HONG KONG, Sept. 28 /PRNewswire-Asia/ -- The board of directors of Mascotte Holdings Limited (HKEx stock code: 136, the "Company" or "Mascotte") is pleased to announce that the Company entered into a strategic cooperation agreement with Hareon Solar Technology Co., Ltd. ("Hareon Solar") and Sun Materials Technology Co., Ltd ("Sun Materials") in relation to the manufacturing and further development of polycrystalline silicon by Sun Materials. The directors believe that this agreement will allow Sun Materials to rapidly commercialize the production of polycrystalline silicon and be beneficial to the Mascotte's potential investment.
Mascotte entered into a preliminary agreement on August 3, 2010 to acquire an indirect majority beneficial interest in 50.1% of the issued share capital of Sun Materials. The possible acquisition is subject to the entering of a legally binding agreement.
Hareon Solar is one of China's largest manufacturers of photovoltaic products with a global customer base. Sun Materials developed and patented a new and innovative technology in the manufacturing of polycrystalline silicon, using a reductive combustion process, with a view to reducing production cost and adverse environmental effects during manufacturing.
According to the strategic cooperation agreement, the parties will cooperate on the further development and manufacturing of polycrystalline silicon through: streamlining existing production processes, creating new processes to further lower the production cost, establishing a market for Sun Materials polycrystalline silicon and cross staff their respective facilities. Sun Materials and Hareon Solar also agreed to extend the term of their agreement for the supply of polycrystalline silicon by Sun Materials to Hareon Solar. The agreement was entered into in July 2010 and the term of the agreement has been extended for an additional five years to until 2021. Sun Materials previously secured additional fixed term purchase agreements with customers, which are effective until at least 2015 (unless terminated in advance). Mascotte will contribute working capital to Sun Materials to enable Sun Materials and Hareon Solar further their development and manufacturing efforts, subject to, among other conditions, the completion of Mascotte's acquisition of 50.1% of Sun Materials.
Commenting on the agreement, Samuel Yang, CEO of Hareon Solar, said, "I am pleased to sign this co-operation agreement with Sun Materials. We, at Hareon Solar, are always searching for innovative methods to lower our cost of production without sacrificing the quality of our products. We believe that Dr. Wu's technical achievements will bring us closer to our long-term goal of allowing our customers to look beyond grid parity and focus on cheaper and even more competitive forms of solar photovoltaic power generation. We look forward to many years of successful partnership."
"Our relationship with Hareon Solar provides Sun Materials with additional manufacturing expertise and access to the skills and resources of a proven photovoltaic operator," said Dr. Mark Wu, CEO and CTO of Sun Materials. "I am especially honoured at the confidence Samuel Yang, CEO of Hareon Solar, has placed in us to become a key supplier in the coming years. We are confident that this partnership will allow all parties to create tremendous value for the industry as a whole."
About Mascotte
Mascotte is publicly listed on the Hong Kong Stock Exchange (HKEx stock code: 136). The Company is an investment holding company with its subsidiaries principally engaged in the manufacturing and sale of accessories for photographic, electrical and multimedia products and property investment. The Mascotte Group has over 30 years of manufacturing experience for computer, photographic, video, phone and multi-media bags and accessories. The company has entered into a non-binding preliminary agreement to acquire a majority interest of Sun Materials, in order to develop the polycrystalline silicon manufacturing business.