Jete Power Holdings Limited (Jete Power; stock code: 8133.HK), a Chinese manufacturer of metal casting parts and components has announced its acquisition of 39% issued share capital in Novel Sino Group Holdings Limited (Novel Sino) for HK$10 million (about US$1.28 million).
Jete Power settled the acquisition in cash at completion. When the deal is consummated, Novel Sino will become an associate of the of Jete Power, according to the group’s official press statement released through ACN Newswire.
According to the acquisition agreement, Novel Sino covenanted and guaranteed to Jete Power that the total actual net profit shall not be less than HK$9 million for the two financial years ending 31 December 2017 and 2018 . In the event that the Profit Guarantee is not achieved, Novel Sino shall pay the group on a dollar-for-dollar basis.
If Novel Sino records a total loss for the two financial years ending 31 December 2017 and 2018, the compensation amount will be the same as the amount paid for the acquisition, being HK$10 million.
Novel Sino is principally engaged in investment holding, Dongtai Energy Technology Company Limited, located in Dongtai City, Jiangsu Province, is the operating subsidiary of Novel Sino.
It is principally engaged in the manufacturing of CIGS (copper indium gallium selenide) thin film solar panels and photovoltaic energy generation business.
Dongtai Company has entered into strategic cooperation agreement with local government authority for the development of CIGS thin film solar panels and solar power generation business, under which Dongtai Company will benefit from certain privileged treatments and resources in developing the photovoltaic power generation business in Dongtai City, Jiangsu Province, the PRC.
CIGS is a material used in photovoltaic industry. The technology of CIGS thin film solar panel is one of the most promising technology in solar energy fieldnowadays. CIGS thin film solar panels are flexible and light, thus they can be widely applied as buildingintegrated photovoltaics materials as part of the building envelope, including the application to the distributed generation.
After the commencement of operation of the CIGS thin film solar panels manufacturing business, the Dongtai Company will also expand into photovoltaic power generation business which is expected to be one of the important sources of revenue to the Novel Sino in the future.
In line with the supportive policy towards developing renewable energy for a better environment protection, the PRC government has been implementing policies to create a favourable business environment for the development of photovoltaic energy business.
Jete Power is a manufacturer of metal casting parts and components in the PRC. Their products can be categorised into four main categories: (1) pump components; (2) valve components; (3) filter components; and (4) food machinery components, which are made of stainless steel, carbon steel, bronze and/or grey iron. Our customers generally are the suppliers of flow control devices, electromechanical equipment, and industrial machinery and equipment. Their products are the parts and components of our customers’ products. The Group’s largest market is Germany. We also have customers from Hong Kong, the PRC and the USA. – BusinessNewsAsia.com