CITICODE LTD. 
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The Board of Directors of Advance SCT Limited (the "Company", and together with its subsidiaries, the "Group") is pleased to announce that the Company has subscribed for
100,000 new shares at $1 a share in the capital of Everglory Cooling Systems Pte Ltd ("ECS") in cash (the "Subscription"). On completion, the paid-up capital of ECS will be increased to S$200,000 and the Group will own 50% of ECS.
ECS is a recently-incorporated company in Singapore that is dedicated to the advance development and commercialisation of a high-technology copper-based heat exchanger, and has a net liability of S$115,174 due to initial start-up costs and earlier investment in research and development. ECS works closely with a world leading integrated copper company in Germany that produces ca. a million tonnes of copper cathodes a year and a variety of copper products, as well as Luvata, a Swedish company well known for its metal processing technologies especially in copper-based products such as copper balls and copper heat exchangers.
The Group targets to start manufacturing the new copper-based heat exchangers in China within the second half of 2014, alongside its copper ball manufacturing facilities currently in operation. It will involve the transfer of technology and know-how from Luvata. The target customers of this new product are power generator manufacturers in China, especially foreign-owned enterprises such Caterpillar and Cummins of the USA and Mitsubishi from Japan.
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The investment in a new copper product is part of the Group's ongoing shift from being a metal recycler to becoming a leading copper products manufacturer. The intended move up the technology level is an important step towards improving the profit margin and securing a more superior position in the market place.
FINANCIAL EFFECTS OF THE ACQUISITIONThe current acquisition is not expected to have a material impact on the Group's financial results.
INTERESTS OF THE DIRECTORS AND CONTROLLING SHAREHOLDERS
None of the Directors or controlling shareholders of the Company has any interest, direct or indirect, in the Subscription other than through their respective shareholdings in the Company.
By Order of the Board
Simon Eng
Executive Director
24 December 2013
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