VANCOUVER, British Columbia, Dec. 30, 2010 (GLOBE NEWSWIRE) -- GLG Life Tech Corporation (Nasdaq:GLGL) (TSX:GLG) ("GLG" or the "Company"), the vertically-integrated leader in the agricultural and commercial development of high quality stevia, announces a progress update on its China joint venture ANOC TM.
The shareholders of ANOC TM have just completed registration of the joint venture company in Hong Kong ("Dr. Zhang All Natural & Zero Calorie Beverage and Foods Group (U.S.A.)"). GLG owns 80% and CAHFC owns 20%. Now that the holding company has been set up, the setup of two wholly owned subsidiaries in China can now proceed. One will be registered as ANOC TM (China) for production and management and one will be registered as ANOC TM (Shanghai) for marketing and sales.
Hong Kong was selected as the best jurisdiction for the ANOC TM JV based on benefits including the preferential dividend withholding tax rate offered by the China-Hong Kong tax treaty (5%), Hong Kong's expanding tax treaty network with other Asian countries, its proximity to China, its mature capital market and business environment, and its favorable tax regime. Hong Kong is renowned for its business environment and low domestic tax. Also, in general, Hong Kong does not tax non-Hong Kong source income (such as dividends received from its Chinese subsidiary) and does not levy withholding tax on dividends paid to non residents of Hong Kong.GLG Chairman and CEO Dr. Luke Zhang stated, "This is the first step for our ANOC TM JV development. We have carefully laid out the future plan for our ANOC TM JV including the selection of the best jurisdiction to set up the joint venture. We can move onto the important setup of the two China subsidiaries that will be the key ANOC TM operating subsidiaries." Mr. Song Xiankun, Chairman and President of CAHFC said, "Hong Kong is one of the most important business and financing centers in the world. There are many different type of investors working in Hong Kong who come from North America, Europe, mainland China and Southeast Asia. Most of these investors have a deep understanding of Chinese culture and the Chinese market. We look forward to working with these investors as well as Hong Kong local investors for the development of our all natural, zero calorie beverage and food products in China first and then for possible expansion into Asia."