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Zhong Fa Zhan Commences Solar Energy Business
Aims to Capture the Immense Opportunities in the New Energy Sector
HONG KONG, Nov 20, 2015 - (ACN Newswire) - Zhong Fa Zhan Holdings Limited ("Zhong Fa Zhan" / "ZFZ" or "the Group" ; Stock Code: 475) is pleased to announce that the Group has commenced the solar energy business.
On 1 July this year, the Group signed a subscription contract with Suncool AB, a Sweden Company, to allot and issue new shares of the Group and grant warrants to Suncool AB ("Suncool"). The Group also signed subscription contracts on the same day to allot and issue new shares of the Group to six independent investors. The Group completed the subscription for a total of 36,000,000 shares as at 2 November, 2015, which generated total gross proceeds of approximately HK$75,600,000. After deducting related expenses payable by the Company, the net proceeds are intended to be mainly used for the development of the solar energy business in the PRC.
The PRC government outlined its "Enhanced Actions on Climate Change: China's Planned Nationally Determined Contributions" this June 2015, the strategies of which were subsequently submitted to the United Nations Framework Convention on Climate Change. Mr. Li Keqiang, Premier of the State Council, announced the target of lowering CO2 emissions per unit of GDP by 60% to 65% by 2030 as compared to 2005 emissions levels. As CO2 emissions from air-conditioning systems in commercial and residential buildings account for a considerable percentage of total emissions, the Group is enthusiastic about its prospects to contribute to emissions reduction through its solar technology.
The increasing support of the PRC government is expected to lead to more widespread deployment of solar energy, thereby continuously increasing local market demand for solar heating and cooling collectors. The Group is utilizing its cutting-edge technology and industry experience to develop cooling pipes (a component of solar collectors) business and will allocate capital raised from the share subscription to install new production lines at its plant in Yuyao, PRC. The Group plans to purchase cooling pipe components from Suncool AB directly and sell them to target customers such as educational institutions and government authorities in the Greater China region on a trial basis. At present, the Group is focusing on the setting up of a Sino-foreign joint venture in Yuyao. The cooling pipe production line is expected to commence operation by the end of 2016 and contribute significant profits to the Group.
Mr. Wu Hao, Chairman of Zhong Fa Zhan, said, "The agreement with Suncool AB marks the beginning of the Group's involvement in the renewable energy business and also strengthen our financial status and enhances our liquidity. 'Recommendations for the Development of Economy and Society under the Thirteenth Five-Year Plan from The Central Government' has recently been promulgated, which aims to spur energy reforms, initiate innovations in energy technologies and develop a modern energy framework that is clean, safe, highly efficient and generates low levels of carbon. The directive has set guidelines for energy reforms in the PRC, and we believe that massive commercial opportunities will emerge in the future development of the new energy sector. Our cutting-edge technology and industry experience enable us to capitalize on the potential opportunities in the PRC's solar technology industry. Looking ahead, we will actively explore new opportunities to achieve the ultimate goal of creating greater value for our shareholders."
Contact:Strategic Public Relations Group
Heidi So +852 2864 4826 heidi.so@sprg.com.hk
Keris Leung +852 2864 4863 keris.leung@sprg.com.hk
Samantha Yeung +852 2114 4916 samantha.yeung@sprg.com.hk
Source: Zhong Fa Zhan Holdings Limited
Sectors: Daily Finance, Energy, Alternatives, Daily News
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