NewMarket China, Inc. (NMCH.OB), which provides technology and telecommunications services in China as well as software development and maintenance services for its US customers, filed its 2007 SEC Form 10-KSB yesterday detailing the Company’s business operations and financial performance for fiscal year 2007.
Based upon the reported numbers, net income increased 83%, from $542,000 in 2006 to $991,000 in 2007. Revenue increased 36%, from $29.5 million in 2006 to $40 million 2007. Gross profit increased by 41% from $1.3 million in 2006 to $1.8 million in 2007. The Company made a point of increasing its on-hand cash from $1.2 million in 2006 to $1.5 million in 2007. The increased amount of cash did not detract from stockholder standings on the balance sheet. Stockholder equity increased 55% from $1.7 million in 2006 to $2.6 million in 2007. All the reported numbers show growth, which puts NewMarket China in a strong position for 2008.
NewMarket China announced that it is forecasting a 25% growth in revenue to $50 million. The Company expects this growth to result from current established operations. Management is discussing investments and acquisitions in North America, which would result in additional potential revenue.
In 2007, NewMarket China concentrated on expanding its system integration and technology operations in China. Creating a foothold in China has allowed the Company to build a broad customer base including government, military, and private businesses.
NewMarket China is currently developing projects in North America. The company was recently retained to provide off-shore resources to develop a digital multimedia architectural model for a large Dallas-based architectural design and construction firm. NewMarket China is also in partnership with Crystal Information Technology to provide multimedia outsourcing services to North American and Latin American customers. Crystal is best known for its full-motion architectural renderings for the 2008 Beijing Olympic venues and the 2010 World Expo venues in Shanghai.
NewMarket China is headquartered in Dallas and has additional offices in Shanghai and Beijing. The Company assists Western clients in realizing the growth potential of expanding into the Chinese market. It also assists Western clients in understanding the advantages of the high quality, low cost technology products and services China can provide. With its 2008 forecast and growth plan in place, it appears that NewMarket China will continue its positive trend.
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