SHENZHEN, China, July 27, 2011 - Cogo Group,
Inc. (Nasdaq: COGO), the leading online platform of Core Technologies
for the Small and Medium Enterprise market in China, today announced
that its shareholders approved a proposal by the Cogo Board of
Directors to change the company's domicile to the Cayman Islands. This
domicile change will provide the company with the option to dual-list
its shares of common stock on the Hong Kong exchange while also
continuing to trade on Nasdaq, and at the same time, maintain the
existing levels of regulatory scrutiny and financial transparency. The
Company expects to complete the domicile process to the Cayman Islands
within a few weeks.
Approximately 83% of the outstanding shares of
Cogo's common stock voted either by proxy or in person at the company's
special shareholder meeting held on July 25, 2011 in Shenzhen, China.
Total shareholder votes in favor of the proxy were 28.2 million, or
78.7% of the total, and withheld votes were 1.7 million, or
approximately 6% of the total.
Jeffrey Kang, CEO of COGO said, "The Board of Cogo and I are pleased that the shareholders overwhelmingly approved the proxy vote to change our domicile to the Cayman Islands. This allows us the flexibility to pursue a dual-listing of Cogo shares on the Hong Kong exchange while maintaining, at a minimum, the same level of regulatory scrutiny and financial transparency. I believe that a dual-listing of shares on the Hong Kong Exchange could effectively broaden our shareholder base and enhance shareholder value."
About Cogo Group, Inc.:
Cogo Group, Inc. (Nasdaq:COGO) is the leading online platform of
Core Technologies for the 42 Million Small and Medium Enterprises
("SME") in China. Cogozon.com, currently serving Cogo's 1,500 SME and
100 Blue-Chip customers, is an e-commerce platform for customers in
tech manufacturing sectors (Smart Meters, Alternative Energy, Autos,
Healthcare, Tablets and HDTV), offering designs, product, applications
and technical support. Cogo's transaction-based online revenue model
centers on its Application Store, offering design solutions and
embedded software, and its Product Store, which sells standardized
Electronic products. Cogo operates Cogopedia.com, a unique web-based
business networking platform to engage with 50,000 electronic and
software engineers, collecting one million data inputs daily. Cogo
offers technology from 400 suppliers, including 50 global players like
Broadcom, Xilinx, Freescale, Microsoft and Atmel. Cogo has 600
employees, with 300 in engineering and 200 in direct sales and 15
service centers across China.
Safe Harbor Statement:
This press release includes certain statements that are not
descriptions of historical facts, but are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities and Exchange Act of 1934. Such
information is based upon expectations of our management that were
reasonable when made, but may prove to be incorrect. All such
assumptions are inherently subject to uncertainties and contingencies
beyond our control and upon assumptions with respect to future business
decisions, which are subject to change. For further descriptions of
other risks and uncertainties, see our most recent Annual Report filed
with the Securities and Exchange Commission (SEC) on Form 10-K, and our
subsequent SEC filings. Copies of filings made with the SEC are
available through the SEC's electronic data gathering analysis
retrieval system (EDGAR) at www.sec.gov.
For further information contact:
Investor Relations
www.cogo.com.cn/investorinfo.html
communications@cogo.com.cn
H.K.: +852 2730 1518
U.S.: +1 (646) 291 8998
Fax: +86 (755) 2674 3522