Global Telecom Holdings Limited (''GTHL''), wholly owned Enterprise of Guangzhou Global Telecom, Inc. (OTC Bulletin Board: GZGT - News), 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 an agreement with Beijing Lihe Jiahua Technology and Trading Company Ltd ('Lihe') to acquire a 50% equity interest in Lihe in the form of 1,500,000 shares and 200,000 RMB as operating cash.
Beijing Lihe Jiahua Technology and Trading Company Ltd (Lihe), located in Beijing in The People's Republic of China, is a private company engaged in distribution of telecommunication products, pre-paid cards and stored-value game cards. In 2007, Lihe realized unaudited revenues of approximately 15,000,000 RMB (about US$2,126,754) with a net profit of 1,000,000 RMB (about US$141,783). In Q1 of 2008, Lihe have achieved un-audited revenues of close to 3,750,000 RMB and is forecast to hit 4,125,000 RMB in Q2 of 2008.
Ms. Li Yankuan, the CEO of GZGT states, ''Growth of our company is imminent with the continuous acquisition of highly potential small and medium enterprises. Meanwhile, new branches in developing markets are needed to widen the net to further reach the 1.5 billion consumers in China. Acquisition of Lihe will definitely bring about additional revenues to the corporate books, and at the same time will increase the source of new suppliers and customer base. The acquisition is in line with our goal of business globalisation to spur our corporate growth.
