"...Asian Star Development by and through its subsidiary, Harmonic Hall Investments Holdings Limited ("Harmonic"), announced the signing of a joint venture agreement with Henan ANCAI Group -- Melody Electronic Co., Ltd. ("ANCAI"), to manufacture CD-RW products in China. "Harmonic" holds majority interest in the venture. The closing of the joint venture transaction is subject to completion of definitive agreements to be prepared by legal counsel.
"ANCAI" is a Fortune 500 Firm in China and is listed on the Shanghai Stock Exchange, trading No. 600207. ANCAI's gross assets (1999) were approximately US$300 million and revenue (1999) were approximately US$108 million. ANCAI's current market capital is approximately US$730 million. ANCAI is also a leading corporation in Henan Province, the most populated province in China. Harmonic was granted the first permit ever issued by the Chinese Central Government to manufacture CD-RW products in China, and plans to expand production to other products, e.g., CD-R, DVD, etc.
Stephen Chow, president of Asian Star, stated, "We are delighted to be associated with one of the top corporations in China in this exciting new high tech venture. Since ANCAI is also in the high-tech manufacturing field, we believe our R & D Division will become much stronger. We also expect our manufacturing facility will place us in an excellent position to capitalize on the rapidly expanding CD, CD-RW and DVD markets in China, a country with 1.3 Billion potential consumers..."