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Fong’s Industries merged with China Hi-Tech Corporation to favourable for the Chinese and the Global Textile Industry
 

Following to a sale and purchase agreement between China Hi-Tech Group and Mr. Fong Sou Lam, the controlling shareholder, Chairman and director of Fong’s Industries Co. Ltd., both companies announced in January 2011 that China Hi-Tech Group is to make a possible acquisition. Now the acquisition took place: China Hi-Tech Group has completed its acquisition of the controlling shareholding in Fong’s Industries Co. Ltd.  
　　2011年1月中國恒天集團與立信工業有限公司控股股東、主席兼董事方壽林先生簽署買賣協議后，兩家公司均宣布中國恒天集團將立信工業納入麾下。目前中國恒天集團已完成了對立信工業有限公司控股權的收購。

Fong’s Industries has now a new major shareholder and will remain an independent public company at the HK stock exchange. China Hi-Tech Group Corporation (CHTC) holds a majority of some 60 percent of the shares and (the now) honorary Chairman and Executive Director Fong Sou Lam is holding 22 percent. Through the acquisition, it enables the companies to further strengthen their businesses within the textile machinery industry.
　　盡管立信工業現在有了新的大股東，但它仍是香港交易所的獨立上市公司。中國恒天集團（CHTC）持有約60%的主要股份，而（現）榮譽主席兼執行董事方壽林則持有22%的股份。并購后，公司能進一步增強各自在紡機業的運營水平。

Background
　　背景

CHTC has not owned any share in Fong’s Industries before. The company intends to continue Fong’s Industries’ existing businesses, will not execute major changes to the existing operations, or redeploy its fixed assets. Fong Sou Lam said that “China Hi-Tech Group will offer strong support for the future development, facilitating to achieve improved economies of scale and to further strengthen the competitiveness in the field of dyeing and finishing machinery in China and the world. On the other hand, the interest of CHTC confirms that Fong’s Industries has been on the right way with the company values: “Merge with Your Excellence”
　　中國恒天集團之前未持有立信工業任何股份。公司欲保持立信工業的現有業務，對現有經營不會做出重大調整，也不會重新調配其固定資產。方壽林先生說過“中國恒天集團將為未來發展提供強有力的支持，促進規模經濟的改善并進一步提高在中國和世界染整機械領域的競爭力。在另一方面，中國恒天集團的利益將確保立信工業仍秉承立信的價值理念：“整合優勢”。

The two companies and their respected customers, suppliers and business partners, who continuously supported growth and development of Fong’s Industries, adhere to the philosophy of Fong’s Industries. Through the co-operation of a state-owned enterprise and a family enterprise, Fong’s Industries’ brand concept “A Name You Can Trust for Your Dyehouse Needs” will carry forward in a broader open mind that also holds the culture spirit of China Hi-Tech Group and will tighten the relationship between both staffs.
　　兩家公司及其各自尊敬的客戶、供應商和業務合作伙伴將繼續支持立信工業的增長與發展，并堅持立信工業的理念。通過國企與家族企業的合作，在保持恒天企業文化精神的同時，將立信工業 “立信的標志，染整的信譽”這一品牌理念不斷發揚光大，并增強兩大企業員工之間的關系。

China Hi-Tech Group (CHTC)
　　中國恒天集團（CHTC）

CHTC is a major state-owned enterprise under the State-Owned Assets Supervision and Administration Committee of the State Council of the PR China. CHTC is different from other state-owned enterprises. Since the implementation of the board of directors system by the State-Owned Assets Supervision and Administration Committee in 2006, China Hi-Tech Group continuously carries on a mechanism of internal innovation, management transformation, long-term development strategies. It also closely regards the textile machinery manufacturing business as its principal business. Furthermore it carries on the visions on global resources conformity and accumulation and precipitation of development internationally.
　　中國恒天集團是國務院國有資產監督管理委員會監管的國有獨資大型中央企業。中國恒天集團不同于其他國有企業，自2006年國務院國資委在集團總部重點實施規范董事會制度建設以來，在不斷進行內部機制創新、管理變革的同時，亦從長遠發展戰略上，緊緊圍繞紡織機械制造核心主業，從全球視野進行資源整合和國際化發展的積累與沉淀。

