2012-09-04 15:05:46 -
Calgary, Alberta CANADA, September 04, 2012 /FSC/ - QSolar Limited (QSL - CNSX) ("the Corporation"),is pleased to announce that after making application to the Chinese authorities to establish a wholly-owned manufacturing enterprise in Caohejing Development Zone, Shanghai, China in May 2010, in accordance with the Laws of Republic of China Foreign Enterprises and other relevant regulations, it has been approved to establish a Wholly Owned Foreign Enterprise ("WOFE") and an associated 30 year business licence has been granted to be valid from June 28, 2012 to June 27, 2042.
The WOFE will be known as QSolar (Shanghai) Photovoltaic Technology Co. Ltd. ("QSolar Shanghai"), (Chinese name is Xu Hui (Shanghai) PV Technology Co. Ltd.), is based out of Shanghai, China. QSolar
Shanghai is structured as a wholly-owned limited liability subsidiary of QSolar Ltd., a wholly owned subsidiary of the Corporation. The new entity's broad business scope will to engage in producing, manufacturing and assembling solar panels or photovoltaic modules and accessories and the sale of those self-produced products. The registered capital of QSolar Shanghai has been established at USD $1,000,000 with 20% of the registered capital to be contributed within three months or September 29, 2012 and the remaining portion contributed in full within two years of the business licence issued to QSolar Shanghai. Once the contributed capital is verified by Chinese authorities it is free for corporate purposes. Management has been advised that the verification process takes approximately 15 to 30 days. It is management's intention to reflect the legal structure in the third quarter with the vend-in of QSolar Ltd. Chinese division assets and liabilities effective July 1, 2012.
Among the immediate benefits to QSolar Shanghai and the Corporation are as follows:
1. Operate its own renminbi ("RMB") bank account with the Bank of China as opposed to utilizing a third party intermediary, thereby simplifying accounting, auditing and administration, and remit and receive RMB to the parent company overseas;
2. Upon verification of contributed capital, QSolar Shanghai is able to apply for and obtain its own export licence resulting in significantly lower transportation fees and costs and the anticipated increased contribution to profit margin from savings on shipping;
3. Allow to claim for up to 17% VAT refunds on the cost of goods purchased;
4. Source and purchase inventory and other goods directly from Chinese entities at preferred prices that were not previously available;
5. Increased protection of trademarks and intellectual property, in accordance with international law; and
6. Shareholder liability limited to the original investment or registered capital.
The Corporation trades under the symbol QSL on the Canadian National Stock Exchange ("CNSX").
About QSolar Limited
QSolar Limited and its wholly-owned subsidiary, QSolar Ltd., develop patented and proprietary solar related processes and technologies, and manufacturing and sell proprietary solar products. The Corporation currently manufactures solar photovoltaic (PV) panels in its new manufacturing facilities in Shanghai, China and in a contracted manufacturing facility in Shenzhen, China using its proprietary patent pending Spraytek(r), Kruciwatt(r) and ESS process and its own QLite designs. QSolar products were initially introduced by QSolar in July 2010 and have attracted significant interest, orders and letters of intent from European and U.S. markets generated by its sales office representatives. QSolar Spraytek(r) panels offer several advantages over competing products as they have significantly lower losses in hot climates due to their design, offer superior solar cell encapsulation for better protection, longer life and cost less than equivalent solar products, and are now offered in various sizes and colors. In addition, QSolar offers solar panels with positive tolerance which means that the customer will get a guaranteed output which can be up to 5% more than the actual specifications.
Additional information on the operations or financial results of QSolar Limited and QSolar Ltd. are included in reports on file with applicable securities regulatory authorities and may be accessed through the CNSX website ( www.cnsx.ca
) and Sedar website ( www.sedar.com
) under the profile for QSolar.
FOR FURTHER INFORMATION PLEASE CONTACT:
Andreas Tapakoudes, Chief Executive Officer
Preston J. Maddin, CFO
The CNSX has neither approved nor disapproved the contents of this press release. The CNSX does not accept responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report and the documents that we incorporate by reference, are forward-looking statements and can generally be identified by words such as "will," "allow," "outlook," or the negative of these terms, and other comparable terminology.
Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements, such as whether QSolar Limited is able to meet price, performance, quality and delivery requirements. Although QSolar believes that the expectations represented by any forward-looking statements and forward-looking information contained herein are reasonable based on the information available to them on the date of this document, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements or forward-looking information. QSolar undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
To view this press release as a webpage, please click on the following link:
Source: QSolar Limited (CNSX: QSL) www.qsolar.net
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