SmallCap Cribsheet

From: Keon (
Date: Tue Sep 13 2005 - 09:07:01 MEST

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    Press Release Source: China World Trade Corporation

    China World Trade Corporation Announces Record Second Quarter 2005 Revenue Growth
    Monday September 12, 8:30 am ET
    Second Quarter 2005 Revenues Up 405% Year over Year

    TIANHE, Guangzhou, China, Sept. 12 /Xinhua-PRNewswire/ --
    China World Trade Corporation (China WTC) (OTC Bulletin Board: CWTD - News)
    announced today record second quarter revenue growth and net profit
    for the quarter ended June 30, 2005.

    Financial Highlights
    - An increase of 405% in operating revenues to $1,697,078 in the second
    quarter 2005 compared to $335,569 in operating revenues in the second
    quarter of 2004;

    - Revenues in the first six months of 2005 increased 465% to $3,610,268,
    compared to $639,340 in the first six months of 2004;

    - Operating loss for first six months of 2005 decreased to $1,335,633
    compared to $2,210,251 in the same period in 2004;

    - An increase in net income to $45,637 ($0.01 per diluted share) in the
    second quarter 2005 as compared to net loss of $603,133 ($0.03 per
    diluted share) in the second quarter of 2004; and

    - Cash and cash equivalents totaled $4,280,941 at June 30, 2005, a
    significant increase compared to $32, 935 recorded as of June 30, 2004.

    John Hui, CEO of China WTC commented, "We are extremely pleased to report
    that the Company has completed its first profitable quarter in its history
    as a public company. We spent the last year focused on building
    a solid foundation so we could execute on our strategic growth initiatives
    and show significant progress this year. We delivered on those expectations
    and believe that this is just the beginning. Our strategy to build a platform
    to provide Chinese companies with a wide and diverse range of consulting
    and travel services is gaining momentum. The team has worked hard
    and we are excited about reaching this milestone."


    Consolidated operating revenue for the three-month period ended
    June 30, 2005 was $1,697,000, compared to $336,000
    for the same corresponding period in year 2004, an increase of $1,361,000
    or 405.1%. The increase was mainly the result of an increase in revenues generated
    from our business segments.

    Of the $1,697,000 revenue in the three-month period ended June 30, 2005,
    approximately $216,000 or 12.7% was generated from providing club related services
    by Guangzhou World Trade Center Club and Beijing World Trade Center Club,
    $1,091,000 or 64.3% was generated from business travel services resulting
    from the acquisition of the New Generation Group, and $325,000 or 19.2%
    from business value-added services, and the remaining $65,000 or 3.8%
    from other businesses. The acquisition of New Generation
    and the continuous development of China WTC's business value-added services
    should continue to contribute positively to the Company's operating revenue.

    The Company's segmental mix of operating revenues continued to shift since
    its acquisition of the travel business and further development of its
    business value-added services. China WTC will continue to utilize
    the World Trade Center Clubs in various major cities in China to provide
    the necessary platform for the continued growth of its businesses.

    Gross Profit

    Consolidated gross profit increased by $624,000 or 358.6% for the three-month period
    ended June 30, 2005 over the same corresponding period in year 2004.
    The increase was predominantly driven by China WTC's business travel services
    and by the Company's business value-added services resulting from providing various
    consultancy services to our members.

    As a percentage of total operating revenues, the consolidated gross profit margin
    of 47.0% for the three-month period ended 2005 decreased from 51.8%
    for the same corresponding period in 2004. China WTC's profit margin was driven
    by a mix shift from lower margin trading business to higher margin business
    travel services. However, the lower profit margin as a percent of operating revenues
    for the three-month period ended June 30, 2005 as compared to the same
    corresponding period in 2004 was primarily contributed by the negative margin
    from the Company's business value-added services. The shift in segmental distribution
    was primarily due to the increase in gross profit in the business travel services.
    We foresee that this segment mix will continue to change and balance out
    in year 2005 upon further development of the business value-added services.

    Travel Business

    China World Trade Corporation has commenced its operation in the travel business
    since the Company's acquisition of New Generation in August 2004.
    For the three-month period ended June 30, 2005, New Generation sold a total
    of over 310,000 tickets, which translates to a total value of air-ticket fare
    of approximately $34.4 million. As compared to the same corresponding period
    in year 2004, ticket sold of New Generation increased by 73,000 tickets or 30.8%
    from approximately 237,000 tickets with value of air-ticket fare increased
    by $7.0 million or 25.5% from $27.4 million.

    About China World Trade Corporation

    China World Trade Corporation (CWTC) has established its business
    in three distinct areas: the club and business centers throughout
    major cities in China, business travel-related services, and business
    value-added services. The Club and Business Center Division is devoted
    to the building of the World Trade brand throughout China via the opening
    and operating of business clubs in China's major, positioning the CWTC
    to act as a platform to facilitate trade between China and the world markets.
    The acquisition of CEO Clubs China Limited ("CEO Clubs") in May 2004
    further complements CWTC's offerings by targeting high-level corporate executives
    from premier companies. The Business Traveling Services Division, New Generation,
    provides CWTC access to the rapidly growing travel-related industry.
    New Generation is a pioneer and market leader in the travel agency business
    through its strong network of ticketing sales operations throughout Southern China.
    The Business Value-Added Services Division focuses on value-added services
    of credit cards, merchant-related business services, as well as consultancy services
    to CWTC members and clients. Guangdong World Trade Link Information Services Limited
    ("WTC Link"), a subsidiary of CWTC, manages the Company's co-branded
    credit card project and is an active provider of CRM solutions and services in China.

    Safe Harbor

    The words or phrases "can be," "expects," "may affect," "believed," "estimate,"
    "project," and similar words and phrases are intended to identify such
    forward-looking statements. China World Trade Corp cautions you that any
    forward-looking information provided by or on behalf of China World Trade Corp
    is not a guarantee of future performance. None of the information on this website
    constitutes an offer to sell securities or investment advice of any kind, and
    visitors should not base their investment decisions on information contained
    in this website. China World Trade Corp's actual results may differ materially
    from those anticipated in such forward-looking statements as a result of various
    important factors, some of which are beyond China World Trade Corp's control.
    In addition to those discussed in China World Trade Corp's press releases,
    public filings, and statements by China World Trade Corp's management, including,
    but not limited to, China World Trade Corp's estimate of the sufficiency
    of its existing capital resources, China World Trade Corp's ability
    to raise additional capital to fund future operations, China World Trade Corp's
    ability to repay its existing indebtedness, the uncertainties involved
    in estimating market opportunities and, in identifying contracts which match
    China World Trade Corp's capability to be awarded contracts. All such forward-looking
    statements are current only as of the date on which such statements were made.
    China World Trade Corp does not undertake any obligation to publicly update
    any forward-looking statement to reflect events or circumstances after
    the date on which any such statement is made or to reflect the occurrence
    of unanticipated events.

    Source: China World Trade Corporation

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