Smooth Global (China) Holdings publicly announced today that Beijing GRT, the company’s subsidiary, has signed contracts with eight sales agents to provide International Call Forwarding Services to mobile phone users. Beijing GRT is currently the only service provider offering International Call Forwarding, which is targeted to Chinese residents who frequently travel abroad on business.
Ms. Zheng Shuying, President of SMGH, commented, “Since our introduction of International Call Forwarding Services in Shanghai city, we experienced a tremendous reception of our services. I am excited that we will have another 8 cities to serve those travelers who need our services. Our company will expand services to other cities in order to expand our business and increase our revenues.”
Smooth Global (China) Holdings was founded in January of 2006 and operates through two subsidiaries: Beijing GRT Information Services Ltd. and Beijing QTC Information & Services Ltd. Beijing QTC has been in operations since May 2003 and operates the largest public payphone network in Beijing city with over 5,600 lines. In October of 2007 Beijing GRT terminated its payphone services to focus on operations of International Call Forwarding. They currently provide IFC services in 8 cities, with plans to expand to 20 cities by 2010.
The Chinese business travel market has increased by an average of 22% between 1999 and 2005. This high rate of increase provides organic growth for the company, in addition to the expansion measures they are taking to broaden their market share. Future potential is unlimited with the increasing demand for International Call Forwarding features among business travelers.
For the 9 months ending September 30, 2007 Beijing GRT recorded revenues of $985,000 with a net margin of nearly 45% realizing over $458,000 in net income. The Company has a current ratio of 2.1, which is well above the industry average, and has maintained positive cash flow since its inception.
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