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HONG KONG, Mar 11, 2010 - (ACN Newswire) - Since the application of LED is globally diversified, implying how universal and valid the technology is. Experts familiar with the market predict, LED as a new light resource is going to enter a high-speed growth. Based on the current assumption, it's believed the LED industry in China will be worth RMB $150 billion this year, the sector can even upgrade to a "whole LED era" in 2015. Having completed the transaction on Dooda Innovation Limited ('Dooda'), China Innovation Investment Limited ("China Innovation", Stock Code: 1217.hk) further entered into a Framework Agreement to acquire C.G.E. (HK) Co., Limited ("CGE"), and is well prepared to capture opportunities in the new age.
The high cost is regarded as an obstacle to the development of LED, just take the road lights as an example, the cost difference can be 3 times, or even 35 times higher than the traditional one. However, according to the semiconductor developed principle, the cost can drop remarkably to 10% of the original cost in 10 years, but it can also function far better like 20 times than before. The market consensus is that, the LED sector could become a mainstream technology when the cost difference narrows down to less than 2 times.
With the strong demand of LED products, factories even increase capacity to meet the needs, which can also help to decrease the LED price. Experts familiar with the market predict, as the LED technology is more available to all, based on the current assumption, the industry in China can be worth RMB $150 billion this year, which is a double than that in 2008, the sector can even promote to a LED era in 2015, that is 5 years earlier than the market prediction.
To capture the investment potential in new light resources, China Innovation has already stepped into the LED industry. After finishing the transaction on Dooda, the Company entered into a Framework Agreement to acquire a great portion of the issued share capital of CGE, at a consideration of not exceeding HK$23,000,000. "The proposed acquisition will provide positive development for China Innovation towards the civil and military dual-application of new light source business and the Company is now conducting due diligence reviews on CGE and its subsidiary." Mr. Xiang Xin, the chairman of the Company said.
CGE is a company incorporated in Hong Kong and holds the entire equity interest in Creative Galaxy Electric (Shenzhen) Co., Ltd., a company established in the PRC. It mainly engages in research and development, production and sales of various series of the civil and military dual-application of LED and LCD backlight power supply, built-in power supply related optoelectronic products, electronic devices and provision of related technical services. Based on the dual-usage, the new light LED display and electrical products can be widely used in military and commerce, which provide reliable and competitive energy-saving products to meet the market standard and demand.
In addition to CGE, China Innovation invested in Dooda, a company also consists of the R&D, production and sales of the dual-use of LED backlight and lighting technology in both military and civil market sector, its subsidiary even signed the MOU with Advanced Optronic Devices (China) Company Limited (AODevices), to work hand in hand on the development and application of the new LED lighting technology. "China Innovation is still looking for other investment opportunities, so as to strengthen its LED background." Mr Xiang added.
Contact:
Carmen Lee
Investor Relationship Department
China Innovation Investment Limited
Email: carmen.lee@1217.com.hk
Tel: 2111 9988
Direct: 2155 6275
Mobile: 6301 6611
Fax: 2111 9989
Topic: Press release summary
Source: China Innovation Investment Limited
Sectors: Electronics, Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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