New Coffee Maker Line to Broaden Proprietary Product Portfolio while Enhancing Home System Group's Research and Development Capabilities
LOS ANGELES, Calif., June 15 /Xinhua-PRNewswire-FirstCall/ -- Home System Group (OTC Bulletin Board: HSYT) ("Home System Group" or the "Company") based in Guangdong Province, China, an international manufacturer and distributor of home appliance products to major global retailers, today announced that Oceanic Well Profit, Inc., it's Chinese operating subsidiary, has executed an asset purchase agreement for the purchase of specific assets, including a specialized stainless steel coffee machine product line. The purchase was completed with the sole shareholder, Ms. Huiping Cheng, who represents Guangzhou City Keyun Light Industry Machinery Co. Ltd., one of China's largest stainless steel vacuum vessel production coffee manufacturers. Consideration for the purchase is approximately $2 million in cash, three installments of which will be payable, the first at the signing of the agreement; the second after the production equipment is installed and operable and the balance after completion of the transfer of all the purchased assets.
The purchased assets include a technology patent which Management believes will strengthen the Company's research and development platform and a production line which will be incorporated into the Company's current facility. Management estimates that this purchase will contribute approximately $3.9 million in revenues to the Company during 2007 and will be accretive to Home System Group's earnings, with further growth anticipated during 2008.
"We continue to pursue opportunities which diversify and strengthen our product portfolio, complement and expand our customer base, and improve our research and development capabilities," stated Mr. Li Wei Qui, CEO and Chairman of Home System Group. "The ultimate goal is to generate sustainable revenue growth while staying focused on opportunities to deliver further margin enhancements. This asset purchase facilitates our entry into the global coffee maker market, which we estimate will represent a billion dollar plus opportunity on an annual basis.
Mr. Qui went on to say, "These proprietary coffee makers are differentiated by a patented, energy efficient core which utilizes a 'seamless welding technology' to keep beverages warm. We anticipate this acquisition will improve our current capacity utilization, while providing another conduit for growth which leverages our stainless steel expertise."
About Home System Group
Headquartered in Hong Kong, China, Home System Group, through its wholly owned distributor Oceanic International (Hong Kong), Ltd. (OCIL) and Oceanic Well Profit, Inc. produces and distributes home appliances, including stainless steel gas grills, residential water pumps, electronic fans, stainless coffee makers, fruit processors, and other electrical appliances to retailers in the U.S., Europe and Australia. Please visit the corporate website at: http://www.homesystemgroup.com .
Safe Harbor Statement:
Certain statements in this news release may contain certain
forward-looking statements about Home System Group's business and products, including, but not limited to, statements regarding the ability of Home System Group to integrate the assets purchased; the effect of the assets on the Company's research and development platform and on the Company's revenue and earnings growth; the Company's ability to diversify and strengthen its product portfolio, complement and expand its customer base; and the Company's ability to improve its research and development capabilities. Actual results may differ materially from the results expressed in the forward-looking statements due to a number of risk factors including, but not limited to: general economic and business conditions globally; product development; shipments to end customers; market acceptance of new and existing products; additional competition from existing and new competitors; changes in technology; economic, political, and social events in China and other regions and markets; securities markets trends; regulations of the U. S. Securities and Exchange Commission (SEC) and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and by the risk factors detailed in the Company's reports filed with the SEC. Home System Group undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Company Contact:
Michelle Zheng
Home System Group
Tel: +1-213-223-2277
Email: michelle@homesystemgroup.com
Investor Contact:
Matt Hayden
HC International, Inc.
Tel: +1-858-704-5065
Email: matt@haydenir.com
