Development in Electronic Procurement Market
HONG KONG, Aug. 27, 2014 /PRNewswire/ — China Public Procurement Limited (Stock code: 1094), "The Company", "The Group" or "CPP", announced at its board meeting that CPP signed framework cooperation agreements with several procurement technology companies. The board also signed a memorandum of understanding on an acquisition of a local technology company.
A wholly owned subsidiary of CPP, CPP (Beijing) Technique Co., Ltd. signed a framework cooperation agreement with Beijing Yangguang Gongcai Technology Company Limited (Beijing Sunshine). The agreement stated an intention for cooperation on promoting the Government’s electronic procurement platform, exchanging of procurement news and information, sharing on data and reciprocity agreement on vendors, etc. The generated sales and income will be shared among the two companies on a pro-rata basis. Beijing Yangguang Gongcai Technology Company Limited is established in 2013 as a platform for public resources exchange, developers and operators of software applications. A number of software products developed by Beijing Sunshine have been applied in the electronic procurement market at a governmental level.
Furthermore, CPP (Beijing) Technique Co., Ltd. signed a credit investigation cooperation agreement with Beijing Credit Management Company. The agreement includes providing supplier credit investigation and credit rating services, providing technical support such as data management of corporate credit investigation, encoding of company identification, and establishment of credit information application platform, etc. to CPP (Beijing) Technique Co., Ltd. Beijing Credit Management Company is a company principally engaged in the provision of credit investigation services in the PRC and it is a PRC government recognised institution for industry credit rating.
CPP has also entered into a memorandum of understanding to make an acquisition of no less than HK$30 million of Diko Global Group Co., Limited (Diko Global). Diko Global is principally engaged in the wholesale and distribution of Western Digital hard drives in Hong Kong and the PRC, and it is one of the sales distributors of Western Digital hard drives in the PRC region. CPP believes that the Proposed Acquisition will broaden the Group’s client base and its source of income.
Mr Cheng Yuanzhong, Chairman of CPP said: "China Public Procurement Limited’s signing of another cooperation framework agreement will help consolidate and expand the side of the business organizations of e-procurement platform, which will in turn enhance technology standards, diversify the levels of procurement related information and expand the areas of business. As Diko Global is within our area of business, we believe the acquisition will also bring us significant value and immediate revenue. We believe these cooperation agreements and this proposed acquisition will also enhance the competitiveness of the company in the long-run, and provide more favourable returns to shareholders."
About China Public Procurement Limited
China Public Procurement Limited is listed on the Main Board of The Stock Exchange of Hong Kong (stock code: 1094). The Group is principally engaged in the development of the public procurement services which involves the provision of procurement services to general public and government in the PRC, also for the global public procurement, and provides a series of public procurement business related services, including financial services.