Cninsure (NASDAQ:CISG)

First Quarter 2012 Results

• Total net revenues for the first quarter ended March 31, 2012 were RMB337.3 million (US$53.6 million), representing an increase of 7.5% from RMB313.7million for the corresponding period of 2011.
• Net income from continuing operations was RMB52.8 million (US$8.4 million) for the first quarter of 2012, representing a decrease of 34.1% from RMB80.1 million for the corresponding period of 2011.
• Non-GAAP Fully diluted net income per ADS was RMB1.16 (US$0.19) for the first quarter of 2012, representing a decrease of 26.4% from RMB1.58 for the corresponding period of 2011.

Commenting on the first quarter 2012 financial results, Mr. Chunlin Wang, CNinsure's chief executive officer, stated, "Entering 2012, the Chinese insurance market remained challenged by weak growth in total gross premiums written, primarily impacted by the continued decline of life insurance premiums. Driven by relatively stable growth in our property and casualty insurance and claims adjusting businesses, our total net revenues still beat our previous guidance, growing at 7.5%, despite negative growth in life insurance revenues. Margins were squeezed by higher sales costs and operating expenses due to continued inflationary pressure and market competition.

"In facing these challenges, we will continue to push forward the strategic transitioning of the Company within our three business segments, including 1) implementing a new higher-productivity sales model within the life insurance business segment that focuses on higher penetration into urban areas, provision of comprehensive wealth management products to customers and development of an elite sales team, 2) optimizing the business structure of our claims adjusting business by strengthening efforts to develop non-auto property and casualty insurance related claims adjusting business, and 3) building our e-commerce platform."

Business Outlook

CNinsure expects its total net revenues to decrease by less than 8% for the second quarter of 2012 compared to the corresponding period of 2011.

Fourth Quarter 2011 Results

• Total net revenues: RMB418.6 million (US$66.5 million), representing an increase of 15.1% from the corresponding period of 2010, which exceeded the previous guidance of 10-15%.
• Operating loss: RMB1.0 billion (US$161.1 million), compared to operating income of RMB130.2 million for the corresponding period of 2010.
• Non-GAAP operating income, excluding (1) goodwill and intangible assets impairment loss and (2) share-based compensation expenses: RMB73.2 million (US$11.6 million), representing a decrease of 48.0% from the corresponding period of 2010.
• Net loss attributable to the Company's shareholders: RMB718.6 million (US$114.2 million), compared to net income attributable to the Company's shareholders of RMB126.5 million for the corresponding period of 2010.
• Non-GAAP net income attributable to the Company's shareholders, excluding (1) impairment losses in respect of goodwill and intangible assets attributable to the Company, net of tax,(2) share-based compensation expenses, (3) refunds from the selling shareholder of certain acquired subsidiaries, (4) investment income incurred by business combination achieved in stages, net of tax, and (5) net income from discontinued operations²: RMB76.0 million (US$12.1 million), representing a decrease of 41.0% from the corresponding period of 2010.
• Non GAAP basic net income per ADS: RMB1.517 (US$0.241), representing a decrease of 40.8%, respectively, from the corresponding period of 2010.
• GAAP basic net loss per ADS: RMB14.336 (US$2.278), compared to GAAP basic net income per ADS of RMB2.514 for the corresponding period of 2010.

Commenting on the fourth quarter and fiscal year 2011 financial results, Mr. Chunlin Wang, CNinsure's chief executive officer, stated, "The fourth quarter and full year 2011 results were mixed. Top line growth remained stable with total net revenues growing 15.1% and 22.9% year-over-year, for the fourth quarter and the fiscal year of 2011, respectively, which exceeded our previous guidance. Bottom line growth, however, was subdued due to increasing cost pressure arising from high inflation and intensified competition within the insurance market."

He continued, "In light of the challenges, in 2012, we will devote our efforts to implementing the Company's strategic transformation plan. Although our near-term earnings may be adversely impacted, we believe these efforts will help re-enforce the Company's long-term competitiveness and place the Company on a stronger base for a fruitful future."

Business Outlook

CNinsure expects its total net revenues to grow by less than 5% for the first quarter of 2012 compared to the corresponding period of 2011.

