BEIJING, Jan. 4 /Xinhua-PRNewswire-FirstCall/ -- The Smooth Global (China) Holdings, Inc. (OTC Bulletin Board: SMGH) (“SMGH” or “Company”), a leading provider of International Call Forwarding Services in China, announced today that Zheng Shuying, CEO of the Company, will issue a letter to its shareholders of record. This letter to shareholders aims to provide more information about the Company and upcoming events. The Company has chosen to issue this shareholder letter, as part of this press release, to take advantage of the speed and economy of today’s internet world. The text of this letter is provided below:
January 4, 2007
To the Smooth Global (China) Holdings, Inc. shareholders
This letter will address the following important topics:
The established website of our Company
The new acquisition of GRT
The future developments
1. The building of the website
We have created a website providing information about our Company for shareholders and investors. We aim to update the information as often as possible so that interested parties will know more about our Company’s events and product developments.
2. The acquisition of Beijing GRT Information Services Limited
On November 12, 2007, the Company announced it had successfully acquired all the equity interest of Beijing GRT Information Services Limited (“ Beijing GRT”). Beijing GRT is engaged in the business of providing telecommunications services in the People’s Republic of China. It focuses on providing Chinese outbound travelers international call forwarding services (“ICFS”), and Beijing GRT is the first and only operator to provide international call forwarding services to outbound travelers in China. Our business model is to sign sales agent contracts with selected agents for the distribution of our mobile sim cards, which are to be used in the country where the traveler is going outbound. We will receive as non-refundable fixed entrance fee from the agent and a minimum quota of selling the foreign mobile sim-cards. The September results for Beijing GRT were very encouraging with recorded revenue of about $985,000 for the first nine months. Bear in mind that the Company started its business in Shanghai only.
3. Outlook for 2008
As we continue to generate monthly recurring revenue from the newly acquired ICFS business and other existing business, we expect 2008 to be the year with enormous growth for the Company. First of all, we will expand our business by opening new branches in 20 selected cities. We plan to establish more sales agents for the ICFS in various cities across China. To take advantage of the rapid growth in the outbound travelers sectors and the higher income of Chinese people, we will increase our sales agents to satisfy the demand of ICFS services with additional advertisements to support our goal. Remember, Beijing GRT has achieved revenue of about $985,000 for the first nine months from one city and we are targeting to open branches in 20 cities. Secondly, we will source other companies with good distribution channels to be our strategic partners in order to expand our business quickly. We expect to begin generating positive cash flow from operating activities and profit from operations during the first half of 2008.
About Smooth Global (China) Holdings, Inc.
Smooth Global (China) Holdings, Inc. was organized under the name Bralorne Mining Company (the “Company”) under the laws of the State of Nevada on December 2, 1998. On November 2, 2006, The Company acquired all of the outstanding capital stock of Gold Profit (Asia) Group Limited (“Gold Profit”), which owns 100% of the registered capital of Beijing Quan Tong Chang Information Service Limited (“Beijing QTC”). Beijing QTC is a telecommunications service provider that delivers economical voice and data services domestically and internationally throughout China. It is engaged in the business of distributing telephone services through public pay phones and is also in the business of developing Internet phone solutions for commercial customers, focusing on a convenient local, domestic and international long distance call service with competitive price. On July 31, 2007, it changed its name to Smooth Global (China) Holdings, Inc. The Company contracted with the subsidiaries of China Netcom Group Corporation (Hong Kong) Limited, namely China Netcom (Shaoxing) Corporation Limited and China Netcom (Guangdong) Corporation Limited to distribute their VoIP call time in China. On October 24, 2007, the Company acquired 100% equity interest on Smooth Global Services Limited, which holds Beijing GRT Information Services Limited (“Beijing GRT”), a company providing International Call Forwarding Services (“ICFS”). Beijing GRT entered into the international call forwarding business by obtaining a license from China Netcom (Group) Company Ltd. Shanghai Branch and a license from China Netcom (Group) Company Ltd. Shaoxing Branch. The licenses were acquired in connection with the purchase by Beijing GRT of 2000 local telephone numbers. The licenses provide that the carriers will facilitate the international call forwarding business of Beijing GRT by (1) waiving all monthly fees for the company’s local numbers, (2) guaranteeing Beijing GRT its lowest per-unit fee, and (3) assuring Beijing GRT that it will retain the local numbers for at least three years. The Company will focus international call forwarding to its lines of business.
Forward-looking statements
This report contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.
The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.
