PRC Government Grants High-Tech Status to AOBO Subsidiaries
January 13 2009 - 10:20AM
PR Newswire (US)
NEW YORK, Jan. 13 /PRNewswire-Asia-FirstCall/ -- American Oriental
Bioengineering, Inc. (NYSE:AOB) ("AOBO" or "the Company"), a
leading marketer, distributor and manufacturer of pharmaceutical
and healthcare products in China, today announced that the PRC
government, led by the Ministry of Science and Technology of China,
the Ministry of Finance and the State Administration of Taxation,
jointly granted three of the company's subsidiaries, Heilongjiang
Songhuajiang Pharmaceutical Co., Ltd. ("HSPL"), Changchun Xin'an
Pharmaceutical Co., Ltd. ("CCXA"), and Three Happiness
Bioengineering Co., Ltd. ("Three Happiness") high-tech enterprise
status. Prior to today's announcement, AOBO's other two
subsidiaries: Guangxi BOKE Pharmaceutical Co., Ltd. ("BOKE") and
Guangxi Lingfeng Pharmaceutical Co., Ltd. ("GLP") were already
approved for the designation from the local provincial government,
and the Company anticipates finalizing the certification from the
central government in the near future. With today's announcement,
five of AOBO's subsidiaries, throughout different provinces, have
received recognition to benefit from a 15 percent tax rate through
2011, at the subsidiary level. Additionally, according to the China
Banking Regulatory Commission Guiding Opinions Number 94, companies
with high-tech status are eligible for benefits in addition to the
15 percent tax rate, potentially including preferential treatment
in obtaining other support from the government such as obtaining
financial support from the PRC's special Technological Development
Fund, and to receive competitive commercial bank loans and
subsidized interest. Mr. Tony Liu, Chairman and CEO of AOBO,
stated, "Receipt of high-tech enterprise status further
demonstrates the fundamental strength of our business particularly
related to our proprietary products and innovation at the
subsidiary level. By having this recognition from the government,
we are laying the groundwork for our future growth with eligibility
for government funding and grant incentives. We are truly proud
that AOBO achieved this esteemed status, especially given that very
few companies have successfully achieved this status." High-tech
status is awarded by the PRC to recognize companies that
consistently invest in new product development, and have
substantial revenues generated by their own proprietary patented or
innovative products. In this way, the Chinese government encourages
domestic and foreign investment in advanced technologies, and has
created a series of preferential tax policies to stimulate and
promote the production of high-tech products, the provision of
high-tech related services and technology transfers into and within
China. The Ministry of Science and Technology of China, the
Ministry of Finance and the State Administration of Taxation
jointly promulgated the Measures For the Recognition and
Administration of New and High-Tech Enterprises, which clearly
specifies the requirements for the recognition and administration
of new and high-tech enterprises. About American Oriental
Bioengineering, Inc. American Oriental Bioengineering, Inc. is a
pharmaceutical company dedicated to improving health through the
development, manufacture and commercialization of a broad range of
prescription and over the counter products in China. Statements
made in this press release are forward-looking and are made
pursuant to the safe harbor provisions of the Securities Litigation
Reform Act of 1995. Such statements involve risks and uncertainties
that may cause actual results to differ materially from those set
forth in these statements. The economic, competitive, governmental,
technological and other factors identified in the Company's filings
with the Securities and Exchange Commission, including the Form
10-Q for the quarter ended September 30, 2008, may cause actual
results or events to differ materially from those described in the
forward looking statements in this press release. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether because of new information,
future events, or otherwise. DATASOURCE: American Oriental
Bioengineering, Inc. CONTACT: Integrated Corporate Relations,
Ashley M. Ammon, +1-203-682-8200 for American Oriental
Bioengineering, Inc.
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