GUANGZHOU, China, Feb. 23, 2012 (GLOBE NEWSWIRE) -- CNinsure Inc. (Nasdaq:CISG) ("CNinsure" or the "Company"), a leading independent insurance intermediary company operating in China, today announced that it expects to record a non-cash impairment charge in the range of RMB800 million to RMB1,181 million for intangible assets and goodwill in the fourth quarter of 2011, based on preliminary results of the Company's intangible assets impairment assessment and annual goodwill impairment test, in accordance with Accounting Standards Codification 350, Intangibles - Goodwill and Other. The above charge is an estimate subject to the completion of the Company's impairment assessments.

The intangible asset and goodwill impairment charge reflects a material decline in the fair value of the Company as of December 31, 2011 and the expected adverse impact of the overall economic uncertainties in China, growth slowdown within the Chinese insurance market and the Company's strategic business transition on its earnings in the next two to three years.

The Company does not expect the non-cash impairment charge to have an adverse impact on its normal business operations, cash position or cash flows from operating activities.

Third Quarter 2011 Results

• Total net revenues: RMB383.7 million (US$60.2 million), representing an increase of 18.9% from the corresponding period of 2010.
   
• Operating income: RMB72.7 million (US$11.4 million), representing a decrease of 32.6% from the corresponding period of 2010.
   
• Net income attributable to the company's shareholders: RMB78.2 million (US$12.3 million), representing a decrease of 28.8% from the corresponding period of 2010. Net income attributable to the Company's shareholders for the third quarter of 2011 included the following non-recurring items: (1) impairment losses in respect of goodwill for the claims adjusting segment and intangible assets; and (2) professional fees relating to a non-binding going-private proposal that was later withdrawn.
   
• Excluding net income from discontinued operations² and the non-recurring items mentioned above, adjusted net income attributable to the Company's shareholders (non-GAAP): RMB106.3 million (US$16.7 million), representing an increase of 5.3% from the corresponding period of 2010.
   
• Excluding net income from discontinued operations and the non-recurring items mentioned above, diluted net income per ADS (non-GAAP): RMB2.087 (US$0.327), representing an increase of 6.7%, respectively, from the corresponding period of 2010.

Commenting on the third quarter financial results, Mr. Chunlin Wang, CNinsure's chief executive officer, stated, "Due largely to the prevailing macroeconomic turmoil, during the third quarter of 2011 the Chinese insurance industry witnessed a slow-down of insurance premium growth and, for the first time in the past decade, the life insurance sector experienced negative growth. This was a major challenge to our third quarter financial operations."

Mr. Wang continued, "High inflation is expected to trigger profound changes to customer demand, sales and marketing models, the division of labor and the inherent growth drivers in the Chinese insurance industry. Against this backdrop, CNinsure is also at a critical junction in its existence. Historically, our business growth has relied primarily on a people-driven sales model. However, with rising labor costs and operating expenses, this sales model and the sustainability of our long-term growth is increasingly under pressure. In the coming two to three years, we intend to alter the factors that drive our growth by transforming our operating tactics and sales and marketing model to more clearly define our market positioning and target customers.

Business Outlook

CNinsure expects its total net revenues from continuing operations to grow by approximately10-15% for the fourth quarter of 2011 compared to the corresponding period of 2010. This forecast reflects CNinsure's current and preliminary view, which is subject to change.

GUANGZHOU, China, Sept. 20, 2011 (GLOBE NEWSWIRE) -- CNinsure Inc. (Nasdaq:CISG) (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced the signing of a corporate-to-corporate strategic partnership agreement with Chartis Insurance Company China Limited ("Chartis Insurance"), a subsidiary of Chartis, Inc., marking a new stage of cooperation between the two parties.

Pursuant to the agreement, CNinsure will work closely and efficiently with Chartis Insurance on product distribution, development of custom-designed insurance products and outsourcing of claims adjusting services.

GUANGZHOU, China, Sept. 15, 2011 (GLOBE NEWSWIRE) -- CNinsure Inc. (Nasdaq:CISG) (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced that the Special Committee of its Board of Directors has received a notice from TPG Asia V MU, Inc., Kingsford Resources Limited, a company controlled by Mr. Yinan Hu, chairman of the Board of Directors and chief executive officer of the Company, and entities affiliated with him, and CDH Inservice Limited that they have unanimously determined to withdraw the non-binding going private proposal dated May 14, 2011.

