- Quarterly Revenue Reaches $25.4 million
- Quarterly Net Income Increases to $8.5 million
- Backlog Grows to $396 million
- Yong Xu Appointed Chief Financial Officer
SAN DIEGO, Aug. 15 /Xinhua-PRNewswire/ -- InterAmerican Acquisition Group Inc. (OTC Bulletin Board: IAQG, IAQGU, IAQGW) ("IAG"), together with its BVI subsidiary, CNC Development Ltd. ("China New Cities Development"), announced the filing on August 12, 2008 of a registration statement on Form S-4 with the Securities and Exchange Commission. The registration statement includes audited financial results for the fiscal year ended December 31, 2007 and unaudited financial results for the three months ending March 31, 2008 for IAG’s announced acquiree, Sing Kung, Limited ("Sing Kung"), highlights of which are presented below:
Three Months ending March 31, 2008
(million)
Revenue $25.4
Net income $8.5
Stockholders’ equity $15.1
Sing Kung is an emerging leader in the planning, construction and financing of urban infrastructure in China. IAG previously announced the execution of a definitive stock purchase agreement pursuant to which IAG will acquire 89.6% of the common stock of Sing Kung. The surviving company will be China New Cities Development.
Sing Kung’s project revenue backlog, which is the total value of all open contracts less the revenue recognized from these contracts, has grown dramatically during 2008, signaling continued expansion of its business. Sing Kung’s project revenue backlog as of August 8, 2008 reached $396 million, up from $60 million on December 31, 2007. Based on contract schedules, $191 million will be recognized as revenues prior to the end of 2009, with the balance scheduled to be performed in subsequent years.
To increase its capability to meet reporting and compliance requirements following the consummation of the prospective business combination with IAG, Sing Kung appointed Yong Xu as Chief Financial Officer, effective August 1, 2008. It is anticipated by both companies that Mr. Xu will continue as CFO of China New Cities Development following consummation of the proposed transaction. Mr. Xu is a citizen of China and a Certified Public Accountant in the United States. He previously worked for Deloitte & Touche LLP in its United States audit practice, as well as having held positions as a senior financial executive for GWA Capital Partners LLC and Metro-Goldwyn Mayer Inc. in the United States. Mr. Xu holds an MBA from Pepperdine University and BA from Shanghai International Studies University.
Additional information regarding IAG, Sing Kung and China New Cities Development is contained in the Form S-4 registration statement that IAG and China New Cities Development jointly filed with the Securities and Exchange Commission on August 12, 2008. A copy of the filing in its entirety is available at http://www.sec.gov .
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, about IAG, Sing Kung and their combined business after completion of the proposed acquisition. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of IAG’s and Sing Kung’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Sing Kung is engaged; cessation or changes in government incentive programs: fluctuations in customer project schedules and requirements; intensity of competition from other providers of urban and infrastructure planning and construction; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks detailed in the filings with the Securities and Exchange Commission, and the registration statement on Form S-4 of IAG and its BVI subsidiary, CNC Development Ltd. (SEC File No. 333-152977 and 333-152977-01, respectively). The information set forth herein should be read in light of such risks. Neither IAG nor Sing Kung assumes any obligation to update the information contained in this press release.
In connection with the pending transaction, IAG and China New Cities Development filed with the SEC a registration statement on Form S-4 containing a proxy statement/prospectus for the stockholders of IAG. The stockholders of IAG are urged to read the proxy statement/prospectus, when it is available, as well as all other relevant documents filed or to be filed with the SEC, because they will contain important information about Sing Kung, China New Cities Development, IAG and the proposed transaction. The final proxy statement/prospectus will be mailed to stockholders of IAG after the registration statement on Form S-4 is declared effective by the SEC. IAG stockholders will be able to obtain the registration statement (and proxy materials contained therein) and any other relevant filed documents for free at the SEC’s website ( http://www.sec.gov ). When effective, these documents can also be obtained without charge from IAG by directing a request to Ana Ponce, c/o InterAmerican Group, 2918 Fifth Ave., Suite 209, San Diego, CA 92103.
China New Cities Development, IAG and their respective directors and officers may be deemed to be participants in the solicitation of approvals from IAG stockholders in respect of the proposed transaction. Information regarding IAG’s participants will be available in the proxy statement /prospectus. Additional information regarding the interests of such participants will be included in the registration statement containing the proxy statement/prospectus.
