Dragon Venture has signed a letter of intent to acquire a controlling interest in Shanghai Zhaoli Technology Development Company.
Dragon Venture will issue $500,000 worth of common shares as consideration to acquire 80% of Zhaoli.
Zhaoli is an information technology enterprise providing technology solutions to enhance its customer's businesses. Zhaoli generated approximately $20 million in sales for the fiscal year 2004 ending September 30, 2004. In the first nine months of the fiscal year 2005 ending June 30, 2005, Zhaoli generated approximately $18.8 million in sales. Zhaoli's customer list includes financial institutions, telecommunication companies, hospitals, supermarkets, airports, railway stations, and various government agencies.
Lawrence Wang, CEO of Dragon Venture, commented, "We are very excited with this potential addition to Dragon's high-tech family. This acquisition would represent a significant milestone for our company in achieving substantial growth in sales and earnings. We will integrate our wireless division and software division with Zhaoli operations, realizing improved profit margins."