Vantone International Group, Inc. ("Vantone International") (OTCBB: VNTI), today announces that it started a new small financing business.

Vantone Small Financing Co., Ltd. (the “Company”), founded on September 27, 2010, is a Chinese-foreign joint venture and a subsidiary of Vantone International. Before the trial operation, the Company had received a number of loan applications from enterprises and individuals in Liaoning province. Facing these significant loan demands, the Company scrutinized the applications and evaluated the risks in strict compliance with applicable approval procedures. Under the protection of various risks control measures, a 1 million dollars loan was made within a short time.

The borrower is a small and medium-sized enterprise with superior performance and good standing. It is also a technology-oriented company with high growth potential. At present, this enterprise encounters temporary shortage of working capital.

Currently, the small loan companies in China are in the emerging development period and categorized as non-banking financial institution. Under the supervision of Chinese government, it is in process of steadily fast development with a great support from the government, but the market competition has not been formed yet. According to the Microfinance Company's Instruction Opinion issued by China Banking Regulatory Commission and the People's Bank of China, that microfinance company should engage in business activities with general adoption of the market principle, loan interest rate should be unloosened but not exceeding the upper limit set by the justice department, lower limit should not be inferior to 0.9 times of benchmark lending rate published by the People's Bank of China, and the specific fluctuation range should be on the basis of the market. In addition, relevant loan period and loan repayment terms in the contract should be negotiated by two sides signed a loan under the principles of fairness and free will by law.

Mr. Honggang Yu, the founder and CEO of Vantone International, said, “Small Financing Company got a small financing operating foreign business license in China. With the support of small financing, it will bring us more service fee from insurance agency branches and products sale from commodity entity shops. We will increase the amount of insurance agents and commodities distributors, so that it will increase the performance of our insurance and commodity sale. We believe our "insurance business, small financing business, and purifying water business" model has its unique competitive advantage and the development strategic of “3+E” business model will be truly put in place.

What is “3+E” business model?

3 includes development, manufacturing and distribution of purifying water equipment, the insurance agency service and small financing business; “E” stands for e-commerce marketing channel and commodities sold through e-commerce, we distribute many other commodities on e-commerce Vantone Shop flexibly according to our customers’ demand and competition situation, such commodities like household appliances, feminine hygiene products, cosmetics and skin care products, healthcare food (short for ‘E’ commodity).

Copyright Business Wire 2010