Suncool AB and Zhong Fa Zhan Holdings Ltd form New Venture to Conquer the Emerging Solar Air Conditioning Market in China; E. J. McKay Advised Suncool AB in the Transaction

STOCKHOLM and HONG KONG, July 2, 2015 /PRNewswire/ -- Today Swedish innovation company Suncool AB and Zhong Fa Zhan Holdings Ltd. (0475.HK) (ZFZ) -- a company listed on the main board of Hong Kong stock exchange -- signed definitive agreements to, subject to shareholders' approval in the respective companies, invest in and establish a Chinese business for the manufacturing, marketing and sales of innovative Solar Air Conditioning and heating products.

• We are delighted about this deal. This marks the first step in ZFZ's development into a new era of renewable energy and energy efficiency, Mr. Wu Hao, Chairman of ZFZ, says.
• With China's vast amounts of buildings in need of indoor comfort, Solar Air Conditioning is a transformational market opportunity. We are optimistic about the addressable market in Greater China for this new solar panel business will be generating more than RMB 20 billion revenue per year in the future, Mr. Hubert Chan, CEO of ZFZ continues.

The solar thermal market in China is by far the world's largest with more than 80% share of the global market and some 50 million m² solar collectors sold every year. The technology exclusively acquired by ZFZ enables the manufacturing of solar collectors that cannot only produce heating and hot tap water, but also directly supply air conditioning. Target customers include hotels, hospitals and other commercial buildings as well as the residential sector and distributors of solar powered solutions.

The new operating company will be established in Yuyao (Zhejiang province) with active support from the local government. Furthermore, the new venture will receive strategic and operational advisory support from the leader of green energy in China, the China Energy Conservation and Environmental Protection Group (CECEP), through its multi-national vehicle China-UK Low Carbon Enterprise (CULCE) which is led by its CEO, Mr. Liu Haoming, who states:

• We believe that this deal is very important since it has a huge impact on reducing China's total energy consumption in buildings through cost competitive use of renewable energy. By marrying deep knowledge of growing competitive business in China with innovative and ground-breaking technology, it truly combines the strengths of China and Sweden.

The business plan for the new company, a wholly owned subsidiary of ZFZ, is to exclusively commercialize the unique solar heating and cooling technology in China, Hong Kong, Macao and Taiwan. 

• We believe that the best way to capture the single largest market opportunity in the world is to have a strong, long-term Chinese Partner. We are pleased to have found such a Partner in ZFZ. We look forward to joining forces with ZFZ and to grow this business as fast possible, says Mr. Per Olofsson, Chairman of Suncool.

Shanghai based investment bank E. J. McKay advised Swedish firm Suncool AB and its shareholders in the transaction. James Z. Li, E. J. McKay's CEO, shares his view:

• In Northern Europe there are developed technologies that fit perfectly into the transformation of Chinese energy efficiency and environmentally friendly solutions. By partnering such technologies with Chinese businesses we can add value both to Chinese society and to shareholders, for many years to come.

For more information about this press release: 

• Suncool AB: Karl Bohman, +46-705-600268
• ZFZ: Hubert Chan, +852-3695-0000

About Suncool and ClimateWell:

In October 2014, the Suncool technology, which enables the world's first solar thermal collector with integrated cooling, was launched and successfully demonstrated in a first large-scale installation in Europe: www.climatewell.com/suncool

The Suncool technology was originally developed by ClimateWell AB, the award-winning and leading provider of sorption components. The patented technology is based on salt crystals, which can store chemical energy and convert it to heating and cooling without using any electricity or moving parts.

ClimateWell's technology is currently applied in the fields of solar-powered heating and cooling in buildings, heat-driven air conditioning in heavy-duty vehicles and gas-fired water heaters for residential. ClimateWell's components are integrated in those applications by major OEM customers like GE, Rheem and Caterpillar.

About ZFZ:

Zhong Fa Zhan Holdings Ltd is a company listed on the main board of Hong Kong stock exchange since 2007. It is currently devoted in developing its business in the environmental protection and energy saving field. Engaging in this Solar Air Conditioning business signifies that ZFZ has taken a crucial step in progressing its green energy business development plan.

About E. J. McKay:

E. J. McKay is a Shanghai-based investment banking group specialized in structuring complex cross-border mergers & acquisitions and merchant banking transactions. Through its offices and strategic partnerships, the firm is present and active in major financial centers around the world. E. J. McKay has a dedicated focus on China, and advises transactions both inbound and outbound, representing clients both local and multinational.