BEIJING, Dec. 21, 2011 /PRNewswire-Asia/ -- China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF) ("TechFaith" or the "Company") today announced today that it has received approval from the Shenyang Government for the acquisition of approximately 11.5 acres in Shenyang City's Shenbei New District. TechFaith's new facility will include integrated R&D, sales and distribution. The land contract is valued at approximately RMB 14.4 million (approximately US$2.3 million).
Shenyang, the capital of the Liaoning Province and the largest city in Northeastern China, is also one of China's premier centers for high technology and industrial development. Many top universities, including Northeastern University, Liaoning University and Shenyang Normal University, are located in Shenyang.
The new facility is part of a broader, major joint venture development project between TechFaith and the Shenyang PuHe New Town Administration Committee ("PuHe"). As part of the joint venture, TechFaith expects to invest approximately RMB 200 million (approximately US$31.5 million) over the next three years. PuHe will invest approximately RMB 40 million (US$6.3 million) in the joint venture development project and will also provide up to RMB 10 million (US$1.6 million) to TechFaith as an investment incentive. The joint venture entity will be 16.7% owned by PuHe and 83.3% owned by TechFatih.
Mr. Defu Dong, Chairman and CEO of TechFaith, said, "Being able to locate an integrated facility in such a prominent high technology and industrial center will give TechFaith an advantage when working with customers and partners, hiring top R&D and sales talent, and will enhance our profile with new customers. Importantly, our joint venture will allow us to expand our capabilities while remaining financially conservative. This means we will have the benefits of our expanded capacity when the industry resumes the growth portion of the current cycle, while continuing to maintain the strong balance sheet needed to support our ongoing growth and success."
TechFaith (NASDAQ: CNTF) has three primary businesses. The Company is a leading global mobile solutions provider for global mobile handsets market (which was previously called an ODP (Original Developed Product) business). Under its TecFace brand, the Company is a leading developer of specialized mobile phones for differentiated market segments, including the rapidly growing Smartphone market targeting users and Operators through its QIGI brand; Outdoor and Sports enthusiasts through its Jungle brand; and the Teen market through licensed brands. Under the Company's 17Vee brand, the Company has built a leading, intellectual property based motion gaming business ranging from Bluetooth enabled motion gaming controllers and software to a recently launched proprietary set-top motion game box. For more information, please visit www.techfaithwireless.com, www.17vee.com and www.798game.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith and management quotations contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
SOURCE China TechFaith Wireless Technology Limited