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27 Sep 2011 07:00
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27 September 2011
LED International Holdings Limited
("LED" or the "Company")
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Joint Venture Agreement and Restructuring Exercise
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The board of directors of LED (the "Board") is pleased to announce that it has entered into a new joint venture agreement with one of its existing joint venture partners, Mr. So Hing Chung ("Mr. So"), to develop and expand its existing business in developing LED lighting solutions in the People's Republic of China (the "PRC') (the "New Joint Venture").
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As previously announced on 2 July 2010, the Company had entered into a joint venture agreement with Mr. So and various other joint venture partners to initially expand the Company's existing business in developing LED lighting solutions (the "Existing Joint Venture"). The Existing Joint Venture has been used to procure a source of supplies from CREE, Inc. at a competitive cost in Hong Kong.
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The Board considers that Mr. So possesses significant knowledge, experience and industry contacts in the LED lighting business and the Company wishes to leverage Mr. So's expertise to capitalise the market opportunities of energy management contract ("EMC") business model in the PRC. With Mr. So's proactive participation in the product designs and contract negotiations, Shenzhen Strongbase New Opto-Electronics Technology Co Ltd. ("Strongbase New") has recently been awarded a significant EMC from Hotel Novotel Shenzhen Bauhinia and Golden Gala Restaurant (as announced on 10 June 2011). Following the growing popularity of the EMC model among customers, the Company has endeavoured to enter into the New Joint Venture to meet the demand for its energy-saving solutions.
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The Company's wholly-owned subsidiary, Green Pearl Energy Conservation Holdings Limited is being used as the corporate vehicle for the New Joint Venture (the "Corporate Vehicle"). The Company has a majority stake (60 per cent.) in the New Joint Venture and, together with Mr. So (40 per cent.), shall invest an initial sum of HK$1.0 million (approximately Β£80,000) as seed capital for upcoming projects.
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Pursuant to the New Joint Venture, the Corporate Vehicle and its subsidiaries have adopted the "Green Pearl" brand name in a corporate renaming exercise. The Company has also carried out a restructuring exercise whereby the beneficial interest in its wholly-owned direct subsidiary, Yanford Limited has been transferred to the Corporate Vehicle. As a part of the restructuring exercise, Strongbase New shall be owned by the Corporate Vehicle.
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Strongbase New has both R&D and manufacturing expertise in relation to LED related products and possesses numerous patents and other intellectual property for LED products and LED applications. The Board believe that the transfer of Strongbase New to the Corporate Vehicle will allow the New Joint Venture to broaden its product offering to include higher specification products for both its domestic and international clients.
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The Company has a majority stake of 60 per cent. in both the Existing Joint Venture and the New Joint Venture.
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**Ends**
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For further information:
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LED International Holdings Limited | |
Stephen Chan - Chief Executive Officer | +852 2243 3100 |
Allenby Capital Limited | |
Nick Naylor / Alex Price | +44 (0) 20 3328 5656 |
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Notes to Editors:
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LED International Holdings Limited and its subsidiaries specialise in the development, manufacture and sale of low powered led screens, outdoor signs, lamps, lighting and building illumination; and high powered / medium powered led energy efficient indoor and outdoor lighting products.
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For more information, please visit: http://www.led-intl.comΒ
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