GUANGZHOU, China, Aug. 14 /Xinhua-PRNewswire/ -- Guangzhou Global Telecom Inc. (OTC Bulletin Board: GZGT), a mobile phone handset and pre-paid calling card distributor and mobile handset value-added services provider in the PRC, has acquired 51% ownership of Guangzhou RenWoXing Telecom, by issuing 9,727,769 shares at 0.03 per share for the total consideration of $291,833. The un-audited management’s accounts of RenWoXing in 2007 showed an operating profit around US$140,000. We acquired 51% of this company at valuation of around 4 times of its operating income.
Established in June 2003, Guangzhou, Guangdong Province with an operating area of 6485 square feet. RenWoXing Telecom is mainly operating as wholesaler of pre-paid mobile phone cards, GSM and CDMA mobile cards, IP cards, and game cards, etc. to the areas of Guangdong province. Other mobile services for China Telecom and China Mobile include mobile messaging, e-mail services, internet services for Personal Handyphone System(‘PHS’), while other services provided include telephone and fax line leasing, and space rents, membership cards of Groups such as PICC China Insurance, Tai Kang Insurance, Pacific Insurance, He Sheng Property Group and many others just to name a few.
Ren Wo Xing has recently adopted the model of wholesale distributions in Guangdong, in an attempt to further expand on its current business distribution channel and networks. For more information on Ren Wo Xing’s franchising model, feel free to contact info@guangzhouglobaltelecom.com for reference.
About Guangzhou Global Telecom
Guangzhou Global Telecom, Inc. is a national mobile phone handset and pre- paid calling card distributor and provider of mobile handset value-added services. Maintaining cooperative relationships with China Telecom, China Mobile and China Unicom, the Company seeks to become the largest sales and distribution center of mobile phones, mobile phone parts and prepaid mobile phone cards in China. GTL plans to introduce new software and services through an expanded network of regional and neighborhood service centers, shops and virtual stores. For details, please visit our website at http://www.guangzhouglobaltelecom.com .
Safe Harbor Statement
Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People’s Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
For more information, please contact:
Judy Chen
Guangzhou Global Telecom, Inc.
Tel: +86-20-6236-8036
Email: info@guangzhouglobaltelecom.com
