Get Rid EMC the way to go30 Mar 2012 17:52
In past years, Kepu has contributed to the Group by facilitating its manufacture and sale (mainly LED display screens and modules) for its major customers' exports of air-conditioners, microwave ovens and refrigerators. These LED elements products are lower value added but are otherwise highly competitive in the market in terms of price and quality. However, owing to the global slowdown of market demand, and accompanied by rising manufacturing costs, the Group has experienced operating losses in these product and market segments for the last two financial years. In light of the Group's shift in focus towards expanding its EMC business model and transforming the Group into an EMC service provider in the PRC, the Board is in discussions with several potential buyers of Kepu. These discussions are still in the early stages and there can be no guarantee that any agreements will be concluded. Further announcements will be made at the appropriate time.