CITIC 21CN Telecom has entered into a joint venture agreement with AQSIQ and China Huaxin Telecom to establish a company with an intention to engage in, among others, the authentication service for products manufactured in China.
AQSIQ is a Chinese state-owned enterprise and is wholly owned by the General Administration of Quality Supervision, Inspection and Quarantine.
The JV Company will be owned 50% by CITIC 21CN Telecom, 30% by AQSIQ and the remaining 20% by China Huaxin Telecom.
The registered capital of the JV Company will be CNY60,000,000, of which CNY30,000,000 will be contributed by CITIC 21CN Telecom in cash, CNY18,000,000 will be contributed by AQSIQ in cash, to be advanced by the Group on behalf of AQSIQ, and the remaining CNY12,000,000 will be contributed by China Huaxin Telecom in cash. Total investment of the JV Company will be CNY150,000,000.