SHENZHEN, China, Dec. 16, 2010 /PRNewswire-Asia-FirstCall/ -- China Unitech Group, Inc. ("China Unitech" or the "Company") (OTC Bulletin Board: CUIG), operating through Junlong Culture Communication Co. Ltd. ("Junlong"), a leading internet cafe chain operator in China, today announced that it has added five new internet cafes in Shenzhen, bringing the total number of internet cafes under the Company's operation to 48.
From October to December 2010, China Unitech added five internet cafes in Shenzhen with a total capital investment of $1.5 million. Comprised of 815.6 square meters on average, these internet cafes are located in Bao'an, Henggang, Pingshan, and Shajing, Shenzhen. With estimated average payback period of 2 years, management expects these stores to contribute an aggregate of approximately $2.4 million annually in total. Currently, one of the internet cafes is ready for operation, while the remaining ones are in the process of construction. China Unitech believes construction and renovation of the four other internet cafes will be completed by March 2011. For 2010, China Unitech expects to achieve approximately $ 19 million in revenue.
"Following our recent successful introduction of seven additional new internet cafes in the third quarter of this year, we are pleased that we further expanded our network in Shenzhen by adding five facilities to be operated under the "Dragon Surf" brand name, which we believe will enable us to expedite penetration in our existing market. In order to increase capacity, we are planning to add a total of 1332 computer units to these new internet cafes. We believe the investment in additional equipment will contribute favorably to our revenue and profitability over time," commented Mr. Dishan Guo, Chief Executive Officer of China Unitech Group, Inc. "As one of the biggest internet café operators in Shenzhen, we plan to continue to look for opportunities to strengthen our network in our key market, while identifying suitable acquisition targets to enter provinces beyond Guangdong, which will qualify us to become a national internet café operator in China."
About China Unitech Group, Inc.
China Unitech Group, Inc. (http://www.chinainternetcafe.com) is the holding company of Classic Bond Development Limited. The Company operates through its variable interest entity, Junlong Culture Communication Co. Ltd. ("Junlong"), a leading internet cafe chain operator headquartered in Shenzhen, China. Established in 2003, Junlong is one of the five largest internet cafe chain operators in Shenzhen with 48 company-owned stores. Junlong's internet cafes are operated and managed under the Dragon Surf brand. Its robust system offers a one-stop entertainment and media venue for customers, including VoIP, instant messaging, online games, snacks and drinks. Its internet cafes are typically located in high traffic areas that target mature students and migrant workers. The Company currently employs about 510 full time employees.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Unitech Group, Inc., its subsidiary companies and variable interest entity. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the ability of the Company to grow; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; the ability to obtain adequate funding for acquisitions, and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Investor Relations Contact:
Mr. Dishan Guo
Mr. Crocker Coulson, President
Chief Executive Officer
CCG Investor Relations
China Unitech Group, Inc.
Mr. Jingwei Li,
Vice President of Corporate Finance,
China Unitech Group, Inc.
SOURCE China Unitech Group, Inc.