Exhibit 99.1

For Immediate Release  
   
Company Contact: Investor Relations Contact:
Mr. Peter Chen, VP of Finance Mr. Kalle Ahl, CFA, Account Manager
8888 Acquisition Corporation CCG Investor Relations
Tel: +86 595 82889862 (China) Tel: +1 646-833-3417
Email: peter.chen@sportspowersole.com Email: kalle.ahl@ccgir.com
Website: www.chandracn.com Website: www.ccgirasia.com

8888 Acquisition Corporation Announces Record Fiscal 2011 Third Quarter Financial Results

Jinjiang, Fujian Province, China, May 12, 2011

– 8888 Acquisition Corporation (OTCQB: EGHA) (“Chengchang Shoes” or the “Company”), in the business of designing, producing and selling high quality soles to manufacturers of athletic and leisure shoes in China, today reported its fiscal 2011 third quarter financial results for the period ending March 31, 2011.

Third Quarter Fiscal 2011 Financial Highlights

  • Revenue rose 150% to $10.4 million from $4.2 million in the third quarter of fiscal year 2010
  • Gross profit grew 171% to $3.9 million from $1.4 million in the third quarter of fiscal year 2010
  • Net income increased 167% to $2.4 million from $0.9 million in the third quarter of fiscal year 2010
  • Basic and diluted earnings per share increased to $0.07 from $0.03 in the third quarter of fiscal year 2010, despite an increase of approximately 2.5 million shares outstanding

“We are very pleased to see another robust quarter of revenue and earnings growth, which is a strong testimony to the success of our new lines of EVO products launched in May 2010,” commented Chengchang Shoes’ Chairman and Chief Executive Officer, Mr. Guoqing Zhuang. “Our proprietary EVO soles, featuring favorable abrasion resistance and enhanced cushioning relative to standard EVA soles, have been very well received in the market and are attracting more customer orders. We will continue to develop new products to consolidate Chengchang’s leadership as a product innovator in China’s rapidly growing sports shoes industry. We are confident that we have the right business strategy, supported by our experienced R&D team and efficient operating system, to meet strong current demand for our shoe sole products.”

Third Quarter Fiscal 2011 Results

In the third quarter of fiscal 2011, total revenue increased 150% to $10.4 million, from $4.2 million in the comparable period of fiscal 2010. The significant increase in revenue was driven by incremental sales from the Company’s EVO soles and EVO compound pellets products, which contributed $5.3 million and $2.3 million, respectively, in the third fiscal quarter, somewhat offset by declining revenue from the Company’s other product categories. The Company’s EVO sole and EVO compound pellet product lines, launched in May 2010, did not contribute to revenue in the third quarter of fiscal 2010.

1


Gross profit grew 171% to $3.9 million in the third quarter fiscal 2011, from $1.4 million in the comparable period of fiscal 2010. The increase in gross profit was primarily due to increased sales of the Company’s higher margin EVO sole and EVO compound pellet products. The Company’s overall gross margin increased to 37.3% in the third quarter of fiscal 2011 from 34.5% in the same quarter of fiscal 2010.

Selling expenses in the third quarter of fiscal 2011 were $65,828, or 0.6% of total revenue, compared to $26,891, or 0.6% of total revenue, in the comparable quarter of fiscal 2010.

General and administrative expenses in the third quarter of fiscal 2011 totaled $340,560, or 3.3% of total revenue, compared to $164,222, or 3.9% of total revenue, in the same period last year. The year-over-year increase in general and administrative expenses primarily reflects incremental public company costs, higher employee disability and welfare benefit payments as a result of a PRC governmental policy change in 2010.

Income from operations in the third quarter of fiscal 2011 was $3.5 million, an increase of 180% compared to $1.2 million last year.

Third quarter fiscal 2011 net income totaled $2.4 million, or $0.07 per diluted share, 167% higher than net income of $0.9 million, or $0.03 per diluted share, in the corresponding period of fiscal 2010.

First Nine Months Fiscal Year 2011 Results

For the nine month period ended March 31, 2011, total revenue was $36.7 million, an increase of 119% year-over-year, largely attributable to incremental sales of the Company’s EVO sole and EVO compound pellet products launched in May 2010. Gross profit for the nine months ended March 31, 2011 was $14.4 million, up 126% from $6.4 million for the nine months ended March 31, 2010. Gross margin was 39.4% for the nine months ended March 31, 2011, compared to 38.1% in the comparable prior year period. Net income for the nine months ended March 31, 2011 was $9.6 million, or $0.29 per diluted share, an increase of 122% as compared to the net income of $4.3 million, or $0.14 per diluted share, in the corresponding period a year ago.

