Dragon Venture, a holding company of high-tech companies in China, announced today that it has signed a letter of intent to acquire 51% of Beijing Dejiqingyuan Environment Technology Company, Limited. On July 25, 2005, Dragon Venture signed a letter of intent to acquire 51% of Shanghai Dejiqingyuan Environment Technology Company, Limited ("Dejiqingyuan").
Beijing Dejiqingyuan Environment Technology Company, Limited, located in Beijing and Shanghai Dejiqingyuan Environment Technology Company, Limited, located in Shanghai are engaged in the business of waste water treatment. Mr. Ming Chang is the CEO and Chairman of both companies. Mr. Chang is the largest shareholder of both entities, owning 80% of the operation in Beijing, and 85% of the Shanghai operation.
The companies have jointly developed a proprietary waste water treatment system. The company received a patent on its system (ZL02338376.3), by the Offices of the China Patent and Trademark in 2003, that uses both biotech and ecological technologies to treat residential waste water. This residential treatment system is regarded as one of the leading technologies by the Ministry of Construction of China, and was approved for use by governmental agencies in China in December 2003.
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In 2003, the companies had combined revenues of 5.5 million RMB (approximately $679,000). In 2004, the companies had combined revenues of 22 million RMB (approximately $2.5 million) with net profit margins of approximately 40%. Both companies expect to launch additional projects in 2005 and 2006.
Lawrence Wang, CEO of Dragon Venture, commented, "We are very excited about these potential acquisitions. They fall within our strategy of becoming a leading high-technology holding company in China."
Wang concluded, "The acquisition of Dejiqingyuan could be another important milestone in the very young history of Dragon Venture, which we believe could substantially increase our revenues and net income for years to come."
