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Positive revision to major EMC contract

30 Mar 2012 07:05

RNS Number : 3661A
LED International Holdings Ltd
30 March 2012
 



LED International Holdings Limited

("LED" or the "Company")

 

Positive revision to major energy management contract

 

The board of directors of LED (the "Board") is pleased to announce that its indirect subsidiary, Shenzhen Strongbase New Opto-Electronics Technology Co. Ltd. ("Strongbase New") has revised the terms of the energy management contract entered into with Hotel Novotel Shenzhen Bauhinia and Golden Gala Restaurant (collectively, the "Hotel") (the "Revised EMC Contract"). Further details of the original EMC contract were announced on 10 June 2011 (the "Original EMC Contract").

 

Following a greater understanding of the Hotel's lighting and power consumption systems gained during installation of Strongbase New's LED light bulbs and reactance filtering equipment, the quantity of each type of LED light bulb used has been amended resulting in the Board anticipating greater estimated energy savings. As a result, the projected revenue under the Revised EMC Contract is now RMB6,300,000.00 (approximately £630,000.00) (a 14.5% increase from the original RMB5,500,000.00 stated in the announcement of 10 June 2011). The Revised EMC Contract supersedes the Original EMC Contract and all other terms remain unchanged. The term of the Revised EMC Contract runs for 6 years from acceptance by the Hotel the complete installation of energy saving products and the Hotel pays the agreed split of the energy savings to Strongbase New on a monthly basis.

 

In addition to Strongbase New's greater understanding of the Hotel's lighting and power consumption systems, advances in technology and in efficiency of LED products have allowed for further improvements to the original design. Strongbase New's engineers perform regular audits on the Hotel's power consumption systems and continually fine-tune their designs to attain optimum energy efficiency for the Hotel. 

 

LED's Chief Executive Officer, Stephen Chan, commented, "We are extremely pleased to be able to announce a 14.5% increase in the projected revenue under this major EMC contract. That this has been brought about as a result of our greater understanding of the Hotel's lighting and power consumption systems is particularly heartening. This contract provides LED's group with all important recurring revenue and we look forward to announcing new EMC contracts at the appropriate time."

**Ends**

 

 

For further information:

 

LED International Holdings Limited

Stephen Chan - Chief Executive Officer

+852 2243 3100

Allenby Capital Limited

Nick Naylor / Alex Price

+44 (0) 20 3328 5656

Notes to Editors:

 

LED International Holdings Limited and its subsidiaries specialize 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.

 

Under EMC contracts, LED fits energy saving products to the customer's premises, including lighting and reactance filtering equipment supplied by LED, and subsequent savings made by the customer in its electricity bills are then shared between LED and the customer thereby enabling the LED to generate recurring revenue rather than one-off sales revenue.

 

For more information, please visit: http://www.led-intl.com 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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