Contact Information: Contact: China Crescent Enterprises, Inc. ir@chinacrescent.com 214-722-3060
Business Monitor International Report Confirms China Crescent Enterprises, Inc. Marketing Direction in China Tapping Into $743 Million Chinese Ministry Program
| Source: China Crescent Enterprises, Inc.
DALLAS, TX--(Marketwire - September 24, 2009) - China Crescent Enterprises, Inc. (OTCBB : CCTR )
reported $17 million in revenue and a record net income of $1.1 million for
the first six months of 2009. Net Income increased over 200% from the same
period the previous year. With $45 million in recently announced
outsourcing contracts or pending contracts, the Company is on track to
achieve its forecasted $50 million in profitable revenue for 2009 and may
increase its 2009 forecast, anticipating reporting record results for the
third quarter.
China Crescent has a focus on second-tier cities, small-to-medium
enterprises (SMEs), and rural markets for expanding the Company's presence
in China. In February of this year, the Chinese government launched a
subsidy program to fuel PC sales in rural China. Fourteen vendors were
selected by the Chinese government as dedicated suppliers as part of its
subsidy program, including Lenovo and Dell, for which China Crescent is a
value added reseller. According to a recent report by Business Monitor
International, Lenovo plans to increase focus on rural markets, "aiming to
cover 320,000 villages across the country through 7,800 sales networks in
the next three years."
Despite a slowdown in PC sales worldwide in 2009, a recovery is expected in
2010 fueled by virtually untapped markets such as rural China. An
additional high-growth sector being serviced by the IT market is SMEs. The
Chinese Ministry of Industry and Information Technology has already pledged
US $743 million, with the possibility of more dedicated funds to help fuel
IT growth amongst SMEs.
While China Crescent's sales have been historically hardware heavy, the
Company launched a campaign earlier this year to focus on higher-margin,
longer term services such as outsourcing and software sales. As second-tier
and rural areas put infrastructure in place, software and IT support
services will be necessary. Additionally, Chinese companies, namely SMEs,
are beginning to use IT not just as a necessity, but as a means of reducing
costs and increasing productivity.
China Crescent is a systems integrator and value added reseller of major
global hardware brands in the Chinese domestic market to include Lenovo and
Dell. Brands the Company sells and supports also include Hewlett-Packard,
IBM, Cisco, Sony, Epson, Canon and Sanyo. Additionally, the Company is an
authorized reseller of operating system, database, middleware and
application software from Microsoft, Red Hat, Oracle, Sybase, IBM, BEA,
Veritas and others.
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About China Crescent Enterprises, Inc. (www.chinacrescent.com)
China Crescent Enterprises, Inc. reported over $40 million in profitable
Revenue in 2008. The Company is a technology leader in the rapidly
developing Chinese market specializing today in software engineering, high
quality software development and digital multimedia outsourcing services
delivered to customers globally. At the same time, the firm is a systems
integrator and value added reseller of major global hardware brands in the
Chinese domestic market.
Headquartered in Dallas with operations in Shanghai and Beijing, China
Crescent bridges the gap between Western and Eastern business cultures to
assist Western clients in realizing the advantages of the high quality, low
cost technology products and services available from China. China Crescent
also assists Western clients in localizing products and services to realize
the tremendous growth potential available by expanding into the Chinese
Market.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995
This press release contains forward-looking statements that involve risks
and uncertainties. The statements in this release are forward-looking
statements that are made pursuant to safe harbor provision of the Private
Securities Litigation Reform Act of 1995. Actual results, events and
performance could vary materially from those contemplated by these
forward-looking statements. These statements involve known and unknown
risks and uncertainties, which may cause China Crescent's actual results in
future periods to differ materially from results expressed or implied by
forward-looking statements. These risks and uncertainties include, among
other things, product demand and market competition. You should
independently investigate and fully understand all risks before making
investment decisions.