Qiao Xing Universal to Peel Subsidiary for Multi-operations

Qiao Xing Universal Telephone Inc. (NASDAQ: XING) has agreed through a letter of intent to sell one of its subsidiaries to third-party holding company Dragon Fu Investment Ltd. (DFIL), the Chinese telecoms equipment and terminal announced lately.

Named Qiao Xing Communication Holdings Ltd., the target company is mainly engaged in the production of fixed-line phones and low-end mobile phones via its subsidiary Huizhou Qiao Xing Communication Industry Co., Ltd., which suffered a loss of about USD 42.7 million in 2008.

In fact, DFIL is brewing its expansion into the Chinese consumer electronics industry and appreciates Qiao Xing Communication Holdings' distribution network and the COSUN (Qiao Xing) brand, said an executive director of the investor. On the other hand, Qiao Xing Universal Chairman Rui Lin Wu believed that it was time for his company to enhance its resource business, such as the well-run molybdenum mining.

In addition, the deal is still subject to DFILs' due diligence and assessment agencies' reports.

Source: www.sina.com.cn (September 02, 2009)

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