GUORUN AND GEELY INK MOU ON JOINT VENTURE

Mainboard-listed Guorun Holdings, formerly South China Information and Technology, has signed a letter of intent for a proposed joint venture with privately owned mainland carmaker Geely Group. Guorun will take a 40 per cent to 50 per cent stake in the joint venture. Guorun will contribute working capital while Geely will pledge 230 million yuan (about HK$215.63 million) in net tangible assets from subsidiary Zhejiang Geely Automobiles.