- May 28, 2015
- China New Town partners with National IC Industry Fund, a hundred billion national fund to bring in Industrial Park Projects
(Hong Kong and Singapore, 27 May 2015) ― China New Town Development Company Limited – the future blueprint planner and leading developer of integrated new towns in China (the “Company”, “CNTD”, the “Group”; HKSE: 1278.HK; SGX: D4N.SI), is pleased to announce that the Company has entered into the Strategic Cooperation Framework Agreement (the “Agreement”) with Sino IC Capital Management Company Limited (“Sino IC Capital”).
Founded under the leadership of China Development Bank Capital Corporation Limited (“CDB Capital”), the Company’s controlling shareholder, Sino IC Capital is the sole manager of the National Integrated Circuit Industry Investment Fund Ltd. (“National IC Industry Fund” or the “Fund”). As an industrial investment fund with state-level support, National IC Industry Fund was co-founded by CDB Capital, China National Tobacco Corporation, China Mobile Communications Corporation, etc., with fund under management designated at over RMB 120 billion. The goal of the Fund is to attract social capital and technology for the investment and development of the integrated circuit industry, closely following the national policies.
Pursuant to the Agreement, the mutual cooperation between CNTD and Sino IC Capital will be mainly dedicated to the intersectional value chains of the integrated circuit industry and township development, on six aspects namely business development, construction of new industrial parks, industrial park transformation, integrated services, strategic alliance, preferential project allocation, so as to build long-term partnership with which the mutual strategic complementarities and synergies will be fully leveraged. The Fund will preferentially use CNTD as the industrial park developer and integrated service provider for ancillary facilities construction, property development, operations and investment sourcing of its investee industrial parks. To fully utilize its excellent network, Sino IC Capital shall introduce the Company to the local government partners and main players in the integrated circuit industry, so as to help the Company explore diversified profit models in the fields of construction and engineering, ultimately strengthening the Company’s own project sourcing capabilities through the relationship network with local governments and leading industry players. CNTD will fully utilize its strategic resources and industry experience to provide one-stop commercial service solutions for the industry park initiated by the Fund.
As business opportunities arisen from the hundred-billion investments emerge throughout the entire country, the framework agreement is expected to embody an impetus to the Group’s project pipeline. The spokesman of CNTD comments, “The cooperation with the national fund would not have been reached without the vigorous support of our controlling shareholder, CDB Capital. CDB Capital is currently one of the largest investment institutes in China with its investment spanning across strategic sectors supported by national policies, such as urbanization, alternative energy and high-tech industries. CDB Capital has entrusted the Company with its systematic advantages for the expansion of its project portfolio. The strategic cooperation is a solid proof which reflects CDB Capital’s commitment in the Company and also a solid evidence of the synergies and growth opportunities brought by CDB Capital’s core business of investments and the Company’s core business of township.”
“There are large amount of opportunities for collaboration between National IC Industry Fund and the Company on our core businesses, such as industry park development and operation, auxiliary services and industry integration. Capturing these opportunities will greatly benefit the Company in terms of rapid growth in business scale, profitability and expansion of business network. CNTD will stay fully committed to substantiating cooperation at specific projects and exploring strategic opportunities with CDB Capital in its other investment areas, so as to fulfil the recognition our Controlling Shareholder entrusted to us.”