ChinaNet Online Holdings, Inc. Secures 3-Year Tax Holiday as New and High Technology Enterprise
February 04 2010 - 7:00AM
PR Newswire (US)
BEIJING, Feb 4 /PRNewswire-Asia-FirstCall/ -- ChinaNet Online
Holdings, Inc. ("ChinaNet", OTC Bulletin Board: CHNT), a leading
full-service media development, advertising and communications
company for small and medium-sized enterprises (SMEs) in the
People's Republic of China ("China"), today announced it has been
granted a tax holiday as a New and High Technology Enterprise in
China. For the calendar years 2009 through 2011, ChinaNet's two
subsidiaries, 28.com (Beijing) Network Technology Co., Ltd. and
Rise King Century Technology Development (Beijing) Co., Ltd., will
have its effective income tax rate reduced to 15% from the standard
tax rate of 25%. ChinaNet completed its mandatory 15-day waiting
period after its conditional certification as a New and High
Technology Enterprise and received formal notification of their new
status from the local tax authorities on September 4, 2009.
ChinaNet anticipates approximately $1.0 million in incremental
earnings as a result of the adjustment for 2009. This adjustment
was factored into previously announced calendar 2009 and 2010 net
income guidance of $8.3 million and $14.1 million, respectively.
About ChinaNet Online Holdings, Inc. The Company, a parent company
of ChinaNet Online Media Group Ltd., incorporated in the BVI
("ChinaNet" or "Zhong Wang Zai Xian"), is a leading full-service
media development, advertising and communications company for SMEs
in the PRC. The Company, through certain contractual arrangements
with operating companies in the PRC, provides internet advertising
and other services for Chinese SMEs via its portal website
http://www.28.com/ , TV commercials and program production via
China-Net TV, and in-house LCD advertising on banking kiosks
targeting Chinese banking patrons. Website:
http://www.chinanet-online.com/ Safe Harbor This release contains
certain "forward-looking statements" relating to the business of
ChinaNet Online Holdings, Inc., which can be identified by the use
of forward-looking terminology such as "believes," "expects,"
"anticipates," "estimates" or similar expressions. Such
forward-looking statements involve known and unknown risks and
uncertainties, including business uncertainties relating to
government regulation of our industry, market demand, reliance on
key personnel, future capital requirements, competition in general
and other factors that may cause actual results to be materially
different from those described herein as anticipated, believed,
estimated or expected. Certain of these risks and uncertainties are
or will be described in greater detail in our filings with the
Securities and Exchange Commission. These forward-looking
statements are based on ChinaNet's current expectations and beliefs
concerning future developments and their potential effects on the
company. There can be no assurance that future developments
affecting ChinaNet will be those anticipated by ChinaNet. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond the control of the Company) or other
assumptions that may cause actual results or performance to be
materially different from those expressed or implied by such
forward-looking statements. ChinaNet undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as may be required under applicable securities laws. For further
information, please contact: Investor Relations: HC International,
Inc. Ted Haberfield Tel: +1-760-755-2716 Email: Web:
http://www.hcinternational.net/ DATASOURCE: ChinaNet Online
Holdings, Inc. CONTACT: Ted Haberfield of HC International, Inc.,
+1-760-755-2716, Web site: http://www.chinanet-online.com/
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