said the application of LED was regarded as a valid and universal technology as it is globally diversified. The group mentioned that experts familiar with the market predict LED as a new light resource is going to enter a high-speed growth, and it is believed that the LED industry in China will be worth RMB150 billion this year, and the sector can reach a "Whole LED Era" in 2015.
The group pointed out that the high cost is regarded as an obstacle to the development of LED. The group quoted the cost difference of road lights, which can be 3 times or even 35 times higher than the traditional one, as a concrete example. However, according to the semiconductor developed principle, the cost can drop remarkably to 10% of the original cost in 10 years, but it can also function far better like 20 times than before. The group said the market consensus is that the LED sector could become a mainstream technology when the cost difference narrows down to less than 2 times.
With the strong demand of LED products, the group said that factories even expand their capacities to meet the demand, which can also help to decrease the LED price. The group mentioned further predictions from experts that, as the LED technology is more available to all, based on the current assumption, the industry in China can be worth RMB $150 billion this year, which is a double than that in 2008, the sector can even promote to a LED era in 2015, that is 5 years earlier than the market prediction.
To capture the investment potential in new light resources, China Innovation has already stepped into the LED industry. After finishing the transaction on Dooda, the group entered into a framework agreement to acquire a portion of the issued share capital of C.G.E. (HK) Co., Limited ("CGE"), at a consideration of not exceeding HK$23 million. "The proposed acquisition will provide positive development for China Innovation towards the civil and military dual-application of new light source business and the Company is now conducting due diligence reviews on CGE and its subsidiary," said Xiang Xin, the chairman of the group.
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