Dragonite International Limited (Formerly Ruyan Group (Holdings) Limited) (Hong Kong Stock Code: 329) -- Change of Company Name and Capital Reorganization
HONG KONG, Aug. 6 /PRNewswire-Asia/ -- The board of directors of Dragonite International Limited (stock code: 329, the "Company" or "Dragonite") is pleased to announce the Company will change its name from "Ruyan Group (Holdings) Limited" to "Dragonite International Limited", with three dragons representing the past, present, and future of the Company.
Prior to consolidation of the Company under the Ruyan banner in 2007, the Company was operating as a health care and pharmaceutical products company known as the Golden Dragon Group. The electronic cigarette business, including the SBT ("Substitute for Tobacco") group, which had been operating as an affiliate of Golden Dragon, was then consolidated into the listed company and the name was changed to "Ruyan Group (Holdings) Limited" in November 2007 with three major business divisions: health care, pharmaceutical and electronic cigarettes.
The new English and Chinese names symbolize the rebirth of the Company as provided by the capital restructuring program under way now for more than three months. Prior to restructuring earlier this year, the Company had been burdened by approximately HK$183,000,000 in debt. As of this date, the Company is almost debt free and operating with a healthy cash flow. The Company is also planning to raise at least an additional HK$400 million in the forthcoming Capital Reorganization and Rights Issue as stated in the Company's public announcement dated 21 July, 2010 providing the opportunity for all shareholders to participate in the future growth of the Company.
The Company owns and operates R&D, manufacturing, and sales & marketing operations in mainland China for all three divisions.
-- Patent application approved in USA
The board of directors is also pleased to announce the approval of its patent application for the "electronic atomization cigarette" (commonly known as the "Electronic Cigarette" or "E-Cigarette") in the United States by the United States Patent and Trademark Office. [USPTO patent app. number 10/587,707]. The Company has many patents, however this patent constitutes the Company's core invention patent which covers all key components and functionality of the Electronic Cigarette including the battery, vaporization mechanism, activation switch, and flavor cartridge. The inventor of the Electronic Cigarette, and the "first named inventor" as stated on the above-referenced USPTO approved application is Mr. Hon Lik, an Executive Director and co-founder of the Company. Dragonite's core invention patent has already been granted in many major countries including all EU countries, Russia and the former Soviet republics, China, Malaysia, Taiwan, India, Mexico, Singapore, and Israel. As the USPTO is considered by many patent experts to represent the "gold standard" for patent legitimacy and validity, the Company is pleased with this news.
Commenting on the patent approval, Mr. Wong Yin Sen, Chairman of the Company, said, "As the inventor of the Electronic Cigarette, product quality has always been our top priority. This patent approval will help eliminate inferior product imitations and ensure high quality and safe products in global markets. We foresee a bright future for the Electronic Cigarette and Dragonite"
The Company has already won several patent infringement cases in mainland China and now has the resources to proactively defend its intellectual property rights in global markets.
-- Global Business Potential of the Electronic Cigarette
The Electronic Cigarette is a battery-operated device which looks like a cigarette but has no ignition. When inhaled, a battery activates a vaporization process of a self-contained liquid flavor cartridge simulating the look, feel, and taste of tobacco cigarettes. In a properly designed Electronic Cigarette, the vapor is harmless, looks like smoke, but dissipates rapidly leaving no residue, or second hand smoke.
As an alternative to smoking tobacco cigarettes, Electronic Cigarettes offer many convenience features: no messy ash, or risk of fire or burns, immediate access to any number of puffs at anytime, odorless and clean, while eliminating the need to search for a smoking area. In addition to these convenience features, Dragonite will soon release a disposable Electronic Cigarette which does not require recharging or change of cartridge called the "Jazz".
In recent years, smokers, as well as leading tobacco companies, and tobacco marketers have shown increased interest in new smoking alternative products. The validation of the Company's intellectual property will help the Company eliminate inferior and unauthorized imitations as well as to strengthen and expand its strategic partnerships around the globe. Looking forward, Dragonite plans to continue to invest in research and development and to define the global market for the Electronic Cigarette.
SOURCE Dragonite International Limited