GUANGZHOU, China, June 14 /Xinhua-PRNewswire/ -- 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 a Letter of Intent (“LOI”) with Hengwei Digital Ltd. (“Hengwei”) to acquire a 100% equity interest in Hengwei for the purchase price of 2,000,000 Renminbi (“RMB”) (approximately $263,158 U.S.).
Hengwei Digital Ltd. (Hengwei), located in Guangzhou in The People’s Republic of China, is a private company engaged in importing and exporting cell phones and cell phone spare parts. In 2006, Hengwei realized unaudited revenues of approximately $1,000,000 U.S. with a net profit of approximately $50,000 U.S.
Ms. Li Yankuan, the CEO of GZGT states, “We are accelerating the growth of our Company by acquiring small businesses that possess exceptional growth potential, in conjunction with opening additional branches in fast growing and developing markets. While the Acquisition of Hengwei will provide a direct increase in the Company’s revenues, the major advantage will be obtaining access to new suppliers and an additional customer base. This acquisition will provide us an immediate export-import base for our product lines, and will enable us to be in direct touch with other foreign cell phone manufacturers. This continued acquisition strategy will bolster our ability to distribute more products beyond the PRC and introduce new products to our existing network. We can definitely see a synergy development forming which will give us new tools necessary to continue 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:
Steven Bigley
Aero Financial, Inc.
Tel: 858-481-8022
Email: sbigley@aero-financial.com
