C Y Foundation Acquires Kingbox - Profitable Packaging and Gift Sourcing Company
Acquisition raises the bottom line and provides vital link in corporate strategy
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(17 July 2008, Hong Kong) — C Y Foundation Group Limited (SEHK:1182) (“C Y Foundation” or the “Company”), the interactive media entertainment company which focuses on providing quality entertainment across China, has announced the acquisition ofKingbox (Asia) Limited (“Kingbox” or “Kingbox Group”), a provider of packaging to high-end luxury watch and jewellery brands, and manufacturer of high-end luxury watches. The acquisition is being made for an initial consideration of HK$160 million, 60% in cash and 40% in the issuance of the Company’s new shares.
C Y Foundation CEO, Kar Loon Sneah, sees Kingboxas bothaimportant profit center in the near future and a major gift provider to the Company’s online store for tournament games
“The early figures of Kingbox Group indicate remarkable net profit for its financial year ended June 30, 2008,” says Mr. Sneah. “And with the annual net profit after tax of HK$16M for 2.5 years ending 31 December 2009 guaranteed by the vendors, Kingbox will add positive figures to C Y Foundation’s bottom line over comign financial years and will play a key role in the Company’s corporate strategy.”
C Y Foundation’s main business is operating online tournaments in which participants play for prizes. The Company is developing a state-of-the art platform that will allow online gamers in China to exchange points won in online tournaments for gifts. Its G-commerce (game commerce) site, complete with an integrated online store, will be launched across China in phases over the coming months. The Company will utilize Kingbox’s gift sourcing division to “fill the prize store.” Mr. Sneah said.
“We have been operating small tournaments on a beta testbasis for the last year. We are now ready to begin rolling out tournaments on a larger scale with attractive prizes at all levels of competition,”Mr Sneah said.
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About CY Foundation
C Y Foundation is an interactive media entertainment company focused on providing quality entertainment across China. It is the only company dedicated to organizing and running P2P tournaments for prizes throughout China. The Group will provide "green" Internet cafes in China and a national electronic tournament platform to develop the online tournament gaming market. The Group will lead this charge with its flagship entertainment centers and through its PRC vehicle subsidiary, C Y Foundation Culture Company Limited, and its strategic partner, Network Movie Center of the Central Committee of the Communist Youth League of China.
Website: www.cyfoundation.com
For more information:
C Y Foundation Group Limited
Sam Woelm Tel: (852) 28339518 Email: samwoelm@cyfoundation.com