Prosperousprint (08385) announced that the company has signed a memorandum of understanding with Shenzhen Caixin Jinyu Printing Co., Ltd. (joint venture) on this announcement date...
Prosperousprint (08385) announced that the company has signed a memorandum of understanding with Shenzhen Caixin Jinyu Printing Co., Ltd. (joint venture) on this announcement date, to establish a joint venture company and set up a factory (Huizhou Factory) in Huizhou, Guangdong, China. The main terms are as follows: The joint venture company will be established and the company will hold 28% equity, while the joint venture party will hold 72% equity; the joint venture company will operate the Huizhou Factory; the Huizhou Factory will have one 8-color printing press, two 4-color printing presses, two 2-color printing presses, one hardcover machine, one plastic binding machine, four folding machines, and two thread sewing machines; the company will be responsible for finding overseas customer orders, with a target of approximately RMB 30 million to RMB 40 million per year, while the joint venture party will be responsible for operating the Huizhou Factory; the Huizhou Factory will be mainly financed by the joint venture party and will borrow from banks when necessary (collectively referred to as "joint venture cooperation"). As of this announcement date, the memorandum of understanding is not legally binding and will be implemented only after the company and the joint venture party enter into a formal agreement.