Hi! One has warned. As for CHCG, it's pretty clear. Revenue guidance based on future acquisitions? That's a new one! New debt? What more do you need?
) The company is committed to meeting its previously announced top-line guidance of $360 million to $380 million in sales in 2007, representing 143% to 157% year-over-year growth. To meet this target, the company's guidance may include revenue generated from future acquisitions.
2) The company is committed to meeting its previously announced EPS guidance of $.50 to $.54 per share, representing 108% to 125% year-over-year growth.
3) The company is committed to continuing to pursue a listing on NASDAQ by the end of 2007.
4) The company is committed to having 1,200 stores by the end of 2007, which may include stores added through future acquisitions. As of June 30, 2007 the company had 945 stores in operation.
5) The company is committed to having 4,000 stores in operation by 2010, which may include stores added through future acquisitions.
Chairman and CEO of China 3C Group, Zhenggang Wang stated, "The company is seeking to make near term acquisitions using cash on hand, cash flow from operations and a portion of the proceeds from the company's previously announced financing transaction. In the future, the company hopes to use bank debt as an integral part of its acquisition and financing strategy to minimize dilution to its existing shareholders. The company intends to pursue acquisitions which it believes will have positive benefits for us and our shareholders."