HONG KONG, April 26 /PRNewswire-Asia/ -- Heng Xin China Holdings Limited ("Heng Xin China" together with its subsidiaries, "the Group", stock code: 8046), is pleased to announce that Shenzhen Champion Maxium Technology Limited ("Shenzhen Champion"), a wholly owned subsidiary of the Group, has entered into the business cooperation agreement (the "Agreement") with ("Nanchangxian Radio and Television Network Transmission Centre"). Shenzhen Champion will provide cable digital television two-way conversion equipments and services and jointly operate and develop the value-added services in Jiangxi Province, PRC for 15 years. Heng Xin China will share net revenue arising from the new value added services ranging from 50% to 70%. The initial subscriber base under the Agreement will be approximately 0.5 million. The parties expect the conversion and business cooperation will extend to the other urban area of Nanchang at such time, the total subscriber base in this area alone is expected to reach 1.5 million. 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.
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. The Agreement marks the entrance by the Group into the lucrative cable TV value added business. Taking advantage of its advanced core technology, the cooperation not only marks further involvement by the Group in providing overall design, technology and equipment integration and total solutions for digital cable TV sector in the PRC but also in the operation of the related value added business. The Agreement marks the presence of the Group in the cable TV conversion market and the three networks integrated markets and expects that the new involvement will contribute considerable increase in the Group'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.
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