CHCL - making a run 1.07 x 1.08 on exciting news of IPO application of upcoming Singapore Exchange listing
(COMTEX) B: China Continental to Submit IPO Application for Listing O
B: China Continental to Submit IPO Application for Listing On the Singapore
Stock Exchange
HONG KONG, Apr 7, 2000 /PRNewswire via COMTEX/ -- China Continental, Inc. (OTC
Bulletin Board: CHCL) announced today that its subsidiary, Asia Continental
("ACL"), will be submitting its application for listing on the Singapore
Exchange ("SGX") by the end of June 2000. Upon the approval by the SGX, ACL is
expected to be listed by August 2000.
Following the preliminary pro forma findings as of March 31, 2000, the Company's
internal auditors are of the opinion that the filing will value the market
capitalization of ACL at approximately US$64 million. This is based on
management's internal projections for consolidated earnings of US$8 million for
the calendar year 2000, and an assumed price to earnings ratio of 8:1. The
Company anticipates the initial public offering will comprise 25% of ACL.
The preparations for the listing are currently on schedule, and the final audit
is expected to be completed by May 2000. Based on the initial draft of the
financial statements, ACL achieved revenues of approximately US$13.0 million in
1999, with net income estimated at approximately US$2.0 million.
Through the diversification of new products (Kevlar bullet-proof jackets) and
the aggressive expansion into the international markets (Counter Trade
Agreements with establishments in Pakistan and Indonesia), ACL is anticipating
revenues of US$35 million in the year 2000.
"Although we have the capacity to fund our current operations and plans for
growth, an initial public offering would enable us to expand aggressively
throughout the region through mergers and acquisitions," commented Mr. Harry H.
H. Ho, Chairman and Chief Executive Officer of China Continental, Inc.
About China Continental Inc.
China Continental, Inc., traded on the OTC Bulletin Board market since 1995, is
a holding company with over ten years of experience in developing turnkey
businesses. Core activities include supplying manufacturing technology on a
turnkey basis, high technology manufacturing techniques in primary industries,
and developing and providing technologies in agricultural genetics and farming.
The Company's agricultural genetics and farming activities are centralized in
the Inner Mongolia Province of China, covering an area of 406 square kilometers
to commercialize its genetic techniques in breeding as well as propagating
superior livestock and products in its own Research and Development Institute.
Safe Harbor Statement
Except for the historical statements made herein, the statements made in this
release are forward-looking statements, including "Asia Continental ("ACL"),
will be submitting its application for listing on the Singapore Exchange ("SGX")
by the end of June 2000," ACL is expected to be listed by August 2000," "the
filing will value the market capitalization of ACL at approximately US$64
million," "The Company anticipates the initial public offering will comprise 25%
of ACL," "an initial public offering would enable us to expand aggressively
throughout the region through mergers and acquisitions" as well as all 1999 and
2000 financial estimates and projections including revenue and net income. Risk
factors that could cause actual results to differ materially from those
projected in forward-looking statements include, but are not limited to, the
Company's ability to complete the acquisition, the Company's ability to
capitalize on diversification opportunities, financing, competition, general
business conditions, managing growth, and political and other business risks.
Although the Company believes that the forward-looking statements contained
herein are reasonable, it can give no assurance that the Company's expectations
are correct. All forward- looking statements are expressly qualified in their
entirety by this Cautionary Statement and the risks and other factors detailed
in the Company's reports filed with the Securities and Exchange Commission.
SOURCE China Continental, Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Investor Relations, Harvey A. Goralnick of FOCUS Partners LLC
212-752-9445, or chcl@focuspartners.com, for China Continenta |
