SHENYANG, China, May 19, 2006 (PRIMEZONE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today announced financial results for the 2006 first quarter ended March 31, 2006.
For the quarter ended March 31, 2006, the company posted revenues of $2.7 million and a net loss of $1.3 million, equal to $0.11 per common share.
In September 2005, 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's quarter for the public entity are not meaningful.
"Because of seasonal factors and the nature of our business, it is typical for Great China to report a loss for the first quarter," said Paul Deng, chief executive officer. "Together with the two weeks of the Chinese New Year holiday and the cold weather, the real estate market is at its lowest season from January to March every year. The sales season typically peaks over the summer through October.
"We are pleased that our Shenyang development plans are on schedule and progressing," Deng said. "Earlier this month, we completed financing of the Chessboard Mountain property, and we expected to begin construction of the first phase in June, with pre-sale activities before the end of 2006. This will be our first new construction project since 2004. Additionally, we anticipate construction of the Xita project to begin early next year. As a city of vigorous real estate growth, Shenyang continues to offer what we believe are compelling opportunities."
Subsequent to the close of the quarter, Great China completed a private placement to investors outside the U.S., raising $3.1 million on the sale of 762,500 shares of its common stock.
In May 2006, the company obtained financing through a third party to complete its acquisition of the Chessboard Mountain International Tourism Development District property. Great China won the land in a successful bid in a public auction through its subsidiary Shenyang Jitian Property Co. Ltd. on Feb. 27, 2006. The title of the Chessboard property, valued at a total purchase price of approximately $56.7 million USD, has been procured and pledged to the bank to secure financing. The final terms of the financing will be set forth in loan documents issued by the lending bank, which generally follow delivery of the title deed as security and funding of the loan by approximately two weeks.
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, start of construction of the Chessboard Mountain and Xita 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.