HK BLDG & LOAN’s Shift to Energy Conservation and Environmental Protection(Warrant Strategy)

March 25, 2011

HK BLDG & LOAN (00145), a Hong Kong financial firm, took the first step in it advance into environmental protection industry by M&A of Weldtech, a China mainland energy conservation service provider at a price of 2.8 billion

Weldtech is a service provider of energy monitoring and energy efficiency solutions for retail buildings, industrial buildings, large shopping malls and hospitals and is the owner of patents of UPPC® system and other energy efficiency components of central air conditioning. As the business of energy efficiency is popular today, the M&A of HK BLDG & LOAN is motivated toward transformation into environmental protection industry to raise its stock price.

HK BLDG & LOAN published 2010 annual performance by the end of December after closing last Wednesday (March 23) that the revenue is 188.5 billion, resulting in profit to deficit. The annual loss amounted to 337.27 million with loss per share of 1.18 before closing date payable. The loss is from financial investment. Although the performance last year is not optimistic, the bank deposits of the corporation rose up to 771 million, 2.4 times as much as last year. More importantly, the corporate keeps in a net cash state with zero debt ratios.  

The corporation is shifting its business in to environmental protection industry. The cash reservation of over 700 million is a great drive for the company to sense new investment opportunities.