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Ground Properties Announces the Acquisition of Shanghai Motion JUNS Communication Technology Company Limited(JCN Newswire Via Acquire Media NewsEdge) Hong Kong, July 23, 2014 - (ACN Newswire) - Ground Properties Company Limited ("Ground Properties" or the "Group"; stock code: 989) is pleased to announce that it has entered into the agreement to acquire the entire equity interest in Shanghai Motion JUNS Communication Technology Company Limited("JUNS Communication") via Shanghai CM Concept Communications Products Franchise Sale Company Limited("Shanghai CM Concept"), a wholly-owned subsidiary of Ground Properties. Besides, JUNS Communication holds 55% of the total issued share capital of Shanghai Xinhua Motion Communication Technology Company Limited("Shanghai Xinhua Motion"). Upon completion of the acquisition, members of the JUNS Communication and Shanghai Xinhua Motion will become subsidiaries of the Group and their financial results will be consolidated into that of the Group.The total consideration is RMB9.0 million (equivalent to approximately HK$11.25 million), which was primarily determined with reference to the unaudited consolidated net asset value of the JUNS Communication and Shanghai Xinhua Motion attributable to the equity holders as at 31 May 2014 of approximately RMB8.995 million (equivalent to approximately HK$11.244 million). The Group is primarily engaged in the provision of telecommunications retail sales and management services, property investment, as well as property development and management business. In order to further enhance the profitability of its telecommunications retail sales and management services segment, the Group has adjusted its strategies to seek for the opportunities to cooperate with other telecommunications operators to further expand its telecommunications business and capitalise on its channel advantage to continuously develop the retailing of electronic products, such as mobile accessories. The Group currently operates 21 retail stores in Shanghai that provide telecommunications equipment and management services for a leading national telecommunications operator in China while the JUNS Communication mainly operates as an outbound call center with 80 phone lines and 110 staff for the same telecommunications operator to handle its business inquires, consultation, business requests processing and customer complaints in Shanghai. Meanwhile, Shanghai Xinhua Motion has been cooperating with another leading national telecommunications operator since its establishment in 2010 and is primarily engaged in operation of retail network for this telecommunications operator, including selling telecommunications and mobile products to end user customers in Shanghai. Shanghai Xinhua Motion currently engaged around 50 staff through 9 direct sale outlets and 12 franchised sales outlets, focusing on the sale of 3G terminals, and is also currently expanding its business to the sale of 4G terminals. For the five months ended 31 May 2014, JUNS Communication and Shanghai Xinhua Motion recorded a turnover of approximately RMB9.322 million with net profit after taxation of approximately RMB1.808 million.The management of the Group considers that this acquisition is in line with its strategic development to expand the telecommunications retail sales and management services segment with the following benefits:1. JUNS Communication and Shanghai Xinhua Motion have an established business presence in the mobile telecommunications in Shanghai which would add diversity to the existing product and services offering of the Group, thereby reducing the Group's reliance on its existing products and services;2. JUNS Communication and Shanghai Xinhua Motion have established key business relationship with leading national telecommunications operators on which the Group could leverage to further develop its telecommunications business in Shanghai;3. there is significant development potential of the new products and services by utilizing the existing business platform of the JUNS Communication and Shanghai Xinhua Motion. For example, the business scope of the JUNS Communication and Shanghai Xinhua Motion can be extended to other businesses including but not limited to dining, aviation, banking and taxi-booking services relying on its current management and operation teams and its integrated calling technical solutions; and4. there is potential business synergy between the business of the JUNS Communication and Shanghai Xinhua Motion with the existing telecommunications retail sales and management services business segment of the Group. Ms Chai Xiu, Chairman and Chief Executive Officer of Ground Properties, said, "We believe this strategic acquisition will create important synergies such as the sharing of resources and a combined integrated service platform which could facilitate more in-depth partnerships with our clients so as to encourage more collaboration in future. We are confident to work hand in hand with our partners and clients to achieve a win-win success in the long term."About Ground Properties Company LimitedGround Properties Company Limited is primarily engaged in provision of telecommunications retail sales and management services and property investment as well as property development and management business. With regards to telecommunications retail sales and management services, the Group currently operates 21 retail stores in Shanghai that provide telecommunications equipment and management services. Acknowledging the increasing importance of the property investment business, the Group has designated it as a separate business segment in September 2013 and its investment properties are all situated in Hong Kong. In respect of the property development and management business, the Group completed acquiring 35% equity interest in the property project in Changbaishan, Jilin Province, the PRC, in October 2013 and securing management rights for the project. This integrated-property project is expected to be developed into an upscale resort consisting of a six-star hotel, theme park, stand-alone houses and apartments. Contact: Strategic Financial Relation Limited Joanne Lam +852 2864 4816 [email protected] Jovanni Cai +852 2114 4937 [email protected] Miranda Xie +852 2864 4862 [email protected] Copyright 2014 ACN Newswire. All rights reserved. |