China Shengda Packaging Group Inc.’s Subsidiary Great Shengda Obtains Approval of High-Tech Enterprise Status and Preferential Tax Rate
HANGZHOU, China, Dec. 27, 2010 /PRNewswire-Asia-FirstCall/ — China Shengda Packaging Group Inc. (NASDAQ: CPGI), a leading Chinese paper packaging manufacturer, today announced the Company’s wholly-owned subsidiary Zhejiang Great Shengda Packaging Co., Ltd. (“Great Shengda”) received approval from the local tax authorities of its National High-Tech Enterprise status, as recognized by the Ministry of Science and Technology of China, the Ministry of Finance, and the State Administration of Taxation. Earlier in the year, Great Shengda was granted the status, subject to registration with and approval from local tax authorities.
As a result, Great Shengda is entitled to a preferential tax rate of 15 percent instead of the statutory income tax rate of 25 percent. The High-Tech Enterprise status and the eligibility for the preferential tax rate are effective retroactively as of January 1, 2010 and are reviewed by the government authorities every three years. The recognition and tax break only applies to the Great Shengda subsidiary.
Great Shengda was granted the status as a National High-Tech Enterprise because the subsidiary met the following criteria: 1) it makes products encompassing independent intellectual properties in one of the key high-tech fields supported by the government; 2) it conducts research and development to leverage the latest scientific technology to achieve technical and product innovations; 3) its research and development, organizational, management, and technical result development capabilities are in line with government requirements; and 4) its independent intellectual properties generate innovative scientific and technological achievements that result in revenue and capital growth.
Mr. Daliang Teng, Chief Executive Officer, stated, “We are proud of the recognition of Great Shengda as a high technology enterprise. We offer innovative packaging solutions to many of the world’s leading manufacturers. Our focus is on quality and value through research & development and customer service. In addition to 30 internal research and technical professionals, we have collaborative agreements with reputable academic and research institutions. Our research & development efforts resulted in nine patents in China and two patent applications pending; we are committed to continuing to invest in research and development to maintain our competitiveness and our leading position in our market.”
About China Shengda Packaging Group Inc.
China Shengda Packaging Group Inc. is a leading paper packaging company in China. It is principally engaged in the design, manufacturing and sale of flexo-printed and color-printed corrugated paper cartons in a variety of sizes and strengths. It also manufactures corrugated paperboards, which are used for the production of its flexo-printed and color-printed cartons. The company provides paper packaging solutions to a wide variety of industries, including food, beverage, cigarette, household appliance, consumer electronics, pharmaceuticals, chemicals, machinery and other consumer and industrial sectors in China. For more information, visit http://www.cnpti.com.
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Company Contact: Investor Relations Contact: China Shengda Packaging Group Inc. CCG Investor Relations Ray Chen, Vice President of Investor Relations Mr. Athan Dounis, Account Manager Tel: +86-139 2527 9478 Tel: +1-646-213-1916 E-mail: email@example.com Email: firstname.lastname@example.org Website: http://www.cnpti.com Website: http://www.ccgasiair.com
SOURCE China Shengda Packaging Group Inc.