BEIJING, July 30, 2015 (GLOBE NEWSWIRE) -- ChinaNet Online Holdings, Inc. (NASDAQ:CNET) ("ChinaNet" or the "Company"), a leading B2B (business to business) Internet technology company providing online-to-offline (O2O) sales channel expansion services for small and medium-sized enterprises (SMEs) and entrepreneurial management and networking services for entrepreneurs in the People's Republic of China, today announced that its strategic investment client, Beijing Saturday Educational Technology Co., Ltd. ("Beijing Saturday"), has experienced rapid growth since adopting ChinaNet's total solution of products and services in coordination with a 10% ownership stake. More than 600 Saturday Children's Fun Parks ("Saturday Fun Park"), a franchised chain of indoor children's entertainment/activity centers operated by Beijing Saturday, have been added to Saturday's existing 300 locations since ChinaNet's involvement in the third quarter of 2014.
Founded in 2000, Saturday Fun Park, www.xql520.com.cn, is one of China's first indoor entertainment, education and activity centers for children aged 0 to 12. Saturday Fun Park integrates various children's activities such as games, cartoon animation, theme rides, fun learning, 3D movie and photography, fashion, Do-It-Yourself (DIY) and sports under one roof. Prior to ChinaNet's involvement, Saturday Fun Park had more than 300 company-owned and franchised locations mainly in third and fourth-tier Chinese cities.
As previously announced, ChinaNet signed a service contract with Beijing Saturday to provide full support and data services to enhance its expansion plan, including brand management, channel expansion, marketing and a chain management system. The Company also committed a strategic cash investment for a 10% ownership of Beijing Saturday in the third quarter of 2014. Upon investment and engagement, ChinaNet began helping Beijing Saturday to properly manage each franchised store through its advanced management system and facilitating online payments through Baidu Wallet. ChinaNet is also currently implementing its new "Business Direct 3.0" service with Beijing Saturday which leverages Baidu's Direct Reach mobile platform to attract customers online through mobile search, accounts, maps and personalized recommendations, generating new revenue for Beijing Saturday by directing online traffic and attention to offline stores. ChinaNet has also been providing Beijing Saturday with more effective O2O advertising campaigns which enables it to dramatically increase the conversion rate of potential franchise owners to interested customers.
By continuing to leverage ChinaNet's IT service and marketing platform, Beijing Saturday expects to open an additional 150 new locations by the end of 2015, with strong focus on launching larger and more integrated Fun Parks with more than 1,000 square meters (or over 10,763 square feet) per location.
"ChinaNet has successfully proven a new revenue model with customers that includes a cash investment in addition to offering its total solution of products and services," said George Chu, Chief Operating Officer of ChinaNet Online Holdings. "Customers also benefit from using our market data analysis in their expansion planning and marketing. We are encouraged by the rapid growth Beijing Saturday has experienced with our support. The investment income from this partnership will also continue to strengthen ChinaNet's bottom line as we explore additional investment and partnering opportunities with other brands."
About ChinaNet Online Holdings, Inc.
The Company, a parent company of ChinaNet Online Media Group Ltd., incorporated in the BVI ("ChinaNet"), is a leading digital B2B (business to business) Internet technology company focusing on providing O2O sales channel expansion service for small and medium-sized enterprises (SMEs) and entrepreneurial management and networking service for entrepreneurs in China. The Company, through certain contractual arrangements with operating companies in the PRC, provides Internet advertising and other services for Chinese SMEs via its portal websites, 28.com, Liansuo.com and Chuangye.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.
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, and reliance on key personnel, future capital requirements, and 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.