CHANGSHU, China, Dec. 2, 2010 /PRNewswire-Asia-FirstCall/ -- Sutor Technology Group Limited (the "Company", "Sutor") (Nasdaq: SUTR), a leading China-based manufacturer and distributor of high-end fine finished steel products and welded steel pipes used by a variety of downstream applications, today announced that its subsidiary, Changshu Huaye Steel Strip Co., Ltd. ("Changshu Huaye") has been classified as a High-Tech Enterprise by Jiangsu provincial government. As a result, Changshu Huaye is qualified to receive the preferential income tax rate of 15% according to "Enterprise Income Tax Law" and "High-Tech Enterprise Management Practice." Currently, Changshu Huaye is subject to the regular income tax rate of 25%.
Changshu Huaye, founded in 2002, is primarily engaged in manufacturing and distributing of high-end hot-dip galvanized and pre-painted galvanized steel sheets with total annual production capacity of approximately 500,000 metric tons. With strong R&D capacity, a short cycle of new product introductions, and the ability to quickly respond to market changes, Changshu Huaye is ideally positioned to take advantage of the evolving needs of technology driven steel demands for downstream applications.
Commenting on the designation, Ms. Lifang Chen, Chairwoman and CEO of Sutor Technology Group stated, "This is a tremendous honor and clearly differentiates us from our competitors. The award of 'High-Tech Enterprise' by the provincial government demonstrates Sutor's commitment to becoming a leader in China's high-end steel industry and that its endeavor in this regard has been recognized. This honor places Sutor among a select few value-added steel producers in China that have an extensive product portfolio and a significant number of repeating customers. As our business is moving at an upward trajectory, our longstanding R&D efforts combined with the preferential income tax rate are expected to contribute to the sustainable growth of the Company."
About Sutor Technology Group Limited
Sutor (Nasdaq: SUTR) is a leading China-based manufacturer and distributor of high end fine finished steel products and welded steel pipes used by a variety of downstream applications. The Company utilizes a variety of in-house developed processes and technologies to convert steel manufactured by third parties into fine finished steel products, including hot-dip galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sutorcn.com/en/index.php.
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected benefits from the classification as the High-Tech Enterprise, our expected financial performance, liquidity and strategic and operational plans, our future growth and operating results, our expectations regarding the market for our products, our expectations regarding the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2010, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
For more information, please contact:
Mr. Jason Wang, Director of IR
Sutor Technology Group Limited
SOURCE Sutor Technology Group Limited