The principal business activities of China Hi-Tech Group and its subsidiaries include textile machinery, cargo truck, textile production and trade. CHTC has a controlling stake in listed companies, such as Jinwei Textile Machinery Co., Ltd., a well-known brand with its “A” shares listed on the Shenzhen Stock Exchange, and its “H” shares listed on the Main Board of the Hong Kong Stock Exchange.
　　中國恒天集團及其子公司以紡織機械、商用汽車、紡織生產和貿易為主業。中國恒天集團擁有上市公司的控股權，其中包括著名的經緯紡織機械股份有限公司，該公司是深圳證券交易所的“A”股上市公司，以及香港交易所主板 “H”股上市公司。

The textile machinery field involves four major sectors: cotton and man-made fibre products, dyeing and finishing and nonwovens; however, it has always been short and small-scaled in dyeing and finishing. The dyeing and finishing equipment of Fong’s Industries will perfectly complement the portfolio of China Textile Machinery Co., Ltd. (CTMC), a company, subordinated to China Hi-Tech Group. The deeper meaning for the acquisition of Fong’s Industries is that the “Fong’s way of doing business” will be introduced into various enterprises of China Textile Machinery Group, and it will become an approach for an improving operation level.
　　恒天紡機領域主要涉及四個板塊：棉紡織、化纖產品、染整和非織造布；但是，染整設備一直是短板，規模比較小，立信集團旗下的染整設備則彌補了中國恒天集團旗下中紡機集團產品的短板；而收購立信的更深層意義在于，“立信模式”將會被引入中紡機集團各個企業，成為有效提高運營水平的一條途徑。

Fong’s Industries
　　立信工業

Fong’s Industries Co. Ltd. was established in Hong Kong by Mr. Fong Sou Lam in 1963. Listed on the Hong Kong Stock Exchange since 1990, Fong’s Industries Co. Ltd. is one of the world’s leaders in design, manufacturing and sales of dyeing and finishing machinery; altogether with its other major subsidiaries engaging in stainless steel trading and the manufacturing of stainless steel casting products.
　　立信工業集團由方壽林先生于1963年創辦。自1990年在香港交易所上市以來，立信工業在設計、制造和銷售染整機械設備方面成為全球市場領導者；立信工業同時又與其旗下其他核心企業經營不銹鋼材貿易及不銹鋼鑄件生產業務。

Fong’s Industries has supplied some 28,000 lines of high quality dyeing and finishing machinery to its global customers, including numerous high-end customers. Fong’s promoted China and to a further extend to the global economic areas in the textile dyeing and finishing industry, resulting in a constant development and upgrading generation. The history of Fong’s Industries’ growth is the reflection of China’s textile dyeing and finishing industry in the past 50 years.
　　立信工業為全球客戶提供了約 2.8萬套優質的染整裝備，覆蓋眾多染整業高端客戶，促進了中國乃至全球更大經濟區域范圍內的紡織染整工業的不斷發展和升級換代。可以說，立信工業的發展壯大歷史，就是中國紡織染整工業半個世紀成長史的縮影。

The Fong’s Industries Group proactively established its customer network by providing one-stop services with a comprehensive range and brands of textile dyeing and finishing machinery. Since 1998, Fong’s Industries expanded its business mode through strategic cooperation and acquisition. It currently runs five brands including FONG’S, THEN, GOLLER, XORELLA and MONFORTS FONGS, all leading labels in the global textile industry.
　　立信工業集團通過提供廣泛的品牌紡織染整機械裝備的一站式服務，積極地建立了自己的客戶網絡。自1998年以來，立信工業通過戰略合作和并購擴大自己的經營模式。目前經營著立信（FONG’S）、特恩（THEN）、高樂（Goller）、紗力拉（Xorella）和門富士（Monfort Fong’s）五大品牌，所有這些品牌都是全球紡織工業的知名品牌。

