Shenzhen, China (PRWEB) December 10, 2008
Zhaoheng Hydropower (OTC BB: ZHYP) ("Zhaoheng Hydropower" or the "Company"), a leading small to medium hydropower group in Midwest China, today announced that it acquired an 88% equity interest in Hubei Minyuan Huohe Hydropower Development Co., Ltd. ("Huohe") on November 25, 2008 through its subsidiary Shenzhen Zhaoheng Hydropower Co., Ltd.
Under the terms of the agreement, Zhaoheng Hydropower purchased a 65% stake in Huohe for RMB 13,507,000 RMB from Hubei Minyuan Power Industrial Development Co., Ltd. ("Hubei"), and a 23% stake for RMB 4,779,200 RMB from Shiyan Juhong Power Development Co., Ltd. ("Shiyan"). In addition, we have agreed to assume and repay obligations of Huohe to Hubei and Shiyan pursuant to the loans originally made by Huhei and Shiyan to Huohe in the amounts of 8,064,000 RMB and 2,850,500 RMB, respectively.
Guosheng Xu, Chairman and Chief Executive Officer of Zhaoheng Hydropower commented, "We are excited to have completed the acquisition of Hubei Minyuan Huohe Hydropower. This event marks another significant milestone for our Company and is in line with our stated strategy of growth through acquisitions. Our past successes in acquiring hydropower stations, including increasing the operating profits of Hunan Sanjiang by three times in only four years, gives me full confidence that we can strengthen profitability through this strategy. This acquisition brings our total and attributable installed capacity to 132.85 MW and 131.31MW, respectively. Our highly experienced management team is confident in our ability to integrate and develop the operations of Huohe smoothly, and become a dominant player in the small and medium-sized hydropower industry in China. As we continue to monitor the market, we will act swiftly on expansion opportunities as they arise."
Hubei Minyuan Huohe Hydropower Development Co., Ltd. owns the Huohe Cascade II and Huohe Cascade III hydropower stations in Zhushan County of the Hubei Province in China. Huohe also owns the development rights to the Huo River.
About Zhaoheng Hydropower:
Zhaoheng Hydropower Company, through its wholly-owned subsidiaries in mainland China, is a leading small and medium-sized hydropower station investment, development, and management company focused on hydropower stations with an installed capacity between 5-100 MW. Currently, the Company owns three facilities in China with a total installed capacity of approximately 132.85 MW. Zhaoheng Hydropower treats the cascade development of river basins as a priority and is committed to push forward the development of clean and renewable energy industry in China. The Company has been listed on the OTCBB since May 14, 2008 and has offices in Hong Kong and Shenzhen, China.
Contacts for investors and media:
Lily Zhou, Director of Investor Relations
+852 2787.3355 in Hong Kong
Alan Peng, Corporate Secretary
+86 755-82070966 in Shenzhen, China
Kathy Li, Christensen Investor Relations
+1 212.618.1978 in New York
Roger Hu, Christensen Investor Relations
+852 2232.3918 in Hong Kong