INDUSTRIAL EXCHANGE, INC.
BETHESDA, MARYLAND - August 14, 1997 - U.S. -CHINA INDUSTRIAL EXCHANGE, INC. (NASDAQ:CHDX), a leading American company in market representation, sales and consulting services for Western business in China since 1981, today announced its results for the second quarter and six months ended June 30, 1997. For the second quarter the Company reported a net loss of $761,000 or $0.12 per share. In the same period a year earlier, the Company reported a net profit of $918,000 or $0.27 per share. For the six months period the Company reported a net loss of $596,000 or $0.09 per share as compared to a net profit of $873,000 or $0.26 per share for the same period last year.
"We anticipated sluggish results in the first half of the year, " Roberta Lipson, President and CEO noted from Beijing. "We expect fluctuations in the timing of our revenues due to Chinese purchasing cycles. We have been through this process before. In 1996 we accumulated revenue in the early part of the year as a result of our Ex-Im financing program. This year we will see business weighted more heavily toward the second half of the year. Our contract signings in the market so far this year have been strong and we are expecting improved performance in the second half of the year as those orders begin to ship."
Ms Lipson also noted that the Company is on track with its previously announced growth initiatives in primary healthcare, product distribution and pharmaceuticals. It will open its first private hospital in China this summer, and has plans to open satellite clinics in Beijing and additional hospitals in select coastal cities in China over the next several years.
"We are also introducing major new product lines in consumable healthcare products through our Products Distribution Department this summer and are formulating market entry strategies for pharmaceutical businesses. As these new healthcare revenue streams come on line and grow, we anticipate significant new components to our traditional revenue base. We are very excited about these growth plans going forward," Ms Lipson concluded.
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U.S.-China Industrial Exchange, Inc. (Chindex) provides market representation, sales and consulting services in China to a number of multinational and Fortune 500 companies including Volvo Construction Equipment, Ingersoll-Rand, Acuson, Johnson & Johnson and Kendall. With over sixteen years experience, 135 employees, and operations in the United States, China and Hong Kong, the Chindex strategy is to expand its cross-cultural reach by providing leading edge technologies, quality products and services to Greater China's growing professional communities. Chindex is listed on NASDAQ under the ticker symbol CHDX.