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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of December 1999
Qiao Xing Universal Telephone, Inc.
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(Translation of registrant's name into English)
Qiao Xing Building, Wu Shi Industrial Zone
Huizhou City, Guangdong, People's Republic of China
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(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
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[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Qiao Xing Universal Telephone, Inc.
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(Registrant)
Date: December 10, 1999 By: /s/ Rui Lin Wu
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Rui Lin Wu, Chairman
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Mr. Jeff J.F. Feng Ruth Shaer/Eugene Heller
Assistant to Chairman Silverman Heller Associates
Qiao Xing Universal Telephone, Inc. 1100 Glendon Avenue, PH-1
Huizhou, Guangdong, P.R.C. Los Angeles, CA 90024-5305
http:\\www.qiaoxing.com Tel: (310) 208-2550
E-mail: [email protected] Fax: (310) 208-0931
Tel: (011) 86-752-2808-188 E-mail: [email protected]
Fax: (011) 86-752-2803-101
QIAO XING UNIVERSAL TELEPHONE, INC. REPORTS
THIRD QUARTER FISCAL 1999 RESULTS
GUANGDONG, CHINA (December 10, 1999) -- Qiao Xing Universal Telephone, Inc.
(NASDAQ NMS: XING) today reported financial results for the third quarter of its
fiscal year ended September 30, 1999.
For the third quarter of fiscal 1999, net sales were $10.5 million compared to
$9 million for the third quarter of 1998. Net income for the 1999 quarter was
$820,000, or $0.09 per diluted share, versus net income of $850,000, for the
corresponding period last year.
Net sales for the nine months ended September 30, 1999 were $32.1 million
compared to $34.7 million in the first nine months of 1998. The decrease in net
sales was due to the Company's more stringent credit policy.
For the nine months ended September 30, 1999, net income was $3.53 million, or
$0.38 per diluted share, compared to net income of $4.53 million, or $0.57 per
diluted share, for the corresponding period in 1998. The increase in selling
expenses was due to an expanded advertising campaign to market the Company's
products. Meanwhile, general and administrative expenses were reduced by almost
30%.
Commented Mr. Rui Lin Wu, chairman of Qiao Xing Universal Telephone, Inc.: "We
are pleased with the increase in net sales during the third quarter and the
decrease in general and administrative expenses, which reflects our sound cost
reduction strategy. In addition, we believe that the combination of the
revitalization of China's economy, the potentially positive affect of the WTO on
global marketing, along with our strong sales network, positions us extremely
well for growth. In fact, "Mr. Wu concluded, "we are expecting a measurable
increase in sales in the first quarter of 2000."
In August 1995, Qiao Xing became the first telephone manufacturer in China to be
awarded the ISO 9001 Quality System Accreditation. The Company currently
produces 165 corded models and 25 cordless models and has an extensive
nationwide sales network that comprises over 1,000 retail outlets in PRC.
- more -
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Qiao Xing Universal Telephone, Inc.
Page Two
This press release contains "forward-looking statements" regarding future
revenues and operating information and their impact on future results. Such
forward-looking information involves important risks and uncertainties that
could significantly affect anticipated results in the future and, accordingly,
actual results may differ materially from those expressed in any forward-looking
statements made by or on behalf of the Company. These risks and uncertainties
include, but are not limited to, those relating to economic, political, legal
and social conditions in the People's Republic of China, dependence upon key
management personnel, competition, material factors relating to the operations
of the business, and domestic and global general economic conditions.
[financial statements follow]
Qiao Xing Universal Telephone, Inc.
Consolidated Income Statement of operation
<TABLE>
<CAPTION>
Third Quarter of Third Quarter of Nine months ended Nine months ended
1999 1998 Sept. 30, 1999 Sept. 30, 1998
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
US$'000 US$'000 US$'000 US$'000
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<S> <C> <C> <C> <C>
Sales, net 10,476 9,000 32,118 34,724
Cost of sales (7,901) (5,984) (21,283) (23,622)
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Gross profit 2,575 3,016 10,835 11,102
Selling expenses (540) (897) (3,030) (2,010)
Operating expenses (695) (885) (1,751) (2,463)
Interest expenses (267) (180) (858) (622)
Interest income 6 3 97 25
Other Income (expenses), net 20 89 1 67
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Income before tax 1,099 1,146 5,294 6,099
Provision for income tax (139) (141) (1,267) (769)
Transfer to statutory reserve (51) (52) (76) (237)
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Income before minority interests 909 953 3,951 5,093
Minority interests (89) (104) (424) (560)
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Net Income 820 849 3,527 4,533
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Weighted average number of shares
outstanding 9,314,000 7,914,000 9,314,000 7,914,000
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Earnings per common share 0.09 0.11 0.38 0.57
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