HONG KONG, Jan. 21 /Xinhua-PRNewswire/ -- Launch Tech Company Limited (HKEx: 8196; "Launch Tech"), a Hong Kong listed company and a leading player in the automobile after-market in China and worldwide, announced that it had, on 11 December 2007, successfully placed to the Templeton Strategic Emerging Markets Fund II, LDC ("TSEMF II"), 45,600,000 new H Shares, at HK$1.63 per share. Launch Tech will use the HK$74,328,000 (US$9.5 million) proceeds from the placement to expand the production capacity of its automobile diagnostics products and lifts, while funding research and development and working capital needs.
TSEMF II, managed by Templeton Asset Management Ltd ("TAML") and headed by Dr. Mark Mobius, Executive Chairman of TAML, subscribed 100% of this placement and holds 16.67% of the enlarged H share capital, and 7.55% of total enlarged share capital of Launch Tech.
Commenting on the placement, Mr. Charles Liu, CEO of Launch Tech said, "Templeton's investment in Launch Tech demonstrates the strong institutional support and confidence in the future prospects of our company. We expect a significant breakthrough in operating performance over the next three years. Hopefully, the better performance and results will be reflected in the capital market."
Launch Tech is preparing to launch new products in the automobile after-market, and continue with development of its global sales/ services network. The company's aim is to achieve a 40% CAGR in future sales. Launch Tech will also explore the automobile pre-market electronic equipment business, while seeking strategic alliances with other domestic automobile makers in China.
Dr. Mobius said, "Launch Tech is a leading global player in the automobile after-market, with a strong brand overseas on its automobile diagnostics products and garage equipment. We are impressed with Launch Tech's diverse products and revenue models, and believe the company has strong prospects for growth. Our investment will provide support for the Company's continued growth and presence in this competitive market."
About Launch Tech Company Limited
Established in 1992, Launch Tech (HKEx: 8196) is a high-tech company specializing in the automobile aftermarket. Its core products are in four main categories -- diagnostic, testing, machinery & maintenance. The company's shares were listed on Hong Kong's Growth Enterprise Market (GEM) Board in 2002. Launch Tech's technologically-advanced diagnostic products rank third in sales globally. In recent years, the company has also made significant progresses in the testing, machinery & maintenance business areas. Since the listing of its shares in 2002, Launch Tech has developed an extensive sales / services network around the globe, while demonstrating consistent growth. In 2007, the company began R&D as well as the production of Do-It-Yourself and pre-market automobile products, with an aim of becoming a major supplier in the automobile electronics market.
About Templeton Strategic Emerging Markets Fund II, LDC ("TSEMF II")
TSEMF II is a Limited Duration Company incorporated in the Cayman Islands and available only to institutions and sophisticated investors. TSEMF II makes strategic investments throughout emerging markets.
TSEMF II is managed by Templeton Asset Management Ltd ("TAML"), a Singapore Company, and has 13 offices located throughout the emerging markets including Singapore, Shanghai, Seoul, Hong Kong, Mumbai, South Africa, Turkey, Austria, Poland, Russia Brazil and Argentina. TAML's emerging markets investment team is headed by Dr. Mark Mobius and managed over US$47 billion in assets as of 31 December 2007
TAML is a subsidiary of listed Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Institutional, a unit of Franklin Templeton Investments, provides global and domestic investment management solutions managed by the Franklin Global Advisers, Templeton, Franklin Templeton Fixed Income, Franklin Templeton Real Estate Advisors, Darby and Mutual Series investment management teams. The California-based company has more than 60 years of investment experience and approximately US$643 billion in assets under management as of 31 December 2007.
Media Contacts:
Franklin Templeton Investments
Jenny Chan
Tel: +852-2829-0625
Launch Tech Company Limited
Charles Liu
Tel: +86-755-8452-8888
