CPP is Authorized to Implement Construction Cooperation Agreement with Government in Nanhai, Qinghai and Hainan to Develop Electronic Procurement Platforms

HONG KONG, July 9, 2012 /PRNewswire-Asia/ -- The board of directors (the "Board") of China Public Procurement Limited (HKEx stock code: 1094, "the Company" or "CPP") is pleased to announce that it is authorized by its PRC partner to implement the Construction Cooperation Agreements with the Procurement Centre of the Hainan Province ("Hainan Procurement Centre"), Procurement Centre of the Qinghai Province ("Qinghai Procurement Centre") and Procurement Centre of Nanhai District of Foshan City ("Nanhai Procurement Centres")on 6 July 2012, to develop electronic public procurement platforms in the 3 areas.

According to the Hainan Cooperation Agreement and the Qinghai Cooperation Agreement, CPP agreed to cooperate with the relevant Procurement Centres to set up the electronic public procurement platforms. CPP will:

1. provide the necessary software and hardware, as agreed between the parties in each of the Cooperation Agreements, for the establishment of the electronic public procurement platforms at its own costs;
2. provide technical training to the staff of the Procurement Centres regarding the application systems of the electronic public procurement platforms;
3. ensure the normal operation of the electronic public procurement platforms and the procurement services systems to satisfy the business demand for the Procurement Centres;and
4. provide professional services, for which the PRC Partner may charge a service fee in accordance with the government regulations in the PRC, in relation to the establishment of procurement services systems, including, among others, procurement transaction services, digital certification services, supplier management and credit investigation services, supply chain management services, financial services, insurance agency services and training and conference services.

According to the Nanhai Cooperation Agreement, apart from the obligations (2) to (4) mentioned above, CPP will also be responsible for the maintenance of the electronic public procurement platform of the Nanhai Procurement Centre and the PRC Partner agreed, among others, to facilitate the interconnection between the electronic public procurement platform of the Nanhai Procurement Centre and the national electronic public procurement platform in the PRC.

The aforementioned procurement centres agreed:

1. to cooperate with the PRC Partner in the development, integration and optimisation of the software and hardware for electronic public procurement;
2. to prepare for the development of electronic public procurement in the Procurement Centres, including the obtaining of regulatory approval for relevant development proposals, establishing the management system and the business model of the electronic public procurement platforms and providing advisory services in relation to the improvement of such platforms;
3. to maintain the normal operation of the electronic public procurement platforms in terms of their management;
4. to support and supervise the development of the market-oriented services of the PRC Partner; and
5. to provide assistance to the PRC Partner in its activities relating to the government procurement business.

Mr. Cheng Yuanzhong, Chairman of the Company, said, "The Company has entered into a framework agreement with its business partner in Wuhan pursuant to which a global public procurement services centre will be established in Wuhan. The signing of the Cooperation Agreement with these 3 procurement centres will bring our public procurement business to implementation. Looking forward, we hope to reach out to more new areas and tap into new business opportunities."

About China Public Procurement Limited

China Public Procurement Limited is listed on the Main Board of The Stock Exchange of Hong Kong (stock code: 1094). The Group is principally engaged in the information technology business including the provision of system integration services, facility management services and information technology related business in mainland China and Hong Kong.