|By ACN Newswire||
|October 15, 2012 04:47 AM EDT||
The consideration for the transfer of the operation rights is HKD554,321,000 or an equivalent amount in RMB and shall be payable in cash by six installments between 2012 and 2016. The consideration was determined after arm's length negotiations between the parties to the operation rights transfer agreement with reference to the valuation quote of approximately HKD550 million as at 30September 2011 by way of a direct comparison approach provided by Vigers Appraisal & Consulting Limited, an independent valuer. The Group has received the whole amount HKD92,386,835 of the first installment on September 20, 2012.
Dr. SUNG Chung Kwun, Honorary Chairman of the Group, said, "The passing of the resolution of the Operational Right Transfer Agreement enables stable cash income to the Group. The Group intends to apply the raised net proceeds as our working capital. When our world's leading and large scale customers have been tightening up the international standards for Energy-saving and Emission-reduction to their sweater manufacturers, we are confident that the commencement of operation of our "Green Factory" in Cambodia by end of 2012 will further enhance the Group's competitive advantages on quality, environmental protection and production technology and to further improve the gross profit margin on our way to become Asia's leading and a world class textiles and garment manufacturer."
Addchance is a leading manufacturer of dyed yarns and knitted sweaters. Listed on the Hong Kong Stock Exchange and with over 30 years of experience, the Group has become one of the largest manufacturers in the industry. From spinning, dyeing, knitting, linking to finishing, Addchance is a highly vertically integrated business capable of providing one-stop services from start to finish. With proven experience and strong international accreditations, the Group combines production know-how with economies of scale. Manufacturing over 1,000 textile products including dyed yarns and knitted sweaters, our exemplary product quality is in line with world standards and has earned us an outstanding market reputation.
Addchance has been recognised by international organisations for using advanced technology and for its product quality. Awarded the ISO 9001, Oeko-Tex Standard 100 and the Woolmark license, the Group is committed to providing the best services to its customers. Headquartered in Hong Kong, Addchance leverages strong international skills for management, sales and marketing, design, and logistic functions. Through its extensive production facilities strategically located throughout China and Cambodia, the Group takes advantage of the flexible and high-quality manufacturing expertise the region has to offer. www.addchance.com.hk.
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