HONG KONG, July 5, 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 has entered into sale and purchase agreements with Wuhan Optics Valley Union Company Limited (the "Vendor") on 4 July 2012 to purchase the basement (the "Basement") and the building (the "Building") of Block B6, Phase II, Optics Valley Financial Harbour, No. 77 Optics Valley Road, Donghu New Technology Development Zone, Wuhan, the PRC at an aggregate consideration of approximately RMB 135 million. The Basement and the Building will function as the headquarter of CPP for future development of its public procurement services.
The aggregate consideration of the buildings is RMB116,015,865, which comprises of 11 floors with a gross floor area of approximately 22,098.26 square metres. The aggregate consideration of the basement is RMB18,948,736, with a gross floor area of approximately 5,921.48 square metres.
According to the sale and purchase agreement in relation to the purchase of the Building (the "Building Sale and Purchase Agreement"), the consideration of the Building shall be payable by CPP to the Vendor in four installments: 50% of the consideration (the "1st Installment") shall be payable to the Vendor within five business days upon signing of the Building Sale and Purchase Agreements; 40% of the consideration (the "2nd Installment") shall be payable to the Vendor by the end of August 2012; 5% of the consideration (the "3rd Installment") shall be payable to the Vendor within five business days after completion of acceptance of the Building; and the remaining 5% of the consideration (the "Final Installment") shall be payable to the Vendor within five business days upon completion of property rights registration of the Building. The consideration of the Basement shall be payable to the Vendor in three installments: a deposit of RMB9,474,368 (equivalent to approximately HK$11,554,108) shall be payable to the Vendor within five business days upon signing of the sale and purchase agreement in relation to the purchase of the Basement (the "Basement Sale and Purchase Agreement"); (ii) RMB[7,579,494] (equivalent to approximately HK$[9,243,285]) shall be payable to the Vendor by the end of August 2012; and the remaining balance of RMB1,894,874 (equivalent to approximately HK$2,310,822) shall be payable to the Vendor within five business days after completion of acceptance of the Building.
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 to provide electronic public procurement services and other third party services around the world. The Company has obtained the approval and authorization in respect of the project and the establishment of the national electronic government procurement platform granted by the relevant PRC government departments. The project represents a great opportunity for the Company to expand its domestic and global public procurement business. The Basement and the Building will function as the headquarter of CPP for future development of its public procurement services."
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.