Mr. Zhang Jie, the Chairman of China Hi-Tech Group said that “Fong’s Industries has been successful and has set an example for CTMC. For many years, Fong’s Industries has taken independent research & development as the leader in terms of sources. It has successively taken joint ventures, merging and acquisitions of European brands, technologies and R&D teams. Fong’s Industries realized international recognition with advanced technologies, domestic manufacturing and global sales. Through this merging, we will change the team of CTMC by using this kind of advanced model of Fong’s Industries.”
　　中國恒天集團董事長張杰先生曾說過“立信工業是一個成功的例子，給中紡機樹立了一個榜樣。立信是從源頭上以自主研發為先導，陸續采取合資，合并甚至收購歐洲的品牌、技術與研發團隊，在這樣的基礎上最終實現了國際技術、國內生產、全球銷售。通過本次收購，我們將利用立信這種先進模式改造中紡機團隊。”

Furthermore, the tighter environmental regulations and the consciousness of people around the world call for technical upgrade to environmentally-friendly dyeing and finishing equipment with low power, water consumption and less waste water emission. A few years ago, Fong’s Industries established its own waste water recycling unit, Fong’s Water Technology (FWT), which provides complete water re-use solutions to dyeing factories.
　　而且，目前環境規制越來越嚴格，全世界的人都一致要求進行技術更新，以及水電耗量低和廢水排放較少的環保染整設備。數年前，立信工業建立了自己的廢水回收機構－立信水務（FWT），向印染廠提供全套中水回用解決方案。

High level of mutual understanding
　　高度相互理解

The Fong’s Industries label “Customer is the Engine for Growth”, and the China Hi-Tech Group label “For the Customer Creation of Profit and Value” are common pursues. Mr. Zhang Jie also said that “both China Hi-Tech and Fong’s Industries compromise with high enterprise cultural aspects. “Good Faith, Sunlight, Simple” in that order are the management concept and standards of behaviour of Fong’s Industries, which has manifested on China Hi-Tech Group’s enterprise culture concept “The Achievement, the Rule and , the Good Faith” as well as “for the people, for the life.”
　　立信工業的“客戶為本”與恒天集團的“為客戶創造利潤和價值”是雙方的共同追求。張杰先生還提到“中國恒天集團和立信工業在企業文化方面有著高度的契合。立信工業的管理理念和日常行為準則“誠信、陽光、簡單”，體現了中國恒天集團的企業文化理念“業績、規則、誠信”以及“惠悅于民、恒達天下”。

Going global
　　全球發展

China Hi-Tech Group with its financial platform will build a monetary background for textile machinery, which will provide more comprehensive services to users, such as leasing business. It will further improve competitiveness of product marketing of Fong’s Industries in capital support. In terms of staff, Fong’s Industries’ sales, R&D and manufacturing management teams will remain unchanged. It will maintain existing mechanism, holding the original core teams in order to continue and properly use in the international markets their excellent talents and technologies.
　　中國恒天集團現在有了自己的金融平臺，還將為紡織機械打造金融平臺，日后能為用戶提供更多的綜合服務，譬如租賃業務等。恒天還將在資本支持上進一步提高立信產品的營銷競爭力。在人員方面，立信工業的銷售團隊、研發團隊、生產管理團隊都將保持現狀。立信將維持現有機制，保持原有的核心團隊，從而繼續并妥善利用國際上的優秀人才和技術。

Fong’s Industries pays great attention in the technical innovation and adhere to its concept of “Technology is the Fundamental”. For many years, Fong’s Industries is working in close cooperation with the Hong Kong University, the Hong Kong University of Science and Technology in carrying on research and development cooperation, the promotion of energy conservation for dyeing and finishing machinery as well as fuel and waste water reduction. These are the three main strategy development goals of Fong’s Industries, particularly in the vigorously establishment of Fong’s Water Technology in the water recycling and water reuse system. This goes in line with China Hi-Tech Group, who pays great attention too on scientific innovation, fulfilment of scientific development concept and fulfilment of community responsibility aspiration.
　　立信工業秉承“科技為用”的理念，注重技術創新。多年來一直與香港大學、香港科技大學進行密切的研發合作，不斷促進染整裝備向節能、降耗和減排三大戰略目標發展，尤其是大力拓展立信水務的水回收和中水回用系統，更是與中國恒天集團注重科技創新、踐行科學發展觀，履行社會責任的抱負相得益彰。

