HOMEPAGE: www.zoomleimone.com/html/index.html
PRESENTATION (03/2010): investorshub.advfn.com/boards/read_msg.aspx
FACTSHEET: www.zoomleimone.com/resources/Zoom%203Q09%20Factsheet%202009Dec.pdf
ABOUT ZOOM TECHNOLOGIES
Zoom Technologies is a well established high-tech enterprise in electronic and telecommunication product design, development, processing and
manufacturing for 3rd generation mobile phones, wireless communication circuitry, and related software products. Zoom Technologies’ subsidiary,
Jiangsu Leimone, owns a majority stake of TCB Digital, which offers highly customized and high quality Electronic Manufacturing Service (EMS) for
Original Equipment Manufacturer (OEM) customers such as Samsung and K-Touch, the largest domestic brand in China surpassing Motorola, Sony
Ericsson, and LG, and also designs and manufactures its own brand of mobile phones under the Leimone brand. Zoom is ranked among the top 10
Chinese mobile phone manufacturers in capacity with over 1,400 employees.
POSITIONED FOR GROWTH
• Identified a niche market and focuses on developing mid to high-end, feature-rich, customized phones at a competitive prices
• Effectively leverage manufacturing and R&D capabilities and strong government connection.
• Focus on distribution to municipal level agents in tier 3 and tier 4 cities to utilize their extensive networks to sell products
• Collaborate with major telecoms to introduce bundled phones, which we believe is more economical and convenient to customers
• 204% revenue growth year over year and next income expected to exceed $6 million in 2009
RECENT CORPORATE HIGHLIGHTS
• Third quarter 2009 revenue increased 204% year over year to $55.29 million
• Third quarter net income increased 138% year over year to $1.73 million
• Full year 2009 revenue guidance increased to between $185 and $195 million from $145 to $155
million
• Full year 2010 net income guidance in the range of $10.75 to $11.25 million on adjusted basis
• Continued listing on Nasdaq, under ticker “ZOOM” following share exchange with Gold Lion Holdings Ltd.
• Entered into an agreement with China Telecom to distribute LEIMONE mobile phones
CHINA’S MOBILE PHONE MARKET
• Largest mobile phone subscriber base in the world with 641 million subscribers in 2008. The figure is expected to grow at a CAGR of 17.7%
through 2010, reaching 893 million.
• Mobile phone penetration rate is only 47% as compared to over 90% or even over 100% in many developed and developing countries -- Huge
untapped market in the 3rd tier and 4th tier cities.
• 3G network commercialization will drive subscriber demand for feature-rich, customized mobile phones with new applications and large volume
data transmission.
• Global sales of feature-rich smart phones expected to increase from 9 million units in 2003 to 418 million units in 2010; percentage of total
mobile handsets sales expected to increase from 1.7% to 33% during the same period.
Zoom Technologies to Enter China New Media Arena Through Leimone Culture Deal With China Central Television
Mar 24, 2010 08:32 ET
http://www.marketwire.com/press-release/...na-NASDAQ-ZOOM-1137037.htm
Leimone Culture and CCTV Sign the First Official CCTV Contract for Mobile Media Services
BEIJING--(Marketwire - March 24, 2010) - Zoom Technologies, Inc. (NASDAQ: ZOOM), a leading China-based manufacturer of mobile phones and other mobile electronic products, today announced that the Company's previously disclosed acquisition target, Beijing Leimone Shengtong Culture Development Company (Leimone Culture), has signed an agreement with China Central Television (CCTV), the major state television broadcaster in China, with 19 channels broadcasting to more than one billion viewers. According to the agreement, Leimone Culture will provide approved media content to CCTV's mobile users and will bundle CCTV.com's mobile TV access link onto Zoom's branded "Leimone" mobile phones and onto Zoom Original Equipment Manufacturer (OEM) customers' phones.
Pursuant to Section 1.3 of the Share Exchange Agreement dated January 28, 2009 between Zoom, Gold Lion Holding Ltd and Mr. Lei Gu, which shareholders of Zoom approved on September 8, 2009, Zoom has the option of purchasing Mr. Gu's shares of a list of companies controlled by him, and among these companies is Leimone Culture of which Mr. Gu owned 70% in September 2009. On December 1, 2009, Zoom's board of directors approved to pursue the acquisition of 100% of Leimone Culture subject to further due diligence, with details of the transaction to be finalized in the first half of 2010.
Mr. Leo Gu, Chairman and CEO of Zoom Technologies, commented, "This agreement with CCTV is the first of its kind for mobile media services, and is a milestone for Leimone Culture and Zoom Technologies. It partners Zoom through Leimone Culture with the largest media company in China, and positions us to benefit from the outstanding growth expected in the business of delivering video programs to mobile phones. We expect our mobile media business to grow significantly once Zoom completes the acquisition of Leimone Culture later this year. China's continuing economic growth and the strength of our manufacturing business also give us confidence in achieving significant growth."
CCTV currently captures 60% of China's mobile media services, making CCTV the largest program provider of "new media" for the mobile handset. Leimone Culture is the first company officially contracted by CCTV to participate with CCTV in this new mobile media service. Leimone Culture will generate revenue based on viewership of media programs supplied by Leimone Culture onto CCTV's mobile TV program access link. Leimone Culture has been selected as CCTV's supplier for a number of reasons, including content quality and Zoom's manufacturing capabilities, which can bundle the CCTV mobile TV access link in up to 10 million mobile phones in 2010.
Zoom expects to finalize the acquisition of Leimone Culture by mid-year 2010.
Leimone Culture has been a provider of mobile video services to China's top tier mobile phone service providers, including China Mobile since 2005 and China Unicom since 2007. Since the advent of 3G in China in mid-2009, Leimone Culture has captured revenues from advertisements loaded onto new phones, value-added applications provided to the mobile operators, the production of mobile short films, and web-based ad sales.