Executive Summary

Q4 2014 was a transition quarter following the January 28, 2015 closing of the Share Exchange to acquire 51% of Shenzhen Jinke; disclosures for Q4 were furnished via an 8‑K with Jinke financials and a subsequent FY 2014 10‑K, not a standalone earnings press release or call. No Q4 earnings call transcript or press releases were found, and SPGI consensus estimates are unavailable for CNCT .
FY 2014 revenue declined 14.7% year over year to $4.296M, with gross margin compressing to 2.7% (from 10.4% in 2013) due to higher cost of goods sold and R&D investment; quarterly trend shows Q3 revenue of $1.218M and a calculated Q4 revenue of ~$1.021M (FY minus nine months) with negative gross profit in Q4 .
Operating losses widened (FY 2014 net loss attributable to CNCT: $(0.550)M) as the company invested in equipment, R&D, and sales network build-out; liquidity relied on related‑party loans (due to related parties $7.132M at YE 2014) and short-term bank borrowings .
Strategic pivot: CNCT is now a lithium‑ion polymer battery manufacturer through Jinke; management articulated plans to enhance products, diversify, and vertically integrate, but provided no formal numerical guidance for revenue/margins/OpEx/tax .

What Went Well and What Went Wrong

What Went Well

Acquisition closed: Share Exchange to acquire 51% of Jinke completed January 28, 2015, moving CNCT from shell status to operating in batteries; management calls it in the best interest of shareholders and a pathway to U.S. capital access .
Strategic roadmap: “We intend to focus on enhancing the performance of our existing products and diversify our product line... Vertically integrating our business... Achieving cost efficiencies and economies of scale.” .
Certifications and capacity: ISO 9001 certification, multiple accreditations (UL, PONY), and daily capacity over 50,000 units across 6 lines position Jinke for scale .

What Went Wrong

Margin compression: FY 2014 gross margin fell to 2.7% (from 10.43% in 2013) on higher cost of goods sold; nine‑month gross profit of $129k implies a negative Q4 gross profit (~$12k) .
Profitability deterioration: FY 2014 net loss widened to $(0.867)M at Jinke with net loss attributable to CNCT $(0.550)M; Q3 2014 showed net loss attributable to CNCT of $(0.157)M .
Liquidity dependence: Significant reliance on related‑party loans (due to related parties $7.132M YE 2014) and short‑term bank loans ($2.370M), highlighting balance sheet risk; going concern language noted .

Financial Results

Quarterly trend (oldest → newest). Q4 values are derived from FY minus 9M where quarterly disclosures were not provided.

Metric	Q2 2014	Q3 2014	Q4 2014
Revenue ($USD)	$0	$1,217,939	$1,020,931 (=$4,296,084 FY − $3,275,153 9M)
Gross Profit ($USD)	$0	$19,291	$(11,687) (=$117,358 FY − $129,045 9M)
Gross Margin %	0.0% (calc)	1.6% (=$19,291/$1,217,939) (calc)	(1.1%) (=$(11,687)/$1,020,931) (calc)
Net Income (Loss) attributable to CNCT ($USD)	$1,173,202 (three months ended)	$(156,825)	N/A (not disclosed quarterly)

Notes:

Q2 2014 reflected no operating revenue; net income was driven primarily by gain on cancellation of debt .
FY 2014 overview for context: Revenue $4,296,084; Gross Profit $117,358; Net loss attributable to CNCT $(549,529) .

Segment breakdown: Not disclosed; CNCT/Jinke report as a single battery manufacturing operation .

KPIs: Not disclosed (no published unit volumes, ASPs, customer mix beyond Top Customers references) .

Guidance Changes

No formal quantitative guidance was provided in Q4 disclosures or FY 2014 10‑K.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2014	None	None	Maintained (no guidance)
Gross Margin	FY/Q4 2014	None	None	Maintained (no guidance)
OpEx	FY/Q4 2014	None	None	Maintained (no guidance)
Tax	FY/Q4 2014	None	None	Maintained (no guidance)

Sources: Q4 2014 8‑K and FY 2014 10‑K; no guidance language found – –.

Earnings Call Themes & Trends

No Q4 earnings call transcript found. Themes drawn from filings across quarters.