One thing is obvious: The combined power of financial resources and experienced manpower will give a further push to become an even more established global supplier of premium textile machinery, and this not only for local markets.
　　顯然，整合財力資源和專業人力資源將進一步推動不僅成為本地市場上，而且成為全球市場上頂尖的優質紡織機械供應商。

Further development
 　　進一步發展

The future development of Fong’s Industries is to focus on the vision of global resources conformity, improvement of competitive advantage in dyeing and finishing machinery, stainless steel casting and related business. Furthermore taking a development path with both connotation and extension types to be developed simultaneously; such as
　　立信工業的未來發展，要進一步從全球視野整合資源，提升染整設備、不銹鑄造等相關業務的競爭優勢，走內涵式與外延式并舉的發展道路：

－  To stay on the present advanced management and operation system
　　－  堅持目前先進的管理體制和運營機制
?　　 To continuously deepen the management transformation process
? 　　不斷深化管理變革
?　　 To optimize organizational structures
?　　 優化組織結構
　　? To improve the management effectiveness
　　? 提高管理效率
? 　　To launch staff incentive plans
　　? 啟動員工激勵計劃
?　　 To provide human resources development as being the most precious wealth.
?　　 樹立人力資源是立信工業發展最寶貴資源的理念

At the same time, to pay great attention to the two new assets of the group, namely the capital operation function and the scientific innovation. In addition, to drive Fong’s Industries to grow faster and constantly promote the ability for independent innovation and to generate profit in its principal business.
　　同時，注重運用資本運作和科技創新兩個輪子，推動立信工業快速成長、不斷提升自主創新能力和主業盈利能力。

Positive future
　　美好的未來

Thanks to Mr. Fong Sou Lam bright view of the future, the founder of Fong’s Industries has made Fong’s Industries to go together with China Hi-Tech as one entity to be very favourable for the Chinese and the global textile industry and to secure Mr. Fong’s legacy.
　　誠摯感謝立信工業創始人方壽林先生，以未來不斷發展之大義，愿意立信工業與中國恒天集團走在一起，成為一家，在保護方先生遺產的同時，也是中國及全球紡織工業之幸事。

China Hi-Tech Group agreed to the merger with Fong’s Industries for obvious reasons: it is the best and also the largest company in the world in dyeing and finishing machinery manufacturing. Through the strategic acquisition, it not only highlights Fong’s Industries as the most important global platform for CHTC to strengthen its businesses in the cotton and man-made fibres, dyeing, printing and finishing machinery manufacturing sectors, but also to become a stronger major player for premium and competitive textile machinery.
　　中國恒天集團同意并購立信工業，原因很明顯：立信在染整機械制造方面是全球最好也是最大的。通過戰略并購，不僅將其打造成為中國恒天集團在棉紡織和化纖以及印染整機械制造業務上全球最重要的平臺，而且還將以其富有競爭力的優質紡織機械成為更強的頂尖公司。

It also fulfils the responsibility of China Hi-Tech Group to further promote the Chinese textile industry, with its final goal, through the global dyeing and finishing mechanical domain leading technology, the high quality brand resources reorganization, to strengthen the country’s textile industry upstream, the high added value products, the high profit domain overall strength and to promote the textile industry industrial upgrading.
　　戰略并購還將有助于中國恒天完成其進一步振興民族紡織工業之重任，其最終目的是通過與全球染整機械領域領先技術和優質品牌的資源重組，強化我國在紡織工業上游、高附加值產品、高利潤領域的整體實力，促進我國紡織工業的產業升級。
 

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