Attached files
| file | filename |
|---|---|
| 8-K - Harbin Electric, Inc | v187761_8k.htm |
| EX-10.2 - Harbin Electric, Inc | v187761_ex10-2.htm |
| EX-10.5 - Harbin Electric, Inc | v187761_ex10-5.htm |
| EX-10.4 - Harbin Electric, Inc | v187761_ex10-4.htm |
| EX-10.6 - Harbin Electric, Inc | v187761_ex10-6.htm |
| EX-10.1 - Harbin Electric, Inc | v187761_ex10-1.htm |
| EX-10.3 - Harbin Electric, Inc | v187761_ex10-3.htm |
| EX-10.7 - Harbin Electric, Inc | v187761_ex10-7.htm |
Exhibit
99.1
Harbin
Electric Restructures Subsidiaries of Xi'an Tech Full Simo Motor
Acquisition
of full ownership in four partially owned subsidiaries and disposal of
non-strategic businesses
Companies:
Harbin Electric,
Inc.
Topics:
Industrial
Goods
Press Release Source: Harbin
Electric, Inc. On Wednesday June 9, 2010, 6:00 am EDT
HARBIN,
China, June 9 /PRNewswire-Asia-FirstCall/ -- Harbin Electric, Inc. ("Harbin
Electric" or the "Company", Nasdaq: HRBN), a leading developer and manufacturer
of a wide array of electric motors in the People's Republic of China, today
announced that Xi'an Tech Full Simo Motor Co., Ltd. ("Xi'an Tech Full Simo"), a
wholly owned subsidiary of the Company, entered into separate Share Purchase
Agreement, each dated as of June 3, 2010 and effective as of April 1, 2010 (the
"Agreement(s)") to restructure its ownership in seven of its
subsidiaries.
"This
restructuring reinforces the foundation for the integration of Xi'an Tech Full
Simo into our enterprise," said Mr. Yang, Chairman and Chief Executive Officer
of Harbin Electric. "Since last October, we have developed a thorough
understanding of the business of each of these subsidiaries and of their
strategic importance and contribution potential to our overall efforts. We
believe that this restructuring leaves us stronger and will help us simplify our
corporate structure, reduce cost and increase earnings power. Furthermore, we
believe that this restructuring will help Xi'an Tech Full Simo gain better
control over the supply of some key components for its industrial rotary motor
products, which will support sales growth and margins. As our business outlook
is expected to remain positive with order volumes holding strong and raw
material prices declining, together with the benefit of this restructuring, we
expect to close another strong quarter. Despite continued economic uncertainty
in many parts of the world, we remain optimistic and confident in our strategy,
execution and prospects," continued Mr. Yang.
In
October 2009, Harbin Tech Full Electric Co., Ltd., the wholly owned subsidiary
of Harbin Electric, acquired 100% of the outstanding equity of Xi'an Tech Full
Simo. At the time of the acquisition, Xi'an Tech Full Simo had fifteen wholly
owned subsidiaries and had partial ownership in eight additional subsidiaries.
Pursuant to the terms of the Agreements, Xi'an Tech Full Simo has agreed to
acquire all of the equity interests of four of its partially owned subsidiaries
and to sell its equity interests in its three other partially owned
subsidiaries. In addition, Xi'an Tech-Full Simo ceased the operations of one of
its other subsidiaries.
The net
cost of this restructuring amounts to RMB 175.65 million (approximately US$25.76
million), to be paid in cash within 40 days of the signing of the Agreements.
The Company will use its net cash on hand to fund the costs of the
restructuring. The closing of all transactions is conditioned upon the
completion of the registration of the share transfer with the requisite PRC
authorities. The Company expects its consolidated financial statements to
reflect this restructuring beginning in the second quarter of 2010 and expects
the restructuring to be earnings accretive beginning in the second quarter of
2010.
About
Harbin Electric, Inc.
Harbin
Electric, headquartered in Harbin, China, is a leading developer and
manufacturer of a wide array of electric motors with a focus on innovative,
customized and value-added products. Its major product lines include industrial
rotary motors, linear motors, and specialty micro-motors. The Company's products
are purchased by a broad range of domestic and international customers,
including those involved in energy industry, factory automation, food
processing, packaging, transportation, automobile, medical devices, machinery
and tool manufacturing, chemical, petrochemical, as well as in the metallurgical
and mining industries. With a recent acquisition of industrial rotary motor
business, the Company operates four manufacturing facilities in China located in
Xi'an, Weihai, Harbin and Shanghai.
Harbin
Electric has built a strong research and development capability by recruiting
talent worldwide and through collaborations with top scientific institutions.
The Company owns numerous patents in China and has developed award-winning
products for its customers. Relying on its own proprietary technology, the
Company developed an energy efficient linear motor driving oil pump, the first
of its kind in the world, for the largest oil filed in China. Its self-developed
linear motor propulsion system is powering China's first domestically made
linear motor driving metro train. As China continues to grow its industrial
base, Harbin Electric aspires to be a leader in the industrialization and
technology transformation of the Chinese manufacturing sector. To learn more
about Harbin Electric, visit http://www.harbinelectric.com
.
Safe
Harbor Statement
The
actual results of Harbin Electric, Inc. could differ materially from those
described in this press release. Detailed information regarding factors that may
cause actual results to differ materially from the results expressed or implied
by statements in this press release may be found in the Company's periodic
filings with the U.S. Securities and Exchange Commission, including the factors
described in the section entitled "Risk Factors" in its annual report on Form
10-K for the year ended December 31, 2009. The Company does not undertake any
obligation to update forward-looking statements contained in the press release.
This press release contains forward-looking information about the Company that
is intended to be covered by the safe harbor for forward-looking statements
provided by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements that are not historical facts. These
statements can be identified by the use of forward-looking terminology such as
"believe," "expect," "may," "will," "should," "project," "plan," "seek,"
"intend," or "anticipate" or the negative thereof or comparable terminology, and
include discussions of strategy, and statements about industry trends and the
Company's future performance, operations and products.
For
investor and media inquiries, please contact:
In
China
Harbin
Electric, Inc.
Tel: +86-451-8611-6757 +86-451-8611-6757
Email:
MainlandIR@Tech-full.com
In the
U.S.
Christy
Shue
Harbin
Electric, Inc.
Executive
VP, Finance & Investor Relations
Tel: +1-631-312-8612 +1-631-312-8612
Email:
cshue@HarbinElectric.com
Kathy
Li
Christensen
Investor Relations
Tel: +1-212-618-1978 +1-212-618-1978
Email:
kli@christensenir.com