- Report of Foreign Issuer (6-K)
January 06 2009 - 6:08AM
Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For
the month of January, 2009
Commission File Number: 333-132381
CHINA GRENTECH CORPORATION LIMITED
15th Floor, Block A, Guoren Building
Keji Central 3rd Road
Hi-Tech Park, Nanshan District
Shenzhen 518057, Peoples Republic of China
Tel: (86 755) 2663-8900
(Indicate by check mark whether the registrant files or will file annual reports under cover
of Form 20-F or Form 40-F.)
Form 20-F
þ
Form 40-F
o
(Indicate by check mark whether the registrant by furnishing the information contained in this
form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934. )
Yes
o
No
þ
(If Yes is marked, indicate below the file number assigned to registrant in connection with
Rule 12g3-2(b): 82-
. )
N/A
This Form 6-K consists of:
The
announcement of divestiture of network coverage module manufacturing
subsidiaries of China GrenTech
Corporation Limited (the Registrant), made by the
Registrant in English on January 5, 2009.
3
FOR IMMEDIATE RELEASE
Contacts:
|
|
|
Investor Contact:
|
|
Investor Relations (US):
|
Kent Lo, IR Manager
China GrenTech Corp Ltd.
+86 755 2650 3007
kentlo@grentech.com.cn
|
|
Delia Cannan
Taylor Rafferty
+1 (212) 889-4350
GrenTech@Taylor-Rafferty.com
|
|
|
|
Investor Relations (HK):
|
|
Media Contact:
|
Ruby Yim
Taylor Rafferty
+852 3196 3712
GrenTech@Taylor-Rafferty.com
|
|
Jason Marshall
Taylor Rafferty
+1 (212) 889-4350
GrenTech@Taylor-Rafferty.com
|
China GrenTech Divests Network Coverage Module
Manufacturing Subsidiaries
Shenzhen, PRC January 5, 2009 China GrenTech Corporation Limited (NASDAQ: GRRF; the Company
or China GrenTech) announced that it has divested two wholly-owned subsidiaries: Quanzhou Lake
Communication Company Limited (Lake Communication) and Quanzhou Lake Microwave Company Limited
(Lake Microwave). The Company sold Lake Communication to Mr. Haifan Zhuang, son of Mr. Kunjie
Zhuang who is a director and chief technology officer of China GrenTech and one of the Companys
major shareholders, and sold Lake Microwave to Mr. Haifan Zhuang and Lake (HK) Technology Company
Limited, an affiliated company of Mr. Kunjie Zhuang. The principle business of Lake Communication
has been to supply RF modules to the Companys wholly-owned subsidiary, Shenzhen GrenTech Company
Limited (Shenzhen GrenTech), for manufacturing network coverage equipment, and the principle
business of Lake Microwave has been to supply RF modules to companies other than Shenzhen GrenTech.
As consideration for the acquisition, Shenzhen GrenTech is released from its account payable
obligations in the aggregate amount of RMB106.3 million due to the two subsidiaries and the buyers
will acquire the two subsidiaries subject to their existing outstanding debt obligations. The
terms of the transaction were negotiated on an arms length basis and approved by the Companys
independent directors. The transfer of the equity interest in Lake Communication has recently been
completed, and the Company is in the process of completing the applicable PRC registration
requirements for the transfer of the equity interest in Lake Microwave, which is expected to be
completed in the first half of 2009.
4
Mr. Yingjie Gao, Chairman of China GrenTech, said, Our plant in Shenzhen, which is operated
separately from Lake Communication and Lake Microwave, has mastered manufacturing capabilities for
all types of RF modules, which has been a benefit to our fast growing RF business over the past two
years. The disposal of Lake Communication and Lake Microwave will allow us to streamline our
management structure, reducing management expenses and increasing operational efficiency. More
importantly, as a result of this transaction, an account payable from Shenzhen GrenTech to the two
subsidiaries has been cancelled and the buyers will assume Lake Communications and Lake
Microwaves debt obligations, which will help to reduce our future cash outflow in light of the
current economic slowdown. As we intend to continue to procure modules from Lake Communication and
Lake Microwave in the short term after the disposal, we anticipate that there will be no impact on
our operations or supply. Moving forward, we will further leverage our leading RF technology and
production scale in Shenzhen to continue to manufacture our own RF modules for network coverage.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements contained in this press release that are not historical facts are forward-looking
statements, as that term is defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, including financial projections and forecasts, involve risks and
uncertainties that could cause the Companys actual results to differ materially from its current
expectations. Factors that could cause the Companys results to differ materially from those set
forth in these forward-looking statements include: the risk that the Company will not be able to
produce sufficient quantities of RF modules for its network coverage equipment manufacturing or be
able to source them from Lake Communication or Lake Microwave on commercially acceptable terms or
at all; the Companys ability to reduce its management expenses and increase operational efficiency
as a result of these divestitures; the risk that the Company will not be able to maintain its
leading RF technology and production scale to continue to manufacture its own RF modules for
network coverage; the Companys ability to maintain its financial position and margins during the
current economic slowdown in China and worldwide; fierce competition in the wireless communication
industry; uncertainty as to its ability to continuously develop and manufacture new RF technologies
and keep up with changes in RF technologies; risks associated with possible defects and errors in
its wireless coverage products or RF products; uncertainty as to the Companys ability to protect
and enforce its intellectual property rights; and uncertainty as to the Companys ability to
attract and retain qualified executives and personnel, particularly in its research and development
department. Other factors that may causes the Companys actual results to differ from those set
forth in the forward-looking statements contained in this press release and that may affect its
prospects in general are described in the Companys filings with the
5
Securities and Exchange Commission, including its Registration Statement on Form F-1 related to its
initial public offering and its annual reports on Form 20-F. The Company undertakes no obligation
to update or revise forward-looking statements to reflect subsequent events or changed assumptions
or circumstances.
About China GrenTech
China GrenTech is a leading developer of radio frequency (RF) technology and product developer
and a leading wireless coverage product and services provider in China. The Company uses RF
technology to develop and manufacture wireless coverage products, which enable telecommunication
operators to expand the reach of their wireless communication networks both indoors and outdoors,
including buildings, highways, railways, tunnels and remote regions. China GrenTech provides
wireless coverage services, including the design, installation and warranty services for its
coverage products.
Based on its in-house RF technology platform, the Company also develops and produces base station
RF modules sold to base station manufacturers. China GrenTech is a qualified supplier of RF modules
to several major base station manufacturers and the major supplier of RF modules for Huawei
Technologies and ZTE Corporation. For more information, please visit
http://www.grentech.com.cn
.
6
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
China GrenTech Corporation Limited
/s/ Rong Yu
Name: Rong Yu
Title: Director, Chief Financial Officer and Principal Accounting Officer
Date:
January 6, 2009
China Grentech Corp. Limited ADS, Each Representing 25 Ordinary Shares (MM) (NASDAQ:GRRF)
Historical Stock Chart
From May 2024 to Jun 2024
China Grentech Corp. Limited ADS, Each Representing 25 Ordinary Shares (MM) (NASDAQ:GRRF)
Historical Stock Chart
From Jun 2023 to Jun 2024