Zhejiang HSD Industrial to purchase RMB 400-mln logistics asset

Jul. 3, 2009 (China Knowledge) - Zhejiang HSD Industrial Co Ltd<600687>, which is engaged in the development of real estate as well as the provision of data system integration services, on Jul. 2, announced that it plans to acquire a 100% stake in a Shanghai-based logistics firm through a private placement, sources reported.

Zhejiang HSD Industrial will sell up to 58 million shares at an average price of RMB 8.36 apiece.

The logistics firm, which has a registered capital of RMB 50 million and has an estimated net asset value of RMB 400 million, owns a piece of land covering an area of 666,669.6 square meters (sq m) in Fengxian District, Shanghai. On the site, Zhejiang HSD Industrial will build a large logistics park for storage, procurement and allocation.

Last year, Zhejiang HSD Industrial's core business revenue was RMB 493 million, a year-on-year growth of 2%. Net profit was RMB 2.84 million, declining 60% year on year.