in China through its subsidiary Zhejiang Yong Xin Digital Technology Co. The company’s goal is to become the No. 1 retailer of 3C products in China.