Reason #2: A Recent LOI
With the economic dark cloud starting to lighten up a bit, investors are looking toward the future and hoping for the best. Likely helping with the positive opinions is a letter of intent that was announced by China Recycling Energy on Thursday.
In a press release, the company said that its subsidiary has entered into a letter of intent to acquire controlling ownership of Xi’an Yineng Zhihui Technology. The firm specializes in the world of smart energy management.
Should the acquisition take place, CREG will own a leading operator and service provider of energy storage solutions on the consumer side. Importantly, YNZH currently owns the largest power storage station on a standalone basis in the region, from which several customers are being served.
In a statement, Mr. Ku, Chairman of the Board at CREG, had the following to offer:
We are excited about the opportunity to acquire controlling ownership of YNZH. YNZH is a vanguard in developing and operating smart energy management platform in China with business model similar to Tesla’s Powerwall business, essentially storing excess energy during non-peak times to support the grid’s peak loads with saving in energy cost and attractive return to investment to consumers. They took the lead in investing, constructing and managing a number of electric energy storage projects. The tri-level alarm mechanism on its cloud platform can accurately monitor the working conditions of each battery.
Its highly reliable security measures and precise remote control system allow high-efficiency operation and maintenance of 24-hour unattended stations and multiple stations managed by single person, resulting in saving in human resources, reduction of the marginal cost and enhancement of industry competitiveness. Its standardized, fast, low cost, high safety and flexible energy storage solutions are expected to attract more and more business and investment opportunities. We can rely on not only the their cutting edge energy storage technology, but also expect explorational growth from this new vertical to reap benefits in energy solution, economy and environment.
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