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CMDA Enters into Non-competition Undertaking with its Parent Company
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Expedites business integration to realise remarkable synergies
( 18 July 2005 - Hong Kong ) - China Merchants DiChain (Asia) Limited ("CMDA" or the "Group", SEHK stock code: 632) who aims to become a top total logistics solution provider in mainland China, announced today that the Group has entered into a non-competition undertaking with its parent company, DiChain Holdings Limited (the "Parent Company" or "DiChain Holdings"). DiChain Holdings undertook not to directly compete with the Group's current logistics business. Moreover, the Parent Company will proactively enhance the cooperation between different entities, develop positive synergies and consider cooperating with CMDA in priority during the integration of its logistics business. The Parent Company will not rule out the possibility of allowing CMDA to have priority in acquiring the Parent Company's logistics assets and business.
Although the Parent Company has recently acquired Shanghai Centrans Logistics Company Limited, the sixth largest air and ocean transportation forwarding company in China , CMDA and the Parent Company believed that their logistics businesses are in different stages of development. The Parent Company is currently restructuring and integrating its logistics business while CMDA is focusing on investing and operating quality and well-established logistics business. CMDA is confident that, upon business integration, the logistics businesses of the Parent Company and the Group will develop positive synergies.
According to the non-competition undertaking, the Parent Company recognizes and reaffirms CMDA as its listed logistics flagship and endeavors to develop CMDA into the top integrated logistics service provider in Greater China and in the global market. The Parent Company will not compete with CMDA during the restructuring and integration of its domestic and overseas investment projects, including related logistics business and resources.
Dr. Frank Fan, Chairman of CMDA, stated, "The logistics businesses of CMDA and the Parent Company are differentiated in the stage and direction of development, market and target clients. We believe there will be no direct competition between the two parties in the related business. On the contrary, the Parent Company's businesses, such as the transportation agency business, will be complementary to and will generate synergies in CMDA's market position and client network. In addition, logistics business integration of the Parent Company will also bring forth development opportunities to CMDA and further strengthen the Group's integrated logistics and supply chain services."
About China Merchants DiChain ( Asia ) Limited
Leveraging on its well-established domestic and global logistics networks, CMDA focuses on providing one-stop logistics and supply chain management services including bonded warehouse, third party logistics, international cargo forwarding and shipping services, and logistic-related facility investments. CMDA's holding company, DiChain Holdings Limited, is a member of the China Merchants Group, a conglomerate in China with over 100 years of history in Hong Kong .
About DiChain Holdings Limited
DiChain Holdings was established by China Merchants Group, one of China 's four biggest enterprises overseas, DiChain Holdings' management and overseas investment funds in March 2000. It is an investment holdings company with diversified businesses including logistics, information technology and industrial investment. DiChain Holdings holds the Hong Kong-listed China Merchants DiChain ( Asia ) Limited (SEHK stock code: 632) and the U.S.-listed China Technology Global Corp (CTGLF) and China Pharmaceuticals International Corp (CPICF).
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