(Hong Kong, 24 April 2015) Overseas Chinese Town (Asia) Holdings Limited (“OCT(Asia),” the “Company,” together with its subsidiaries the “Group,” HKEX stock code: 3366.HK) is pleased to announce that Chengdu OCT (a non-wholly owned subsidiary of the Company) participated and successfully won the public tender for the Subscription of 25,000,000 CDCT Development (Chengdu Culture & Tourism Development Company Limited) shares at the total Subscription of RMB265,250,000 (approximately HKD335,759,494), which shall be settled by Chengdu OCT in cash.
CDCT Development’s major asset is Xiling Snow Mountain Ski Resort located in Xiling Snow Mountain (being a National forest park and national AAAA tourist attraction), which is a natural and high quality ski resort in Southern China. Xiling Snow Mountain Ski Resort is a Mountain Ski Resort of the lowest latitude in China, equipped with rapid shuttle cableway and relevant accommodation facilities such as five-star, four-star and three-star hotels. The resort is just two-hour drive from Chengdu, and is accessible by highway. The number of visitors has increased rapidly in recent years. It recorded a turnover of RMB149 million in 2014, with a net profit of RMB56 million.
As the subscriber, Chengdu OCT mainly operates a large-scale project which integrates residential, commercial development, and Happy Valley Theme Park in Chengdu. The Group expects the share subscription in CDCT Development would gain additional profits from financial capital operations in the future. In addition, together with Chengdu OCT, the share subscription will bring synergy to the Group's commercial and tourism products by enhancing operational and marketing efficiency. It will also enable the Group to increase brand influence and further expand its market share across Southwest China. It is expected to enrich the Group’s commercial operation approaches, contributing a creative operation model which integrates capital management, asset management, and product operation. The Group believes that the subscription contributes to enriching and expanding the investment portfolio of the Group. It is an attractive opportunity and will provide satisfactory returns to the Group.