Great China International Holdings Achieves Profitability for 2007 Second Quarter


SHENYANG, China, Aug. 23, 2007 (PRIME NEWSWIRE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today reported financial results for the three and six-month periods ended June 30, 2007.

For the 2007 second quarter, the company recorded total revenues of $2.9 million plus total other income of $3.8 million, which included income of $4.5 million for work completed under the land consolidation and development agreement related to the previously announced sale of the Galaxy Bay project. Net income totaled $996,122, equal to $0.08 per diluted share. For the comparable prior-year period, the company posted total revenues of $4.4 million, total other expense of $905,383 and a net loss of $942,486, equal to $0.08 per share.

For the six months ended June 30, 2007, Great China recorded total revenues of $4.5 million plus total other income of $5.0 million, which included income of $6.5 million related to the Galaxy Bay project. Net income totaled $1.8 million, equal to $0.16 per diluted share. For the same period last year, the company reported total revenues of $7.1 million, total other expense of $2.1 million and a net loss of $2.5 million, or $0.22 per share.

Great China will be paid approximately $13.3 million in staged amounts for serving as developer of the Galaxy Bay project, of which $7.0 million already has been paid and recorded as "other income" for December 2006 and the first half of 2007. The company said it expects to complete the development work in approximately one year.

"We had a strong second quarter, bolstered by steady rental income and property management fees," said Frank Jiang, chief executive officer. "At the mid-year mark, we have successfully identified a significant new residential opportunity and are fully underway with zoning and preparations for the Olympic Sports Center Project in the Hunnan New Zone. We believe this premium site has some of the best geographic advantages of Shenyang and a high potential to increase in value. We expect this development to generate greater profits over the next five years.

"During the quarter, we also strengthened our financial position by repurchasing and retiring an overdue debt obligation of $22.8 million related to the development of our Chenglong Garden property," Jiang said. "Looking ahead, our focus will be to establish a schedule for the first stages of construction for the Olympic Sports Center Project and to acquire more first-class properties that will position Great China at the forefront of premium real estate development in northeast China."

About Great China International Holdings

Founded in 1989, Great China International Holdings' wholly owned subsidiary, Shenyang Maryland International Industry Co., Ltd., is the largest non-state-owned real estate developers in Northeast China. The company's core business is premium residential and commercial development and management. It currently owns and manages the President Building, which was completed in April 2002, with 25 tenants comprised of Fortune 500 companies, including General Electric (China) Co., Ltd., Johnson & Johnson, Kodak and Philip Morris. The company's prior developments included the Maryland Building, Roma Resort Garden, Qiyun New Village, Peacock Garden, University Campus of Shenyang Teacher's University, and Chenglong Garden, mostly located in Shenyang.

Forward-Looking Statements

Certain statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including, but not limited to, completion of the Galaxy Bay project agreement, are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in the company's filings with the Securities and Exchange Commission.


                  Great China International Holdings, Inc.
                    Consolidated Condensed Balance Sheet

                                               June 30,   December 31,
 ASSETS                                          2007        2006
                                             ------------------------
                                             (Unaudited)
 Current assets:
  Cash and cash equivalents                  $ 2,866,409  $ 1,769,744
  Accounts receivable
   Trade, net of allowance of $770,798 and
    $1,443,476, respectively                     739,227    1,454,164
   Advances to suppliers                       4,868,122    1,089,048
   Advances to employees                          14,273        5,473
   Deposits                                    3,274,629    1,636,942
  Properties held for resale                   9,545,386   10,620,550
  Assets held for sale, net of impairment of
   $199,542 at June 30, 2007                   6,816,875    9,372,189
  Prepaid expenses                                14,658       86,617
                                             -----------  -----------
    Total current assets                      28,139,579   26,034,727
                                             -----------  -----------

 Property and equipment:
  Land and buildings                          55,454,560   49,988,841
  Motor vehicles                                 697,286      697,453
  Office furniture and equipment                 466,468      340,618
                                             -----------  -----------
                                              56,618,314   51,008,912
  Less accumulated depreciation               (8,482,381)  (7,114,334)
                                             -----------  -----------
                                              48,135,933   43,894,578

 Total assets                                $76,275,512  $69,929,305
                                             ===========  ===========

