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.
View original
content:http://www.prnewswire.com/news-releases/cleantech-solutions-international-enters-into-exclusivity-agreement-with-shanghai-hongchuan-for-potential-acquisition-to-enter-chinas-advertising-market-300574260.html
SOURCE Cleantech Solutions International, Inc.