SINGAPORE, Aug. 15, 2017 /PRNewswire/ -- Dragon Group International Limited ("Dragon Group" or "DGI"), an SGX Mainboard-listed company principally engaged in the distribution of electronic components and test consumables, supply of semiconductor equipment, materials and tooling, and development of battery and storage solutions, announced today that its subsidiary, EoCell Limited ("EoCell"), had entered into a share subscription agreement (the "Agreement") with a strategic investor from P. R. China, Zhuhai Yinlong Energy Co., Ltd. ("YLE"), which upon completion under the Agreement, will invest US$20 million into DGI's subsidiary EoCell Limited ("EoCell").
Under the Agreement, with the US$20 million, YLE will upon completion subscribe for 940,000 new ordinary shares in EoCell, representing approximately 40% of the total enlarged share capital of EoCell.
EoCell is primarily engaged in the business of designing, developing and selling of next generation lithium ion batteries and related materials for cell phones, portable electronics, and off grid energy storage. In particular, these batteries and materials are used in electric vehicles.
YLE1 is a leading player in the new energy auto and energy storage system businesses in China, with established, integrated supply chain across the manufacturing of lithium batteries, manufacturing and assembly of electric buses, as well as the R&D, production and sales of smart grid energy storage system. Their ability to develop leading edge Lithium Titanate ("LTO") battery technologies with the R&D facilities in USA and China puts them on a footing above their peers. Their multiple gigafactories in various locations in China, and their announced plans for several more, attest to the robustness of their business model. With well-proven successful shareholders including Dong Mingzhu, president of Gree Electric Co., Ltd., Beijing Yanzhao Huijin International Investment Co., Ltd., Dalian Wanda Group Co., Ltd. and Jiangsu Jingdong Bangneng Investment Management Co., Ltd., YLE is well capitalized to capture the high growth electric vehicle and storage markets. Under the strong and capable leadership of Yinlong honorary president Dong Mingzhu and Yinlong president Wei Yincang, YLE is poised to disrupt the world stage of electrification.
DATO' Michael Loh Soon Gnee, Executive Chairman & CEO of Dragon Group, comments, "YLE's investment in EoCell and the partnership with DGI vindicates our vision and the success of EoCell's development of leading edge silicon anode and other battery materials. The strategic partnership with YLE will provide EoCell with additional financial resources and broader market access, open doors for us to license the EoCell technology to other interested parties in the green energy & electric vehicle segment, and set the stage for future growth stimulated by multiple synergies between EoCell and YLE. This also unlocks the value of EoCell, valuing it at US$50 million.
Electric vehicles have witnessed strong growth of over 50% in China in 2016, and the growth rate is expected to accelerate2. I believe that YLE is the most appropriate and complementary partner for DGI and investor for EoCell. With this partnership and investment, DGI and EoCell are extremely well positioned to embark on this excitingly disruptive new energy and transport super cycle."
Currently, DGI holds a 93% stake in EoCell, and based on the enlarged share capital, DGI will hold a 40% stake, similar to that of YLE and in theory worth US$20 million as well. The remaining 20% stake of EoCell will be held by Sputnik Energy Ltd, one of the founding partners of EoCell.
About Dragon Group International Limited (SGX: MT1)
Founded in 1990, Dragon Group International Limited ("Dragon Group" or "DGI") debuted on the Singapore Exchange-SESDAQ in September 1994. It subsequently progressed onto the Mainboard of the Singapore Exchange in September 1998. In June 2006, Dragon Group became a subsidiary of ASTI Holdings Limited ("ASTI"), one of the world's leading semiconductor equipment and manufacturing services providers.
The Group's three principal business activities comprises distribution of electronic components and test consumables undertaken by Spire Technologies Pte Ltd; supply of semiconductor equipment, materials and tooling, undertaken by Dragon Equipment and Materials Technology Limited; and Nanjing Dragon Treasure Boat Development Co., Ltd., a subsidiary that is involved in the construction of the Dragon Treasure Boat. This project is a joint venture with the Gulou District Government of Nanjing. The Dragon Treasure Boat is a replica of Admiral Zhenghe's treasure boat that sailed across the world in the Ming Dynasty. The Group also engaged in the development of battery and storage solutions through EoCell.
Headquartered in Singapore, Dragon Group has subsidiaries and representative offices across China, Hong Kong, and Taiwan, and a research and development centre in Silicon Valley, California, USA.
For more information, please visit DGI's website at www.dragongp.com.
SOURCE Dragon Group International Limited