China Technology Announces the Establishment of New Production Base for Nutraceutical Products in China Merchants Zhangzhou Deve
December 20 2006 - 8:00AM
PR Newswire (US)
HONG KONG, Dec. 20 /Xinhua-PRNewswire-FirstCall/ -- China
Technology Development Group Corporation (Nasdaq: CTDC; "CTDC" or
"the Company") today announced that the Company entered into an
Investment Agreement and a Leasing Agreement (collectively, the
"Agreements") with China Merchants Zhangzhou Development Zone (the
"Zhangzhou Development Zone") on December 15, 2006. Pursuant to the
Agreements, the Company will invest RMB10 million, for the first
stage of the project, through its wholly own subsidiary, China
Natures Technology Inc., for the establishment of China Merchants
Zhangzhou Development Zone Innoessen Biotech Co., Ltd (the
"Zhangzhou Innoessen"), a newly established operating subsidiary of
the Company which business will focus primarily on the production
and manufacturing of nutraceutical products. Total planned
investment could reach RMB100 million as the project advances to
future stages. Zhangzhou Innoessen will establish production
facilities in Zhangzhou Development Zone, for the first stage, on a
2,000 square-meter space leased by the Company pursuant to the
Agreements. Zhangzhou Development Zone agrees to provide more
premises to completely meet the Company's demand in the future when
the project advances to next stages. Zhangzhou Innoessen and its
production facilities located in the Zhangzhou Development Zone
will be the Company's principal nutraceutical material processing
and manufacturing base in the future. Zhangzhou Development Zone is
a subsidiary of the China Merchants Group. It has a total area of
54 square kilometers and is located in the southern coastal area of
Xiamen Bay of the Fujian Province, China. It offers a better
investment environment and features a deep water container port,
logistic centers and an industrial park. The Company has been
reviewing and restructuring its nutraceutical business recently and
has identified Zhangzhou Development Zone as the most appropriate
site for the establishment of a production base for its
nutraceutical business due to reasons such as easy accessibility to
raw materials and low operating and labor costs in the area. The
Company will systematically direct more resources to make Zhangzhou
Innoessen the Company's principal nutraceutical research and
production base in China. Mr. Wei Liu and Mr. Xinan Jiang,
directors of the Zhangzhou Development Zone, and Mr. Changshan
Zhao, the Chairman of the Board, Mr. Alan Li, Executive Director
and Co-CEO and Mr. Michael Siu, Executive Director and Chief
Financial Officer of the Company attended the signing ceremony in
Zhangzhou Development Zone and signed the Agreements on behalf of
Zhangzhou Development Zone and the Company, respectively. Mr.
Changshan Zhao, Chairman of the Board, expressed his excitement at
the signing ceremony, "Setting up the new and principal production
base for our nutraceutical business in the Zhangzhou Development
Zone will provide us a solid platform to further expand our product
offerings and enable us to expand our distribution networks to
service our customers, which we hope will further strengthen the
Company's position in the nutraceutical industry." About CTDC: CTDC
is engaged in information network security and nutraceutical
business in the People's Republic of China. CTDC's existing major
shareholder is Beijing Holdings Limited, a conglomerate with over
$3 billion in total assets beneficially owned by the Beijing
People's Municipal Government. For more information, please visit
our website at http://www.chinactdc.com/ . Forward-Looking
Statement Disclosure: This press release of the Company, which is a
foreign private issuer, on Form 6-K contains forward-looking
statements within the meaning of Section 27A of 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
financial performance. The Company has attempted to identify
forward-looking statements by terminology including "anticipates",
"believes", "expects", "can", "continue", "could", "estimates",
"expects", "intends", "may", "plans", "potential", "predict",
"should", or "will" or the negative of these terms or other
comparable terminology. These statements are only predictions,
uncertainties and other factors may cause the Company's actual
results, level of activity, performance or achievements to be
materially different from any future results, level of activity,
performance or achievements expressed or implied by these
forward-looking statements. The information in this Report on Form
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 future results, level of activity, performance or
achievements. The Company's expectations are as of the date this
Form 6-K is filed, and the Company does not intend to update any of
the forward-looking statements after the date this Report on Form
6-K is filed to conform these statements to actual results, unless
required by law. Contact: China Technology Development Group
Corporation Michael Siu, Executive Director, Chief Financial
Officer and Secretary Tel: +852-3112-8461 Email: DATASOURCE: China
Technology Development Group Corporation CONTACT: Michael Siu of
China Technology Development Group Corporation, +852-3112-8461, or
fax, +852-3112-8410, or Web site: http://www.chinactdc.com/
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