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 ("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. 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. Till then, the Company has held a composite shareholder structure of "local state-owned enterprise + central enterprise financial institution", combining the industrial advantages and financial advantages of the two substantial shareholders.
Since 2014, with the trend of new urbanization in China and the Company’s advantage in resources, the Company has optimised its business strategy and layout, forming a basic business structure comprising fixed income investments and high-quality asset operations. Furthermore, following the shareholding restructuring in 2021, with the support of two substantial shareholders, Xitong International and CDBIH, and by leveraging their resources and advantages,, and based on an analysis of domestic economic and industrial development as well as the Company’s own resource advantages, the Company 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 integrated circuits, high-end manufacturing, new energy, new materials and artificial intelligence, we have cultivated new businesses and principal business goals.
Currently, in terms of fixed income investments, our projects are located in areas with good economic development nationwide and can provide stable revenue and cash flow, thereby serving as the stabilizer, cornerstone and foundation for the business. At the same time, the Optical Valley New Development International Center Property Project in Wuhan held by the Company remains in robust operation, with rental and management fee income remaining steady. For new business expansion segment, after the past few years of market research, collaboration with cooperation agency and project inspection, we have explored the direction of principal business transformation through minority equity investment, and successfully completed the funding of certain minority equity projects in semi-conductors, new materials, artificial intelligence and other industries, accumulating experience in the industry and projects. Currently, some of the minority equity projects invested by the Company have successfully completed their listings. The direction of future business transformation is gradually becoming more focused, and the Company is conducting in-depth research, analysis and negotiations on key potential targets.
Under the background of the national policy which supports the development of new quality productivity industries, we have confidence to launch a new development track and achieve a steady increase in the Company’s scale of assets and operating results during the 15th Five-Year Plan period by fully leveraging the resource advantages of shareholders and the rich experience of project teams.