China Crescent (CCTR) increases $40 million profitable revenue forecast

Posted on: June 29th, 2009
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China Crescent Enterprises, Inc. (OTCBB: CCTR) announced Monday that the Company is increasing its previous expectations for revenue growth in 2009, based on Hewlett-Packard year-to-date sales and World Bank growth forecast. In 2008, China Crescent reported over $40 million in profitable revenue from the resale and integration of Hewlett-Packard (HP), Sony, Lenovo, and other brand name technology companies into the Chinese market.

According to global market intelligence firm IDC, Hewlett-Packard’s market share in China increased from 10.9 percent in the last quarter of 2008 to 13.7 percent in the first quarter of 2009. Earlier this year, HP was in China to introduce a new line of thin client computers marketed toward business users. Philip Verges, China Crescent founder and board member, was in Chongqing for the launch. Perhaps more telling of HP’s long term interest in the Chinese market, the company launched a new manufacturing plant in Chongqing in October of last year.

Additionally, The World Bank has raised its 2009 economic growth forecast for China from 6.5 percent to 7.2 percent due to its government stimulus-driven investment boom. Ardo Hansson, the World Bank’s lead China economist, indicated that the government stimulus impact is bigger than expected.

On Friday of last week, China Crescent announced an on-demand webcast to preview an anticipated second quarter earnings per share increase, as well provide insight on overall revenue and net income growth for 2009. Share prices for CCTR have been on a sharp slide since hitting a high of 32 and a half cents in late March, to a dismal 3 cents, where stock prices have been hovering this week.

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