Financial Condition

As of March 31, 2011, cash and cash equivalents totaled $17.8 million, up 173% from $6.5 million on June 30, 2010. Accounts receivable increased to $14.9 million at the end of third quarter fiscal 2011, from $11.7 million at the end of June 2010, largely reflecting increased customer sales. At March 31, 2011, the Company had working capital of $22.3 million and a current ratio of 3.0. Stockholders’ equity totaled $31.1 million, up from $16.9 million on June 30, 2010. Net cash provided by operations was $8.8 million for the nine months ended March 31, 2011, compared with net cash provided by operations of $5.6 million for the same period in 2010.

Business Outlook

In light of the strong demand for the Company’s proprietary EVO products, the Company has decided to lease a new 30,000 square meter manufacturing facility, which is expected to commence operation in June 2011. The Company also plans to purchase additional manufacturing equipment to ramp up production to meet increasing demand for its products during the remainder of the year. In addition, the Company is currently promoting its new proprietary dual-color, dual-hardness foam sole products, which the Company believes are extremely innovative and unique compared to other offerings in China’s footwear market.

2


About 8888 Acquisition Corporation

The Company, through its wholly owned subsidiary, Jinjiang Chengchang Shoes Co., Ltd, is a leading designer and producer of high quality soles marketed to manufacturers of athletic and leisure shoes in China. From its strategically located manufacturing facilities in Jinjiang, Fujian Province, the Company distributes soles to its customers, which include many of China’s well recognized sportswear companies and an OEM supplier of Adidas® in Asia. The Company categorize its sole products into three primary product lines: (i) EVA, or ethylene vinyl acetate, sole products; (ii) RB, or synthetic rubber, sole products; and (iii) EVO, or EVO outsole, products which are an outgrowth of its EVA product line that is designed to be more abrasive resistance and lighter and softer than EVA product line. The Company also offers EVO compound pellet products. For more information, please visit: http://www.chandracn.com.

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning market demand for our products, our new manufacturing facility, our future operating and financial results, our expectations regarding sales of our EVO soles and EVO compound pellet products, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Forward-looking statements can be identified by the use of forward-looking terminology such as “will,” “believes,” “expects” or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our Current Report on Form 8-K filed with the Securities and Exchange Commission (“SEC”) on October 25, 2010, as amended, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC’s electronic data gathering analysis retrieval system at http://www.sec.gov.

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8888 Acquisition Corporation
Unaudited Consolidated Balance Sheets
As of March 31, 2011 and June 30, 2010
(Stated in US Dollars)

    March 31, 2011     June 30, 2011  
  [unaudited]     [audited]  
Assets              
   Current assets            
         Cash and cash equivalents $  17,752,590   $  6,513,199  
         Restricted cash   -     517,728  
         Accounts receivable, net   14,878,630     11,656,785  
         Inventory   318,993     196,958  
         Advance to Suppliers   443,448     -  
         Prepaid expenses and taxes   7,308     1,762  
                       Total current assets   33,400,969     18,886,432  
             
   Non-current assets            
         Plant and equipment, net   5,317,040     5,671,102  
         Intangible assets, net   3,169,260     3,246,985  
         Deposits   336,652     42,780  
                       Total non-current assets   8,822,952     8,960,867  
             
Total Assets $  42,223,921   $  27,847,299  
             
             
Liabilities and Stockholders’ Equity            
             
Liabilities            
   Current liabilities            
   Bank loans $  3,713,794   $  2,787,651  
   Notes payable   -     1,725,759  
   Accounts payable and accruals   5,917,984     5,055,751  
   Taxes payable   1,332,509     1,333,397  
   Related party payable   119,989     -  
                       Total current liabilities   11,084,276     10,902,558  
             
   Total Liabilities $  11,084,276   $  10,902,558  
             
             
Stockholders’ Equity            

   Preferred stock, $0.0001 par value, 50,000,000 shares authorized; 0 share issued and outstanding as of March 31, 2011 and June 30, 2010 respectively

$  -   $  -  

 

           

   Common stock, $0.0001 par value, 100,000,000 shares authorized; 33,966,667 and 31,419,167 shares issued and outstanding as of March 31, 2011 and June 30, 2010 respectively

  3,397     3,142  
   Additional paid-in capital   5,197,929     1,279,740  
   Statutory reserves   750,389     750,389  
   Retained earnings   24,129,876     14,535,006  
   Accumulated other comprehensive income   1,058,054     376,464  
           Total stockholders’ equity   31,139,645     16,944,741  
             
Total Liabilities and Stockholders’ Equity $  42,223,921   $  27,847,299  

4


8888 Acquisition Corporation
Unaudited Consolidated Statements of Income
For the three months and nine months ended March 31, 2011 and 2010
(Stated in US Dollars)

