SHENYANG, China, Aug. 16, 2006 (PRIMEZONE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today announced financial results for the 2006 second quarter ended June 30, 2006.
For the quarter ended June 30, 2006, the company posted revenues of $4.4 million and a net loss of $942,486, equal to $0.08 per common share, compared with revenues of $9.1 million and net income of $992,866, or $0.09 per common share, in the same period last year. For the first half of 2006, the company recorded revenues of $7.1 million and a net loss of $2.4 million, or $0.22 per common share, compared with revenues of $10.2 million and a net loss of $176,608, or $0.02 per common share, for the comparable prior year period.
These figures include a reduction to earnings of $200,809 and $182,352 for three and six month periods ended June 30, 2006, respectively, and $322,434 and $273,057 for the comparable periods of 2005, respectively. The adjustments reflect a correction of construction costs of previously completed projects and the recording of common area costs on the President Building.
"Significant efforts were devoted during the past quarter to expanding our resources for the vigorous schedule of activities planned for the remainder of 2006," said Paul Deng, chief executive officer. "The decrease in sales as compared with last year was attributable to the completion of prior project sales. We look forward to our sales ramping up when marketing of our new development begins next year."
In June, Great China received the planning approval and construction permit for the Chessboard Mountain project, which the company said is the largest residential site in Shenyang. Construction for the project, Galaxy Bay, began with ground-breaking on June 28. The company secured a loan for approximately US$6.25 million for the initial construction. "Together with our plans for the Xita site in early 2007, we remain committed to distinguishing Great China in the residential and commercial real estate sector," Deng added.
Great China recently announced it signed a 10-year lease with Starbucks Dalian, a subsidiary of Starbucks Corp. for a Starbucks cafe, opened in August, in the ground floor lobby of its President Building in Shenyang.
About Great China International Holdings
Founded in 1989, Great China International Holdings' wholly owned subsidiary, Shenyang Maryland International Industry Co., Ltd., is the largest non-state-owned real estate developer 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, a sales ramp-up and timing thereof for new developments, 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.