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
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", "sh
ould", 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: investor.relations@chinactdc.com
michael.siu@chinactdc.com