Cleantech Solutions International Enters into Exclusivity Agreement with Shanghai HongChuan for Potential Acquisition
HONG KONG, December 21, 2017
Cleantech Solutions International, Inc. today announced that its wholly-owned subsidiary, EC Advertising Limited, has entered into an exclusivity agreement with the shareholder of Shanghai HongChuan Culture Promulgation Co., Limited, 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 and cellphone markets by building business relationship with partners such as Wechat, Weibo, Netease, Pear Video, etc.