HARBIN, China, Dec. 21, 2010 /PRNewswire-Asia-FirstCall/ -- SOKO Fitness & Spa Group, Inc. (OTC Bulletin Board SOKF), an operator of fitness centers, beauty salons and spas in Northeast China as well as Beijing, today announced that it has expanded its presence in its core Northeast China market with three new facilities under SOKO's operations.
During its second fiscal quarter ended November 30, 2010, SOKO opened:
- its second spa facility in Shenyang,
- its first beauty salon in Dalian, Liaoning Province, and
- a fitness center in Dalian, which is operated under a management agreement.
Including these three new facilities and the opening of SOKO's previously announced Yoga Wave center in the 5-star Beijing Westin Chaoyang Hotel, SOKO has commenced operations at a total of four new facilities during its second fiscal quarter.
SOKO currently operates a total of 24 facilities; 17 of these facilities are wholly-owned, six are majority owned, and one is minority owned and operated by SOKO under a management agreement.
The Legend Spa Wanda is SOKO's second spa facility in Shenyang, and its fourth facility overall in this market. It occupies 7,000 square feet in Shenyang Wanda Plaza, an integrated business, leisure and entertainment complex located in the city's downtown area. The facility includes 11 treatment rooms and is staffed by expert practitioners performing a wide variety of high-end aesthetic procedures.
The Dalian Beiliang Fitness Center and Dalian Beiliang Queen Beauty are the first two facilities in the northeast city of Dalian, an international trade and finance center with a population of approximately 6.1 million and a high concentration of upper- and middle-class citizens. The spa facility in Dalian, occupies 3,700 square feet in the Beiliang business center, and features five treatment rooms, offering a full range of luxury beauty and aesthetic treatments, consistent with SOKO's existing spa and salon facilities in Harbin, Shenyang and Beijing. The fitness center is the first facility operated by SOKO under a management agreement. Under terms of the agreement, SOKO will receive 6% of the fitness center's gross cash sales net of sales tax as its management service fee. SOKO expects to enter into an agreement with the facility's other shareholders, through which SOKO would have an option to acquire the remaining equity interest in this facility within the next two years.
"We believe this presents new opportunities for us to expand into new markets without significant initial capital costs but consistent with our core strategy of maintaining total control of all our facilities," said Tong Liu, Chief Executive Officer of SOKO. ,
SOKO plans to open a total of 16 new facilities during its fiscal year ending May 31, 2011 and has already begun operating four new facilities since the beginning of the fiscal year. SOKO currently has nine additional facilities under construction or engaged in pre-opening sales activities, including:
- one new spa and one new fitness center in its headquarters city of Harbin,
- three spa facilities in Shenyang, and accompany
- SOKO's first two spa facilities and two fitness centers in Hangzhou, the capital city of Eastern China's Zhejiang Province, a fast growing business and tourist destination. These facilities will mark SOKO's initial expansion into Hangzhou.
One of these facilities is expected to be run under management agreements, similar to the management agreement it has signed for The Dalian Beiliang Fitness Center.
As previously announced, based primarily on the newly opened facilities and projected new facility openings, an increase in the number of members and clients at its existing fitness and spa facilities and an increase in average revenue per customer, SOKO expects its gross revenue for fiscal 2011 to be between $38 million and $42 million, which would represent year-over-year growth of approximately 27-40%.
About SOKO Fitness & Spa Group, Inc.
SOKO Fitness & Spa Group, Inc., an OTCBB listed company (SOKF.OB), is an operator of fitness centers and beauty salons and spas in key cities in Northeastern China as well as in suburban Beijing. SOKO provides programs, services, and products combined with exercise, education, and nutrition to help their members lead a healthy life and achieve their fitness goals. For further information, please go to http://www.sokofitness.com.
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Cautionary Note Regarding Forward Looking Statements
This press release and the statements of representatives of SOKO Fitness & Spa Group, Inc. (the "Company") related thereto contain, or may contain, statements that are not historical facts and are therefore "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, beliefs, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believe," "seek," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results, including, without limitation, results regarding the Company's service offerings, client, membership and customer figures, proposed new center openings and prospects and strategies for growth, may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). The Company does not undertake any obligation to update any forward- looking statement, except as required under applicable law.
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SOURCE Soko Fitness & Spa Group, Inc.