RealPennies.com: Turning Pennies into dollars: (OTCBB:JNGW) Jingwei International Ltd.

Are you a public company looking for exposure?
Contact RealPennies.com - 1-646-417-8211

For more info: http://jngw.realpennies.com/

(OTCBB:JNGW) Jingwei International Ltd.

SHENZHEN, China, Aug. 13 - Jingwei International Limited , one of the leading providers of data mining and customer relationship marketing services in China, recently announced financial results for the three month and six month period ended June 30, 2008. The Company plans to file its 10QSB on Thursday August 14, 2008.



Recent Financial Highlights Include: - Net income increased 86% to $5.8 million in the first six months of 2008 compared to the same period last year - Revenue in the first six months of 2008 increased 47% to $14.5 million compared to the same period last year - Gross margin in the first half of 2008 was 59% compared to 41 % in the same period last year - Second quarter 2008 net income increased 82% to $3.0 million compared to the second quarter last year - Second quarter 2008 gross margin was 56% compared to 30% in the second quarter last year

Regis Kwong, Chief Executive Officer of Jingwei International stated, ''It is exciting to announce our financial results for the first half of 2008 at a time that the world is converging in China at the Olympics. These games are a major reflection of the growth and progress that had been made by China in so many ways. In the coming months, as the world keeps focusing on the opportunities provided by the Chinese market, Jingwei will continue to position itself as the leading marketing link between this exciting Chinese market place and global commerce''.

''This growth is also reflected in our financial results and especially in our improved margins. Our proprietary data base of 300 million consumers combined with our data mining capabilities enable our clients to achieve an attractive ROI on their advertising campaigns and enable Jingwei to attract leading international brands like Best Buy China, P&G and Nokia as clients.''

Second Quarter Ended June 30, 2008

Revenue for the second quarter increased 13% to $8.8 million from $7.7 million in the second quarter of 2007.

Gross profit increased 109% to $4.9 million from $2.4 million in the second quarter of 2007. Gross margin in the quarter was 56% compared to 30% in the prior year's period. The increase in earnings is a result of previous investment that was done last year in our operations as well as improved product mix.

Income from operations was $3.6 million, up 92% from $1.9 million in the second quarter of 2007. Operating margin was 40% compared to 24% last year.

Net income increased 82% to $3.0 million, or $0.18 per diluted share in the second quarter of 2008 from $1.7 million, or $0.11 per diluted share in the second quarter of 2007.

Please refer to the table below for the breakdown of segment performance in the three months period.



Three Months Ended June 30, 2008 Data mining Software Total Services Services Net Revenue $ 6,406,853 $ 2,381,565 $ 8,788,418 Gross Profit 3,769,351 1,149,936 4,919,287 Gross Margin 59% 48% 56% Three Months Ended June 30, 2007 Data mining Software Total Services Services Net Revenue $ 6,968,038 $ 782,183 $ 7,750,221 Gross Profit 1,863,620 488,328 2,351,948 Gross Margin 27% 62% 30%

Six Months Ended June 30, 2008

For the six months ended June 30, 2008, revenue increased 47% to $14.5 million from $9.9 million in the first six months of 2007. During this same time period, gross profit improved 114% to $8.6 million from $4.0 million. Gross margin is 59% compared to 41% in the same period last year. Income from operations increased 89% to $6.4 million from $3.4 million in the first half of 2007, and net income improved 86% to $5.8 million, or $0.34 per diluted share, from $3.1 million, or $0.21 per diluted share, in the first six months of 2007.



Please refer to the table below for the breakdown of segment performance in the six months period. Six Months Ended June 30, 2008 Data mining Software Total Services Services Net Revenue $ 9,663,094 $ 4,878,772 $ 14,541,866 Gross Profit 5,707,368 2,895,978 8,603,346 Gross Margin 59% 59% 59% Six Months Ended June 30, 2007 Data mining Software Total Services Services Net Revenue $ 8,359,671 $ 1,525,628 $ 9,885,299 Gross Profit 2,867,900 1,145,980 4,013,880 Gross Margin 34% 75% 41%

Balance Sheet

As of June 30, 2008, the Company had almost $7.0 million of cash and no long-term debt.

Business Update

Jingwei anticipates that its business will continue to grow at a rapid pace in the next three to five years, and that the growth will be driven by the broad adoption of its data mining services by international brands as well as local Chinese companies, geographic expansion and the growing demand for identifying targeted consumers. During the period of the first 6 months of 2008 we identified certain trends that support Jingwei's growth and expansion:

First, consumer spending in China continues to grow. From an export focused country, the improved economic conditions in China improved so as to support internal spending. Jingwei is best positioned to target the focused consumers of international brands as well as local companies and provide an attractive cost effective model to reach focused audiences.

In the course of the last six months we were proud to be able to provide our clients with innovative and creative marketing solutions using diversified media tools which leverage our data mining capabilities. For example, we announced an Implementation of an Interactive Wireless Campaign for China Circuit Championship, the Chinese version of Formula 1. As a result of this campaign, CCC has been able to reach over 5.5 million new consumers as well as develop over 1 million members in a CCC Club.

We also continue to develop another media platform: direct mail. We estimate that the direct mail industry in China is growing at 40 percent per year. During the quarter we partnered with China Post and enhanced our Direct Mail advertising efforts. Their database of roughly 20 million consumers will enable us to target these consumers with direct mail campaigns and we will also be able to use their data in order to keep our data base up to date.

Another trend that impacts our business is the consolidation in the Telecom industry as well as the addition of new 3G services in China. The telecom providers increase the demand for telemarketing services to expand their client outreach and this is where Jingwei becomes involved . Based on this catalyst, we continue to reinforce our telemarketing capabilities and recently we have 2,400 contracted seat call center which we plan to expand to 10,000 seats over the next few years.

