Attached files
| file | filename |
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| 8-K - FORM 8-K - CHINA YIDA HOLDING, CO. | f8k041510_chinayida.htm |
Exhibit 99.1
For
Immediate Release
|
Contact:
China
Yida Holdings
George Wung, CFO
Phone: +1(909) 843-6358
Email: ir@yidacn.net
|
CCG
Investor Relations
Crocker
Coulson, President
Phone:
+ (1) 646-213-1915
Ed
Job, CFA
Phone:
+ (1) 646-213-1914
Email:
ed.job@ccgir.com
|
China
Yida Announces Breakthrough Tourism Project in Anhui Province
FUZHOU, China — April 15, 2010
— China Yida Holding Company (Nasdaq: CNYD) (“China Yida” or the “Company”), a
leading diversified entertainment enterprise in China, today announced that,
jointly with Anhui Xingguang Investment Group Ltd. (the “Anhui Xingguang”), it
has entered into an agreement with Bengbu Municipal Government to develop the
Ming Dynasty Entertainment World (“Bengbu Project”) in the southeast part of
Bengbu, Anhui Province, which covers a total area of approximately 5000 Mu
(approximately 824 acres as 1 acre = 6.07 Mu).
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Bengbu,
located in the rich and populous Changjiang River Delta, is one of the most
important transportation hubs in China given its proximity to the existing
Beijing-Shanghai railway and Huai River. The Bengbu Project is located only 2km
from the Beijing-Shanghai express railway, which is expected to be complete in
2011. The express railway will shorten the travel time to Bengbu to only
approximately 1.5 hours from Shanghai, approximately 3 hours from Beijing, and
approximately 0.5 hour from Nanjing or Hefei (the capital city of Anhui
Province). The Company expects Bengbu to become very accessible to a population
of over 200 million within the 3-hour economic circle.
"The
Bengbu Project is a milestone for China Yida as we begin to expand into the
creation of brand new tourism attractions from managing existing tourism
resources. As a result we can extend the business model to create value from
multiple channels other than entrance fees. We expect to develop, build and
manage all the services along the tourism destination value chain, including
accommodation, food, entertainment and shopping. We will also greatly benefit
from the improved local economy boosted by our efforts to develop tourism,"
commented Dr. Minhua Chen, Chairman and Chief Executive Officer of China
Yida.
"Bengbu
Project is also a good demonstration of Yida's strong capability in duplicating
its business model outside the Fujian Province. Bengbu has a good location and
can attract many visitors from Changjiang Delta and even from much far away. We
look forward to the success of this project which we expect will create lasting
value to our shareholders."
The first
emperor of the Ming Dynasty, Majesty Yuanzhang Zhu, was born in Bengbu in 1328.
This city has a rich history, with several historical sites related to the Ming
Dynasty, including the tomb of Majesty Yuanzhang Zhu's parents. The Bengbu
Project, including Royal Hot Spring World (a resort hotel), Royal Tour Town,
Filial Piety Temple and Royal Hunting Garden, will reproduce the royal life of
Ming Dynasty at its height of power and splendor. Management's vision is for
visitors to experience the recreational activities of the ancient royal
families. The Filial Piety Temple will commemorate His Majesty Yuanzhang Zhu,
who embraced the Confucian ideal of filial piety, or respect for parents and
ancestors, throughout his life and introduced several related laws and policies.
This temple, which could be as splendid as the Temple of Heaven in Beijing, is
expected to serve as an important educational base and contribute other social
and economic benefits.
The
Bengbu Project represents several breakthroughs for China Yida's tourism
business development, including:
1.
Low initial capital expenditure requirement
A new
project company (hereinafter the Project Company), with a total registered
capital of RMB100 million (approximately $14.6 million), is going to be set up
by China Yida and Anhui Xingguang. The Company is required to contribute
approximately RMB60 million (approximately $8.78 million) to retain 60% equity
of the Project Company. And Anhui Xingguang is required to contribute
approximately RMB40 million (approximately $5.8 million) to retain 40% equity of
the Project Company. Anhui Xingguang is a reputable private company with
businesses in the real estate and commercial sectors locally. This Project
Company is expected to combine the expertise in real estate development, tourism
and commerce from both shareholders. China Yida will be responsible for the
planning and operation of the Bengbu Project.
2
For the
first phase of construction, the new company is budgeting approximately RMB250
million (approximately $36.6 million), with China Yida and Anhui Xingguang
contributing on a pro rata basis, and includes the purchase of the 40-year
land use rights for a parcel of approximately 250 Mu (commercial land use,
"Commercial Land") and another parcel of approximately 500 Mu (industrial land
use, "Industrial Land") as well as the construction of the Royal Hot Spring
World. Management expects to open the first phase of the Bengbu Project to
visitors by the end of 2012. The Project Company will be allowed to lease a
larger piece of land with approximately 4250 Mu (approximately 700 acre,
ecological land use, "Ecological Land") for approximately RMB350,000
(approximately $51,300) per annum from the local residents.
The
Company's management believes that it is able to fund the first phase
construction from current cash and operating cash flow over the next two years,
and does not expect to require additional equity financing. After the Royal Hot
Spring World starts operation, the Company expects to obtain loans from local
banks backed by fixed assets, including significantly appreciated
land.