 LIABILITIES AND SHAREHOLDERS' EQUITY

 Current liabilities:
  Accounts payable and accrued expenses      $ 9,475,556  $10,554,995
  Deposits held                                  705,078      767,481
  Advances from buyers                         2,181,506    3,004,011
  Amounts due to related companies                 6,118      695,002
  Taxes payable                                3,354,441    1,083,765
  Short-term loans                            48,707,349   51,308,184
  Current portion of long-term debt              664,574      428,076
                                             -----------  -----------
    Total current liabilities                 65,094,622   67,841,514

 Long term debt, net of current portion
  shown above                                  9,017,317    1,999,465
                                             -----------  -----------

 Total liabilities                            74,111,939   69,840,979
                                             -----------  -----------

 Stockholders' equity:
  Common stock, $0.001 per value 50,000,000
   shares authorized, 11,782,036 issued and
   outstanding at June 30, 2007 and December
   31, 2006                                       11,783       11,783
  Additional paid in capital                   4,542,308    4,542,308
  Retained deficit                            (3,088,582)  (4,934,109)
  Accumulated other comprehensive income         698,064      468,344
                                             -----------  -----------

 Total stockholders' equity before advances
  offset                                       2,163,573       88,326

 Total liabilities and stockholders' equity  $76,275,512  $69,929,305
                                             ===========  ===========

                 Great China International Holdings, Inc.
              Condensed Consolidated Statements of Operations
                                (Unaudited)

                       Three months ended       Six months ended
                            June 30,                 June 30,
                       2007         2006         2007        2006
                   ------------------------  ------------------------
 Revenues
  Sales            $ 1,391,785  $ 3,168,334  $ 1,624,800  $ 4,525,578
  Rental and
   management
   fee income        1,503,961    1,231,527    2,862,234    2,557,353
                   -----------  -----------  -----------  -----------
  Total revenues     2,895,746    4,399,861    4,487,034    7,082,931
                   -----------  -----------  -----------  -----------

 Expenses
  Cost of
   properties
   sold              1,477,679    2,049,553    1,690,952    3,404,100
  Building
   management
   expenses          1,312,126      269,323    1,540,908      644,701
  Operating and
   selling
   expenses             55,479       20,368       73,721       60,218
  Administrative
   expenses          1,815,557    1,457,164    2,194,338    2,226,801
  Depreciation and
   amortization        534,922      640,556    1,115,243    1,126,853
                   -----------  -----------  -----------  -----------
  Total expenses     5,195,763    4,436,964    6,615,162    7,462,673
                   -----------  -----------  -----------  -----------

  Income (loss)
   from
   operations       (2,300,017)     (37,103)  (2,128,127)    (379,742)
                   -----------  -----------  -----------  -----------

 Other income
  (expense)
  Other income       4,534,832      (23,117)   6,484,101       95,149
  Impairment loss           --           --     (199,542)          --
  Interest and
   finance costs      (701,136)    (882,266)  (1,295,259)  (2,213,443)
                   -----------  -----------  -----------  -----------
  Total other
   income
   (expense)         3,833,696     (905,383)   4,989,300   (2,118,294)
                   -----------  -----------  -----------  -----------

 Income (loss)
  before
  income taxes       1,533,679     (942,486)   2,861,172   (2,498,036)

 Provision for
  income
  taxes                537,557           --    1,015,645           --
                   -----------  -----------  -----------  -----------

 Net income (loss)     996,122     (942,486)   1,845,527   (2,498,036)

 Other comprehensive
  income (loss):
  Foreign currency
   translation
   adjustment          196,309        8,425      229,720       66,217
                   -----------  -----------  -----------  -----------

 Total
  comprehensive
  income (loss)    $ 1,192,431  $  (934,061) $ 2,075,247  $(2,431,819)
                   ===========  ===========  ===========  ===========

 Basic and diluted
  net income (loss)
  per common share $      0.08  $     (0.08) $      0.16  $     (0.22)
                   ===========  ===========  ===========  ===========

 Weighted average
  basic and diluted
  shares
  outstanding       11,782,036   11,439,751   11,782,036   11,268,609
                   ===========  ===========  ===========  ===========

            

Coordonnées