Xinyu Hengdeli (HKG:3389) Acquires Taiwan Jing Guang Timepiece To Further Strengthen its Retail Platform in Greater China Region

Hong Kong, Oct 13, 2009 AEST (ABN Newswire) - Xinyu Hengdeli Holdings Limited ("Xinyu Hengdeli" or the "Company" and its subsidiaries, the "Group"; HKG:3389), a leading enterprise engaged in retail and distribution sales of renowned international watch brands in China, today announces that its wholly-owned subsidiary Taiwan Hengdeli Limited has entered into a purchase agreement with Taiwan Jing Guang Timepiece Holdings Limited, a watch importer and retailer in Taiwan, as well as its major shareholder Lee's Family. Xinyu Hengdeli will acquire 80% of the equity interests of Taiwan Jing Guang Timepiece to further strengthen its retail platform in the Greater China region.

The total consideration of this acquisition is HK$48,000,000, with P/E ratio of 6 times. Taiwan Jing Guang Timepiece was previously owned by Lee's Family, a Taiwanese retailer. After the acquisition, Lee's Family will maintain 20% stakes at Taiwan Jing Guang Timepiece.

Taiwan Jing Guang Timepiece distributes renowned international watch brands in Taiwan through its 31 retail outlets, covering major cities such as Taipei, Taichung, Kaohsiug, Hsinchu and Chiayi. The retail outlets include integrated outlets and brand boutiques, selling numerous notable brands including Omega, Rado, Tissot and Carl F. Bucherer.

Chairman of Xinyu Hengdeli, Mr. Zhang Yuping said, "Building a comprehensive retail network in the Greater China region is the Group's business strategies. This acquisition helps expand the Group's business in the Greater China region and establish an interactive business platform in mainland China and aboard, laying a solid foundation for its long-term development. Capitalizing on our stable and healthy growth in the PRC, we are committed to further strengthening and consolidating our leading position in the middle-to-high-end watch sector the Greater China region."

Issued by Porda International (Finance) PR Co., Ltd. for and on behalf of Xinyu Hengdeli Holdings Limited.

Contact

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