In order to maintain our competitive advantage of continuously adding media tools to our multi channel marketing platform, we appointed Winston Liu as President of our New Media Unit. In this newly created position, Mr. Liu will lead Jingwei's new initiatives to expand and evolve into an integrated marketing services provider. We believe that new media initiatives will better support our existing and future clients in their advertising spending.

CONFERENCE CALL

Management will host a conference call recently at 10:00 a.m. EDT to discuss financial results.

To access the conference call within the U.S., dial: 888-428-4476. For international/toll access, dial: 651-291-0344. Please dial in a few minutes before the conference call is scheduled to begin.

A replay of the conference call will be accessible from 12:00 p.m. EDT the same day and ending on Wednesday, August 27, 2008 at 11:59 p.m. EDT, by calling either: 800-475-6701 from within the U.S., or: 320-365-3844 for international/toll access. Access code: 957180.

About Jingwei International Limited

Jingwei International Limited is a leading provider of data mining and customer relationship marketing services in the fast growing Chinese market. Powered by advanced data mining technology and a proprietary database of over 300 million Chinese consumers, Jingwei enables leading Chinese companies as well as international brands to reach their target audiences. The Company's services include market segmentation, customer trend, revenue analysis and direct marketing. Jingwei is evolving into an integrated marketing service provider with targeted campaigns via multi media channels including: interactive mobile, telemarketing, direct mail and new media.

For more information, please visit the Company's web site: http://www.jingweicom.com .

Safe Harbor Statement

Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.



Jingwei International Limited And Subsidiaries Condensed Consolidated Balance Sheets June 30 December 31 2008 2007 ASSETS Current assets Cash and equivalents $6,990,103 10,760,020 Inventories 1,770,910 1,051,866 Trade receivables (net of allowance of doubtful accounts of $193,593 and $174,808) 17,050,606 11,857,099 Other receivables, prepayments and deposits (net of allowance of doubtful accounts of $118,108 and $95,513) 6,147,988 7,299,973 Total Current Assets 31,959,608 30,968,958 Non-current assets Property, plant and equipment - Net 1,175,431 952,638 Acquired Intangible Assets 11,734,978 5,681,669 Total Assets $44,870,016 37,603,265 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Trade payables $3,144,354 3,221,088 Accruals and other payables 1,338,114 2,480,449 Income Tax payable 509,648 557,514 Deferred Tax 669,982 270,707 Loan from a stockholder 555,318 543,597 Total Current Liabilities 6,217,416 7,073,355 Total Liabilities 6,217,416 7,073,355 Minority Interest - Variable Interest Entities 7,440,553 6,566,914 Stockholders' Equity Common stock, $.001 par value; 75,000,000 shares authorized, 17,049,000 shares issued and outstanding 17,049 17,049 Additional Paid-in Capital 15,235,244 15,063,981 Statutory and other reserves 703,475 703,475 Accumulated other comprehensive income 2,484,807 1,223,373 Retained Earnings 12,771,472 6,955,118 Total Stockholders' Equity 31,212,047 23,962,996 Total Liabilities and Stockholders' Equity $44,870,016 37,603,265 Jingwei International Limited And Subsidiaries Condensed Consolidated Statements of Operations Three Months Three Months Six Months Six Months Ended June 30, Ended June 30, Ended June 30, Ended June 30, 2008 2007 2008 2007 Sales $8,788,418 $7,750,221 $14,541,866 $9,885,299 Cost of sales Gross profit 4,919,287 2,351,948 8,603,346 4,013,880 Expenses Selling, General and Administrative expenses Research and development costs Total Expenses Income from operations 3,555,473 1,850,837 6,377,017 3,378,396 Other income Subsidy income 286,962 23,904 543,690 64,921 Interest income 3,835 590 8,760 1,112 Finance costs Other income 38,235 64,383 Total other income 257,977 58,472 519,961 109,235 Income before income taxes 3,813,450 1,909,309 6,896,978 3,487,631 Income taxes Net income $3,036,764 $1,671,933 $5,816,353 $3,132,928 Earnings Per Share $0.18 $0.11 $0.34 $0.22 Earnings Per Share $0.18 $0.11 $0.34 $0.21 Weighted Average Common Shares Outstanding Basic 17,049,000 15,444,769 17,049,000 14,554,331 Diluted 17,049,000 15,753,621 17,090,330 14,863,183 For more information, please contact: Strategic Growth International, Inc. Miri Segal / Richard Cooper Tel: +1-212-838-1444 Email: msegal@sgi-ir.com / rcooper@sgi-ir.com


Source: Jingwei International Limited




Profile for Jingwei International Ltd.

Jingwei International Limited provides software and data mining services in the People’s Republic of China. Its software services include a range of operation and business support systems, such as billing systems, provisioning solutions, and decision support and customer relationship management systems for telecom and cable operators. The company also offers its proprietary database that contains the name, age, gender, identification number, income level, address, work status and type, mobile phone usage and pattern, telecom service subscriptions, and purchasing history information of approximately 300 million Chinese consumers. In addition it offers market segmentation, customer trend and c...
Detailed Description...

LAST $3.95 USD

Read our full disclaimer at: http://www.realpennies.com

Investors are advised that this analysis is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy. This report does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this information. The information contained herein is based on sources that we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Past performance is no guarantee of future results. Please consult a broker before purchasing or selling any securities mentioned on
http://www.realpennies.com/content/view/42

Any opinions expressed herein are statements of our judgment as of the date of publication and are subject to change without notice. Reproduction without written permission is prohibited.

RealPennies .
Telephone: 1-646-417-8211
info [at] realpennies.com