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| Wednesday, 10 November 2010, 12:35 HKT/SGT | |
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Source: China Trends | |
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HONG KONG, Nov 10, 2010 - (ACN Newswire) - China Trends Holdings Limited ("China Trends", Stock Code: 8171.HK), which focuses on energy management contract (CEM) business, is delighted to announce one of its subsidiaries in the PRC, Protex (China) Systems Limited ("Protex China", currently renamed as Boss (China) Systems Limited), and Grand Business (Beijing) Educational and Cultural Development Company Limited "Grand Business", currently renamed as Boss Dream Cultural Communication Company Limited) agreed to commence exclusive cooperation on the joint construction and operation of an online education platform, a video production platform, a reward redemption platform and an advertisement broadcasting platform.
According to the project cooperative agreement, Protex China will provide the design proposal and funding for construction of the four platforms to Grand Business whereby the funding for construction will include but not limited to software, server and working capital. The estimated funding required for each platform is RMB10 million with a maximum budget of RMB40 million in total, to be injected in phases according to the construction progress of the four platforms.
Grand Business will construct and operate the four platforms according to the design proposal provided by Protex China. Any profit before tax derived from the operation of the four platforms by Grand Business will be used for the settlement of the funding for construction provided by Protex China. Upon the full settlement of the funding for construction, 50% of the gross profit derived from the operation of the four platforms will be paid to Protex China as technology service fee and management consultancy fee. Within one month from the date on which the Agreement takes effect, Protex China will provide Grand Business with the initial funding for construction of RMB10 million, whereas the remaining balance shall be injected in phases according to the construction progress of the four platforms. The Agreement will be valid for a term of 10 years from its effective date.
Grand Business has or possesses the qualifications required for the operation of the following four platforms, including the qualifications for the provision of training and relevant online education issued by the Ministry of Education of the PRC, the operating permit for TV programme broadcasting and production; and the operating permit for telecom and information services business which is under application. The basic functions of the above four platforms are as follows: 1) Online education platform: provide LAN-based video on demand for education where the entire platform system can accommodate 10 million users at a time; 2) Video production platform: provide content and resources support functions for video production where the entire platform system can accommodate 10 million users at a time; 3) Reward redemption platform: provide redemption functions for 3C electronic products using rewards or rewards plus cash system where the entire platform system can accommodate 10 million users at a time; 4) Advertisement broadcasting platform: provide electronic terminal-based precise advertisement broadcasting functions where the entire platform system can accommodate 10 million users.
On the other hand, as the Group and Grand Business agreed to commence exclusive cooperation in the joint construction and operation of the four platforms, and the business features of these are sufficient to support the CEM business of the Group, the Board hereby announced that the three cooperative framework agreements dated in May 2010, relating to the acquisition of CEM reward redemption platform and related assets, acquisition of distribution and redemption platform for electronic products and acquisition of advertisement broadcasting platform would not be proceeded.
Contact:
Carmen Lee
Investor Relationship Department
China Trends Holdings Limited
Email: carmen.lee@8171.com.hk
Tel: +852 2111 9988
Direct: +852 2155 6275
Mobile: +852 6301 6611
Fax: +852 2111 9989
Topic: Business Plan
Source: China Trends
Sectors: IT Individual
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