Chinawe.com Secures Deal with Citigroup Financial
NEW YORK--(BUSINESS WIRE)--May 10, 2004--Chinawe.com Inc. (OTCBB:CHWE - News; the "Company") announced today that it has entered into a servicing agreement (the "Agreement") with Citigroup Financial Services Inc. ("CFS") for services relating to the sale of a pool of non-performing loans in Huizhou, Guangdong Province, China. The services relate to a bundle of non-performing loans ("NPL") with a face value of approximately USD242 million acquired by CFS from China Great Wall Asset Management Corporation.
The Company is pleased to be a part of the first successful transaction in which a pool of NPL has been sold by any of the State-owned asset management companies in China to foreign investors without any retained interest. This signifies a new approach for the NPL market in China and also reflects the increased level of confidence and interest by foreign investors in the Chinese market.
The Agreement provides the basis for close cooperation between the Company and CFS for the investment and resolution of non-performing assets in the China market. The Company is currently evaluating its potential involvement in future NPL transactions as this market grows.
Chinawe.com is an on-line financial services broker turned servicer specializing in non-performing assets in China. The Company's new role as a servicer and investor not only provides the Company a new source for potential revenue, but also high growth potential in an industry that currently has relatively few competitors.
This Current Report on Form 8-K contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements may include, without limitation, management's expectations regarding: the Company's future financial and operating performance and financial condition; the closing and outcome of the pending transaction described herein; industry conditions; and the Company's liquidity and needs for additional financing.
Such statements are subject to certain risks, uncertainties,
assumptions and other factors, many of which are outside the Company's
control that could cause actual results to differ materially from such
statements. Without limitation these factors include: the risks associated
with the implementation of our business strategy, uncertainty concerning
the effects of our pending transaction with CFS and China Great Wall Asset
Management Corporation, risks associated with the non-performing loan
industry, risks associated with the Asian and Chinese economies, the
effects of vigorous competition in the markets in which we operate and
acts of terrorism. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those anticipated, estimated, projected
or expected. The Company does not intend to update these forward-looking
statements prior to its next required filing with the Securities and
Chinawe.com Barry Yiu, 852-90415830 Vivian Chu, 852-90207574 or Citigroup Financial Products John Redick, +852-2501-2635
Source: Chinawe.com Inc.