SHENYANG, China, April 18, 2006 (PRIMEZONE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today announced it has filed its Form 10-KSB with the Securities and Exchange Commission for the year ended December 31, 2005.
In September 2006, the company began trading on the OTC Bulletin Board following a reverse merger with Red Horse Entertainment Corporation. Accordingly, financial comparisons with the prior year for the public entity, which had no operations a year ago, are not meaningful.
For the year ended December 31, 2005, Great China recorded revenues of $26.5 million and net income of $741,863. Total comprehensive income for 2005, including foreign currency translation adjustments, amounted to $929,525, equal to $.09 per share.
Revenues were primarily derived from sales of previously constructed properties in the Chenglong Garden and Qiyun New Village residential developments and lease income from the President Building, a twin-tower commercial office complex.
"The year 2005 represented a significant milestone for our company," said Paul Deng, who was named chief executive officer in March 2005, after serving as an advisor. "Aside from becoming a publicly traded company, we were pleased to announce that in December 2005, agreements were made to acquire a 100% interest in the development of a large mixed-use development known as the Korean City, or "Xita" project, and just subsequent to the close of the year, we won the successful bid in a public auction of approximately 104 acres of land selected for residential and commercial development in the Shenyang's Chessboard Mountain International Tourism Development district.
"These projects, along with our existing ownership and management of the President Building, one of Shenyang's landmark office complexes that is home to more than 25 Fortune 500 tenants, give us confidence of a bright and prosperous future," Deng said. "Shenyang is a dynamic, rapidly developing city of more than seven million residents, northeast of Beijing, with what we believe to be unprecedented growth opportunities."
Deng said the company has obtained bank financing to make its initial cash payment in connection with Xita project and plans to secure bank financing for the additional capital requirements. The company is also seeking joint venture partners to participate in financing the development and is negotiating with the local government to extend size of the project to 160,000 square meters from 100,000 square meters. Deng also said that Great China plans to sell the residential part of the Xita project to generate cash flow in 2007 and to hold and lease the commercial portion for ongoing rental revenue stream after construction is completed in 2009.
With regard to the Chessboard Mountain project, the company intends primarily to use bank financing for the transaction and is in the process of negotiating extended payment terms with the Land Reserve Exchange Center, the agency that offered the property for auction. Deng said the land has already been cleared, construction is anticipated to begin immediately following completion of the financing.
About Great China International Holdings
Founded in 1989, Great China International Holdings' wholly owned subsidiary, Shenyang Maryland International Industry Co., Ltd., is one of the largest non-state-owned real estate developers in Northeast China. The company's core business is premium residential and commercial development and management. It currently owns and manages the President Building, which was completed in April 2002, with 25 tenants comprised of Fortune 500 companies, including General Electric (China) Co., Ltd., Johnson & Johnson, Kodak and Philip Morris. The company's prior developments included the Maryland Building, Roma Resort Garden, Qiyun New Village, Peacock Garden, University Campus of Shenyang Teacher's University, and Chenglong Garden, mostly located in Shenyang.
Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including, but not limited to, the company's ability to arrange financing for the Xita and Chessboard Mountain projects, are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the company's filings with the Securities and Exchange Commission.