Repeat - China World Trade Corp Signs Agreement With Huahao Group to Acquire 51% of Its Operating Arm, New Generation Group
China World Trade Corp (OTC BB:CWTD.OB - News) is pleased to announce that it has signed an agreement with Huahao group to acquire 51% of its operating arm, New Generation Group. Total consideration for the transaction is $11,475,000, about 70% payable in stock and the balance to be paid in cash. The audit of Huahao is scheduled to be complete before July 15, 2004. It is expected that CWTD will consolidate the revenue of New Generation Group once the transaction has closed. The transaction is expected to close on or before July 30, 2004.
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The New Generation Group agreement marks another key component in the China World Trade Corporation's strategy to have the capability to provide to their "members" a more comprehensive value-added service -- all the members can book & arrange all of their travel needs through the New Generation Group.
Of equal importance, New Generation Group recently deployed a toll-free number, which is very rare for China. While there were nearly 80 million Internet users in China at the end of 2003, there were over 250 million mobile phone users and hundreds of millions of more landlines. As a result, it is believed the phone is likely to remain the primary tool that Chinese businessmen and consumers use to access information and make travel purchases for years to come -- especially last minute reservations!
Mr. John Hui, CEO of China World Trade Corp, commented that, "This agreement, combined with CWTD's operating business clubs in the major cities of China, significantly broadens the value added options for both our domestic and international members. CWTC has three distinct but complimentary divisions: the China World Trade Centers; Value Added Services, and Strategic Majority Ownership (Joint Ventures) in Chinese businesses."
About Huahao Group:
Established in October 1997, Huahao is the pioneer and one of the market leaders in the travel agency businesses through the operations of its 10 subsidiaries in Southern China in ticketing sales for international and domestic flights as well as inbound business travel. The turnover of Huahao was approximately US$180 million in 2003 and is expected to reach US$250 million in 2004. Huahao has already acquired the necessary licenses to operate as a ticketing and travel agent in the PRC. These licenses include 26 licenses as a ticketing agent for international and domestic flights for both cargo and passengers issued by the Civil Aviation Administration of China ("CAAC") and the International Air Transport Association ("IATA"); and 3 licenses as a domestic and international travel agent issued by the Administrative Bureau of Tourism of China. Huahao has registered the trademark Network Travel Service (NTS) (or in Chinese "Zhong Heng Tian Di'' meaning "travel around the world'') for its brand name and logo in 36 out of 43 Recognized industries in China. In addition, Huahao has set up a call center to handle nationwide reservations. Customers are able to make reservations of hotel and air ticket simply by dialing 4008168168 anywhere in the nation.
About China World Trade Corp.
China World Trade Corp. is devoted to the building of World Trade brand in China. China World Trade Corp. a listed company on the (OTC BB: CWTD) in the United States. CWTC business objective is to open and operate business clubs in the major cities of China in association with the World Trade Center Association in order to position us as the platform to facilitate trade between China and the world market. We currently operate the Guangzhou World Trade Center Club consisting of over 4000 square meters. The Beijing World Trade Center Club, which is located at 2nd Floor, Office Tower II, Landmark Towers Beijing, 8 North Dongsanhuan Road, Beijing PRC, and consisting of 730 square meters.
The China World Trade Corp executive office is located at 4th Floor, Goldlion Digital Network Center, 138 Tiyu Road East, Tianhe, Guangzhou, and the PRC 510620.
NOTE TO EDITORS: If you would like additional information on China World Trade Corporation, please view the China World Trade Corporation at www.chinawtc.com on China World Trade Corporation's Web site.
SAFE HARBOR
Information in this news release or on this website may contain statements about future expectations, plans, prospects or performance of China World Trade Corp that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be,'' "expects,'' "may affect,'' "believed,'' "estimate,'' "project,'' and similar words and phrases are intended to identify such forward-looking statements. China World Trade Corp cautions you that any forward-looking information provided by or on behalf of China World Trade Corp is not a guarantee of future performance. None of the information on this website constitutes an offer to sell securities or investment advice of any kind, and visitors should not base their investment decisions on information contained in this website. China World Trade Corp's actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond China World Trade Corp's control. In addition to those discussed in China World Trade Corp's press releases, public filings, and statements by China World Trade Corp's management, including, but not limited to, China World Trade Corp's estimate of the sufficiency of its existing capital resources, China World Trade Corp's ability to raise additional capital to fund future operations, China World Trade Corp's ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities and, in identifying contracts which match China World Trade Corp's capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. China World Trade Corp does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
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Kontaktinformationen:
China World Trade Corp.
John Hui
Chief Executive Officer
(8620) 38780168 (Tel)
(8620) 38781852 (fax)
http://www.chinawtc.com
