Acquisition

17 Oct 2006 07:00

London Asia Chinese Private Equity17 October 2006 17 October 2006 London Asia Chinese Private Equity Fund Limited ("LACPEF" or "the Fund") Investment in Chinese Solar Business LACPEF, the China focused investment fund, is pleased to announce that it isinvesting £2.1 million in China Solar Energy Co., Ltd. ("China Solar" or "theCompany") a leading constructor of solar energy buildings in China. The fundswill provide working capital for the construction of a number of newmulti-functional solar energy buildings, for which contracts were signed inSeptember. China Solar's core business is the design and manufacture of solar energybuildings in China, based on its patented solar thermal technology. The Companyhas been formed from the acquisition of the assets, intellectual property andwork in progress of Tianpu Solar, a Chinese company. In 2004, Tianpu Solarcompleted the first large scale building in China that uses solar power as thesole source of thermal energy - because of its ground-breaking design andapplication of technology, the building is used as a "Demonstration Building"for the 2008 Beijing Olympics. China has an increasing demand for fuel due to its rapid economic growth. Itselectricity supply is mainly based on coal. The use of renewable and alternativeenergy sources is becoming increasingly important as the Government seeks tofind alternatives to fossil fuels. The Company is currently completing a large scale leisure project in Beijing,believed to be one of the largest solar thermal buildings in the world, whichintegrates a range of sea themed leisure activities, including an aquarium, fishbreeding centre, floating tanks and restaurants, in one complex. The watertemperature, as well as all heating and cooling, is provided and regulated usingthe Company's patented solar technology. The Company has also developed an efficient, solar thermal heated and cooledhouse, designed to meet the requirements of the Chinese Governments' program forproviding affordable, energy efficient housing to the rural population, whichmakes up around 600 million of China's population. Mr Li Xianhang, founder and Chairman of China Solar, said: "Following the verysuccessful development of the leisure complex in Beijing, we have signed anumber of similar large projects in other parts of China for which we requireadditional capital, which the Fund is providing." Simon Littlewood, Executive Director of LACPEF, commented: "The Company haspatented technology, an experienced management team, a strong research anddevelopment programme, and strong support from the Chinese Government. Thereare significant opportunities for the Company to expand rapidly to takeadvantage of its strong brand and first-mover advantage, and the increasingemphasis by the Chinese Government on renewable energy sources and improving thequality of life for the poor." For further information please visit www.londonasiafunds.com or contact: John West/Matt Ridsdale Simon Littlewood Hugh FieldTavistock Communications London Asia Capital plc Collins Stewart LimitedTel: 020 7920 3150 Tel 020 7355 7928 Tel: 020 7523 8000 Notes on China Solar Energy The Company designs and constructs large scale municipal, commercial, academicand leisure buildings on a Build, Own, Transfer (BOT) basis, incorporating itsown patented solar thermal technology. Its key customers include the ChineseGovernment, real estate developers and resort owners. China Solar Energy Ltd isa Jersey incorporated holding company with a Chinese operating businessheadquartered in Beijing. For further information, visit http://en.tianpuxianxing.com This information is provided by RNS The company news service from the London Stock Exchange