China Technology Announces the Proposed Subscription of a HK$10 Million Exchangeable Note to be Issued by Going International Li
February 06 2007 - 8:00AM
PR Newswire (US)
HONG KONG, Feb. 6 /Xinhua-PRNewswire-FirstCall/ -- China Technology
Development Group Corporation (NASDAQ:CTDC) ("CTDC" or the
"Company") today announced in partnership with CCB International
Assets Management Co., Ltd ("CCBI Assets") to invest in Going
International Limited ("Going"). On February 5, 2007, the Company
entered into a non-binding Letter of Intent (the "LOI") with Going,
a limited liability company organized and existing under the laws
of the British Virgin Islands, which owns 58% of the issued share
capital of Huitong Food Holdings Limited ("Huitong Food"), a
limited liability company organized and existing under the laws of
the Cayman Islands, for the purchase of an exchangeable note for
the principal amount of HK$10 million from Going ("Going Note").
Going is the controlling shareholder of Huitong Food, which, upon
completion of restructuring, will become the holding company of
Luohe Huixi Food Co. Ltd. ("Huixi"), a limited liability company
organized and existing under the laws of the People's Republic of
China, principally engaged in the business of meatpacking
manufacturing. Pursuant to the terms of the LOI, CTDC and Going
will enter into an exchangeable note purchase agreement pursuant to
which CTDC will subscribe and Going will issue, the Going Note for
HK$10 million in cash. CTDC will be entitled to fully convert the
Going Note into shares of Huitong Food prior to its proposed
initial public offering on the Hong Kong Stock Exchanges. Going and
Huitong Food have issued exchangeable notes on similar terms and
conditions as the proposed Going Note to CCBI Assets. Founded in
1994, Henan Huitong Meat and Food Company Limited ("Huitong
Group"), the predecessor of Huixi, is a major meatpacking
manufacturer in China and has become a leading provider of meat
products in Hong Kong. Huitong Group ranked No.27 among top 50 meat
producers in China according to a report published by China Meat
Industry Association in 2005. Huitong Group's total amount of sales
revenue exceeded US$150 million for the fiscal period ended August
31, 2006. In addition, Huitong Group has established 22
distribution branches and 6 branch offices around China and
exported to Russia, Hong Kong and Macau, etc. CCBI Assets is a
wholly owned subsidiary of CCB International (Holdings) Limited, a
wholly owned investment bank established by China Construction Bank
("CCB") in 2003. CCB is a leading commercial bank in China
providing a comprehensive range of commercial banking products and
services. "The strategic investment in Huitong Food will help us to
build up the solid foundation and penetration in Chinese food
industry," said Mr. Alan Li, Chief Executive Officer of the
Company, "And through close cooperation with Huitong Group and CCBI
Assets, we may be able to leverage each party's network and
resources to further strengthen our growth strategies and expansion
plans in the Chinese food industry." About CTDC: CTDC is engaged in
information network security and nutraceutical business in the
People's Republic of China. CTDC's ultimate principal shareholder
is China Merchants Group, a major Chinese state-owned enterprise.
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 Alan Li
Chief Executive Officer Tel: +852-3112-8461 Email: DATASOURCE:
China Technology Development Group Corporation CONTACT: Alan Li of
China Technology Development Group Corporation, +852-3112-8461, or
Web site: http://www.chinactdc.com/
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