Doxen Signs MOU for Acquisition of Chongqing Tongyuan
Paves the Way for Penetrating the Quality Commercial and Residential Property Market in the PRC
Hong Kong, Aug 4, 2012 - (ACN Newswire) - Doxen Energy Group Limited ("Doxen" or the "Group") (HKEx: 668) today signed a memorandum of understanding (MOU) with the vendor to acquire 62% equity interest in Chongqing Tongyuan Real Estate Development Co., Ltd. ("Chongqing Tongyuan"). ChongqingTongyuan has recorded a satisfactory profit in 2011. The acquisition is expected to strengthen Doxen's efforts to tap the commercial and residential property market in the People's Republic of China (the "PRC").
Chongqing Tongyuan is principally engaged in investment holdings in a land parcel with an area of 233,705 square metres located in Chongqing City, the PRC, on which a large complex is under development in four phases (the "D7 Project"). Upon completion, the complex will include, amongothers, shopping arcades, grade A office buildings, residential apartments, serviced apartments and hotels. Based on the audited financial statements of Chongqing Tongyuan as at 31 December 2011 prepared in accordance with the PRC's applicable accounting standards, its revenue was approximately RMB748,992,000, and profits before and after taxation were approximately RMB86,159,000 and RMB62,329,000 respectively.
The D7 project is situated in Hong En Si, the core area of the Jiangbei Districtand also one of the few prime locations available for development in Chongqing. Jiangbei District is one of the principal urban areas within Chongqing, and the first key locality to be developed after the city has designated the northern section asa development zone. The district is soon expected to turn into the most prosperous central business district in Chongqing with frequent commercial activities and attract some of the top enterprises within the city.
Doxen, through its indirectly wholly-owned subsidiary, has signed an MOU with Chongqing Doyen (Holdings) Co., Limited, which is wholly-owned by Mr Lo Siu Yu and his family. Mr Lo is the Executive Director, Chairman and controlling shareholder of the Group. The MOU involves the proposed acquisition of the 62% equity interest in Chongqing Tongyuan owned by Chongqing Doyen. The remaining 38% equity interest in Chongqing Tongyuan is held by the Jiangsu Huaxi Group Company.
Following the indirect acquisition of 70% equity interest in the Dong Dong Mall in Chongqing City from Chairman Lo Siu Yu in April this year, the Group continued to look for appropriate commercial and residential property project. This initiative demonstrates Doxen's determination and capability to successfully enter the property market in the PRC.
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