Web Site : http://www.ztcmobile.com/en/



About ZTC Telecommunications Plc:

ZTC Telecommunications plc is a public company listed on AIM, part of the London Stock Exchange (trading symbol: "ZTC"). Incorporated in the UK since 2000 (Registered, England No 3928553). The Company acquired China based Shenzhen Zhong Tian Equipments Co Ltd, a designer, assembler and marketer of mobile phone handsets under "ZTC" brand, on 21st March 2007, at which time it was admitted to AIM. ZTC's handsets are primarily aimed at the estimated 800 million Chinese who reside in the lesser developed north, central and western regions of PRC. This focus is achieved through ZTC's strategy of producing handsets that are "Fashionable, Economical and Practical."

Been a rough time for ZTC, share price falling down, however, perhaps they are just too honest ?

There last RNS :

RNS Number:1320N
ZTC Telecommunications plc
04 February 2008

ZTC TELECOMMUNICATIONS PLC
("ZTC" or "the Company")

Major Distribution Agreement

ZTC Telecommunications Plc (LSE AIM: ZTC.L), a fast growing China based domestic designer, assembler and marketer of mobile phone handsets, is pleased to announce a major distribution agreement (the "Agreement") with Beijing Vosia
Information Technology Co., Ltd ("Vosia").

Vosia is a subsidiary of Beijing Arip Logistics Co., Ltd ("Arip"), a Chinese
national logistics company which focuses on telecommunications products, as well as being a logistics and procurement partner of China Mobile.

New contract with Voisa

Pursuant to the Agreement, ZTC's wholly owned subsidiary, Shenzhen Zhong Tian
Communications Equipment Co., Ltd will deliver up to 400,000 handsets which
Vosia will undertake to distribute and promote through China Mobile business
outlets in three provinces. It is anticipated that sales will be effected
through direct retail and/or combined with an operator bundled service. The
Board of ZTC envisages that the first delivery under this contract will be made
in March 2008.

Specifically, ZTC will supply up to 200,000 handsets of its ZT2988 model and up
to 200,000 handsets of its ZT-B601 model. The ZT2988 is one of ZTC's latest
models, comprising touch screen, an MP3 and MP4 player, video, camera, a large
2.4" screen and an extra long standby battery life. The ZT-B601 is ZTC's
market-entry model that also incorporates FM radio, camera and an MP3 player.


Working capital

Demand for the Company's products has continued to accelerate since the IPO, and this Agreement represents the largest contract which the Company has secured to date. However, in common with many small and medium size businesses within China, our rate of growth is tempered by working capital constraints. The Company's ability to ensure timely fulfilment of this and existing contracts is subject to it securing additional working capital. The Board is therefore currently reviewing financing arrangements in order to meet future requirements.

Charles Huang, CEO of ZTC commented, "China's mobile phone market is the fastest growing in the world, with an average of seven million new subscribers per month during 2007. The key to accessing this market for ZTC is securing the best distribution, and the Vosia agreement will not only diversify our distribution with a strong partner, but strengthen our position in the fast growing 2nd-4th tier markets within China."

-ends-

For further information, please contact:

ZTC
Mark Syropoulo, Finance Director +86 21 6867 0012
Frank Lewis, Chairman +44 20 7429 6666

Blue Oar Securities +44 20 7448 4400
Romil Patel or Shane Gallwey

Conduit PR +44 20 7429 6609
Christian Taylor-Wilkinson or Jos Simson

Obviously the market did not like to hear this, and so the SP has tumbled down.


"Working capital

Demand for the Company's products has continued to accelerate since the IPO, and this Agreement represents the largest contract which the Company has secured to date. However, in common with many small and medium size businesses within China, our rate of growth is tempered by working capital constraints. The Company's ability to ensure timely fulfilment of this and existing contracts is subject to it securing additional working capital. The Board is therefore currently reviewing financing arrangements in order to meet future requirements."


However, hats off to their honesty.

The troublesome words are the "and existing contracts" imv.

That tends to suggest they are already at the "biten off more than can chew" stage.

Therefore, potential short and long trades here, will they get funding ? if so at what price ? and then from there, can they deliver shareholder value going forward ?

PP I am worried about your state of mind. Over on a rival site you make over 200 posts a day, host 90 threads and regularly post on 5 different sites. You have set up duplicate threads for Chinese stocks, wiped many of your own posts (to eradicate any possiblility of criticism)and constantly change your mind. This behaviour would seem to be obsessional, manic and delusional. Not to mention the fact that you need to get a life.

pp is my hero ok. You can get lost, zscrooge

zscrooge, I am more worried about those people who now follow and post about posters, as opposed to discussing stocks and shares and markets and sentiment.

Although it is possible to understand that the present market falls have pushed some into financial oblivion, and with that perhaps immense personal stress, which is perhaps making them turn their "anger" on to BB posters.

Sad, but true.

As it seems "zscrooge" is going to be "stalking" me with abusive posts etc... I will add them to the "Squelch" facility. I really do not want the threads to fill up with nonsense posts by zscrooge.

What that means is I will be unable to read their posts.....so don't expect any responses to anything they post in future. If you find they are still filling the boards with nonsense posts, I would suggest emailed Moneyam support and complaining.

If anyone wishes to "Squelch" this poster then click on the link below, and add their name to your "Squelch" list.

http://www.moneyam.com/InvestorsRoom/squelch.php

Interims out.

http://www.investegate.co.uk/Article.aspx?id=200803260700577491Q


Caution in the outlook, still looking for funding for working cap imo, placing coming ? .


"Outlook

ZTC experienced a positive first half year to 31 December 2007. However, the
severe winter conditions in China during the early part of 2008 impacted both
sales and distribution of handsets in the run-up to the important Chinese New
Year holiday. I am pleased to report that, following this disruption, we are now seeing a return to normal trading conditions with sales running at anticipated levels.

We have signed our largest distribution agreement so far and, provided we can
support the increased levels of working capital required, we are confident that
ZTC will continue to be well positioned to take advantage of this growth. While
we remain aware of the risks of increasing competition in local markets, the
continued acceptance of our recent product launches gives the Board optimism for the full year."

Doesn't look too good!

http://www.investegate.co.uk/Article.aspx?id=200812221014325813K