2.
Expand into the development and management of brand new tourism
destinations
The new
project company will be responsible for the whole process of planning, design
and construction, and management of a brand new destination. It will own all the
properties within the tourism destination outright and will not be subject to
term limits (except for land usage rights) or revenue share.
3.
Extend the tourism business outside Fujian Province
It is the
first time that China Yida applies its expertise in culture, communication,
business planning and tourism management into a project outside Fujian
Province. Bengbu will be more closely weaved into the Changjiang River Delta
golden economic circle after the Beijing-Shanghai express railway is completed,
and management estimates that the number of visitors to the Bengbu Project will
reach a level of over 2 million following the completion of the whole
project.
4.
Diversified revenue sources
The
revenues from Bengbu Project will include entrance fees, hotel room rent,
conference room fees, and entertainment service fees. In addition, the Company
has planned a Ming Dynasty featured shopping street in the Royal Tour Town and
expects to generate revenues from commercial real estate rent and maintenance
fees. On the Commercial Land, tourism real estate could be planned to generate
additional revenues. This kind of structured and diversified revenue model
is expected to maximize the economic return from tourism
management.
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5.
Preferential treatments from local government
In order
to encourage China Yida's long-term investment commitment, the Bengbu government
is providing certain preferential arrangements. First, it has promised to invest
70% of its revenues from selling 250 Mu commercial use land and 100% of its
revenues from selling 500 Mu industrial use land to improve local infrastructure
including water and electricity supply, roads and internet lines. Secondly, it
will not collect the administration fee, hot spring resources tax and tourism
resources tax during the construction period. Thirdly, it has waived 100% of the
income tax for five years commencing from the grand opening and 50% for the
subsequent five years. The preferential treatment is a good demonstration of
Yida's superior management team and intangible assets, which the Company's
management believes creates significant economic benefits for China Yida's
shareholders.
6.
Ownership of commercial property
The
Bengbu Project is right across the road from the newly built university town. It
also covers the only two small hills of Bengbu City, with a beautiful view of
Longzi Lake. The Bengbu government is building a square in front of the express
railway station. And the area of 8 km square between the railway station and the
tourism area will be built into a new town of Bengbu. Management anticipates
local land prices will appreciate as tourism develops and the Beijing-Shanghai
express railway is completed, which will greatly increase the enterprise value
of China Yida. Based on the current price of around RMB1.3 million per Mu at
neighboring university town, the 750 Mu parcel of land is estimated to
appreciate by about RMB 1 billion ($146.5 million) within three
years.
For more
details about the contract between Project Company and the local government,
investors can refer to the 8-k form, which was filed to the SEC on April 15,
2010.
About
China Yida
China
Yida is a leading diversified entertainment enterprise focused on China's
fast-growing media and tourism industries and headquartered in Fuzhou City,
Fujian province of China. The Company's media business provides operations
management services; including channel, column and advertisement management for
television station, presently the Fujian Education Television Station ("FETV", a
top-rated provincial education television channel), and "Journey through China
on the Train" (an advertisement-embedded travel program, currently the only
on-board media program from third party authorized by Ministry of Railways).
Additionally, the Company provides tourism management services, and specializes
in the development, management and operation of natural, cultural and historic
scenic sites. China Yida currently operates the Great Golden Lake tourist
destination (Global Geopark, including Golden Lake, Shangqing River, Zhuanyuan
Rock, Luohan Mountain and Taining Old Town.), Hua'An Tulou tourist destination
(World Culture Heritage, including Dadi Tulou cluster and the Shangping Tulou
cluster), and China Yunding tourist destination (National Park, including
Colorful Rock Valley, Yunding Paradise, Yunding Waterfall, South Heavenly
Mountain, and Seven Star Lake). The Company's operating scenic sites are over
300 square kilometers in the area. For further information, please contact the
Company directly, or visit its Web site at http://www.yidacn.net
.
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Forward-Looking
Statements
Certain
statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements may be identified by the use of
words such as "anticipate, "believe," "expect," "future," "may," "will,"
"would," "should," "plan," "projected," "intend," and similar expressions. Such
forward-looking statements, involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
China Yida Holding Co., Inc. (the "Company") to be materially different from
those expressed or implied by such forward-looking statements. The Company's
future operating results are dependent upon many factors, including but not
limited to: (i) the Company's ability to obtain sufficient capital or a
strategic business arrangement; (ii) the Company's ability to build and maintain
the management and human resources and infrastructure necessary to support the
anticipated growth of its business; (iii) competitive factors and developments
beyond the Company's control; and (iv) other risk factors discussed in the
Company's periodic filings with the Securities and Exchange Commission, which
are available for review at www.sec.gov.
For
more information, please contact:
China
Yida Holdings
George
Wung, CFO
Phone:
+1-909-843-6358
Email:
ir@yidacn.net
CCG
Investor Relations
Crocker
Coulson, President
Phone:
+1-646-213-1915
Ed
Job, CFA
Phone: +1-646-213-1914
Email: ed.job@ccgir.com
5