HANGZHOU, China, Dec. 27, 2010 /PRNewswire-Asia-FirstCall/ -- China Shengda Packaging Group Inc. (NASDAQ: CPGI), a leading Chinese paper packaging manufacturer, today announced the Company's wholly-owned subsidiary Zhejiang Great Shengda Packaging Co., Ltd. ("Great Shengda") received approval from the local tax authorities of its National High-Tech Enterprise status, as recognized by the Ministry of Science and Technology of China, the Ministry of Finance, and the State Administration of Taxation. Earlier in the year, Great Shengda was granted the status, subject to registration with and approval from local tax authorities.
As a result, Great Shengda is entitled to a preferential tax rate of 15 percent instead of the statutory income tax rate of 25 percent. The High-Tech Enterprise status and the eligibility for the preferential tax rate are effective retroactively as of January 1, 2010 and are reviewed by the government authorities every three years. The recognition and tax break only applies to the Great Shengda subsidiary.
Great Shengda was granted the status as a National High-Tech Enterprise because the subsidiary met the following criteria: 1) it makes products encompassing independent intellectual properties in one of the key high-tech fields supported by the government; 2) it conducts research and development to leverage the latest scientific technology to achieve technical and product innovations; 3) its research and development, organizational, management, and technical result development capabilities are in line with government requirements; and 4) its independent intellectual properties generate innovative scientific and technological achievements that result in revenue and capital growth.
Mr. Daliang Teng, Chief Executive Officer, stated, "We are proud of the recognition of Great Shengda as a high technology enterprise. We offer innovative packaging solutions to many of the world's leading manufacturers. Our focus is on quality and value through research & development and customer service. In addition to 30 internal research and technical professionals, we have collaborative agreements with reputable academic and research institutions. Our research & development efforts resulted in nine patents in China and two patent applications pending; we are committed to continuing to invest in research and development to maintain our competitiveness and our leading position in our market."
About China Shengda Packaging Group Inc.
China Shengda Packaging Group Inc. is a leading paper packaging company in China. It is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugated paperboards, which are used for the production of its flexo-printed and color-printed cartons. The company provides paper packaging solutions to a wide variety of industries, including food, beverage, cigarette, household appliance, consumer electronics, pharmaceuticals, chemicals, machinery and other consumer and industrial sectors in China. For more information, visit http://www.cnpti.com.
Safe Harbor Statements
This press release may contain forward-looking statements. Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual financial and operational results to differ materially from those suggested or implied in the forward-looking statements. Such factors include, but are not limited to, the Company's ability to develop and market new products, the ability to access capital for expansion and continued investment in R&D, the ability to acquire other companies, changes from anticipated levels of sales, changes in national or regional economic and competitive conditions, changes in relationships with customers, changes in profit margins of principal product and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Investor Relations Contact:
China Shengda Packaging Group Inc.
CCG Investor Relations
Ray Chen, Vice President of Investor Relations
Mr. Athan Dounis, Account Manager
Tel: +86-139 2527 9478
SOURCE China Shengda Packaging Group Inc.