    Three Months Ended March 31     Nine Months Ended March 31  
    2011     2010     2011     2010  
                         
Revenue $  10,432,547   $  4,170,644   $  36,665,296   $  16,728,146  
Cost of revenue   6,536,831     2,732,827     22,231,230     10,351,000  
            Gross profit   3,895,716     1,437,817     14,434,066     6,377,146  
                         
Selling expenses   65,828     26,891     286,010     102,758  
General and administrative expenses   340,560     164,222     898,401     365,653  
            Total operating expenses   406,388     191,113     1,184,411     468,411  
                         
Operating income   3,489,328     1,246,704     13,249,655     5,908,735  
                         
Other income   -     7,853     -     8,835  
Other expense   (159,979 )   -     (245,203 )   -  
Interest income   16,660     -     32,133     -  
Interest expense   (41,308 )   (37,421 )   (149,103 )   (150,898 )
            Total other income/(expenses)   (184,627 )   (29,568 )   (362,173 )   (142,063 )
                         
Pre-tax income   3,304,701     1,217,136     12,887,482     5,766,672  
                         
Provisions for income tax   865,340     302,450     3,292,612     1,439,840  
                         
Net income (loss) $  2,439,361   $  914,686   $  9,594,870   $  4,326,832  
                         
Earnings per share                        
           Basic $  0.07   $  0.03   $  0.29   $  0.14  
           Diluted $  0.07   $  0.03   $  0.29   $  0.14  
                         
Weighted average shares outstanding                        
           Basic   33,966,667     31,419,167     32,947,667     31,419,167  
           Diluted   33,966,667     31,419,167     32,947,667     31,419,167  

5


8888 Acquisition Corporation
Unaudited Consolidated Statements of Cash Flows
For the three months and nine months ended March 31, 2011 and 2010
(Stated in US Dollars)

    Three Months Ended March 31     Nine Months Ended March 31  
    2011     2010     2011     2010  
                         
Net Income/(loss) $  2,439,361   $  914,685   $  9,594,870   $  4,326,832  
Adjustments to reconcile net income to net cash from operations:
   Amortization   23,364     19,223     77,725     58,887  
   Depreciation   348,502     304,413     1,182,305     915,543  
   Loss on disposal of fixed asset   156,983     -     225,994     -  
   Provision for bad debt   -     -     16,190     -  
Changes in operating assets and liabilities:                        
   (Increase)/decrease in restricted cash   476,421     (307,232 )   517,728     (300,650 )
   (Increase)/decrease in accounts and other receivables   2,059,915     2,275,626     (3,681,483 )   1,479,640  
   (Increase)/decrease in inventories   (31,290 )   382,172     (122,035 )   989,723  
   (Increase)/decrease in prepaid expenses   (5,491 )   (5,266 )   (5,544 )   (5,091 )
   Increase/(decrease) in accounts payables and accruals   (1,927,391 )   (2,482,231 )   982,221     (1,495,474 )
   Increase/(decrease) in taxes payables   (127,216 )   (235,261 )   (888 )   (334,381 )
Net cash provided by operating activities   3,413,158     866,129     8,787,083     5,635,029  
                         
Cash flows from investing activities                        
       Proceeds from disposal of fixed assets   15,365     -     39,565     -  
   Payments for deposits   (300,608 )   (46,482 )   (293,872 )   (46,482 )
   Payments for land use rights   -     -     -     -  
   Payments for purchases of plant and equipment   (229,315 )   (250,849 )   (1,093,802 )   (360,822 )
Net cash provided/(used) in investing activities   (514,558 )   (297,331 )   (1,348,109 )   (407,304 )
                         
Cash flows from financing activities                        
       Proceeds from Issuance of common stock   -     -     3,918,444     -  
   Proceeds from/(repayments of) notes   (476,421 )   1,024,106     (1,725,759 )   1,002,167  
   Proceeds from/(repayment of) bank loans   782,671     (748,398 )   926,143     (748,398 )
   Repayment of loan to related party   -     -     -     (2,998,303 )
Net cash provided/(used) in financing activities   306,250     275,708     3,118,828     (2,744,534 )
                         
Net Increase of cash and cash equivalents   3,204,850     844,505     10,557,802     2,483,191  
Effect of foreign currency translation on cash   142,779     1,355     681,590     2,039  
Cash and cash equivalents at beginning of year   14,404,961     4,599,526     6,513,198     2,960,156  
Cash and cash equivalents at end of year $  17,752,590   $  5,445,386   $ 17,752,590   $  5,445,386  

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The following information was filed by 8888 Acquisition Corp on Thursday, May 12, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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