HONG KONG, Dec. 21, 2017 /PRNewswire/ -- Cleantech Solutions International, Inc. ("Cleantech Solutions" or "the Company") (Nasdaq: "CLNT") today announced that its wholly-owned subsidiary, EC Advertising Limited ("EC Advertising"), has entered into an exclusivity agreement with the shareholder of Shanghai HongChuan Culture Promulgation Co., Limited ("Shanghai HongChuan"), regarding a potential acquisition by EC Advertising of not less than 75% of Shanghai HongChuan.
"We are very happy for the opportunity to work with CLNT, which has a strong foothold in the global sharing economy, technology and media businesses," said WenHu Pei, Founder of Shanghai HongChuan. "Over the past three years, we have been working hard to establish our business network and form partnerships with various entities in Mainland China to promote their brands across the country. As we look to the future, we strongly believe that CLNT can support our efforts to expand into overseas markets, serve more international clients while helping them explore the PRC markets, and more importantly, enable us to fulfill our high-growth performance objectives with regard to both revenue and profit."
"We are excited about the potential for Shanghai HongChuan to become another powerful revenue stream for CLNT," said Parkson Yip, COO of Cleantech Solutions. "On the one hand, Shanghai HongChuan will serve as a valuable advertising platform for CLNT, allowing more of the Chinese population to understand and participate in the sharing economy concept advocated by CLNT. On the other hand, it enables us to enter a new business segment with good profitability, namely advertising. The total value generated by the advertising market in China was approximately RMB648.9 billion in 2016, and its near-term growth prospects remain promising. We will continue to identify other advertising participants with strong business potential and align with them in order to introduce our sharing economy businesses to more people living in China while improving our financial results."
There can be no assurances that the parties may enter into any agreement to do a transaction, and even if an agreement is entered into, there can be no assurances that such transaction will be consummated.
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 Shanghai HongChuan
Shanghai HongChuan was founded in March 2014. It is currently a traditional media-based advertising company (TV, radio, internet, outdoor media, etc.), servicing well-known clients such as China Life, Jumpcan Pharmaceutical, ShanghaiPuDong Development Bank, Sunflower Pharmaceutical, Bailian Group, and Shanghai City Construction Group. Starting from 2017, Shanghai HongChuan is moving its business focus on new media, over-the-top ("OTT") and cellphone markets by building business relationship with partners such as Wechat, Weibo, Netease, Pear Video, etc.
Shanghai HongChuan anticipates it will achieve total revenue of RMB13.8 million and net profit of RMB5.1 million in 2017.
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 September 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.
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SOURCE Cleantech Solutions International, Inc.