For the second quarter of 2008, the company posted an operating income of RMB76.1 million, representing a decrease of 67% compared to RMB230.59 million reported for the corresponding period of 2007.
Gross profit for the second quarter of 2008 was RMB133 million or 34.7% of revenue, which was a decrease from a gross profit of RMB282.9 million, or 33.5% of revenue, in the second quarter of 2007.
David Li, CEO of Qiao Xing Mobile, said: Our sales were negatively impacted by the earthquake that took place in Sichuan province in May, which caused a slow-down in consumption in the Chinese consumer market. In addition, a delay in the release of our new product, VEVA S60, also contributed to the decline in sales in the second quarter. S60 was test launched only in May and production was ramped up only in June to meet the backlog in orders.