Mr. Yinan Hu, CNinsure's chairman and chief executive officer, stated, "Recent market conditions and near term volatility have made for a challenging deal environment." Mr. Hu continued, "Throughout the last four months, the Company has been conducting business as usual. We still have full confidence in the growth prospects of the Company in view of our strong cash position, industry leadership and well-proven growth model. We intend for the Company to continue to execute on its long-term growth strategies and to explore potential opportunities to maximize value for all shareholders."

GUANGZHOU, China, Aug. 31, 2011 (GLOBE NEWSWIRE) -- CNinsure Inc. (Nasdaq:CISG) (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced that it has entered into definitive agreements to acquire 100% equity interests in Guangzhou Huajie Insurance Agency Co., Ltd.("Huajie") and Dongguan Zhongxin Insurance Agency Co., Ltd.("Zhongxin") from Chengdu Jingshi Investment Co., Ltd. ("Chengdu Jingshi" or "Selling Shareholder"). The transactions are expected to close in September 2011, subject to certain consents, authorizations and other customary closing conditions.

Both of the acquisition considerations for Huajie and Zhongxin are RMB25 million, representing a PE multiple of ten times based on their guaranteed net profits in 2012. Meanwhile, the Selling Shareholder agrees to provide 50% of the considerations to CNinsure as security deposits to guarantee the performance of Huajie and Zhongxin in 2012 and 2013. It also agrees to return certain portion of the considerations to CNinsure if Huajie and Zhongxin fail to achieve the performance targets in 2012 and 2013.

Commenting on the acquisition, Mr. Yinan Hu, CNinsure's chairman and chief executive officer, stated, "The acquisition of Huajie and Zhongxin is a strategic step for us to strengthen our sales and service network in Guangdong Province, especially in the affluent Pearl River Delta cities. In addition, it enables us to turn potential competitors into allies and helps further entrench our leadership in the region."

Second Quarter 2011 Results

• Total net revenues: RMB400.7 million (US$62.0 million), representing an increase of 32.2% from the corresponding period of 2010.
• Excluding net income from discontinued operations, investment income incurred by business combination achieved in stages, net of tax, share-based compensation expense and strategic spending on e-commerce insurance business, diluted net income per ADS(non-GAAP): RMB2.114 (US$0.327), representing an increase of 11.2%, respectively, from the corresponding period of 2010(US$0.29).

Commenting on the second quarter financial results, Mr. Yinan Hu, CNinsure's chairman and chief executive officer, stated, "We are pleased to report another quarter of solid results that continued to outpace industry average and beat management's previous estimate despite inflation pressure and the industry slowdown."

Business Outlook

Going forward, the Company will offer quarterly guidance for total net revenues instead of net income attributable to the Company's shareholders in view of the increased uncertainty in its net income due to inflationary concerns, strategic spending on e-commerce insurance business and professional fees related to the non-binding going-private proposal that the Board received on May 14, 2011.

CNinsure expects its total net revenues from continuing operations to grow by approximately 22% for the third quarter of 2011 compared to the corresponding period of 2010. This forecast reflects CNinsure's current and preliminary view, which is subject to change.

GUANGZHOU, China, Aug. 17, 2011 (GLOBE NEWSWIRE) -- CNinsure Inc. (Nasdaq:CISG) (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced that Shenzhen Inscom E-commerce Co. Ltd. ("Inscom"), an affiliated subsidiary of CNinsure, has entered into strategic partnership in e-commerce with China Pacific Property Insurance Co. Ltd. ("China Pacific"), a leading property and casualty insurance company in China.

Pursuant to the agreement, CNinsure and China Pacific will expand their current scope of cooperation to include online sales and telesales through Inscom's e-commerce platform. They agree to enhance collaboration on market development, product design and customer services. Both parties' network platforms will be interconnected to each other in order to facilitate transaction processing.

"This is the second strategic partnership agreement that we have signed so far with leading insurance companies for extensive collaboration on e-commerce business. We are excited about the opportunity to expand both parties' market presence and enhance profitability through channel innovation," commenting on the strategic partnership, CNinsure's chairman and chief executive officer, Mr. Yinan Hu, stated. "With full support from our product suppliers, we are optimistic about the outlook of our e-commerce insurance business."

