Ebt Mobile China Share Discussion Threads

[igoe104] 11/5/2007 07:25

* as management expected, same store sales were
down by approximately 20% compared with the comparable period in 2006. *

20% fall in like for like sales is disappointing for the short term. still feel if you hold these over a 5-6 year period, you will do very well.

[igoe104] 11/5/2007 07:08

EBT Mobile China plc, a leading China-based retailer of mobile phone products
and services, announces steady growth in sales during the recent Labour Holiday,
a week long holiday period in China.

Overall sales (excluding VAT) during the holiday period were 9% ahead of those
in the 2006 holiday period. But, as management expected, same store sales were
down by approximately 20% compared with the comparable period in 2006. This
was due to a number of factors: the relatively short time period between the
Labour Day Holiday this year and February's Spring Holiday; the lack of new
handset models launched since the last holiday period, both of which affected
underlying demand, and EBT's strategic decision to avoid traditional holiday
period price-cutting.

EBT Mobile had 239 stores operating during the 2007 Labour Holiday period,
compared to 144 stores during the 2006 period, which contributed to the overall
growth in sales. As previously announced, EBT performed strongly during the
2007 Spring Festival, with same store sales up approximately 9% compared to 2006.

Zhang Ge, CEO, said, "The performance is in line with our expectations for the
holiday period, especially given the dearth of attractive new handsets. Also,
ahead of this holiday period, we adopted a strategy of maintaining margins
rather than indulging in intense price competition that is typical in the holiday
period, especially as more Chinese nationals are taking holiday vacations rather
than staying at home and making shopping trips.

"This was not a typical holiday selling season in many ways and our approach was
margin rather than volume orientated. Having done much to build out our retail
footprint, our focus this year is to achieve strong margins and profits and this
profit-focused strategy had the desired result of sustaining gross margins
during the holiday period. We remain confident of delivering our expected
performance for the remainder of 2007."

For more information contact:

Terry Garrett/ Stephanie Badjonat/ John Moriarty
Weber Shandwick Financial 020 7067 0700

Aubrey Powell/ Giles Stewart 020 7459 3600
Panmure Gordon (Broking) Limited


About EBT Mobile China plc

EBT Mobile China plc is a leading Chinese mobile phone and wireless services
retail chain selling mobile phones, airtime, and other wireless products and
services. Headquartered in Shanghai, as at 30 April 2007, EBT Mobile had 239
stores in 22 cities, including Shanghai, Suzhou, Nanjing, Hangzhou, Ningbo and
Wuhan. Its mission is to become the leading "end to end" multi-platform retailer
of wireless products and services in China, the world's largest market for
mobile phones and wireless applications and content. Working with leading
industry partners such as China Mobile, Nokia, Motorola, Carrefour, Metro,
Auchan and Lotus, EBT Mobile focuses on superior product offerings, convenience
and service, as well as objective advice and outstanding customer support.

[silverthread] 09/5/2007 14:32

Expect trading update based on May Labor Holiday Period within next week. Last year, the equivalent RNS relating to International Labor Holiday sales was issued on 15th May 2006.

The omens look promising for an upbeat trading statement. Chinese spending was buoyant during the holiday period, and EBT has a much larger spread & volume of retail outlets:

"UPDATED: 08:26, May 08, 2007
China's retail sales rise 16 pct in May Day holidays

China's retail sales hit 320 billion yuan (42 billion U.S. dollars) during the May Day holidays, up 15.5 percent from the same period last year, according to the Ministry of Commerce.

The ministry said liquid crystal TV sets, jewelry, digital cameras, and fashion clothes were among the bestsellers.

Its survey shows jewelry sales at shopping malls nationwide jumped up to 170 percent and clothes sales up to 127 percent.

The retail sales were boosted as more richer Chinese travel, gather for family reunions, buy more books, and learn driving during the seven-day holiday known as the "golden week".

The survey also shows that revenues of the catering sector jumped 17 percent.

China has three "golden weeks" each year, which take place at Spring Festival, the May 1 International Labor Day and the October 1 National Day.

The Chinese government launched "golden weeks" in 1999, hoping the long holidays would encourage people to spend more money and help boost economic growth. (one U.S. dollar equals 7.7055 yuan)"

Source: Xinhua

[chris coxon] 03/5/2007 19:21

Most large sales over the last few days have been T trades, poss an Institution off loading slowly so as not to dilute the price.

[anusol] 03/5/2007 17:47

noticed a 875,000 share sale today.... assume there is a big buyer around for this to be mopped up without any price drop?

[kallista] 27/4/2007 20:48

And so say all of us!!!!!!!!!!!!!!!!!!!!!!!!!

