New Entity to take advantage of China-Hong Kong Cross Border Currency Settlement Program
CHANGSHA, China, July 13 /PRNewswire-Asia/ -- Tongxin International Ltd. (Nasdaq: TXIC), a China-based manufacturer of engineered vehicle body structures ("EVBS" or "truck cabs"), announced today the establishment of Tongxin International Ltd. - Hong Kong ("TXIC-HK"), the Company's new Hong Kong-based business entity. TXIC-HK will facilitate the Company's growing export sales from China to multiple international markets while capitalizing on the recently launched China-Hong Kong Cross Border Yuan settlement program. The program was established to meet the increasing need of the Chinese Yuan as a currency for international payment and simplifying the procedures for cross border trade.
TXIC-HK will serve as the sales administration and import/export agent for Tongxin International as the Company's international customer base expands. TXIC-HK is an integral part of the Company's strategy to build a network of international customers for its truck cabs, truck cab component parts and its plan to position itself as a global supplier of collision parts for the passenger and commercial vehicle aftermarket.
Currently, Tongxin maintains export relationships with truck manufacturing customers in emerging markets including Vietnam and the Middle East who purchase select Tongxin truck cabs on a Complete-Knock-Down ("CKD") basis. A CKD includes all the components of a truck cab, prepared for welding and assembly on site. CKDs reduce landed costs of export shipments by limiting shipping volume. Based on market data, the Company estimates the total export market potential for CKD is $1.5 billion to $2 billion.
"A key component of our long-term growth strategy is to expand into export markets in Asia and other countries," began CEO and Vice-Chairman Duanxiang Zhang. "While the Chinese market continues to provide us with a variety of new customer and product opportunities, the same is true in other emerging markets whose commercial vehicle industries are also growing. Our experience in the commercial vehicle sector and long-term performance with China-based commercial vehicle manufacturers positions us at the forefront of consideration for other commercial vehicle manufacturers who are looking to reduce costs. It is widely accepted that the cab of a truck is the highest value single component on the vehicle," Zhang concluded.
About Tongxin International Ltd.
Tongxin International Ltd., the largest independent supplier of EVBS in China, is capable of providing EVBS for both the commercial truck and light vehicle market segments. The Company also designs, fabricates and tests dies used in the vehicle body structure manufacturing process. EVBS consists of exterior body panels including doors, floor pans, hoods, side panels and fenders. Tongxin maintains a network of 130 customers throughout 20 provinces in China. Headquartered in Changsha, Tongxin also maintains regional manufacturing in Dali, Ziyang and Zhucheng.
FORWARD LOOKING STATEMENTS
Statements contained in this press release, which are not historical fact, constitute "Forward-Looking Statements." Actual results may differ materially due to numerous important factors that are described in Tongxin International's most recent report to the SEC on Form 6-K, which may be revised or supplemented in subsequent reports to the SEC. Such factors include, among others, the cost and timing of implementing restructuring actions, the Company's ability to generate cost savings or manufacturing efficiencies to offset or exceed contractually or competitively required price reductions or price reductions to obtain new business, conditions in the automotive industry, and certain global and regional economic conditions. Tongxin International does not intend or assume any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
For more information, please contact:
Investor Relations Contact
John Mattio
HC International, Inc.
Tel: +1-914-669-5340 (U.S.)
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net