We expect to require cash to fund our ongoing business needs, particularly the further expansion of our distribution and service network through acquisitions and establishment of new insurance intermediary companies and development of an e-commerce insurance platform.

We believe that our current cash and cash equivalents and anticipated cash flow from operations will be sufficient to meet our anticipated cash needs, including our cash needs for working capital and capital expenditures, for at least the next 12 months. We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue.

First Quarter Results:

• Total net revenues: RMB313.7 million (US$47.9 million), representing an increase of 28.3% from the corresponding period of 2010.
• Operating Income: RMB88.7 million (US$13.6 million), representing an increase of 33.8% from the corresponding period of 2010.
• Net income from continuing operations: RMB80.1 million (US$12.2 million), representing an increase of 23.1% from the corresponding period of 2010. After incorporating net income from discontinued operations of RMB157.3 million (US$24.0 million), total net income was RMB237.4 million (US$36.3 million), representing an increase of 240.0% from the corresponding period of 2010.
• Excluding net income from discontinued operations, investment income incurred by business combination achieved in stages, net of tax and share-based compensation expense, adjusted net income attributable to the Company's shareholders (non-GAAP): RMB81.1 million (US$ 12.4 million), representing an increase of 36.4% from the corresponding period of 2010.
• Basic and diluted net income per American Depositary Share ("ADS"): RMB4.796 (US$0.732) and RMB4.693 (US$0.717), respectively, representing an increase of 224.9% and 228.4%, respectively, from the corresponding period of 2010.-- Basic and diluted net income per ADS from continuing operations: RMB1.665 (US$0.254) and RMB1.629 (US$0.249), respectively, representing an increase of 21.3% and 22.6%, respectively, from the corresponding period of 2010.-- Basic and diluted net income per ADS from discontinued operations: RMB3.131 (US$0.478) and RMB3.064 (US$0.468), respectively, representing an increase of 2,913.7% and 2,945.8%, respectively, from the corresponding period of 2010

Commenting on the first quarter financial results, Mr. Yinan Hu, CNinsure's chairman and chief executive officer, stated, "Despite a slower insurance sector growth, the Company continued to deliver solid results, with our property and casualty ("P&C") insurance business and life insurance business, in particular, growing 31.7% and 35.0% year over year, respectively, in terms of net revenues in the first quarter of 2011.

CNinsure expects its net income attributable to the Company's shareholders, excluding investment income incurred by business combination achieved in stages and the estimated strategic spending on e-commerce insurance, to grow by approximately 18% in the second quarter 2011 compared to the corresponding period of 2010. This forecast reflects CNinsure's current and preliminary view, which is subject to change.

GUANGZHOU, China, May 16, 2011 (GLOBE NEWSWIRE) -- CNinsure Inc. announced today that its Board of Directors has received a preliminary non-binding proposal letter dated May 14, 2011, from TPG Asia V MU, Inc. ("TPG Asia"), Kingsford Resources Limited, a company controlled by Mr. Yinan Hu, chairman of the Board of Directors and chief executive officer of the Company, and entities affiliated with him (collectively, the "Founder"), and CDH Inservice Limited ("CDH", together with TPG Asia and the Founder, the "Consortium Members"), to acquire all of the outstanding ordinary shares of the Company, other than certain American Depositary Shares ("ADSs") or ordinary shares held by the Founder and CDH, in a going private transaction for $19.00 per ADS, or $0.95 per ordinary share, in cash, subject to certain conditions. The Founder and CDH currently beneficially own, in the aggregate, approximately 34.3% of the Company's outstanding ordinary shares.

Fourth Quarter Highlights:

• Total net revenues: RMB449.0 million (US$68.0 million), representing an increase of 26.3% from the corresponding period of 2009.
• Income from operations: RMB132.7 million (US$20.1 million), representing an increase of 20.4% from the corresponding period of 2009.
• Net income attributable to the Company's shareholders: RMB126.5 million (US$19.2 million), representing an increase of 34.9% from the corresponding period of 2009. Excluding non-recurring investment income incurred by business combination achieved in stages, net income attributable to the Company's shareholders grew 32.4% from the corresponding period of 2009, which exceeded the previous guidance of approximately 32% year-over-year growth.
• Basic and diluted net income per American Depositary Share ("ADS"): RMB2.514 (US$0.381) and RMB2.447 (US$0.371), respectively, representing an increase of 22.3% and 22.7%, respectively, from the corresponding period of 2009.

