Press Room
Launching Co-branded Credit Card with China's Largest
Non-State Owned Bank
Et-china.com International Holdings Limited, the leading travel services group in the fast growing region of South China, has agreed a marketing alliance with China's largest non-state owned bank to launch a co-branded nationwide credit card.
The launch of a co-branded credit card with China Minsheng Banking Corporation* ("CMBC") is not only a significant step in raising national awareness of the Et-china brand name, it will also create significant potential additional business for Et-china's frequent independent traveller ("FIT") activities.
It is expected that the co-branded credit cards will be formally launched in late October, in time for the busy Christmas and Chinese New Year travel and spending season.
CMBC currently has 2.7 million credit card users of which 1.2 million are in South China where Et-china has a strong presence in business travel. Although CMBC only entered the credit card market in 2005, it is growing very fast with the help of aggressive marketing.
Et-china's "FIT" business will provide nationwide business travel solutions, twenty four hours a day, to all CMBC's banking customers either through the bank's nationwide call centre, which will automatically route all travel related calls to Et-china's call centre, or through calls made direct to the Group's centre.
The co-branded credit cards will naturally raise brand awareness of Et-china amongst CMBC's customers but the agreement also enables the Group to send promotional material direct mail to customers with their monthly statements as well as displaying travel services material in the bank's branches.
In addition to the launch of the co-branded credit cards for individuals, there will be tailor-made corporate credit cards, again co-branded, that will be aimed at Et-china's corporate client list. Et-china currently provides flight, hotel, car rental and ancillary services to approximately 200 Chinese based corporate accounts including Shell China, L'Oreal (China) and Kodak (China).
CMBC will be offering customers of the specially designed corporate credit cards extended settlement terms for business travellers. This will reduce the working capital requirements of the Et-china in managing its corporate customers.
The Group and CMBC are currently finalising the promotion terms for the cards which are expected to include:
- free flight delay and general travel insurance;
- free travel insurance for package tours;
- vehicle roadside emergence services;
- double membership points for both Et-china and CMBC membership programmes; and
- airport VIP lounge services.
Matthew Ng, President and Chief Executive Officer, commented: "Joining forces with CMBC to launch this credit card is another significant step in raising the Group's profile, not only in South China but right across the country. The use of credit cards is growing very rapidly in China, and we believe that CMBC is looking to more than double its card customers to over 8 million by next year.
"In addition to putting the brand in front of millions of potential customers through the cards and promotional activities, this agreement creates a
potentially substantial new business stream. In effect we are creating a virtual travel division for CMBC. Customers telephoning their bank will now have travel services as one of the options available. Just by pressing a number on their keypads the call will be seamlessly directed to us. The impact for our FIT business is potentially very significant."
*About China Minsheng Banking Corporation (www.cmbc.com.cn, SSE: 600016 CH) CMBC is the largest non-state owned commercial bank in China. It has operations in 23 cities in China including Beijing, Shanghai, Guangzhou and Shenzhen with 287 branches and banking offices. It was listed on the Shanghai Stock Exchange in December 2000 and its total assets were RMB 700.4 billion (£45.7 billion**) with total deposits of RMB 583.3 billion (£38.1 billion) as at the end of 2006. It has won a number of prestigious domestic and international awards including Top 10 Chinese Enterprise by Forbes Chinese Edition in 2006 and No 2 ranking commercial bank in China by a competitive report published by the UK Bankers Magazine in 2005.
**Currency in this release is converted on the basis of GB£1 = RMB 15.3083
Contact details for enquiries:
| Et-china.com International Holdings Limited | 0207 067 0700 |
| Matthew Ng, President and Chief Executive Ranjit Murugason, Chairman |
|
| Seymour Pierce, Nominated Adviser and Broker | 0207 107 8000 |
| Mark Percy | |
| Weber Shandwick Financial | 0207 067 0700 |
|
Terry Garrett Stephanie Badjonat John Moriarty |