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Friday, 24 June 2016, 20:23 HKT/SGT

Source: Zhong Fa Zhan Holdings Limited
Zhong Fa Zhan Successfully Commences New Energy Business
Lays Solid Foundation for Business Transformation

HONG KONG, June 24, 2016 - (ACN Newswire) - Zhong Fa Zhan Holdings Limited ("Zhong Fa Zhan" / "ZFZ" or "the Group"; Stock Code: 475) today announced the latest progress made by its new energy business.

The increasing global demand for greener energy, plus the PRC government launching a series of policies pinpointing environmental protection, energy conservation, as well as pollution and emissions reduction are conducive to the renewable energy industry greeting a new round of rapid growth. To capture related opportunities, the Group announced its entry into the new energy business in July 2015 marked by the signing of a number of agreements with Suncool AB, a company under leading Swedish energy conservation technology R&D company ClimateWell AB (publ) ("ClimateWell"). Apart from introducing Suncool AB as a strategic shareholder, the Group was also granted the rights to use Suncool AB's solar heating and cooling collector production technologies with CoolStore proprietary products as the core to promote solar-powered interior climate solutions and products in the Greater China region for a term of 15 years.

ClimateWell, the parent company of Suncool AB, boasts formidable strengths. The Swedish governmental venture capital fund and leading investor in green technology Industrifonden is its single largest shareholder. It partners with many renowned multi-national groups including GE, Rheem in the US and Caterpillar, etc. in manufacturing and R&D work. Another major shareholder of ClimateWell is Skirner, a Swedish family business mainly engages in property development and founder and major shareholder of SWECO well-known for providing engineering and environmental consultation services in Northern Europe. The Group believes the extensive experience of ClimateWell and Skirner in the green technology and environmental consultation fields will translate into synergies for the Group in new energy development. The Group hopes to develop renewable energy business in the PRC together with Suncool AB.

In addition, the Group signed a consultation agreement with China-UK Low Carbon Enterprise (Jiangyin) Investment Management Ltd ("CULCE (Jiangyin)"), which is owned by China Energy Conservation and Environmental Protection Group, to secure its professional consultation services.

Since signing the agreements and with the support of Suncool AB and CULCE (Jiangyin), the Group has been able to expedite development of its new energy business. In fiscal year 2016, the Group formed a team comprising sophisticated solar technology experts and sent the senior technicians on the team to Sweden for professional training to gain knowledge of the most advanced expertise in the new energy industry. Such moves have laid a solid foundation for the successful localization of CoolStore cooling pipes and rapid promotion of new solar collector products.

Apart from the core technical team, the Group has also established an operation and management team in Yuyao with members all having extensive industry experience. The Group is confident that the Yuyao team will be able to closely cooperate and effectively communicate with overseas partners, and ensure that technological R&D, product manufacturing and engineering promotion are carried out in good order, thus help boost business development.

The cooling pipe production line is expected to commence operation in the second half of 2016 and start contributing revenue to the Group in the coming year. For the time being before production begins, to pave way for the business development, the Group will rent a short-term production line to produce and assemble solar collectors using CoolStore cooling pipe components purchased from Suncool AB. The Group plans to sell the solar collectors to target customers including educational institutions and government entities. The Group has set up demonstration kits in its PRC office where visitors and potential customers can better comprehend the principles of CoolStore cooling pipes and the effectiveness of collectors. The Group also hopes to, through organizing public relations and marketing activities, help potential customers understand the importance of energy conservation and emission reduction as well as the significant economic benefits the Group's products bring. This will help speed up development of the Group's new business and contribute to the country achieving her goal of saving energy and reducing emissions.

Mr. Wu Hao, Chairman of Zhong Fa Zhan, said, "The Group will seize the opportunity arising from the increasing demand for green energy and the PRC government putting its weight behind the energy conservation and environmental protection industry and exert in developing solar energy business, that it may quickly enlarge its share in the PRC solar cooling market. Furthermore, we will also continue to look for new opportunities in the energy conservation and environmental protection field so as to achieve the ultimate goal of creating greater value for our shareholders."

About Zhong Fa Zhan Holdings Limited

Zhong Fa Zhan Holdings Ltd is a company listed on the main board of Hong Kong stock exchange since 2007. It is currently devoted in developing its business in the environmental protection and energy saving field. Engaging in this Solar Air Conditioning business signifies that ZFZ has taken a crucial step in tapping its green energy business development plan.

Strategic Public Relations Group
Mr. Keris LEUNG  +852 2864 4863  [email protected]
Ms. Fanny YUEN   +852 2864 4853  [email protected]

June 24, 2016 20:23 HKT/SGT
Source: Zhong Fa Zhan Holdings Limited

Topic: Press release summary
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network

Copyright © 2020 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

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