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HONG KONG, Aug 24, 2010 - (ACN Newswire) - Phoenitron Holdings Limited ("Phoenitron Hold" or together with its subsidiaries the "Group"; stock code: 8066)(formerly known as "Cardlink Technology Group Limited"), a pioneer in the imported used automobile resources recycling business within China, announced today it has entered into a shareholder's loan agreement with Hota (USA) Holdings Corp. ("Hota"), an associated company of the Group, to accelerate its development of used automobile parts recycling business.
Under the agreement, Phoenitron Hold will provide Loan of USD8,500,000 to Hota at an interest rate of 10% per annum. The loan will be used to finance Hota for setting up facilities and factories in Zhangjiagang and commencing its re-manufacturing of used parts of second-handed automobiles businesses in Zhangjiagang. Part of the loan will also be allocated for general working capital.
The Group, through the investment in Hota, has become the only foreign enterprise to set up a factory in Zhangjiagang, China for disassembling imported used automobiles and selling the metal and other resources derived from these automobiles. The used automobile disintegration factory of Hota is expected to commence mass production in 4th quarter this year. In view of the development plan of a station for re-manufacturing of used automobile parts in the Zhangjiagang Bonded Area as announced by the relevant authority in the PRC, the Hota Group intends to obtain permission from the relevant authority to commence its used automobile parts re-manufacturing business in the Area.
Ms Lily Wu, Chairman of Phoenitron, said, "Riding on the Chinese Government's policy to promote used automobile recycling business, the new business will have great growth potential and prospect for the coming years. We are confident that the loan will enhance the development progress and profitability of Hota and in turn bring better returns to our shareholders."
Contact:
Strategic Financial Relations Limited
Heidi So, Tel: 2864 4826, Email: heidi.so@sprg.com.hk
Jover Wong, Tel: 2114 4955, Email: jover.wong@sprg.com.hk
Eric Liu, Tel: 2114 4901, Email: eric.liu@sprg.com.hk
Topic: Loans & Financing
Source: Phoenitron Holdings Limited
Sectors: Daily Finance, Automotive
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From the Asia Corporate News Network
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