- Sep 10, 2015
- Riding on the industrial policy trend, CNTD expects to be an integrated operator of industrial park
(Hong Kong and Singapore, 10 September 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) announces that on 1 September 2015 Mr. Liu Heqiang, CEO of CNTD, participated a major forum with the theme of “Transition and Upgrading of Manufacturing Industries on the Trend of Internet and Industry 4.0” in Nanjing, which is hosted by Shenzhen Venture Capital Association. CNTD entered into strategic cooperation framework agreement with Shenzhen Venture Capital Group (“SVCG”) at the meeting, pursuant to which the parties shall establish long-term strategic relationship. In addition, Mr. Liu Heqiang, CEO of CNTD, and Mr. Ni Zewang, Chairman of SVCG has an in-depth discussion on topics including the development of new town development industry, the prospects and the goal of the strategic cooperation, etc.
CNTD keeps abreast of national policies and explore new development models
The integration of industrial development and urbanization is a new development model against the background of China’s transition and upgrading. Comparing with the separation of industrial development and urbanization, the integration of industrial development and urbanization focuses on the integration of industrial functions and urban functions as well as spatial integration to promote the urban development in sync with industrial prosperity. The integration of industrial development and urbanization is the development trend of China in new-type urbanization, fostering the core competencies as a new town developer, but also creating lucrative business opportunity.
CNTD is a pioneer in new town development in China with extensive experience in urban development. The landmark project of CNTD , Shanghai Luodian New Town was granted the prestigious status as “Pilot Town of United Nations Development Program” and “Pilot Town of National Development and Reform Commission (NDRC)” etc. National policy has been advocating the integration of industrial and urbanization development as the growing trend of new town development. Against this background, the Company expects to change its single revenue model which entirely relies on primary land development, and consider industrial park development as a pillar of the Company’s future business. CDB Capital maintains solid relationship with local governments and has extensive experience in industrial investment. Since CDB Capital becoming the Company’s controlling shareholder, the Company inherits significant advantages of developing industrial park from its controlling shareholder’s network and experience. In early June, the Company entered into the strategic cooperation framework agreement with IC industry fund (the “Fund”). As an industrial investment fund with state-level support, the Fund was co-founded and managed by CDB Capital, with Fund under management designated at RMB 200 billion. As business opportunities arisen from the Fund emerging throughout the entire country, the cooperation between the Company and the Fund is expected to bring the Company extensive opportunities on industrial development projects. Strategic cooperation with SVCG represents an important step toward the “industry investment and industrial park development” integrated model.
Cooperating with SVCG, CNTD explores “industry investment and industrial park development” integrated model
SVCG is a leading institutional investor in China’s high-tech industry with over 15 years of venture capital experience. In recent years, SVCG has successfully invested into approximately 100 listed companies. With unique vision in investment in high-tech industry, SVCG has accumulated numerous quality industrial park projects. Therefore, CNTD’s strategic alliance with SVCG is considered as a successful collaboration. With support from CDB Capital China Urbanization Strategic Alliance and SVCG, CNTD expects to introduce quality resources for the development and operation of the industrial park, which is favorable for the improvement of regional value with a view to achieving the Company’s goal of the integration of industrial development and urbanization.
Land parcel A5 of Yuhuatai District in Nanjing (the “Land Parcel A5”), co-invested and co-developed by CNTD and SVCG, is the first project launched under the development model of the integration of industrial development and urbanization. With its prime location, the land parcel A5 is expected to provide ancillary business resources to improve the integrated value of Nanjing Software Valley.
Mr. Liu Heqiang, CEO of CNTD, said, “The Company expects to replicate the integrated model in other quality industry parks by leveraging SVCG’s project resources and its own operation experience. We will strengthen the cooperation with SVCG in the future. Given the long cooperation experience between SVCG and CDB Capital before, we are full of confidence in Nanjing Software Valley Project.”
Via the strategic alliance with SVCG, CNTD expects to be anintegrated operator featuring industrial park
Given the strategic cooperation with SVCG, Mr. Liu Heqiang said, “The Company will focus on two aspects to enhance the integrated value of industrial parks in the future. Firstly, CNTD will provide financing support to solve financing problems for the development of industrial parks through diversified methods, including raising industrial investment funds. Secondly, CNTD can introduce quality resources, such as industrial chain, commercial services, education and healthcare, to enhance the integrated value of industrial parks. As a core listed company and operating platform for CDB Capital in the field of urbanization, we are confident of introducing value-added resources and providing financing support for the development of industrial parks by leveraging our extensive experience, resources and the significant advantages of the controlling shareholder.”
Mr. Liu Heqiang said, “The future trend of real estate development in China will focus on integrating industrial elements in its projects. Looking ahead, real estate development in China is no longer a simple matter of residential property development or commercial property development. Instead, it will focus on the construction for venture capital industries. The construction for venture capital industries is expected to make a sustainable contribution to higher national tax revenue and higher employment rate, representing a positive significance for social development. The Company will fully seize the opportunities to be a new-type developer and operator of industrial park.”
“The cooperation with SVCG represents an important milestone of the Company’s development after strategic cooperation with National IC Industry Fund. The vision for the establishment of China Urbanization Strategic Alliance is fully demonstrated. We believe a series of quality industrial park projects led by CNTD will be launched successively, and we are confident that CNTD will become a leading developer of industrial parks in the near future.”