CHTC completes first overseas strategic buyout of Fong's

27 Jun '11

5 min read

As expressed by Mr. Zhang Jie, the acquisition is in line with China Hi-Tech Group's corporate strategic goal and its needs for business development, China Hi-Tech will better utilize the resources that Fong's Industries has already had in a more effective way to further strengthen its competitiveness in the field of textile dyeing and finishing machinery as well as the casting industry. It will also enhance its management efficiency and organizational capabilities to adaptto both the internal and external environments.

In addition, incentive plans will be launched to motivate staff in the near future. The Fong's Industries Group will strive to improving the qualities of its corporate human resources and carried out training programmes in a pragmatic manner. At the same time, China Hi-Tech has persistently held in high regard in the usage of capital market and technological innovation to achieve the sustainable development of the Fong's Industries Group as well as strongly supported the achievement of strategies and business objectives of Fong's Industries.

What's more, the acquisition of Fong's Industries has also provided a major strategic significance to the textile industry in China. It helps to achieve integration of high quality assets and to better enhance the development of SOE in China. In particular, the acquisition meets the national textile industry revitalization plan and strengthens the competitive edges of enterprises with leading position in the textile industry. Additionally, the acquisition further expands the Fong's Industries Group's business scale, enriches its product mix and consolidates its business and operation modes.

China Hi-Tech Group believes that the aggressive acquisition strategy around the world has fueled its rapid growth. Due to the global financial turmoil in 2008 as well as the current cyclical downturn of textile industry, the value of most enterprises has been under-estimated even for those renowned companies with advanced technology. Besides, the textile machinery industry in most of the developed countries has declined considerably. All the above factors will provide excellent opportunities for China Hi-Tech to make acquisition worldwide.

Taking Fong's Industries as its first overseas acquisition, China Hi-Tech makes a far-reaching and significant move.

Following China Hi-Tech's takeover, Mr. Fong Sou Lam intends to continue to hold a substantial stake of approximately 20% in Fong's Industries. Mr. Fong believes that the introduction of China Hi-Tech as the major shareholder of Fong's Industries will enable Fong's Industries to further enhance its market position and brand effect by offering strong support to the company for its future development.

As a leading enterprise in the textile machinery industry in the PRC and even around the world, China Hi-Tech makes every effort to enhance its global position in the industry. At the meantime,China Hi-Tech will continue the existing businesses of Fong's Industries essentially as it is currently operating. Through this acquisition, China Hi-Tech could extract synergies in market distribution, resources and access technology that Fong's Industries possesses so that to achieve sustainable business growth.

Fong's Industries Co. Ltd

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