SGOCO Group, Ltd. Signed an Exclusive Agency Agreement in Macau
SHENZHEN, China, Jan. 26, 2016 /PRNewswire/ -- SGOCO Group, Ltd. (Nasdaq: SGOC) ("SGOCO" or the "Company"), a company focused on product design, distribution and brand development in the Chinese display and computer product market, today announced that BOCA International Limited ("BOCA"), the Company's recently-acquired subsidiary, has signed a long-term, primary and exclusive agency agreement with Macau Jinyi Technology Co., Ltd ("Macau Jinyi"). Under the terms of the agreement, BOCA authorized Macau Jinyi to exclusively develop and marketing the BOCA branded energy saving and environmental protection products and technologies in Macau, China.
Macau Jinyi is an affiliate of Macau Far East International Group which is a real-estate developer in Macau. As an important part of Macau Far East, Macau Jinyi is currently promoting its electric tour bus plan to Macau government and local casinos and resorts in an endeavor to replace the traditional buses and thus reduce the carbon-dioxide emission and improve the air quality in Macau. This is a niche market for SGOCO to generate sizable revenue.
BOCA collaborates Macau Jinyi in the development of a cooling and heating system that is an energy saving and environmentally friendly technology which could massively reduce the pollution emission at hotels and commercial buildings as well as cut down the expense on electricity. To date, BOCA provided the technology to various clients like government administration buildings, hospitals, resorts, shopping malls and indoor infrastructure. According to preliminary statistics, some large resorts spent $100-150 million to pay their electricity bills annually and BOCA saves more than 30% on energy expenditures with its advanced technology. The lifetime of the product is 15 years and then they can be recycled which provides economic benefits.
SGOCO could generate a total estimated value of at least $77 million in revenue within the next 3 years by providing services to casinos and resorts, government buildings and shopping malls in Macau.
Regarding the acquisition of BOCA, Mr. Shi-Bin Xie, Chief Executive Officer of SGOCO, commented, "We achieved initial results at the business transformation level and the company will continue to up its head to the energy saving and environmental protection target."
About SGOCO Group, Ltd.
SGOCO Group, Ltd. is focused on product design, brand development and distribution in the Chinese display and computer product market. SGOCO sells its products and services in the Chinese market and abroad. For more information about SGOCO, please visit our investor relations website:
For investor and media inquiries, please contact:
SGOCO Group, Ltd.
Tony Zhong
Vice President of Finance
Tel: +86-755-2697-8199 ext:7500
Email: [email protected]
Safe Harbor and Informational Statement
This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Forward-looking statements in this release include, without limitation, the effectiveness of the Company's multiple-brand, multiple channel strategy and the transitioning of its product development and sales focus and to a "light-asset" model, Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. These forward-looking statements can change as a result of many possible events or factors not all of which are known to the Company, which may include, without limitation, our ability to have effective internal control over financial reporting; our success in designing and distributing products under brands licensed from others; management of sales trend and client mix; possibility of securing loans and other financing without efficient fixed assets as collaterals; changes in government policy in China; China's overall economic conditions and local market economic conditions; our ability to expand through strategic acquisitions and establishment of new locations; compliance with government regulations; legislation or regulatory environments; geopolitical events, and other events and/or risks outlined in SGOCO's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this press release and in the attachments is as of the date of the issuance, and SGOCO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
SOURCE SGOCO Group, Ltd.
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