Cleantech Solutions International Enters into Memorandum of Understanding for the Potential Acquisition of Shenzhen Xinsheng NewEnergy
HONG KONG — Cleantech Solutions International, Inc. (“Cleantech Solutions” or “the Company”) (NASDAQ: CLNT) today announced that its wholly-owned subsidiary, EC Power (Global) Technology Limited (“EC Power”), has entered into a memorandum of understanding with the shareholders of Shenzhen Xinsheng NewEnergy (“Xinsheng”), regarding a potential acquisition by EC Power of not less than 51% of Xinsheng.
Based in Shenzhen, China, Xinsheng’s primary business is designing and manufacturing lithium-ion aluminum case batteries. Utilizing advanced automated production equipment, Xinsheng has been delivering batteries for mobile phones and other digital equipment since 2008. Xinsheng’s daily production capacity is 300,000 units.
“Our recently launched mobile phone power charger rental business is scaling up quickly and we are moving forward with our plans to aggressively expand into other areas,” said Parkson Yip, COO of Cleantech Solutions. ” So far, 20,000 portable power chargers are available for rent through major convenience store networks in Hong Kong and Macau, and demand has been increasing. We are preparing to expand our footprint into other types of retail outlets, including restaurants, hotels and shopping malls and are in discussions with potential partners to launch the service new regions around the world.
“The worldwide mobile phone users expected to grow from 4.8 billion in 2017 to over 5.0 billion in 2019 and we expect demand for on-the-go mobile phone charging to remain strong. We are impressed with Xinsheng’s production capabilities, advanced technology, and quality control processes. With quality and safety being top-of-mind for today’s mobile phone users, having control over the production of the chargers will allow us to confidently deliver products to the market. “
About Cleantech Solutions International
Cleantech Solutions, through its affiliated companies, designs, manufactures and distributes a line of proprietary high and low temperature dyeing and finishing machinery to the textile industry. The Company’s latest business initiatives are focused on targeting the technology and global sharing economy markets, by developing online platforms and rental business partnerships that will drive the global development of sharing through economical rental business models.
About Shenzhen Xinsheng NewEnergy
Shenzhen Xinsheng NewEnergy was established in 2008. It has a production factory covering 10,000 square meters and over 300 employees. The production lines can produce 300,000 units daily. Xinsheng has invested over RMB30 million to set up advanced automated production and quality control systems, and maintains an in-house battery safety testing laboratory. Xinsheng is ISO9001 certified, and with UL, IEC62133, FCC, CE, ROHS certifications. Xinsheng owns 15 patents covering the technologies.
Safe Harbor Statement
This release contains certain “forward-looking statements” relating to the business of the Company and its subsidiary and affiliated companies and certain potential transactions that they may enter into. These forward looking statements are often identified by the use of forward looking terminology such as “believes,” “expects” or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website, including factors described in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K for the year ended December 31, 2016 and in our Form 10-Q for the quarter ended June 30, 2017. All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.