HONG KONG, June 15, 2015 /PRNewswire/ -- Huazhang Technology Holding Limited ("Huazhang" or the "Group", stock code: 1673) announced that it has entered into a letter of intent ("LOI") on 15 June 2015 in relation to the possible acquisition of the construction of wastewater treatment projects in the PRC.
According to the LOI, the Group shall have a right to conduct due diligence investigation on Wuhan Wukong System Construction Limited ("Target Group") and to negotiate with the vendors on the proposed acquisition. The Target Group is established in the PRC, and is principally engaged in the construction of wastewater treatment projects in the PRC.
Mr. Zhu Gen Rong, Chairman of Huazhang, said, "In view of the Target Company's having the licenses and permits in construction of wastewater treatment projects in the PRC, the Board considered, by acquiring majority interests of the Target Company, the Group will be able to diversify the Group's sludge treatment products into the upstream of water treatment business with growth potential and to broaden its sources of income that can bring return to the Company and the Shareholders. It also allows the Group to seize opportunities under the Action Plan to Tackle Water Pollution issued by the PRC government. On this basis, the Directors consider that the entering into of the LOI is in the interests of the Company and its shareholders as a whole."
About Huazhang Technology Holding Limited
The Group is principally engaged in research and development, manufacture and sale of industry automation systems, sludge treatment products and corresponding services. The Group's industrial automation systems and sludge treatment products are custom-built in accordance with the specifications and requirements provided by the Group's customers. The Group is also engaged in the provision of after-sales and other services Group's existing customers.
