LED International Holdings Ltd Leasing finance contract (1753B)
January 02 2015 - 7:45AM
UK Regulatory
TIDMLED
RNS Number : 1753B
LED International Holdings Ltd
02 January 2015
2 January 2015
LED International Holdings Limited
("LED" or the "Company")
New leasing finance contract secured
The board of directors of the Company (the "Board") is pleased
to announce that the Company's wholly-owned direct subsidiary,
Green Pearl Leasing (China) Co. Ltd. ("Green Pearl"), has entered
into a leasing finance contract (the "Contract") with Jiangsu
Siyuan Port Company Limited ("Siyuan"), based in Jiangsu, China.
The projected total interest receivable by Green Pearl under the
Contract is approximately RMB1,320,000 (approximately GBP137,000)
over a two-year period.
Pursuant to the Contract, Green Pearl purchased various port
loading and reloading equipment (the "Equipment") from Siyuan at a
consideration of RMB12,000,000 (approximately GBP1,246,000) and the
Equipment shall be leased back to Siyuan for a term of two years
from 25 December 2014 to 25 December 2016 (the "Lease Period").
Summary of the Contract
Under the Contract, Green Pearl shall purchase the Equipment
from Siyuan at a consideration of RMB12,000,000 (approximately
GBP1,246,000) and the Equipment shall be leased back to Siyuan for
the Lease Period.
The lease rent to be paid by Siyuan to Green Pearl comprises of
two components: the principal lease cost of RMB12,000,000
(approximately GBP1,246,000) (the "Principal Lease Cost") and the
aggregate lease interest of RMB1,320,000 (approximately GBP137,000)
calculated at a rate of 11 per cent. per annum for the Lease Period
(the "Interest").
Siyuan shall pay the first half of the Principal Lease Cost of
RMB6,000,000 (approximately GBP623,000) to Green Pearl upon the
commencement of the Contract. Pursuant to the Contract, Siyuan duly
paid RMB3,000,000 (approximately GBP311,000) of this amount to
Green Pearl on 30 December 2014 and the remaining RMB3,000,000
(approximately GBP311,000) shall be paid by Siyuan on 5 January
2015.
The second half of the Principal Lease Cost of RMB6,000,000
(approximately GBP623,000) shall be paid by Siyuan to Green Pearl
in twenty four installments of RMB250,000 (approximately GBP26,000)
each and are payable on the 25(th) day of every calendar month
during the Lease Period.
The Interest payable by Siyuan to Green Pearl shall be paid by
Siyuan in twenty four installments of RMB55,000 (approximately
GBP5,700) each and are payable on the 25(th) day of every calendar
month during the Lease Period.
During the Lease Period, the ownership of the Equipment shall
vest in Green Pearl. Upon expiry of the Lease Period and subject to
full satisfaction of all the obligations under the Contract, Siyuan
will have the option and the right to purchase the Equipment at a
nominal purchase price of RMB1 to obtain the title of and all
rights in the Equipment from Green Pearl.
Pursuant to the Contract, Mr. Xu Xiu Zhi, the major ultimate
shareholder of Siyuan, has provided an unlimited personal guarantee
to secure the obligations of Siyuan under the Contract.
Siyuan shall make all the insurance payments for the integrated
property insurance of the Equipment in favour of Green Pearl.
LED's Chief Executive Officer, Stephen Chan, said: "I am
delighted to announce this important lease finance contract with
Siyuan. This is the first lease finance contract entered into by
Green Pearl since it obtained its leasing finance license and
represents a significant milestone for the Company. It is the
culmination of all our hard work over the past 2 years and we look
forward to entering into more leasing finance contracts in the
coming year."
**Ends**
For further information:
LED International Holdings Limited
Stephen Chan - Chief Executive Officer +852 2243 3100
Allenby Capital Limited
Nick Naylor / Alex Price +44 (0) 20 3328 5656
Notes to Editors:
LED International Holdings Limited and its subsidiaries
specialize in the provision of EMC contracts under which the Group
installs energy saving products in its customers' premises,
including lighting and reactance filtering equipment supplied by
the Group, and the subsequent savings made by the customers in
their electricity charges are then shared between the Group and the
customers thereby enabling the Group to generate recurring revenue
rather than one-off sales revenue. Historically, the Group's
business has been the development, manufacture and sale of
low-powered light-emitting diode ("LED") display screens and
modules.
Under EMC contracts, the Group provides energy efficiency
solutions, including LED lighting, reactance filtering energy
saving and other energy efficiency solutions.Specifically, the
Group overhauls its customers' existing lighting and power
consumption systems (which are based on traditional lighting
technology and power generation equipment) with proprietary LED
lighting products, reactance filtering equipment and other
solutions provided by the Group. These energy efficiency products
are installed in customers' premises. The Group bears all the
upfront costs associated with the supply and installation of the
energy efficiency solutions and these costs are then recouped by
sharing in the monthly energy savings generated by the customers'
use of the energy efficiency solutions over the period of the
contracts. The Group receives revenue from customers on several
different payment terms including on a pre-payment, monthly or
quarterly basis.
For more information, please visit: http://www.led-intl.com
This information is provided by RNS
The company news service from the London Stock Exchange
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