China New Town Development Company Limited (SEHK stock code: 1278) (the “Company” or “CNTD”) has been listed by introduction on the main board of The Stock Exchange of Hong Kong Limited since 22 October 2010.
In March 2014, China Development Bank International Holdings Limited (“CDBIH”), a wholly-owned subsidiary of China Development Bank Capital Corporation Limited (“CDBC” or “CDB Capital”) completed its subscription for CNTD’s 5,347,921,071 issued shares, and became CNTD’s controlling shareholder. CDB Capital is a wholly-owned subsidiary of China Development Bank Corporation (“CDB”) and based on CDB’s resources and brand advantage, CDB Capital has a national network layout in the business segment of new town development. Till then, the Company has officially become the sole listed platform of CDB and CDB Capital in the business segment of new urbanization. By giving full play to the advantage of the controlling shareholder’s resources and experience, and combining with the policy orientation and opportunities of the new urbanization policy in China, we will build a leading brand in investment and operation of new urbanization in China. On 11 June 2021, CDBIH signed a share transfer agreement in respect of approximately 29.99% shares of the Company with Wuxi Communications Industry Group Co., Ltd. (“Wuxi Communications”) and Xitong International Holdings (HK) Limited (“Xitong International”), a wholly-owned subsidiary of Wuxi Communications. CDBIH agreed to transfer 29.99% shares of the Company held by it to Xitong International by agreement (“Share Transfer”). On 28 September 2021, upon the completion of this Share Transfer, Xitong International held approximately 29.99% shares of the Company and CDBIH held approximately 24.99% shares of the Company.
Since 2014, with the trend of new urbanization in China and the Company’s advantage in resources, the Company is gradually shaping development concepts and specifying business strategies. Going on with the basis to continuously follow the guidelines of national policy and with the demand of regional economic development and city life, we shall improve the residents’ living quality and experience and introduce brand products in the field of people’s livelihood such as tourism, healthcare, medical care, etc. With the shareholders’ support of Xitong International and CDBIH, through integrating the resources and advantages of substantial shareholders, the Company specified new development strategy for its business and initiated the business transformation plan. By actively increasing appropriate investments in industries that are in line with the development prospects of the new economy, such as big health industries, strategic emerging industries, and information technology application innovation, we cultivated new businesses and principal business goals.
Currently, in terms of fixed income investments, our projects locate in areas with good economic development nationwide and can provide stable revenue and cash flow for the Company. In terms of livelihood improvement investments, the Company participates in developing such projects as Shanghai Luodian Project, Beijing Junzhuang Project in Mentougou District, the Optical Valley New Development International Center in Wuhan. Among them, the Optical Valley New Development International Center Project in Wuhan is a project located in Optical Valley High-Tech Development Zone in Donghu District, Wuhan that the Company acquired from Lenovo Mobile Communication Software (Wuhan) Co., Ltd. in 2018. Leveraging on the operation in recent years, the project has remained excellent occupancy rates, which becomes the landmark property project in Wuhan. For new business segment, the Company takes full advantage of the resources from shareholders and cooperates with outstanding industry investment institutions in the market, thereby accumulating various excellent resources for project pipelines, which has laid a solid foundation for the subsequent development.
Under the background of the national policy which supports new urbanization, we have confidence to realize the steady upgrade of the Company’s scale of assets and operating results by fully leveraging the resource advantages of shareholder and the rich experience of project teams.