BEIJING, Jan. 23 /Xinhua-PRNewswire/ -- The Smooth Global (China) Holdings, Inc. (OTC Bulletin Board: SMGH) ("SMGH" or "Company") a leader in providing International Call Forwarding Service in China, announced today that the Company is negotiating with China Unicom Group Beijing branch to extend and improve the contract for its PayPhone Business from 2007. We are expecting favorable terms for our future expansion not only in payphone area but other telecommunication value added services as well.
When a customer uses the payphone or VoIP phone to make a call, the usage fee is calculated and charged by the number of pulses (one minute intervals) made in accordance with the government fixed tariffs or government guidance tariffs, whichever is applicable. QTC, one of our subsidiaries, immediately bills and receives the usage fee from the customers and the independent collection agent centralizes the cash proceeds from each payphone and deposits into the bank on a daily basis, across the network. China Netcom and QTC monthly calculates the share of QTC's revenue on the varied basis from 40% to 60% of the usage fee received from the customers, depending upon the usage of the customers. The independent collection agent is then authorized to remit the total proceeds of usage fee to China Netcom, and QTC immediately invoices its share of revenue to China Unicom.
Ms. Zheng Shuying, President of SMGH, commented, "We are pleased to continue our good relationship with China Unicom Group Beijing branch and extend our contract from 2007 to 2008. The renewed contract will improve our financial result and we also negotiate with other brand name Companies in China to extend their contracts and provide additional services. The Company will announce details of these contracts near term. Since we merged last year, we have developed our business faster than we were expecting and improved our position as leading Company for International Call Forwarding in China."
About Smooth Global (China) Holdings, Inc.
Smooth Global (China) Holdings, Inc. was organized under the name Bralone Mining Company (the "Company") under the laws of the State of Nevada on December 2, 1998. On November 2, 2006, The Company acquired all of the outstanding capital stock of Gold Profit (Asia) Group Limited ("Gold Profit"), which owns 100% of the registered capital of Beijing Quan Tong Chang Information Service Limited ("Beijing QTC"). Beijing QTC is a telecommunications service provider to deliver economical voice and data services domestically and internationally throughout China. It engaged in the business of distributing telephone services through public pay phones and is also in the business of developing Internet phone solutions for commercial customers, focusing on a convenient local, domestic and international long distance call service with competitive price. On July 31, 2007, it changed its name to Smooth Global (China) Holdings, Inc. The Company contracted with the subsidiaries of China Netcom Group Corporation (Hong Kong) Limited (NYSE: CN), namely China Netcom (Shaoxing) Corporation Limited and China Netcom (Guangdong) Corporation Limited, to distribute their VoIP call time in China. On October 24, 2007, the Company acquired 100% equity interest on Smooth Global Services Limited, which holds Beijing GRT Information Services Limited ("Beijing GRT"), a company providing International Call Forwarding Service ("ICFS"). Beijing GRT entered into the international call forwarding business by obtaining a license from China Netcom (Group) Company Ltd. Shanghai Branch and a license from China Netcom (Group) Company Ltd. Shaoxing Branch. The licenses were acquired in connection with the purchase by Beijing GRT of 2000 local telephone numbers. The licenses provide that the carriers will facilitate the international call forwarding business of Beijing GRT by (1) waiving all monthly fees for the company's local numbers, (2) guaranteeing Beijing GRT its lowest per-unit fee, and (3) assuring Beijing GRT that it will retain the local numbers for at least three years. The Company will focus international call forwarding to its lines of business.
Forward-looking statements
This report contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.
The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.
