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NewsBot Date: April 20, 2005 07:25:23 PM
CHMS China Mobility Solutions Highlights Year End Results for the Period Ended December 31, 2004
China Mobility Solutions Highlights Year End Results for the Period Ended December 31, 2004
VANCOUVER, British Columbia, April 15 /PRNewswire-FirstCall/ -- China Mobility Solutions Inc. (OTC:CHMS) (BULLETIN BOARD: CHMS) announced today highlights of the Company's audited full year 2004 financial results. All figures are in U.S. dollars.
CHMS achieved revenues of $2,170,766 in 2004 compared with $280,723 in 2003 in the form of net sales of mobile marketing services and tuition fee from its subsidiaries: QuickNet and Windsor. Total sales for 2004 were approximately four million dollars, compared with one million dollars for 2003. The difference between the sales and the revenue figures is a result of the Company's collection of annual fees from its clients and has been recorded as Deferred Revenue in the Balance Sheet. These fees have to be deferred over twelve months.
Gross profit in 2004 was $1,697,531 compared to $146,383 in 2003. A significant contributor to this increased gross profit was the acquisition of QuickNet in June 2004. Cash reserves for 2004 increased to $5,380,622 by the year-end compared to $3,303,591 a year ago.
CHMS incurred operating expenses of $1,939,747 in 2004 compared to operating expenses of $337,093 in 2003 due to the acquisition of QuickNet. Salaries and advertising accounted for over 65% of operating expenses. The operating loss for 2004 was $258,772 compared to a loss of $207,996 in 2003.
The Company invested in the Link Group, Inc. on December 20, 2001 and January 18, 2002. As of December 31, 2004, the Link Group, Inc.'s financial statements were not sufficiently timely for CHMS to apply the equity method and Link Group, Inc.'s shares ceased trading for over nine months. Therefore, the Company recorded an impairment of $172,250 on these shares, contributing significantly to the 2004 operating loss.
CHMS issued 6,120,000 common shares on June 23, 2004 to acquire QuickNet. The Company then completed a reverse stock split of 3:1 on June 24, 2004. The total number of outstanding common shares as of December 31, 2004 was 15,826,670.
Since the beginning of 2004, CHMS has focused primarily on the rapidly growing mobile business solutions market in China. The accumulated number of corporate clients at year-end exceeded 15,000 with over 11,000 new clients generated during 2004.
"By the end of 2004, there were 334 million mobile phone subscribers in China, representing only 26% market penetration. In comparison, there were approximately 170 million mobile phone subscribers in the United States. Over 217 billion text messages were sent last year through mobile phones in China. Total telecom revenue in China for 2004 was over $110 billion dollars, compared to $59 billion in 2003. We are well positioned to expand our services and develop additional business within China's mobile business solutions market during 2005," said Angela Du, President of China Mobility Solutions.
The complete audited financial statements and accompanying Management Discussion and Analysis are available for viewing on the CHMS website at http://www.chinamobilitysolutions.com/.
About China Mobility Solutions Inc.
China Mobility Solutions (OTC:CHMS) (BULLETIN BOARD: CHMS) is a leading provider of mobile business solutions to many diverse corporations across China. With its rapidly growing client base of more than 15,000 companies and access to a further 500,000 companies through its proprietary database, China Mobility Solutions is well positioned to become one of the largest providers of mobile business solutions in China. The Company has proprietary profit-sharing contracts with China's largest telecommunications companies -- China Mobile, China Unicom and China Telecom. Analysts predict that by 2007, China will have more than 500 million mobile phones in operation.
Forward looking statement
Any forward-looking statement in this press release is made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors, developments of the Chinese and North American markets and changes in regulatory matters. The Company disclaims any obligation to update any such factors or to publicly announce results of any revision to the forward-looking statements contained herein to reflect future events or developments.
Contact Information:
China Mobility Solutions Inc.
Angela Du, President
Telephone: 604.632.9638
Fax: 604.408.8515
Email: investors@chinamobilitysolutions.com
Website: http://www.chinamobilitysolutions.com/
China Mobility Solutions Inc.
Web site: http://www.chinamobilitysolutions.com/
