New Energy Systems Group (fka NEWN)

[retired_by_31]

http://www.hawkassociates.com/clients/press/full_news.cfm?client_id=2&news_id=119


08/24/07

LOS ANGELES and SHENZHEN, China -- China Digital Communication Group (OTC Bulletin Board: CHID), CEO Xu Zhongnan issued the following letter for shareholders.

Dear Shareholders:
This has been a difficult quarter.
As you know, our battery shell and cap products have become a commodity business, attracting competitors who are much larger than E’Jenie. Being a smaller producer in a low technology industry that has limited barriers to entry, we have little bargaining power with which to increase our market share. We continue to lose orders to competitors that can offer greater efficiencies of scale.

By now you have read our quarterly earnings that were filed on August 14. Sales revenue for the second quarter 2007 was $368,823, a decrease from $3,027,810 for the same quarter last year. Net loss for the quarter was $1,046,645 versus net income of $390,876 for the comparable quarter last year. A bright spot remains our total current assets, which increased to nearly $5 million, providing a foundation for management as we seek acquisition opportunities for the future.