Focus on 3G smartphones returns Longcheer back to the black in Q4, full year

Longcheer Holdings has returned to the black, with a fourth quarter net profit of 20.7 million yuan (S$4.3 million). The company posted a net loss of 75.4 million yuan in the same period last year.

For the full year to June 30, net profit amounted to 59.6 million yuan against a loss of 94.8 million yuan previously.

Fourth quarter and full year revenue rose by 68 per cent and 69 per cent respectively to 1.27 billion yuan and 3.95 billion yuan.

The increase in fourth quarter revenue was attributable to an increase of 91 per cent in total shipment to 6.65 million units in Q4 FY13.

Sales of 3G smartphones in China accounted for 55 per cent of total shipment and 48 per cent of revenue for the current quarter.

Shipment for 3G products accounted for 75 per cent of total shipment and 85 per cent of revenue in the same period.

However, average selling price of handset solutions during the quarter fell by 6 per cent to 189.3 yuan a unit, due to keen market competition.

Fourth quarter earnings per share amounted to 5.85 fen, reversing from loss of 21.26 fen previously while net asset value per share climbed by 17 fen to 167.46 fen.

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