HONG KONG, May 3 /PRNewswire-Asia/ -- The board (the "Board") of directors (the "Directors") of Heng Xin China Holdings Limited (the "Company", together with its subsidiaries, the "Group") is pleased to announce that on 30 April 2010, Shenzhen Champion Maxium Technology Limited ("Shenzhen Champion"), a wholly owned subsidiary of the Company, has entered into a business cooperation agreement (the "Agreement") with Anhui Radio and Television Information Network Co., Ltd. ("ARTINCL"), pursuant to which Shenzhen Champion will provide cable digital television two-way conversion equipment and services and jointly develop and operate the value-added services for 15 years in return for revenue sharing in Anhui Province, PRC. ARTINCL is the sole cable transmission network constructor and operator in Anhui province. The co-operation builds the foundation to become the exclusive partner in the Anhui province for the two-way conversion and value-added services.
The subscriber base under the Agreement covering Chaohu, Suzhou and Bozhou in Anhui Province is approximately 1 million. The parties agree that after the conversion completed in these areas, the conversion and business cooperation will extend to the whole of Anhui Province at such time the total subscriber base is expected to reach approximately 4 million. The Agreement will allow the Group to share net revenues ranging from 40% to 70% on the new value-added services. Further operational contracts will be entered into between the parties to specify such details as the total system design equipment and system specifications and progress delivery schedules.
As announced by the Company on 23 April 2010, the Group had also entered into a business cooperation agreement to provide cable digital television two-way conversion equipment and services and develop and operate value-added services in Jiangxi Province, PRC. The Board believes that the Agreements enable the Group to extend its presence in the cable digital TV conversion market and the three networks integrated markets and expects that the cooperations will benefit to the Company's revenue and profit in the future.
About the Group:
The Group is principally engaged in ground wireless digital television network equipment integrated business, research, design, development on and manufacturing of electronic message security products, integrated circuits, and the integrated circuit solutions and the related services. The Group has been engaging in ground wireless digital television network equipment integration business in Hunan and Hubei Provinces since late 2008. With the implementation of integration of the telecommunication network, broadcasting TV network and internet announced by the Chinese government in January 2010, the prospects of PRC digital TV market and value-added business is significantly promising.
General information:
ARTINCL, a state-owned high-tech enterprise, is the sole cable television network constructor and operator in Anhui Province. To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, ARTINCL and its ultimate beneficial owners are third parties independent of the Company and its connected persons at the date of this announcement.
For inquiry, please contact:
Investor Relations Division
Heng Xin China Holdings Limited
Unit 3, 43/F, Far East Finance Center,
16 Harcourt Road, Hong Kong
Tel: +852-3678-5500
Fax: +852-3178-9884
Email: ir@hengxinchina.com.hk
