HONG KONG, June 13, 2012 /PRNewswire-Asia/ --The board of directors (the "Board") of China Public Procurement Limited (HKEx stock code: 1094, "the Company" or "CPP") announced that it has been notified by Mr. Cheng Yuanzhong, an Executive Director and the Chairman of the Company that he has agreed to transfer the entire issued capital of Top Blast Limited to China Public Procurement (Hong Kong) Technology Company Limited ("PRC Partner Subsidiary"). Top Blast Limited was interested in 2,004,280,000 preferred shares of the Company. Guocai Science & Technology Company Limited ("Guocai"), an enterprise with a PRC government background is indirectly interested in CPP's preferred shares through the PRC Partner Subsidiary, and becomes the largest shareholder of the Company.
PRC Partner Subsidiary is a wholly-owned subsidiary of Guocai. Guocai is the PRC partner of CPP, whose shareholders include China Federation of Logistics & Purchasing ("CFLP"), China Electronic Chamber of Commerce ("CECC"), Beijing Guofa Venture Capital Management Company Limited and Dongfang Sheng Ye Investment Ltd.
CFLP, the only social organization of the logistics industry in China, was established in Beijing and approved by the State Council. The main objectives of CFLP are to facilitate the development of the logistics industry in China, the development of the procurement business of the PRC government and enterprises, and the reform and development of the circulation system of the means of production. It is also authorized by the PRC government to perform functions in relation to, among others, foreign affairs, science and technology, trade statistics and formulation and revision of industry standards. Since 2008, CFLP, in cooperation with the National Bureau of Statistics of China, has produced and published on a monthly basis the non-industrial purchasing managers index (PMI) in the PRC as an economic indicator for the industry or the national economy in general, which serves as a monitoring, forecasting and alerting tool with respect to the development of the service industry and the economy.
CECC is an association formed by the enterprises and organizations in the electronic information products industry in the PRC in 1988 and led by the Ministry of Industry and Information Technology of the PRC. With its local chambers and professional committees, CECC currently has, in aggregate, over 4,000 direct CECC members, branch members and professional members. For 2006, the total revenue of all the members of the CECC amounted to more than RMB1,200 billion, constituting approximately one-third of the total revenue of the electronic information products industry in the PRC. The major objectives of CECC are to facilitate communication between its members and the PRC government, to protect the legal rights of its members, to eliminate vicious competition, to convey government policies to its members, to provide assistance in the PRC government's consultation, coordination or guidance work in relation to the sale of electronics information products in the PRC and to supervise its members in their compliance with applicable PRC laws and regulations.
The Directors believe that with the PRC Partner's strong business network in the PRC, with its subsidiary being holder of the preferred shares of the Company, will be instrumental to the development of the Group and should benefit the Group's long term development and business expansion.
Commenting on Guocai becoming CPP's largest shareholder indirectly, Mr. Cheng Yuanzhong, Chairman of the Company, said, "In light of Guocai's experience in developing procurement information platforms and strong business network in the PRC as well as its resourcefulness and its PRC government background, we believe this will benefit the Group's long term development and business expansion."
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.
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