HONG KONG, Jan. 7, 2011 /PRNewswire-Asia/ -- China Boon Holdings Limited (HKEx: 922, the "Company" or "China Boon") announced that its subsidiary Zhejiang Anxian Yuan Company Limited ( "Zhejiang Anxian Yuan") entered into a letter of intent ( the "Letter of Intent" ) with Hangzhou Yu Hang District Cemetery Operation Management Office( the "Local Management Office"). The Local Management Office has proposed to acquire 60,000 niches in the columbarium to be built and managed by Zhejiang Anxian Yuan for an estimated total revenue of not less than RMB 200,000,000.
Zhejiang Anxian Yuan is engaged in cemetery operation in Hangzhou while the Local Management Office is responsible for the management of cemetery operations and funeral services in Yu Hang District of Hangzhou. The exact amount of revenue and the payment schedule for the 60,000 niches will be further agreed. Apart from selling the niches to the Local Management Office, Zhejiang Anxian Yuan has also agreed to provide management services to the niches owned by the Local Management Office at an agreed management fee. The construction of the columbarium is expected to be completed within 2011 and the 60,000 niches will be available for use by the Local Management Office in different stages.
Commenting on the acquisition, Mr. Earnest Leung, CEO of the Company, said "the sales of the niches will generate income to the Company which strengthen our position and market share in the cemetery business in China. Looking forward, the Company will continue to explore new business opportunities in major cities in the mainland."
Zhejiang Anxian Yuan owns land of approximately 647,715.1 square meters, among which, only 120,546 square meters had been developed for the cemetery which includes burial sites, green zone and accessories. It commenced business in year 2000 and had sold approximately 10,100 burial sites as of June 2010, which implies a scalable potential for further business development.
About China Boon Holdings Limited
China Boon Holdings Limited is listed on the main board of Hong Kong Stock Exchange, stock code 00922.HK. China Boon is now diversifying into cemetery business in order to broaden its source of income.
