GUANGZHOU, China, May 31 /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,
announced that the company has obtained a branch business license in
Zhengzhou, the capital of the Henan province in China. This branch office
will operate in the Jinshui District of Zhengzhou.
According to published statistics, the number of mobile phone users in
Zhengzhou was approximately 4,527,000 at end of September 2006, roughly 63% of
total population of the city. The mobile users increased by 1,010,000 during
the nine months ended September 2006, which represents a 30% increase for year
to year comparison if projected to the whole year of 2006. According to
statistics, the coverage of mobile users in Zhengzhou is only 63%, compared to
93% in other major cities of China. Accordingly, the company believes that it
has significant room to develop the additional business in Zhengzhou.
In addition, the company is planning to work with the main telecom
operators in Zhengzhou to achieve quick expansion objective. The company is
also trying to co-operate or merge with local distributors or retailers to
maximize its distribution network.
Setting up Zhengzhou branch will allow the company to expand from
Guangzhou into other cities and provinces of China. During 2007, the company
expects to set up more branches and retail shops in China to enhance its
distribution network. With such retailer shops located in different cities
within China, we can understand, with more precision, the market response for
each product and service allowing the company to correctly adjust its business
model, ensuring customer satisfaction. Currently, most of the company's
revenue is generated from Guangzhou and only one brand is distributing its
products through our network into the whole China region. With the network,
we can persuade more handsets manufacturers to deliver products through our
network. Furthermore, by developing a larger infrastructure, the company will
be able to sell more value added services which will increase company margins
and give us a competitive advantage over smaller companies in our market.
About Guangzhou Global Telecom
Guangzhou Global Telecom Limited Company 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
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.
