LED International rises after announcing a significant contract win

10th Jun 2011 13:06

LED International's wholly-owned indirect subsidiary, Strongbase New, has been awarded a "significant energy management contract" by Hotel Novotel Shenzhen Bauhinia and Golden Gala Restaurant based in Shenzhen, in China.The projected revenue under the EMC Contract to Strongbase New is approximately RMB5,500,000 (approximately £510,000).Under the EMC Contract, "Strongbase New will overhaul the Hotel's existing lighting and power consumption systems (which are based on traditional lighting technology and power generation equipment) with new energy-saving LED light bulbs and reactance filtering equipment provided by it," the company has explained. Of interest, Strongbase New will bear all the upfront costs associated with the supply and installation of the LED light bulbs and equipment at the Hotel's premises and then will recoup these costs by sharing in the actual monthly energy savings generated by the Hotel's use of the energy-saving solutions for the next 6 years. Its clients will pay their dues to Strongbase New on a monthly basis.LED's Chairman, Thomas Li, has highlighted how this constitutes a major endorsement of the company's technology by an internationally renowned hotel. Lastly, Mr. Li calls attention to the recurring nature of this new revenue stream. As of 13:08PM shares of LED International are rising by 82.6% to 1.05p, in London trading. AB