Hong Kong Building and Loan Agency Limited Advancing into Energy Conservation Industry(Hong Kong News)
March 21, 2011
Energy conservation is an important part in the Outline of the 12th Five Year Plan and has been listed as one of the seven emerging industries. Japan’s nuclear woe is a bitter lesson for China but the focus on development of energy efficiency can provide enterprises with enormous opportunities behind. Hong Kong Building and Loan Agency Limited (HKBLA, 0145HK) acquired mainland energy conservation providers at a price of 2.8 billion last month and succeeded in landing in mainland energy conservation industry. It is quite promising and its stock price has been fluctuating within 0.19-0.2. Despite the withered situation, a breakthrough may arise anytime with encouraging return.
HKBLA announced that its wholly-owned subsidiary-Jinwan Limited signed M&A agreement with 6 assigners and purchased all issued shares of Weldtech. Data showed that Weldtech’s main business is to provide energy monitoring and energy conservation solutions for retail, industrial buildings, large shopping malls and hospitals. Its self-developed ultra-efficiency control system (UPPC® system) comprises independently developed hardware and programs based on five patents. UPPC ® system is tailored for chiller plant optimization and energy efficiency improvement of buildings.
Technical report from Berkeley Building Research and Technologies, Inc, an independent U.S. qualified technical analyst, verified that the integrated energy efficiency performance of UPPC® system beats existing energy conservation systems in North American market. Another third part research organization Frost and Sullivan estimated that the demand on optimized chiller sets in 2009 will rise up to 318 billion and 1.666 trillion in 2021 at a CAGR of 14.8%.
Attention should also be paid that most mainland commercial buildings, industrial buildings, large shopping malls and hospitals are lacking in software for air conditioning. The potential opportunities behind those properties totaled up to billions, proving HKBLA’s recent M&A is wise and promising.
