Shunfeng International Clean Energy Limited (SFCE) announced that it has signed an MOU with Lattice Power to acquire a 51% ownership stake in the company. SFCE's successful bid in Lattice Power is a milestone for the listed company as it transitions to become a global low carbon solutions provider. Lattice Power's gallium nitride (GaN) on silicon technology is exclusively patented worldwide, offering significant cost advantages compared to sapphire substrate technology LED. The partnership expands SFCE's portfolio and increases the profitability of the listed company.
In 2014 Lattice Power sold over 100 million units of LED bulbs. LED lighting is a sustainable, reliable, efficient and energy-saving technology which reduces energy consumption by 50% to 80% compared to normal lighting. Lattice Power's high-performance LED lighting products serve the general lighting, smart phones and the automotive industries. The company currently holds more than 200 patents worldwide and SFCE's global low carbon solutions will bring a huge new profit growth opportunity to the company.
"Developing cost-effective lighting solutions is an essential step in solving the world's energy challenges," said Zhang Yi, Executive Chairman of SFCE. "Lattice Power's breakthrough technology represents the next generation of affordable lighting products. These new lighting products will inevitably replace traditional lighting, providing high-quality products at a reasonable cost for the global lighting markets. In addition, the merger creates new opportunities for SFCE in the lighting market, providing a new and substantial profit source for the company."
"We see tremendous opportunity for the GaN-on-silicon technology, which offers the ideal choice for next generation silicon chips," said Sonny Wu, Managing Director of GSR Ventures and Executive Chairman of Lattice Power. "Efficient, energy-saving, low-cost LED lighting products are leading the development of the lighting market. Global energy consumption stems largely from urban and household lighting needs. As the global population grows and the economy develops, energy efficient solutions, including energy-saving lighting solutions will face a huge demand. Many developed countries have legislation prohibiting the use of traditional lighting, thus the investment community is increasingly concerned about new lighting technologies and products. GSR Ventures has been leading investments within new economic fields for many years. In collaboration with SFCE, we are excited to integrate Lattice Power's technology and products into emerging lighting markets, to disrupt the market and yield substantial earnings. We look forward to a long-term partnership."
