TEDA Travel Group to Sell Interest in Yide
HONG KONG, Jan. 11 /PRNewswire-FirstCall/ — TEDA Travel Group, Inc. (OTC Bulletin Board: TTVL) announced today that it has signed a sales and purchase agreement with Far Coast Asia Limited to sell all of its interest in Tianjin Yide Industrial Company Limited, a sino-foreign joint-venture company (‘Yide’) for an amount equal to US$3.0 million in cash. TEDA owns 35% of the total capital of Yide. The purchase price will be paid in Hong Kong dollars.
The principal activity of Yide is property development in China. Yide owns a 5-star hotel clubhouse in Tianjin, and is developing a timeshare property and a villa resort complex in Tianjin and Beijing respectively. Total investment size of the projects on hand exceeds US$75 million. Yide has been suffering losses in the last few quarters and at the end of the first quarter of 2005 had unaudited liabilities of over US$34 million. Through September 30, 2005, the Company has recorded an accumulated loss with respect to its investment in Yide of over US$650,000 and depreciation of over US$591,000, reducing the value of this investment to US$2.42 million. The sale of the Company’s interest in Yide will generate cash equal to US$3.0 million and a profit of over US$500,000 for the Company.
Mr. Godfrey Hui, CEO of the Company, stated that ‘the sale of Yide will enable the Company to focus on its core business, and the cash generated will help the Company to further develop its hotel management network, travel service platform, and other projects which the Board of Directors of the Company believes to be in the best interest of the Company.’
About TEDA Travel Group, Inc.:
TEDA Travel is a property management company providing services to hotels and resorts throughout China. The company is responsible for the supervision and day-to-day operations of the properties it manages. In addition to its property management division, TEDA Travel also has its own portfolio of real estate investments. Leveraged on its existing core businesses and the brand name ‘TEDA’, one of the most recognized names in China, TEDA Travel intends to become a market leader in the fast growing Chinese travel and real estate services industry.
Safe Harbor Statement:
As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the Company’s ability to execute its business model and strategic plans; and the risks described from time to time in the Company’s SEC filings.
SOURCE TEDA Travel Group, Inc.
Source: PR Newswire (January 11, 2006 – 10:35 AM EST)