Hong Kong, Mar 2, 2009 (ABN Newswire) - Despite the adverse environment under the global economic slowdown and dwindling market demand, Overseas Chinese Town (Asia) Holdings Limited (HKG:3366), together with its subsidiaries the "Group"), a top-of-the-line paper packaging products manufacturer in China, finds its principal business keeping a steady development pace. This is the result of its efforts in aggressive marketing development, enhanced internal management, cost reduction through boosting its bargaining power by centralized raw materials sourcing and the like, as well as improved product quality. Its management believes that while the grave economic conditions will for sure accelerate the pace of consolidation of the paper packaging industry, the intense market competition will only create more room for growth for companies with solid strengths.
2009 will see the operation of the Group's new production base in Huizhou, Guangdong in the second half of the year, which is planned to be developed into the core production base of the company. The production base will comprise an environmentally friendly, advanced and modern steel industrial complex, plus an office complex that houses the business, R&D and showroom facilities. During the process, there will be an expansion of the Group's production capacity. Going forward, the Group will keep up with its efforts in various initiatives to enlarge its market share and enhance its gross profit margin, refreshing its product mix to meet customers' demand, exploring the high-end customers segment and increasing the proportion of high value added products in its sales mix, such as colour-print packaging products.
At the same time, the Group will reinforce its capital risk management to develop its business at the appropriate scale and pursue growth on a solid track. The management' is full of confidence in the PRC's long-term economic growth and the sustainable increase in its domestic consumption. Buoyed by the economic stimulus package introduced by the government, the mainland economy is expected to regain its momentum gradually. It is believed that relying on its quality products, innovation strengths, steadily increasing customer base, increasingly strong strategic position, the Group will be able to get through the difficult times under the economic slowdown.
Apart from consolidating its principal business of manufacturing high quality paper packaging containers and other packaging products, the Group also explores other investment projects with a good potential. By the end of last year, the Group has obtained a 25% equity stake in Chengdu Tianfu OCT Industry Development Co. Ltd ("Chengdu OCT") by way of acquisition. Chengdu OCT owns a large-scale tourism and property development project, which comprises a theme park, urban entertainment culture facilities and residential estate. Occupying a site of around 2.28 million square meters, the development will be the largest urban tourism and entertainment project in Southwestern China. Its theme park, which opened to public this January, together with its Park Square, received nearly 200,000 visitors in the 7-day Spring Festival holiday season and becomes a new sightseeing hotspot in Southwestern China.
The Group is of the view that Chengdu is in a rapid growth phase and the development of its tourism and property industries is considered as top priority by local government and authorities. At the same time, the increasing purchasing power of the population in Chengdu is also expected to give a boost to the growth of its tourism and property markets. Such a backdrop is expected to spawn opportunities for Chengdu OCT.
2009 is going to be a challenging year. The Group will allocate its resources in a flexible manner in light of market conditions so as to explore development opportunities on different horizons and actively participate in investment projects favourable for its future development. In this way, the Group seeks to keep on expanding its business scale in order to deliver better results.
Mr. Ni Zheng, aged 41, is an executive Director and CEO of the company. Mr Ni has participated in the Group's management since 1999 as the director of Shenzhen Huali. Mr. Ni is also a director of OCT Hong Kong Co., Ltd and various subsidiaries, and Chengdu OCT. He had been the deputy general manager and general manger of investment department of OCT Enterprises Company, the ultimate shareholder of the Company. Ni graduated from the department of Applied Physics of Chongqing University and obtained a bachelor's degree in Science and a master degree in Engineering in 1988 and 1991, respectively.
About Overseas Chinese Town (Asia) Holdings Limited
OCT (Asia) (3366.HK), formerly known as Huali Holdings (Group) Limited), which was listed on the Main Board of The Stock Exchange of Hong Kong Limited on 2 November 2005, is a leading group in the design and manufacture of quality corrugated paperboard and packaging products in the PRC. Since its first factory was established in 1985, the Group has expanded its production facilities into Shenzhen, Shanghai, Zhongshan and Huizhou. Its diverse customer base comprises large-scale domestic companies and the PRC arms of multinational corporations engaged in different industries. Its extensive sales network covers the Pearl River Delta and Yangtze River Delta of Mainland China. Currently, the Group indirectly holds a 25% equity interest in Chengdu OCT. Owing to the leading position in paper packaging industry, the South China Packaging R&D and Testing Center of Paper Products is set up at its subsidiary in Shenzhen by China Packaging Association. This subsidiary was also the chief drafting unit involved in the formulation of the national standards for corrugated paperboard containers for transportation and packaging purposes, which came into effect in October 2008.
IR Contact Overseas Chinese Town (Asia) Holdings Limited Company Secretariat Tel: + 86-755-2693-5918 / +86-755-2693-5118 Fax: + 86-755-2690-6606 E-mail: firstname.lastname@example.org Website: www.oct-asia.com