Published: July 29, 2010
GINSMS Has Created a Wholly-Owned Foreign Enterprise in China

GINSMS Inc. ("GINSMS" or the "Corporation") (TSX VENTURE: GOK) is pleased to announce that it has established a Wholly Owned Foreign Enterprise ("WOFE") in China and has received its registration papers a few days ago. A WOFE is a business entity formed in China with foreign capital and is 100% owned by a foreign company.
The newly formed WOFE, to be set up as a limited liability company, will be wholly-owned by GIN International Ltd. in Hong Kong, an indirect subsidiary of GINSMS. By establishing this new WOFE, GINSMS will retain complete control and direction of the business venture in China, thereby avoiding potential problematic issues that can arise when dealing with a domestic joint venture partner.
"Formation of the WOFE will allow us to seek out new opportunities for growth in China either organically through direct marketing initiatives with larger operators for SMS business, or through merger with, and/or acquisition of existing businesses in China," stated Jonathan Lai, GINSMS Chairman. "Furthermore, the WOFE will assist us in making good on our plans to develop valued-added services ("VAS") which, for the most part, were intended for the China market."
Following are some of the advantages of establishing a WOFE in China, compared with other types of enterprises:
1. Independence and freedom to implement the worldwide strategies of its
parent company without having to consider the involvement of a Chinese
partner;
2. Ability to formally carry out business rather than just function as a
representative office;
3. Protection of intellectual know-how and technology;
4. No requirement for Import / Export license for its own products;
5. Full control of human resources
6. Greater efficiency in operations, management and future development
Caution Regarding Forward-Looking Information
Certain information included in this press release may constitute forward-looking statements. Forward-looking statements generally can be identified by the use of terms such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "believe" or "continue" or the negative thereof or variations thereon or similar terminology. Forward-looking statements, by their very nature, involve significant risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, without limitation, the risks factors discussed in the section entitled "Risk Factors" in GINSMS's long form prospectus dated November 12, 2009 which is available under GINSMS' profile on SEDAR at www.sedar.com. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, GINSMS cannot assure the reader that actual results will be consistent with these forward-looking statements. These assumptions are further described in GINSMS' management discussion & analysis for the three and nine month periods ended December 31, 2009, which is also available on SEDAR at www.sedar.com. These forward looking statements are made as of the date hereof and GINSMS assumes no obligation to update or revise them to reflect new events or circumstances except as may be required by law. Accordingly, readers should not place undue reliance on the forward-looking statements.
About GINSMS
GINSMS owns 100% of Global Technology Limited, a technology company focused on providing inter-operator short messaging services to mobile telecom operators in Hong Kong. GINSMS's stated business objective is to become a leading short messaging service ("SMS") and data hubbing service provider to mobile network operators in Hong Kong and China and to establish an international SMS and value added services business.
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