HONG KONG, Sept. 17 China TechnologyDevelopment Group Corporation (Nasdaq: CTDC; "CTDC" or the "Company") todayannounced the proposed acquisition of all solar energy assets and business ofShenzhen Soyin Electrical Appliance Industrial Co., Ltd. ("Soyin").
The Company expects to contribute US$5.8 million (RMB43, 800,000) in cashconsideration to a new joint venture, Shenzhen Shengguang New EnergyTechnology Co., Ltd. (the "JV Company"), pursuant to the joint ventureagreement signed by the Company and Soyin on September 14, 2007. The Companywill be the largest shareholder of the JV Company, holding a 49% ownershipinterest. All of Soyin's existing solar energy business will be solelyoperated by the JV Company upon completion of its establishment. In addition,the board of directors of the JV Company will consist of five directors andthree of them will be appointed by the Company.
Soyin, founded in 1998, is a leading Photovoltaic (PV) application productprovider in China. Soyin's major customers are from overseas which includeAtico (one of the largest trading companies in U.S.), Test Rite Group (top 3trading companies in Taiwan) and Axone (top trading company in France), etc.
Mr. Alan Li, Chairman and Chief Executive Officer of the Company,commented, "This acquisition of the solar energy business presents asignificant opportunity to accelerate the expansion and growth of theCompany's business portfolio in the solar energy market. We are committed togrowing our business both through organic growth and strategic acquisitions."
Mr. Zhenwei Lu, General Manager of China Merchants Technology HoldingsCo., Ltd., stated, "With strong government endorsement and abundant resourcesfrom China Merchants Group, the largest shareholder of CTDC, this acquisitionrepresents a significant step in CTDC's strategy to invest in the solar energybusiness. We believe it's a natural fit for CTDC to further invest in thedownstream application sector and are fully supportive of its businessexpansion."
CTDC is engaged in information network security in the People's Republicof China. CTDC's ultimate principal shareholder is China Merchants Group (http://www.cmhk.com ), one of the most important Chinese state-ownedenterprises in China. For more information, please visit our website athttp://www.chinactdc.com .
Forward-Looking Statement Disclosure:
This press release of the Company, which is a foreign private issuer, onForm 6-K contains forward-looking statements within the meaning of Section 27Aof the Securities Act of 1933, and Section 21E of the Securities Act of 1934.These statements relate to future events or the Company's future financialperformance. The Company has attempted to identify forward-looking statementsby terminology including "anticipates", "believes", "expects", "can","continue", "could", "estimates", "expects", "intends", "may", "plans","potential", "predict", "should", or "will" or the negative of these terms orother comparable terminology. These statements are only predictions,uncertainties and other factors may cause the Company's actual results, levelof activity, performance or achievements to be materially different from anyfuture results, level of activity, performance or achievements expressed orimplied by these forward-looking statements. The information in this Report onForm 6-K is not intended to project future performance of the Company.Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee futureresults, level of activity, performance or achievements. The Company'sexpectations are as of the date this Form 6-K is filed, and the Company doesnot intend to update any of the forward-looking statements after the date thisReport on Form 6-K is filed to conform these statements to actual results,unless required