Topic	Previous Mentions (Q2 2014)	Previous Mentions (Q3 2014)	Current Period (Q4 2014)	Trend
Strategic pivot to batteries	Cooperation agreement with Jinke; legacy telecom subs disposed; no operating revenue in Q2 –	Reverse takeover accounting; consolidation of Jinke data; supplier bargaining power impacting margins	Share Exchange closed; CNCT becomes battery manufacturer; ISO certifications and capacity described	Transition completed
Supply chain/costs	No revenue; debt settlement effects	“We currently do not have strong bargaining power with certain suppliers... price fluctuations directly affect cost of sales and margins”	FY margin compression; negative Q4 gross profit; raw material lists (e.g., lithium cobaltate) and top suppliers	Cost pressure persists
Customer concentration	Legacy telecom; limited disclosures	Noted purchase order‑based sales	Top five customers significant; quarterly PO model; list of key customers	Concentration maintained
Regulatory/compliance	Controls not effective; going concern	Controls not effective	Environmental permits; internal control weaknesses; going concern – –	Steady regulatory needs
Financing/liquidity	Convertible debenture settlement; minimal cash –	Related‑party loans rising	Related‑party loans $7.132M; short-term bank debt $2.370M	Reliance increased

Management Commentary

“We intend to focus on enhancing the performance of our existing products and diversify our product line... Vertically integrating our business... Achieving cost efficiencies and economies of scale.” .
“The polymer Li‑ion battery produced by our company has passed the international safety certification such as SGS, CE, ROHS... ISO9001 standard.” .
“We spent approximately RMB 4‑5 million in each of the last two years [on R&D].” .
“Jinke had approximately RMB 23,000,000 worth of sales in 2013 and approximately RMB 17,000,000 worth of sales in 2014 from its top five customers combined.” .
On risk/margins: “We currently do not have strong bargaining power with certain suppliers... price fluctuations directly affect our cost of sales and creates volatility on our margins.” .

Q&A Highlights

No earnings call or analyst Q&A was published for Q4 2014. Clarifications from filings:

Reverse takeover accounting and recapitalization explained; Jinke financials drive consolidated results .
Share Exchange mechanics, share issuances, and the intent for “tax-free reorganization” under Sections 351/368(a) .
Internal controls weaknesses (antiquated systems, governance documentation, resource constraints) acknowledged –.

Estimates Context

Wall Street consensus estimates (SPGI) for Q4 2014 EPS and revenue are unavailable for CNCT due to missing S&P Capital IQ mapping; an attempt to fetch consensus returned an error. Values retrieved from S&P Global were not available for this ticker in our system.

Key Takeaways for Investors

Near-term: Expect continued margin volatility given supplier bargaining dynamics and raw material cost exposure; Q4 showed negative gross profit, highlighting execution risk on cost control and pricing .
Liquidity watch: Heavy reliance on related‑party financing and short-term bank debt creates refinancing/working capital risk; monitor progress on equity funding or operating cash generation .
Strategic optionality: The pivot to battery manufacturing offers exposure to growth niches (consumer electronics, tools, smart cards); certification and capacity provide a base, but order flow and customer diversification are critical .
Governance/controls: Material weaknesses in internal controls require remediation to support scale and public market expectations; investors should watch for systems upgrades and board governance improvements –.
Modeling note: With no formal guidance and limited quarterly granularity, use FY disclosures and derived quarterly figures cautiously; absence of SPGI estimates suggests limited analyst coverage and higher information risk .
Catalysts: Evidence of margin stabilization, new customer wins, reduced reliance on related‑party loans, and any capital raise or partnership could re‑rate risk profile .

Source & Document Availability Notes

8‑K (Results of Operations and Financial Condition) dated Jan 29, 2015 for Q4 period; includes Jinke MD&A and financial statements –.
10‑Q Q3 2014 (Nov 18, 2014) –; 10‑Q Q2 2014 (Aug 14, 2014) –; 10‑Q Q1 2014 (May 20, 2014) –.
10‑K FY 2014 (Apr 15, 2015) consolidating annual performance –.
No Q4 2014 earnings call transcript or press releases found via document search for the period [ListDocuments returned none].

China Teletech Holding Inc (CNCT)·Q4 2014 Earnings Summary