The Deal is Expected to Contribute 5% Annual Growth to the Revenue of Xinyinhai Technology Ltd.
HARBIN, China, Jan. 16 /Xinhua-PRNewswire/ -- Xinyinhai Technology Ltd. (OTC Bulletin Board: XNYH) (the "XNYH"), the Chinese printing enterprise that specializes in financial instrument printing, announced that it has entered into an agreement with Jilin Province Rural Credit Union (the "Union"), the giant financial institution in Jilin province, to act as the sole financial instrument printing services provider to the Union.
Pursuant to the agreement between XNYH and Jilin Province Rural Credit Union, XNYH was appointed as the sole printing company for Jilin Province Rural Credit Union, responsible for producing passbooks, deposit receipts, checkbooks, settlement forms, loan application forms, new DCP vouchers and other bank printings, etc. for all members of Jilin Province Rural Credit Union.
Jilin Province Rural Credit Union is a financial institution incorporated under the corporate law of the People's Republic of China and is governed by the regulations of China Banking Regulatory Commission. The headquarters of Jilin Province Rural Credit Union are located in Chuangchun City, Jilin province. The Union was formed through a merging of Rural Credit Cooperatives in Changchun City, Jilin City, Siping City, and Yanbian Zhou city, and 51 other county Rural Credit Cooperatives. The total saving of the Union reached RMB40.5 billion (or USD5 billion), the total loans of the Union increased to RMB26.3 billion (or USD3.3 billion) by the end of 2005. Jilin province lies in the middle of Northeast China, covering an area of 187,400 square kilometers, which accounts for 1.95% of the whole country. In 2004, the population of Jilin Province was 27,085,000 and GDP reached USD36.98 billion, accounting for 2.08% and 1.81% of the whole country, respectively.
Ms. Tian Ling, President of XNYH, commented that, "Being a leading enterprise in the financial instrument printing industry, XNYH enjoys the reputation of providing low cost and high quality services to customers across the country. The cooperation between XNYH and Jilin Province Rural Credit Union will be pleasant and mutually beneficial, which will lay a solid ground for XNYH's future development. The cooperation will increase the revenue of the company by 5% by the end of 2006." In addition, the company is negotiating with Hebei Province Rural Credit Union in an attempt to become the sole appointed commercial instrument-printing provider, providing printing services for all Rural Credit Cooperatives in Hebei province. If successful, the deal will further boost XNYH's revenue in the years to come.
About Xinyinhai Technology Ltd.
Founded in 1998, Xinyinhai Technology Ltd. has developed into a leading participant in the People's Republic of China's note printing industry. XNYH is one of only fifteen companies to which the PRC government has issued the Special Industry Operating Permit and the Government Securities and Documents Duplicating Permit, which are the licenses required in order to be engaged in printing bank vouchers in the PRC. The breadth of the company's business ranges from printing bank vouchers and documents, and it has build numerous exclusive relationships with China’s largest financial institutions and government agencies including Bank of China, China Commercial Bank, the State Taxation Bureau, etc. Moreover, it uses outsourced vendors for large scale binding services. In order to assure a product that is the utmost in quality, the company has passed many rigorous guidelines in order to be certified with relevant quality, health and security management systems. Currently, the company is home to the most sophisticated production line with the brand name "Kuechler", laying a solid foundation for the company's rapid development.
Forward-looking statements
This report contains 'forward-looking' statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion.
The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.
