Viking Investments Incubates Internet-Based Chinese Localized Consumer Related Businesses
Consumer Spending Is Driving the Growth in China
SHANGHAI, CHINA -- (Marketwired) -- 11/04/13 -- Viking Investments Group, Inc. (OTCQB: VKIN) ("Viking" or the "Company") has established a new division of operations. The Company's business operations consist of efforts to incubate and bring to China localized, Internet-based companies that focus on consumer-related industry segments. These incubation projects may be accomplished through partnerships with an already-existing and proven tech company in the United States or elsewhere, or may be independently developed by VKIN to fit the specific needs of the Chinese market.
The Company plans to have between three and six incubating projects in various stages of development at any given time, and plans to focus mostly on incubating companies focusing on retail and service providers for consumers in China. The Company's incubating projects will be assessed for approximately three to six months to determine whether the project will be further funded by the Company or shut down entirely.
"It is anticipated that the Chinese economy will experience substantial growth in the coming years, and we do not anticipate a lack of incubation opportunities. With an estimated population of 1.6 billion people in China, the Chinese market is big enough not to be dry of potential transactions that fit our criteria," stated Tom Simeo, the Company's chief executive officer. "We hope to be inspired by the innovations happening in the technology sector of the United States and worldwide and to develop companies that can similarly serve the emerging market needs in China."
Consumer spending accounts for roughly 35% of China's GDP, with a stark contrast to the 70% of United States' GDP which results from consumer spending. McKinsey Global Institute (MGI) conducted a study and wrote a comprehensive report related to China's future consumer market. MGI's analysis shows that consumers will play a great role in Chinese future growth and that a strong middle class will continue to emerge. As the income of China's middle class rises dramatically, so will its consumption, making China the third largest consumer market in the world by 2025. A key characteristic of China's new middle class will be that these households will have passed the thresholds where necessities such as food and clothing constitute the bulk of their purchases; these people will be able to spend a larger proportion of their income on discretionary items, significantly changing the pattern of spending in the economy. The Company intends to focus on incubating companies that will serve the emerging needs of the Chinese consumers in the retail and services sectors.
Safe Harbor Statement
This news release contains "forward-looking statements." Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include the Company's plan to execute its new business plan and develop new incubating companies in the retail sector. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with developing new products and operating as a development stage company, our ability to raise the additional funding we will need to continue to pursue our business and product development plans, competition in the industry in which we operate and market conditions. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents we file with the SEC, available at www.sec.gov.
For additional Company information, please contact: Viking Investments Group, Inc. www.vikinginvestments.com Ms. Jenny Zhong IR Contact: IR@vikinginvestments.com Tel: +86 21 6034 0015
Source: Viking Investments Group, Inc.
Released November 4, 2013