ChinaNet Online Holdings, Inc. Secures 3-Year Tax Holiday as New and High Technology Enterprise
BEIJING, Feb 4 /PRNewswire-Asia-FirstCall/ -- ChinaNet Online Holdings, Inc. ("ChinaNet", OTC Bulletin Board: CHNT), a leading full-service media development, advertising and communications company for small and medium-sized enterprises (SMEs) in the People's Republic of China ("China"), today announced it has been granted a tax holiday as a New and High Technology Enterprise in China.
For the calendar years 2009 through 2011, ChinaNet's subsidiary, 28.com (Beijing) Network Technology Co., Ltd., will have its effective income tax rate reduced to 15% from the standard tax rate of 25%. ChinaNet completed its mandatory 15-day waiting period after its conditional certification as a New and High Technology Enterprise and received formal notification of their new status from the local tax authorities on September 4, 2009.
ChinaNet anticipates approximately $1.0 million in incremental earnings as a result of the adjustment for 2009. This adjustment was factored into previously announced calendar 2009 and 2010 net income guidance of $8.3 million and $14.1 million, respectively.
About ChinaNet Online Holdings, Inc.
The Company, a parent company of ChinaNet Online Media Group Ltd., incorporated in the BVI ("ChinaNet" or "Zhong Wang Zai Xian"), is a leading full-service media development, advertising and communications company for SMEs in the PRC. The Company, through certain contractual arrangements with operating companies in the PRC, provides internet advertising and other services for Chinese SMEs via its portal website http://www.28.com , TV commercials and program production via China-Net TV, and in-house LCD advertising on banking kiosks targeting Chinese banking patrons. Website: http://www.chinanet-online.com
Safe Harbor
This release contains certain "forward-looking statements" relating to the business of ChinaNet Online Holdings, Inc., which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including business uncertainties relating to government regulation of our industry, market demand, reliance on key personnel, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on ChinaNet's current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting ChinaNet will be those anticipated by ChinaNet. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. ChinaNet undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For further information, please contact:
Investor Relations:
HC International, Inc.
Ted Haberfield
Tel: +1-760-755-2716
Email: [email protected]
Web: http://www.hcinternational.net
SOURCE ChinaNet Online Holdings, Inc.
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