Longcheer Holdings, the leading designer of mobile phones from China, says net profit attributable to shareholders fell 60% to RMB15.6 million ($3.03 million) for the three months ended Dec 31, 2010 (2QFY11).

Revenue declined 3% to RMB1 billion due mainly to decline in average selling prices although total shipment volume increased 40% from 5.76 million units in 2QFY10 to 8.04 million units in 2QFY11.

As at Dec 31, 2010, the NAV per share was RMB2.11 per share.

Looking ahead, Executive Chairman Du Junhong says the group will shift its product portfolio towards high-value products like 3G phones and smartphones, although this takes time.

“The management team will strive to overcome the current challenges and reverse the trend of depressed margins,” he adds.