China Finance, Inc. Announces Completion of Surety Guarantee Transaction with China 3C Group and Capital Future Development Limi
December 28 2005 - 9:39AM
PR Newswire (US)
NEW YORK, Dec. 28 /Xinhua-PRNewswire/ -- China Finance, Inc.
(OTC:CHFI) (BULLETIN BOARD: CHFI) , a China-based provider of
surety and loan guarantees to China's large and rapidly expanding
class of small and medium enterprises (SMEs), today announced that,
through its wholly-owned subsidiary, ShiJi RuiCheng Guaranty and
Investment Co. Ltd. ("ShiJi RuiCheng"), it completed a surety
guarantee transaction with China 3C Group (OTC:CHCG) (BULLETIN
BOARD: CHCG) and Capital Future Development Limited ("CFD") on
December 21, 2005. Through ShiJi RuiCheng's surety guarantee
services, on December 21, 2005 China 3C Group successfully acquired
CFD, a company formed under the laws of the British Virgin Islands
which owns all of Zhejiang YongXin Digital Technology Company
Limited, a company organized under the laws of China ("ZYXD"). ZYXD
owns two Chinese operating companies, Hangzhou Wang Da Electronics
Company, Limited and Yiwu Yong Xin Telecommunication Company,
Limited. After the merger transaction, China 3C Group will pursue
ZYXD's business as a large-scale enterprise integrating the
selling, circulation and modern logistics of 3C products
(Communication Product, information technology products and digital
products) in China. ShiJi RuiCheng entered Guarantee Contracts,
each dated December 21, 2005, with each of China 3C Group and CFD,
pursuant to which ShiJi RuiCheng provides a surety guarantee on
default by parties to the purchase agreement governing China 3C
Group's acquisition of CFD. In exchange for its surety services,
ShiJi RuiCheng will receive 2,256,795 shares of China 3C Group's
common stock and 700,000 shares of CFD's common stock. Zhi Yong Xu,
Chairman and CEO of China Finance, Inc., commented, "We are proud
to announce our successful completion of this surety guarantee
transaction. We conducted extensive due diligence on China 3C
Group's ability to become a successful public company in the U.S.,
and we are excited about the growth potential of this company. Our
primary goal is to continue to offer leading SMEs the ability to
access U.S. capital through our surety guarantee services, and
through China 3C Group's acquisition, we are also very pleased to
assist in a transaction providing U.S. investors with an
opportunity to invest in a leading and rapidly growing
manufacturing business in China." ABOUT CHINA FINANCE, INC. China
Finance, Inc. (CFI) was founded in June 2004 and is based in the
financial district of Shenzhen, China. Its principal business is
providing surety and loan guarantees to China-based small and
medium enterprises (SMEs). As part of CFI's surety and loan
guarantee business, CFI conducts research and background
investigations for its clients and acts as financial intermediary
throughout the transaction. Final contracts are subject to the
approval of an independent Guarantee Contract Management Committee
(GCMC). This committee is typically composed of third-party
accountants, lawyers and other experts in the guarantee business.
CFI brings together a management team with broad experience in loan
guarantees, real estate development and investment banking. For
more information, see http://www.chinafinanceinc.com/. ABOUT CHINA
3C GROUP China 3C Group is a large-scale enterprise integrating the
selling, circulation and modern logistics of 3C product
(Communication Product, information technology products and digital
products) in China through its two subsidiaries: Yiwu Yong Xin
Telecommunication Company Limited, which is an authorized sales
agent, focusing on the selling, circulation and modern logistics of
fax machines and cord phone products in China, and Hangzhou Wang Da
Electronics Company Limited, which is an authorized sales agent
focusing on the selling, circulation and modern logistics of cell
phones, cell phones products, IT products (including notebook or
laptop computers), and digital products (including digital cameras,
digital camcorders, MP3 players, PDA, flash disks, and removable
hard disks) in China. For further information, visit
http://www.china3c.cn/. Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995 This news release contains
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are based upon our current expectations and speak
only as of the date hereof. Our actual results may differ
materially and adversely from those expressed in any
forward-looking statements as a result of various factors and
uncertainties, including the recent economic slow down affecting
technology companies, our ability to successfully develop products,
rapid technological change in our markets, changes in demand for
our future products, legislative, regulatory and competitive
developments and general economic conditions. Our Annual Report on
Form 10-KSB, recent and forthcoming Quarterly Reports on Form
10-QSB, recent Current Reports on Forms 8-K and 8-K/A, and other
SEC filings discuss some of the important risk factors that may
affect our business, results of operations and financial condition.
We undertake no obligation to revise or update publicly any
forward-looking statements for any reason. CONTACT: Sabrina (Li)
Guo Managing Director/Secretary to the Board China Finance, Inc.
201-216-9323 x105 Email: DATASOURCE: China Finance, Inc. CONTACT:
Sabrina (Li) Guo, Managing Director - Secretary to the Board of
China Finance, Inc., +1-201-216-9323 x105, Web site:
http://www.chinafinanceinc.com/ http://www.china3c.cn/
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