Commenting on the financial results, Mr. Yinan Hu, chairman and chief executive officer of the Company, stated, " I am pleased to report that CNinsure continued to deliver solid financial results in 2010 with total net revenues and net income attributable to the Company's shareholders growing 28.6% and 40.4%, respectively, and fully diluted EPS growing 31.6% to RMB 8.529, which exceeded the management target."

CNinsure expects its net income attributable to the Company's shareholders, excluding non-recurring investment income incurred by business combination achieved in stages and the estimated strategic spending on e-commerce insurance, to grow by approximately 20~23% for the first quarter 2011 compared to the corresponding period of 2010. This forecast reflects CNinsure's current and preliminary view, which is subject to change.

Highlights for Third Quarter 2010

• Total net revenues: RMB388.2 million (US$58.0 million), representing an increase of 30.4% from the corresponding period of 2009.

• Income from operations: RMB119.1 million (US$17.8 million), representing an increase of 35.7% from the corresponding period of 2009.

• Net income attributable to the Company's shareholders: RMB109.8 million (US$16.4 million), representing an increase of 42.7% from the corresponding period of 2009, which exceeded the previous guidance of approximately 38% year-over-year growth.

• Basic and diluted net income per American Depositary Share ("ADS"): RMB2.198 (US$0.329) and RMB2.128 (US$0.318), respectively, representing an increase of 30.4% and 29.7%, respectively, from the corresponding period of 2009.

Commenting on the financial results, Mr. Yinan Hu, chairman and chief executive officer of the Company, stated, "The Company maintained strong growth momentum in the third quarter with total net revenues and net income attributable to CNinsure's shareholders growing 30.4% and 42.7% year-over-year, respectively, exceeding our previous guidance. Although the follow-on public offering in July led to a dilution in our EPS, we still recorded a 29.7% year-over-year diluted EPS growth in the third quarter, demonstrating the strong execution capability of the management. Robust growth of our three existing business lines continued into the third quarter with the life insurance business and claims adjusting business growing 109.1% and 34.3% year-over-year, respectively. The overall commission rate from the property and casualty insurance business increased over the previous quarter, which led to a year-over-year growth of 6.7% in our property and casualty insurance business in the third quarter as compared to year-over-year decline of that in the second quarter. We believe there is still room for further improvement in our property and casualty insurance commission rate." Mr. Hu continued, "During the past decade, CNinsure has built a nation-wide sales and service network in 23 provinces, enabling the Company to change its role from an insurance product retailer with no bargaining power to a general agency with more influence in its cooperation with upstream product suppliers. To better meet customers' needs, we have placed more focus on customized products instead of merely distributing general products already prevalent in the market. Furthermore, we have been building new profits centers to sell multiple products to each of our customers in an effort to strengthen our profitability. We believe the ongoing insurance marketing system reform, coupled with the increasing demand for asset preservation and appreciation and financing service as a result of the growth in people's disposable income will provide CNinsure with greater opportunities for future development.

"Since our initial public offering in 2007, organic growth and growth through acquisitions have become the dual engines for our business development and we have maintained positive balance between the two strategies. Of the 30.4% year-over-year growth in terms of total net revenues in the third quarter, organic growth accounted for approximately 72% while growth through acquisitions accounted for approximately 28%. Due to the immature and fragmented nature of China's insurance intermediary industry, we have adopted a unique acquisition model to identify suitable acquisition targets while reducing risks, which has proved to be viable. Looking ahead, acquisition will continue to be one of our most important growth strategies. We will constantly review and refine our acquisition model to make it more simplified and straightforward, in terms of valuation matrix, payment method, and earn-out provisions. For the future potential acquisitions, we will, as always, place strong emphasis on restricting risk, enhancing cash flow and insisting on high growth and high return.

"We are now building the groundwork for our e-commerce insurance, insurance brokerage, consumer finance and wealth management businesses in an effort to turn our blueprint for the next five years into reality. Examining all the opportunities and challenges, we firmly believe that the Company will be able to continue its strong growth momentum for the next few years. We are confident in the growth prospects of the Company and China's financial services industry and committed to maximizing shareholder value by pursuing the long-term sustainable growth of the Company."

