Cogo Group, Inc. Fourth Quarter 2012 Preliminary Results Show Highest Quarterly Revenue in Company History

    Cogo Group, Inc. Fourth Quarter 2012 Preliminary Results Show Highest
                     Quarterly Revenue in Company History

-- Unaudited revenue in the fourth quarter ended December 31, 2012, was
approximately $199 million, which included the revenue generated by Cogo
subsidiaries sold in a transaction ("Discontinued Group") up to November 15,
2012.

-- The transaction for sale of Discontinued Group was closed on November 15,
2012

PR Newswire

SHENZHEN, China, Feb. 21, 2013

SHENZHEN, China, Feb. 21, 2013 /PRNewswire/ --Cogo Group, Inc. ("Cogo" or the
"Company") (Nasdaq: COGO), a leading gateway for global semiconductor
companies to access the industrial and technology sectors in China, today
announced its preliminary unaudited financial results for its fourth quarter
ended December 31, 2012.

Revenue in the fourth quarter was approximately $199 million. Gross margin for
the fourth quarter was approximately between 6% and 6.5%. The results include
those related to the Discontinued Group up to November 15, 2012, since then
the Discontinued Group will not be consolidated in the financial results of
the Company. As of December 31, 2012, the Company had cash and pledged bank
deposits totaling approximately $141 million. 

As of November 15, 2012, the Discontinued Group had total assets of
approximately $145 million, of which approximately $141 million were current
assets, and total liabilities of approximately $68 million. A table reflecting
the unaudited combined net assets of the Discontinued Group follows this
release.

"Once again, the Cogo team executed a strong quarter, with double digit
year-on-year revenue growth. Despite the continued macroeconomic challenges,
we were able to generate approximately $199 million in revenue," said Mr.
Jeffrey Kang, CEO and Chairman of Cogo.

Table attached

Unaudited Combined Net Assets of Discontinued Group
As of Nov 15, 2012
                                         $'Million
Assets
Current assets:
Cash                                     71
Accounts receivable, net                 26
Bills receivable                         6
Amount due from related party            6
Inventories                              25
Prepaid expenses and other receivables   7
Total current assets                     141
Property and equipment, net              1
Land use rights, net                     3
Total Assets                             145
Less: Liabilities
Current liabilities:
Accounts payable                         7
Bank borrowings                          59
Income taxes payable                     1
Accrued expenses and other liabilities   1
Total current liabilities                68
Total Net Assets                         77

About Cogo Group, Inc.:
Cogo Group, Inc. (Nasdaq: COGO) is the leading gateway for global
semiconductor companies to access the rapidly growing Industrial and
Technology sectors in China. Through its unique business-to-business services
platform, Cogo designs customized embedded solutions using technology from
suppliers including Broadcom, Xilinx, Atmel and others for a customer base of
over 1,600 Chinese OEMs/ODMs. Cogo's customer list includes approximately 100
blue-chip companies, including ZTE, BYD and NARI, as well as nearly 1,500
Small and Medium Enterprises (SMEs). The Company serves a broad list of
rapidly growing end-markets in China, including 3G Smartphones, Tablets,
Automotives, High-Speed Railway, Smart Meter/Smart Grid, Healthcare and High
Definition Television "HDTV".

For further information:
Investor Relations

www.cogo.com.cn/investorinfo.html
communications@cogo.com.cn
H.K.:  +852 2730 1518
U.S.:  +1 (646) 291 8998
Fax:  +86 755 2674 3522

Safe Harbor Statement:
This press release includes certain statements that are not descriptions of
historical facts, but are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. These forward-looking statements may include
statements about our proposed discussions related to our business or growth
strategy such as growth in industrial, digital media, mobile handsetand
telecommunications end-markets or potential acquisitions, all of which are
subject to change. Such information is based upon expectations of our
management that were reasonable when made, but may prove to be incorrect. All
such assumptions are inherently subject to uncertainties and contingencies
beyond our control and upon assumptions with respect to future business
decisions, which are subject to change. For further descriptions of other
risks and uncertainties, see our most recent Annual Report filed with the
Securities and Exchange Commission (SEC) on Form 20-F, and our subsequent SEC
filings. Copies of filings made with the SEC are available through the SEC's
electronic data gathering analysis retrieval system (EDGAR) at www.sec.gov.



SOURCE Cogo Group, Inc.

Website: http://www.cogo.com.cn
 
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