Great Wall to Increase Shares of Kaifa Magnetic From 64% to 71%

Shenzhen Kaifa Technology Co., Ltd., a subsidiary of Great Wall Technology Co., Ltd., said on July 22, 2008 that its subsidiary Kaifa Technology (HK) Ltd. planned to spend CNY 99.99 million buying 15% of the hard disk substrate unit from three companies.

Great Wall headquarter
    
Kaifa Magnetic is a subsidiary of GWT in which GWT has an effective shareholding of 63.85%, consisting of 43% by way of direct interest and 20.85% indirect interest through its shareholding in Kaifa Technology which holds 42% of Kaifa Magnetic. Upon completion of the Transactions, GWT’s effective shareholdings in Kaifa Magnetic will be increased from 63.85% to 71.29%, an increase of 7.44%.
    
Kaifa Magnetic Recording, the only disk substrate producer in China, is engaged in the R&D, manufacture and sales of hard disk substrates, which is the core component of computer hard disk drivers. It is one of the largest seller around the world with a more than 10% market share and more than 25% OEM market share.

More on this transaction (13 pages)