ZHENGZHOU, China, Dec. 9, 2010 /PRNewswire-Asia-FirstCall/ -- China Valves Technology, Inc. (Nasdaq: CVVT) ("China Valves" or the "Company"), a leading Chinese metal valve manufacturer, today announced that the Company's wholly-owned subsidiary Zhengzhou Zhengdie Valve Co., Ltd ("Zhengdie Valve" or the "Subsidiary") received the National High-Tech Enterprise status from the Chinese government, as recognized by the Ministry of Science and Technology of China, the Ministry of Finance, and the State Administration of Taxation.
As a result, the Subsidiary 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 as of November 29, 2010 and are reviewed by the government authorities every three years. The preferential tax rate will be applied retroactively for the entire fiscal year 2010. The recognition and tax break only applies to the Zhengdie Valve subsidiary.
Zhengdie Valve was granted the status as a National High-Tech Enterprise because the subsidiary met the following criteria: 1) it possesses products with independent intellectual property within one of the key high-tech fields supported by the government; 2) it leverages scientific technology to materially improve technological and/or product improvements while performing research and development; 3) its research and development, organizational, management, and technical result development capabilities are in line with government requirements; and 4) it possesses sufficient independent intellectual property that supports revenues generated by innovative scientific and technological achievements and capital growth.
"We are very pleased with the recognition of Zhengdie Valve as a high technology enterprise and are working hard in order to expand this distinction to our other subsidiaries as well," commented Mr. Jianbao Wang, the Chief Executive Officer of China Valves.
About China Valves Technology, Inc.
China Valves Technology, Inc. through its subsidiaries, Zhengzhou Zhengdie Valve Co, Ltd., Henan Kaifeng High Pressure Valve Co., Ltd., Tai Zhou Taide Valve Co., Ltd., Yangzhou Rock Valve Lock Technology Co., Ltd., China Valves Technology (Changsha) Valve Co., Ltd. and Shanghai Pudong Hanwei Valve Co., Ltd., is engaged in the development, manufacturing and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries. The Company has one of the best known brand names in China's valve industry, and its history can be traced back to 1959 when it was formed as a state-owned enterprise. The Company develops valve products through extensive research and development and owns a number of patents. It enjoys significant domestic market share and exports to Asia and Europe. For more information, visit http://www.cvalve.com
Safe Harbor Statements
Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those 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, 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 principal product profits and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. This press release is based upon information available to the public, as well as other information from sources which management believes to be reliable, but it is not guaranteed by China Valves to be accurate, nor does China Valves purport it to be complete. Opinions expressed herein are those of management as of the date of publication and are subject to change without notice.
SOURCE China Valves Technology, Inc.