BEIJING, April 9, 2008 /Xinhua-PRNewswire/ -- Global Telecom Holdings Limited (“GTHL”), wholly owned Enterprise of Guangzhou Global Telecom, Inc. (OTC Bulletin Board: GZGT), a wholesale distributor of mobile phone handsets, pre-paid calling cards and mobile handset value-added services in the People’s Republic of China (PRC), announced that it has signed an agreement (‘Agreement’) with Beijing Lihe Jiahua Technology and Trading Company Ltd (‘Lihe’) to acquire a 50% equity interest in Lihe in the form of 1,500,000 shares and 200,000 Renminbi (‘RMB’) as operating cash.
Beijing Lihe Jiahua Technology and Trading Company Ltd (Lihe), located in Beijing in The People’s Republic of China, is a private company engaged in distribution of telecommunication products, pre-paid cards and stored-value game cards. In 2007, Lihe realized unaudited revenues of approximately 15,000,000 RMB (about US$2,126,754) with a net profit of 1,000,000 RMB (about US$141,783). In Q1 of 2008, Lihe have achieved un-audited revenues of close to 3,750,000 RMB and is forecast to hit 4,125,000 RMB in Q2 of 2008.
Ms. Li Yankuan, the CEO of GZGT states, “Growth of our company is imminent with the continuous acquisition of highly potential small and medium enterprises. Meanwhile, new branches in developing markets are needed to widen the net to further reach the 1.5 billion consumers in China. Acquisition of Lihe will definitely bring about additional revenues to the corporate books, and at the same time will increase the source of new suppliers and customer base. The acquisition is in line with our goal of business globalisation to spur our corporate growth.”
About Guangzhou Global Telecom
Guangzhou Global Telecom Inc. is a distributor of mobile phone handsets and pre-paid calling cards and a provider of mobile handset value-added services. Maintaining cooperative relationships with China Telecom, China Mobile and China Unicom, the Company seeks to become a large sales and distribution center of mobile phones, mobile phone parts and prepaid mobile phone cards in China. GZGT 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:
Kelvin Loh
Tel: +65-96926686
+86-139-2224-7069
Email: kelvinloh@guangzhouglobaltelecom.com
