SHENZHEN, China, May 13, 2011 /PRNewswire-Asia-FirstCall/ -- New
Energy Systems Group (NYSE Amex: NEWN) ("New Energy" or the
"Company"), a vertically-integrated original design manufacturer
and distributor of lithium ion batteries and consumer branded
backup power systems, today addressed shareholder comments and
questions regarding New Energy's acquisition of Kim Fai Solar ("Kim
Fai') in November of 2010.
"We have been receiving numerous e-mails and calls on
Kim Fai, its value to our
shareholders and our relationship with Kim
Fai before our acquisition in November of 2010," began
Weihe Yu, Chairman of New Energy
Systems Group. "When I was the president of Shenzhen Anytone
("Anytone"), one of the original shareholders in the Anytone
business was an investor named Mr. Ruizheng
Cheng. In addition to his support of Anytone and mobile
power products, it was widely known amongst our investors and our
management team that Mr. Cheng was also a strong believer of the
solar power business and industry in China. In December of 2009, Mr. Cheng decided
to invest in and develop a solar power business which he named
Shenzhen Anysolar Co., Ltd. ("Anysolar"). Anysolar was, and is,
primarily a sales agent which markets solar panels and equipment to
select customers in China.
Anysolar is not a manufacturer and thus outsources its
Anysolar-branded original equipment and original design solar
products to a number of third party manufacturers. Kim Fai Solar was one of such manufacturers.
Seeing the quick development of Mr. Cheng's business and
witnessing the continued growth of the Chinese solar power
industry, I approached my board of directors in the third quarter
of 2010 with a plan to enter the solar market by acquiring
Kim Fai and subsequently their
customer base. This customer based included Mr. Cheng's
Anysolar company. The acquisition was completed in November 2010. On the date of the acquisition,
the business between Anysolar and Kim
Fai was very small compared to Kim
Fai's largest customers. Such customers include: Heshan
Jianhao Lighting Co., Ltd. and Dongguan SingfoSolar Technology Co.,
Ltd., which accounted for 13% of Kim
Fai's business at the time and still remain the Company's
most significant solar panel customers. Neither Mr. Cheng, nor any
of Mr. Cheng's employees or advisors of Anysolar were, at any time,
shareholders of Kim Fai. We
recognize that the companies cooperated and co-marketed together on
several occasions however they are two separate businesses. New
Energy's acquisition of Kim Fai was
at arm's length and did not constitute a related party
transaction."
New Energy System Group has further filed an 8-K with the SEC,
today which attached as an exhibit a legal opinion on the
acquisition of Kim Fai. Guangdong
Shendadi Law Firm in has issued a detailed legal opinion on the
acquisition which indicates "the acquisition does not constitute a
related party transaction under PRC laws." A copy of the 8-k
and the translated legal opinion by the PRC counsel can be obtained
on the SEC Website, www.sec.gov or New Energy's website.
About New Energy Systems Group
New Energy Systems Group is a vertically integrated original
design manufacturer and distributor of lithium ion batteries and
backup power systems for leading manufacturers of mobile phones,
laptops, digital cameras, MP3s and a variety of other portable
electronics. The Company's end-user consumer products are sold
under the Anytone® brand in China
while it's commercial and OEM batteries and battery components are
sold under New Power and E'Jenie. The fast pace of new mobile
device introductions in China
combined with a growing middle class make it fertile ground for New
Energy's end-user consumer products, as well as its high powered,
light weight lithium ion batteries. In addition to historically
strong organic growth, New Energy is expected to benefit from
economies of scale, broader distribution and higher profit margins
in 2011. Additional information about the company is available at:
www.newenergysystemsgroup.com .
Forward Looking Statements
This release contains certain "forward-looking
statements" relating to the business of the company
and its subsidiary and affiliated companies. 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. Investors should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. 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 (www.sec.gov). 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.
For more information, please
contact:
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COMPANY
New Energy Systems
Group
Ken Lin, VP of Investor
Relations
Tel: +1-917-573-0302
Email:
ken@newenergysystemsgroup.com
Web: www.newenergysystemsgroup.com
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INVESTOR
RELATIONS
HC International,
Inc.
John Mattio, SVP
Tel: US
+1-212-301-7130
Email:
john.mattio@hcinternational.net
Web: www.hcinternational.net
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SOURCE New Energy Systems Group