Hong Kong, Dec. 20 - China Technology Development Group Corporation today announced that the Company entered into an Investment Agreement and a Leasing Agreement with China Merchants Zhangzhou Development Zone on December 15, 2006.
Pursuant to the Agreements, the Company will invest RMB10 million, for the first stage of the project, through its wholly own subsidiary, China Natures Technology Inc., for the establishment of China Merchants Zhangzhou Development Zone Innoessen Biotech Co., Ltd (the "Zhangzhou Innoessen"), a newly established operating subsidiary of the Company which business will focus primarily on the production and manufacturing of nutraceutical products. Total planned investment could reach RMB100 million as the project advances to future stages.
Zhangzhou Innoessen will establish production facilities in Zhangzhou Development Zone, for the first stage, on a 2,000 square-meter space leased by the Company pursuant to the Agreements. Zhangzhou Development Zone agrees to provide more premises to completely meet the Company's demand in the future when the project advances to next stages. Zhangzhou Innoessen and its production facilities located in the Zhangzhou Development Zone will be the Company's principal nutraceutical material processing and manufacturing base in the future.
Zhangzhou Development Zone is a subsidiary of the China Merchants Group. It has a total area of 54 square kilometers and is located in the southern coastal area of Xiamen Bay of the Fujian Province, China. It offers a better investment environment and features a deep water container port, logistic centers and an industrial park.
The Company has been reviewing and restructuring its nutraceutical business recently and has identified Zhangzhou Development Zone as the most appropriate site for the establishment of a production base for its nutraceutical business due to reasons such as easy accessibility to raw materials and low operating and labor costs in the area. The Company will systematically direct more resources to make Zhangzhou Innoessen the Company's principal nutraceutical research and production base in China.
Mr. Wei Liu and Mr. Xinan Jiang, directors of the Zhangzhou Development Zone, and Mr. Changshan Zhao, the Chairman of the Board, Mr. Alan Li, Executive Director and Co-CEO and Mr. Michael Siu, Executive Director and Chief Financial Officer of the Company attended the signing ceremony in Zhangzhou Development Zone and signed the Agreements on behalf of Zhangzhou Development Zone and the Company, respectively.
Mr. Changshan Zhao, Chairman of the Board, expressed his excitement at the signing ceremony, "Setting up the new and principal production base for our nutraceutical business in the Zhangzhou Development Zone will provide us a solid platform to further expand our product offerings and enable us to expand our distribution networks to service our customers, which we hope will further strengthen the Company's position in the nutraceutical industry."
About CTDC
CTDC is engaged in information network security and nutraceutical business in the People's Republic of China. CTDC's existing major shareholder is Beijing Holdings Limited, a conglomerate with over $3 billion in total assets beneficially owned by the Beijing People's Municipal Government.