Qiao Xing shares up on large order for mobile phones
Qiao Xing Universal Telephone Inc.’s (Nasdaq: XING) stock climbed this morning after the Chinese firm announced it has secured $70 million worth of orders for its Cosun-branded economy mobile phones.
The phones are being sold through Qiao Xing’s subsidiary, Huizhou Qiao Xing Communication Industry Ltd., which also recently launched 11 models of its Cosun-branded economy mobile phone handsets in certain locales in China.
Qiao Xing Universal CEO Wu Rui Lin said the potential of economically less developed markets for mobile phone handsets “is getting bigger.”
He said his firm is poised to take advantage of the market potential by developing desirable products and selling them at competitive prices while keeping operating costs down.
The company has traditionally been a player in the market of landline telephone sets in China. It said it is working to focus on its own market niche in the mobile phone handset business “to avoid cannibalism with its fellow subsidiary CEC Telecom Co., Ltd. (CECT).”
Wu said also that the company’s annual report for fiscal 2006 will be delayed due to the involvement of the IPO of subsidiary Qiao Xing Mobile Communication Co. Ltd. (NYSE: QXM).
It plans to release the 2006 annual reports in mid-June and financial information on the first quarter of 2007 “shortly afterwards.”
Shares were up $0.94, or 6.6%, to $15.27 this morning. The stock has traded between $7.04 and $19.94 in the past year. Volume was heavy – at about 857,000 shares compared with an average three-month daily volume of 819,000 shares.
