Longcheer Holdings, the designer of mobile phones in China, has reported a record revenue of RMB 1.04 billion ($216 million), for the three months ended Dec 31 2009 (2Q FY10) crossing the RMB 1 billion dollar mark for the first time in a quarter. This was attributed mainly to growth in exports. Total shipment volume grew 86% year-on-year to reach 5.76 million units from 3.09 million units.

Buoyed by higher sales, gross profit rose 16% year-on-year to RMB105.4 million from RMB91.0 million. However, gross profit margin declined to 10.17% from 12.61% in the corresponding period of last year due to continuous pressure on margin. Average selling prices (ASP) fell by 23% year-on-year to RMB176.98 due to changes in product mix and price rationalisation.

Net profit attributable to shareholders rose to RMB39.1 million from RMB30.1 million, an increase of 30% year-on-year. Basic earnings per share for Q2 FY10 was 11.14 RMB cents compared to 8.20 RMB cents in the previous year, representing an increase of 36%. The pace of growth in EPS is faster than the increase in net profits of 30% as a result of reduction in the number of shares due to share buybacks.

As at Dec 31 2009, the group maintained a healthy net cash position of RMB 476.8 million, representing RMB 1.36 per share, with healthy operating cash flow of RMB 50.7 million. The group registered improved net asset value at 195.82 RMB cents.