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HONG KONG, Sept 28, 2009 - (ACN Newswire) - TC Interconnect Holdings Limited (SEHK Code: 0515) ("TC Interconnect" / the "Group"), one of the top 10 Printed Circuit Board (PCB) manufacturers in Hong Kong and China, today announces that the Group is having a partnership with LED lighting technology proprietary developer and operator Orient Opto - Semiconductors Corp. ("Dongfang") to engage the design and manufacture of Light Emitting Diode (LED) lighting as well as operation and management of energy saving projects such as LED road lamp via business model of Energy Management Contract (EMC)*.
The Group takes up 70% stake in the new JV Company via injecting RMB50 million cash while the counterpart, Dongfang contributed the remaining cash, intellectual property and LED lighting technology as well as asset for 30%. The profit for the first and second financial years of the JV Company will not be less than RMB30 million in total.
Mr. Paul Yeung, Chairman of TC Interconnect states, "we see great potential in LED lighting business in terms of market scale, government commitment and our partner company which is technology-driven ready to tap the profitable and high growth road lamp replacement market in China. The move is to diversify our business and broaden our income stream. In the meantime, PCB remains our core business. With continuous support from application customer and advanced technological supports, Dongfang, we have successfully developed a PCB tailor-made for LED products, which the profit margin is far higher than our existing products."
"The Chinese government is pledged to replace the existing 48 million road lamps with LED for the latter consumes 40% less energy. The government has launched the 'Ten Thousand LED lights in Ten Cities' and Guangdong's 'Thousand Miles Ten Thousand' projects this year. Participant provinces exceed 20 and pilot cities include Beijing, Shanghai, Shenzhen, Wuhan, Heilongjiang, Heibei with an expected market demand of 25 million LED road lamps in the coming 3 years. Our primary market is Guangdong province which demands for 3.5 million LED road lamps."
Mr. Zhu Jianqin, President of Dongfang, said, "We are very happy to join hands with TC Interconnect which provides us with a listing platform enabling us to swiftly market our products to various municipal governments and capture the market in full speed. With the integration of our technology and TC Interconnect's specialized manufacturing PCB as well as the financing of listed company and management support, we are confident to secure the LED street lamp orders of the 'Ten Thousand LED lights in Ten Cities' project in China. Our EMC project is uniquely positioned to secure a decent profit."
* The business model of the JV Company will be in the form of Energy Management Contract (EMC). It operates in the way that fee saved from reduced energy consumption will be used to pay the total cost of the energy conservation project. EMC allows clients upgrade factory and facilities to lower current operation cost by using the future income generated from the energy saved; or the JV Company will undertake the whole energy saving expenses.
About Orient Opto - Semiconductors Corp.
Orient Opto - Semiconductors Corp. ("Dongfang") is founded in 2003 and is principally engaged in design, manufacture and distribution of LED lightings. Please visit www.3gled.com.
Contact:
JOVIAN Financial Communications Ltd
Angel Y Y Yeung / Hilary Chan / Raquel Tso
Tel：+852 2581 0168
Fax：+852 2854 2012
Email： angel@joviancomm.com
Topic: Production report
Source: TC Interconnect
https://www.acnnewswire.com
From the Asia Corporate News Network
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