Some useful buying today at Sinosoft (SFT) which raised the bid by 6%.

I think (hope) this could be the next GNG.

[swiss paul] 27/4/2007 20:30

in on this - but my best chinese stock so far has been GNG - have a look I think u will be impressed

[fokus] 27/4/2007 14:29

China's Wu Yi holiday period starts next week. EBT issued a sales update in mid-May last year for this "important peak selling period".

[azalea] 26/4/2007 12:51

I'm impressed with PG responses. I agree -10% is definitely the max in free float.

[silverthread] 26/4/2007 11:14

Azalea,
A slight further clarification of James Reiman's holding received from Panmure Gordon (nice to know they took my enquiry seriously and responded with a thorough answer). This doesn't change the overall picture as you outline above:

From Panmure Gordon:
A slight clarification to my earlier numbers – some of Jim Reiman's holding is under option to a non-exec director – see below.

As per the register he holds 28%, or 61.4m shares BUT 8.8m of these shares are under option to Dan Skaff (a non-exec) so effective holding is more like 52.6m (24%)

....................... I think we now have definitive confirmation that there are very few EBT shares in free issue (max 10%).

[britishbear] 26/4/2007 09:57

This lack of a free float is often a concern for many investors (especially the large buyers). Of course this also precludes any other large institutions getting involved.

What usually happens is that the founders will sell a large chunk of shares to an institution or two to increase the free float.

Still means any substantial positive news can see this share rise very quickly :-)

[britishbear] 26/4/2007 08:49

I think there are some general "Chinese" stock worries - with ChinaShoto off today on results it does appear that investor expectations for Chinese aim stocks are often beyond the fundamentals.

This strikes me as a good top-up opportunity but as always, there is a risk associated with owning Chinese stocks.

[silverthread] 26/4/2007 08:39

Azalea, I asked Panmure Gordon (EBT's major advisor) about James Reiman's shareholding. The reply seems to confirm Mr Reiman retains his shares (which, given his involvement with the company, would not be surprising) ......

According to RNS Mr Reiman was the beneficial owner of ca 61.38m shares on 11th December 2006; there have been no reported changes to this holding, which was reported as approximately 34.6% of the co.

Following the share placing in early January 2007, and issues of shares for options, the current number of EBT shares is ca 218.25m. Hence Mr Reiman's stake would appear to be ca 28.1% currently.

Regards

Retail Research
Panmure Gordon (UK) Limited

[igoe104] 25/4/2007 20:56

IM NOT SAYING SELL azalea, im just saying wait until the june to buy. humans are like sheep, they don,t need a reason to sell, they just sell because others are.
ITS always the case with AIM companies.

[azalea] 25/4/2007 19:38

Only today I had similar thoughts on the old saying "sell in May ad go away". However the latest thinking from the IC is that this year could be different. In addition, with a forecast of a minimum growth in GDP of 9%* for China this year. I really do not think the rule applies to specific China stocks. India is booming, and judging by the (DJIA - breaking through the very important 13,000 barrier) the U.S. is in robust form. Given the share price was higher by a couple of points even before the excellent results, I can see no reason for a notably drop beyond this point. If it does, I will simply add.

[igoe104] 25/4/2007 17:55

I agree this is a quality long term company, but now is not the time to buy, not with the may sell off approaching. could be a bargain by the end of june.

[solotrom] 25/4/2007 15:04

maybe there is a slight link to the fact that BTX asked for their stock to be suspended a few days ago. Anyone looking to invest in China via London may have come across both these stocks (e.g. via IC) and seen them both listed as "buys". Some in EBT may have been given a reminder of the risk in investing in China... Only a thought...

[silverthread] 25/4/2007 14:59

From previous posts on this BB, it is believed that (from memory) over 90% of shares are held by institutions, directors or management. Which leaves very few for short term trading on the market.

The slight drop in the share price over the past few days is based on a miniscule volume of shares being traded (Just approx 600K shares in the past 3 days valued at around just £200K) - so would seem to be a little price manipulation to encourage a few sellers/buyers. IMHO

[britishbear] 25/4/2007 14:39

With China Mobile doing so well this reverse is a little surprising - hmm. Looking attractively priced.

[divinausa1] 25/4/2007 14:00

Like to double my holdings here..... Freeing up some dosh 1st though

[azalea] 25/4/2007 13:48

In on the dip for 9.5k @ 28.5p. The IC recently gave a 'keep buying' recc - into profits this year!

[divinausa1] 17/4/2007 18:53

its ok if they are attracting top execs that will move the company aggressivly forward

[swiss paul] 17/4/2007 18:27

second that on the oink oink - performance rlated does not look to strenuous does it?