SOURCE: Trip Tech, Inc.

August 13, 2008 09:37 ET

Trip Tech, Inc. Acquires China-Based Global Shipping Company That Launched "Shipping Online," China's Largest Shipping Industry On-Line Portal

Through Further Development of Its On-Line and Off-Line International Shipping Services and Logistics It Aims to Lead Transformation of Traditional Shipping Industry; 2007 Annual Revenues of Acquired Company Grew to $70.3 Million, While Year Over Year Net Profit Climbed 200% to $21.4 Million

DALIAN, CHINA--(Marketwire - August 13, 2008) - Trip Tech, Inc. (OTCBB: TPTQ), a "blank check" company, announced today completion of a share exchange, through which it acquired SkyAce Group Limited, a comprehensive, modern international shipping company having its world headquarters based in China. The Company is mainly engaged in a comprehensive range of international shipping and logistics services such as bulk cargo transportation, chartering, shipping agents, logistics, ship trading, spare parts supplies, crew recruitment and shipping porter operation, as well as relevant industry news and data analysis and advertising.

The Company's core business is international bulk cargo transportation. It has an ocean shipping fleet with 13 vessels, with self-owned carrying capacity of nearly 200,000 tons; at the same time, through monthly voyage charter and time charter, the Company can provide carrying capacity of about 1,000,000 tons with shipping lines to major ports around the world.

The company also owns and operates China's largest shipping portal, "Shipping Online," which is accessed on the internet at http://www.sol.com.cn. Significantly, this China shipping industry leading website functions not just as an information provider, but as a business platform providing on-line and off-line international shipping and logistics services, such as bulk cargo chartering, container booking, shipping agents, ship trading and building, spare parts supplies, crew recruitment as well as shipping news and data. Its experienced off-line team assists in providing a full range of these services at branches throughout China

In 2007, annual revenues of the acquired operations, primarily driven by the growth in its chartering brokerage business and the uptrend in the global shipping market, grew to $70.3 million compared with $59.2 in the prior fiscal year, while net income grew nearly 200% from $7.4 million at year end 2006, to $21.4 million as of Dec. 31, 2007.

In the first quarter of 2008, ended on March 31, 2008, revenues were $26,035,927, up 44% from the same prior year period, while net income reached $ 6,837,088, an 89% increase over the comparable period in 2007 without consideration of the gain from discontinued operation. The increases stemmed primarily from increased revenues in its marine transportation and chartering brokerage business.

Mr. Li Honglin, who founded the shipping company in 1993, has been appointed President of Trip Tech and a Director, and Ms. Xue Ying has been appointed a Director and Chief Executive Officer and Secretary of the Company.

According to Mr. Li, "We believe we are now in a unique position to not only grow our internet-based company, but also to become the leader in transforming the shipping industry from its traditional business model, to a dynamic, modern business model. As a public company, however, with potential access to additional capital, I believe it is possible for us to continue to increase our growth, through steady expansion of our capacity, enlarging the size of our fleet, and pushing forward our comprehensive shipping and logistic services with our industry leading portal, Shipping Online."

Description of the Transaction

On August 13,2008 (the "Closing Date"), Trip Tech, Inc., a Texas corporation ("Trip Tech" or the "Registrant") entered into a Share Exchange Agreement (the "Exchange Agreement") with SkyAce Group Limited, a British Virgin Islands company ("SkyAce" or the "Company") and Pioneer Creation Holdings Limited, a British Virgin Islands company and the sole stockholder of SkyAce (the "Stockholder"). As a result of the share exchange, Trip Tech acquired all of the issued and outstanding securities of SkyAce from the Stockholder in exchange for Seventy-Six Million Nine Hundred Twenty-Five Thousand (76,925,000) newly-issued shares of Trip Tech's common stock, par value $0.001 per share ("Common Stock"), and One Million (1,000,000) shares of Series A Preferred Stock (the "Preferred Stock"), which such Preferred Shares shall automatically convert into Thirty Million (30,000,000) shares of Common Stock (the "Balance Shares") upon Trip Tech amending its Articles of Incorporation to sufficiently increase the number of authorized shares of Common Stock in order to effect such issuance (the "Amendment"). As of the Closing Date, the Stockholder beneficially owns eighty-two and one quarter percent (82.25%) of the voting capital stock of Trip Tech. As a result of the Exchange, SkyAce became a wholly owned subsidiary of Trip Tech.

Simultaneously with the filing of the current Report, Trip Tech shall also file with the U.S. Securities and Exchange Commission (the "SEC") an Information Statement complying with Rule 14f-1 under the Securities Exchange Act of 1934, as amended (hereinafter, the "Exchange Act") that describes a change in a majority of Trip Tech's Board of Directors (the "Board") that shall, not earlier than ten (10) days following the date of such filing, occur in connection with the change of control of Trip Tech described in the current Report.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competition, pricing and new technology; changes in customer preferences and requirements; and effectiveness of marketing; changes in laws and regulations, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

No securities regulatory authority has either approved or disapproved the contents of this news release.

Contact Information

  • CONTACT:

    Ken Donenfeld
    DGI Investor Relations/Focus Asia Partners
    75 Maiden Lane, Suite 213
    New York, NY 10038
    Tel: 212 425 5700
    Fax: 212 425 6951
    Cell: 917-763-6933
    Email 1: donfgroup@aol.com
    Email 2: kdonenfeld@dgiir.com