Business Outlook

CNinsure expects its net income attributable to the Company's shareholders excluding non-recurring investment income incurred by business combination achieved in stages to grow by approximately 32% for the fourth quarter 2010 compared to the corresponding period of 2009. This forecast reflects CNinsure's current and preliminary view, which is subject to change.

Highlights for Second Quarter 2010:

• Total net revenues: RMB365.8 million (US$53.9 million), representing an increase of 28.1% from the corresponding period of 2009.
  
• Net income attributable to the Company's shareholders: RMB118.6 million (US$17.5 million), representing an increase of 40.2% from the corresponding period of 2009, which exceeded the previous guidance of approximately 35% year-over-year growth.
  
• Basic and diluted net income per American Depositary Share ("ADS"): RMB2.600 (US$0.383) and RMB2.494 (US$0.368), respectively, representing an increase of 40.2% and 35.9%, respectively, from the corresponding period of 2009.

"CNinsure reported another solid quarter and once again beat our previous guidance, with total net revenues and net income attributable to CNinsure's shareholders growing 28.1% and 40.2% year-over-year, respectively," commenting on the financial results, Mr. Yinan Hu, chairman and chief executive officer of CNinsure, stated. "We are thrilled to see that the strong growth momentum in our life insurance business continued into the second quarter, with life insurance growing over 138% year-over-year and accounting for 36.1% of our total net revenues, driven by the increases in first year commission rate, accumulation of renewal commissions and performance bonus. Meanwhile, the profitability and bargaining power of our P&C business was greatly enhanced by our initiatives to promote bundled sales, establish strategic partnership and co-develop customized products with more insurers and strengthen our insurance brokerage business to refine the mix of our P&C business which we believe will help improve our earnings stability in the long run."

CNinsure expects its net income attributable to the Company's shareholders to grow by approximately 38% for the third quarter 2010 compared to the corresponding period of 2009. This forecast reflects CNinsure's current and preliminary view, which is subject to change.

Commenting on the financial results, Mr. Yinan Hu, chairman and CEO of CNinsure stated: 'We are very pleased to achieve our operating targets with solid financial results, which has once again proved the viability of our business model. Amid the global financial crisis, the management has effectively capitalized on new growth opportunities and proactively explored new ways to develop the Company, which has further enhanced our competitiveness and laid a solid foundation for the Company's sustainable growth in the coming years.

^a The above forecasts reflect the Company's current and preliminary views and are therefore subject to change. Please refer to the Company's Safe Harbor Statement (usually in press releases) for the factors that could cause actual results to differ materially from those contained in any forward-looking statement.

Commenting on the first quarter results, Yinan Hu, Chairman and CEO of CNinsure, stated: 'We are pleased to deliver another quarter of strong results amid the current financial and economic crisis, with total net revenues growing 58.0% year-on-year to RMB215.9 million, exceeding our previous guidance, and basic net income per ADS growing 30.0% year-on-year to RMB0.998.

He added, 'We believe that the strong will emerge from the financial crisis stronger while the weak will diminish. Our performance in the first quarter of 2009 was evidence of our leading position and competitiveness within the industry. With a clear vision of the current macro-economic and industry trends, our management has fully demonstrated their wisdom and execution ability to turn headwind into tailwind, and challenges into opportunities.

Guidance Report:

"As the global economic crisis deepens, more uncertainties are expected in the growth prospect of the Chinese economy in 2009. However, we believe CNinsure, as a retail distributor of insurance products and after-sales service provider, will not be as impacted by the macroeconomic environment as some other sectors since the insurance industry will still be a hotspot in China's economic development for the next decade and the insurance intermediary sector, in which CNinsure has gained a leading position, is a relatively more stable part of the whole industry value chain. We believe we have the right solutions and strategies to cope with the new situations and deliver another year of success in 2009."

First Quarter Fiscal 2009 Guidance Ending March

Source: PR Newswire (February 24, 2009)

Guidance Report: 

2008 Fourth Quarter Guidance Ending December

"Despite the recent economic slowdown in China, the Company expects to report net revenue for the quarter in line with the previous guidance. Gross margin will remain flat as compared with the previous quarter, while operating margin is expected to be lower than that in the third quarter of 2008."

Source: PR Newswire (January 20, 2009)