CPP Is Authorized to Implement Agreements with Jining Procurement Centre to Develop Electronic Procurement Platform

HONG KONG, Dec. 28, 2012 /PRNewswire/ -- 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, Guocai Science & Technology Company Limited ("PRC Partner"), to implement the Jining Cooperation Agreement with the Procurement Centre of Jining City, Shandong Province ("Jining Procurement Centre") on 14 December 2012, to provide technical assistance in the maintenance of the electronic public procurement platform of the Jining Procurement Centre.

According to Jining Cooperation Agreement, the PRC Partner shall set up a branch at the place of operation of the Jining Procurement Centre to provide technical assistance for the maintenance of the electronic public procurement platform, subject to the approval of the Jining Procurement Centre and its regulatory authority. The PRC Partner agreed:

1. to provide the necessary software and hardware, as agreed between the PRC Partner and the Jining Procurement Centre, for the improvement and the establishment of the electronic public procurement platform and for its inter-connection with national electronic public procurement platform at its own costs;
2. to provide technical training to the staff of the Jining Procurement Centre regarding the application systems of the electronic public procurement platform;
3. to ensure the normal operation of the electronic public procurement platform and the procurement services system to satisfy the business demand of the Jining Procurement Centre; and
4. to 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 system, 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.

Further, the PRC Partner agreed to apply 5% of the total annual service fee received by its branch set up at the place of operation of the Jining Procurement Centre to provide technical training to the staff of the Jining Procurement Centre, purchasers and suppliers. The amount will be increased annually by 0.5% of the total annual service fee to a maximum of 10% of such total annual service fee.

The Jining Procurement Centre 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 Jining Procurement Centre, 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 platform 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.

In 2012, CPP is authorized by its PRC Partner to implement agreements with the procurement centres in Nanhai, Qinghai, Hainan, Hebei, Hubei, Shenyang and Chongqing, etc to develop electronic public procurement platforms in these regions.

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 the PRC and Hong Kong.