ZST Digital Networks, Inc. Enters Into Purchase Agreement for New Office Space
Investment in New Office Space to Support Ongoing Growth
ZHENGZHOU, China, Jan. 28, 2011 /PRNewswire-Asia-FirstCall/ -- ZST Digital Networks, Inc. (Nasdaq: ZSTN) ("ZST" or the "Company"), a major developer, manufacturer and supplier of digital and optical network equipment to cable system operators and provider of GPS tracking devices and support services for transport-related enterprises in China, today announced that as a part of its ongoing expansion strategy, the Company recently entered into a purchase agreement for two floors of an office building located near its existing offices in Zhengzhou City, China. The purchased area is approximately 2,880 square meters, for a total purchase price of approximately US$7.8 million.
As part of its long-term expansion plan, the Company had expected that a move to a larger office space would eventually become necessary, and therefore signed a two-year lease on its current office space in May 2009, which is set to expire in April 2011. As anticipated, headcount for the full year 2010 increased approximately 50% year-over-year, significantly constraining the Company's ability to expand. In addition to providing additional workspace and growth capacity, the new office space purchase puts a significant tangible asset on ZST's balance sheet.
Commenting on the news, Mr. Zhong Bo said, "We believe the ongoing opportunities in the underpenetrated IPTV market in Henan remain robust, and we are further ramping up our fast-growing commercial GPS tracking products and services business line. As such, the acquisition of this new office space represents a strategic investment in our future, giving us the necessary flexibility to effectively manage our expansion, while also providing us with a valuable tangible asset. Significantly, despite the highly publicized real estate boom in China, we believe that we were able to purchase the new office space at a discount to the per meter price of comparable office space in the area. I believe that this investment illustrates the strength of our healthy financial position and our commitment to driving measured, responsible growth with a focus on building shareholder value over the long-term."
About ZST Digital Networks, Inc.
ZST Digital Networks, Inc. (Nasdaq: ZSTN) is a China-based company, principally engaged in supplying digital and optical network equipment and providing installation services to cable system operators in the Henan Province of China. The Company has developed a line of IPTV devices that are used to provide bundled cable television, Internet and telephone services to residential and commercial customers. The Company has assisted in the installation and construction of over 400 local cable networks in more than 90 municipal districts, counties, townships, and enterprises. The Company also provides a commercial line of GPS devices and support services for transport-related enterprises to track, monitor and optimize their businesses. For more information about ZST Digital Networks, Inc., please visit http://www.shenyangkeji.com.
Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding the progress of new product development. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the seller's ability to provide the purchased property in accordance with the purchase agreement; our ability to maintain and increase revenues and sales of our products; our ability to develop and market new products; our strategic investments and acquisitions; compliances and changes in the laws of the People's Republic of China (the "PRC") that affect our operations; our ability to obtain all necessary government certifications and/or licenses to conduct our business; vulnerability of our business to general economic downturn, especially in the PRC; adverse capital and credit market conditions and our ability to meet liquidity needs; and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.
Contacts: |
||
ZST Digital Networks, Inc. John Chen, CFO Email: [email protected] |
Investor Relations (HK): Mahmoud Siddig Taylor Rafferty Tel: +852-3196-3712 Email: [email protected] |
|
Investor Relations (US): Bryan Degnan Taylor Rafferty Tel: +1 (212) 889-4350 Email: [email protected] |
Investor Relations (US): BPC Financial Marketing John Baldissera Tel: +1-800-368-1217 |
|
SOURCE ZST Digital Networks, Inc.
Share this article