DALLAS, TX--(Marketwire - June 3, 2009) - China Crescent Enterprises, Inc. (
OTCBB:
CCTR)
today released a letter to shareholders from the Company CFO, Philip J.
Rauch. Following the Company's recent recapitalization and first quarter
financial report, Mr. Rauch has provided a summary explanation of the
Company's ongoing efforts to mature and standardize the operations listed
publicly only two years earlier. The letter is included in its entirety
below.
Dear Fellow Shareholders -
China Crescent Enterprises continues to improve its overall operating
margins. Notably, while first quarter revenue was down compared to the
same period last year, net income was up. This is a healthy trend and not
an accidental one. Management continues to work to improve the Company's
standard operating procedures with the objective of improving operating
margins. As margins improve, the Company improves its earnings per share
potential.
Earlier this year, China Crescent's wholly owned subsidiary in China,
Clipper Technology, increased its ownership in the majority owned Chinese
operation, Clipper Huali, by twenty five percent. This increase in
ownership will increase the percentage of net income from Clipper Huali
operations included in the China Crescent consolidated financial statement
by fifty percent. This increase in net income included in the China
Crescent consolidated financial statement can further improve the Company's
earnings per share potential.
Recently, the Company launched its outsourcing services business line and
subsequently signed its first outsourcing contract. The improved earnings
potential of the outsourcing services business line is yet another factor
that can improve the Company's earnings per share potential.
Approximately two weeks ago, the Company completed a recapitalization of
its common stock reducing the number of issued and outstanding shares on a
rate of 25 to 1. The reduction in issued and outstanding shares
correspondingly further increases the earnings per share. Even before the
recent measures mentioned above to improve operational performance, China
Crescent was already producing a small profit. Besides the measures
mentioned herein to improve profits, any profit will now be measured
against a reduced number of shares, thus increasing the earnings per share.
China Crescent has established substantial revenue and has the potential
through organic sales and acquisitions to further increase upon its revenue
base. Management plans to aggressively pursue revenue growth, but the
priority will remain to continually improve operational maturity and in
turn, earnings per share. The reduced issued and outstanding will better
reflect the Company's earnings on a per share basis and should in turn
enhance the potential PPS.
Best Regards,
Philip J. Rauch
CFO
China Crescent Enterprises
Corporate E-mail Updates
To be added to China Crescent's e-mail database to receive company updates
or to obtain more information on the Company, please send an e-mail to
ir@chinacrescent.com or call 214-722-3065.
About China Crescent Enterprises, Inc. (
http://www.chinacrescent.com/)
China Crescent Enterprises, Inc. 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.
Contact Information: Contact:
China Crescent Enterprises, Inc.
ir@chinacrescent.com
214-722-3065