Enersize Oyj extends its cooperation with JoinTeam in China with license sales
This is a translation in English of previously released news. Enersize Oyj ("Enersize") hereby announces that the company and its Chinese partner Beijing Jointeam International Energy Tech., Ltd. ("JoinTeam") have entered into a Letter of Intent (LOI) regarding extended cooperation between the parties. The intention is that in future, JoinTeam will act as a full-scale partner to Enersize in the Chinese market through independent distribution and sales of Enersize's full-scale product portfolio. This is Enersize's first LOI regarding license sales in the Chinese market.
JoinTeam has been a Chinese partner of Enersize for several years and the company works mainly in the Beijing region of China. JoinTeam has been a business partner of Enersize in the profit sharing projects that have been successful, such as Enersize's first profit sharing agreement in China with Beijing Optoelectronics, which generated nearly 9 MSEK in profit sharing during the agreement's three-year period. BOE3 and Foton Cummins, which are both in the profit-sharing phase and generate revenue, have also been signed and implemented in collaboration with JoinTeam. JoinTeam and Enersize have continuously discussed how the business model in China can be improved and streamlined to provide better scalability and shorter sales cycles. JoinTeam's insights and knowledge of the Chinese market have been important factors in the development of Enersize's updated business model.
Through the acquisition of LEAQS and the further development of Enersize Q+ smart monitoring and optimization systems, Enersize today has the opportunity to offer partners cooperation through distribution and resale of licenses to Enersize's products and cloud services, which facilitates sales to local customers where these partners already have an established customer relationship. Enersize's offering also gives local players the opportunity to offer advanced projects and services themselves based on Enersize's software, such as leak detection and repair projects or advanced monitoring and optimization.
In essence, the letter of intent between Enersize and JoinTeam includes the following:
- That JoinTeam will become a full-scale partner to Enersize within the framework of Enersize's developed business model and that JoinTeam thereby will be able to offer services based on Enersize products directly to factories in China;
- That JoinTeam will establish resale in China to their existing and future customers of Enersize's products;
- Enersize must provide JoinTeam with training so that JoinTeam can sell, install, use and train on its own regarding Enersize's products without assistance from Enersize;
- That JoinTeam will pay Enersize license fees for the use of the company's products.
- That JoinTeam, together with Enersize, can still offer profit-sharing projects in cases where it is considered appropriate.
For more information about JoinTeam, please see http://www.jointeam6.com/
“Enersize's new business model and product portfolio is exactly what JoinTeam has requested and JoinTeam has expressed great interest in independently processing the Chinese market with Enersize's new products in order to be able to expand faster. With JoinTeam as a full-scale partner to Enersize in China, there is a good opportunity to generate good revenue from both projects and license sales. JoinTeam has already proven itself by being one of the few partners who have succeeded in delivering functioning profit sharing projects. Both JoinTeam and Enersize have learned a lot on the way through the joint profit sharing projects, and we are both convinced that this new approach will yield significantly better outcomes with lower risk and capital requirements”, comments Anders Sjögren, CEO of Enersize.
“In our cooperation with Enersize, we have previously focused solely on large profit-sharing projects. We have succeeded well with some while others have been delayed due to various factors. With the new set-up that is more product-based and gives a lower entry threshold, we can process the customers step by step and expand the business as customers see the benefit of what we can offer. This is both applicable to the major industries we previously prospected but also opens up for large-scale sales even to the countless small and medium-sized factories that we have access to here in China. What we know from before is that the demand for this type of product is great and that the market has great potential,” comments Ivy Yuan, Chairman of the Board of JoinTeam.
Telephone: +46(0)40-615 14 10
For more information about Enersize, please contact:
Anders Sjögren, CEO
Brief information about Enersize
With its proprietary patent-pending automated software for leakage management, data collection and analysis, Enersize can provide 10-50% energy savings in industrial compressed air systems. Through the recently acquired LEAQS system, the company has access to more than 9000 leakage management projects, and the associated more than 4000 customers worldwide. The combination of the company’s software services can increase the customer’s savings in running projects, while generating direct license and project revenue. 90% of the manufacturing industry uses compressed air, which constitutes about 5% of the world's total electricity consumption. Among Enersize's existing customers are one of the world's largest manufacturers of flat screens and well-known car manufacturers and steel mills. The company is headquartered in Helsinki, have a sales office in Gothenburg and a development office in Lund. The company is listed on Nasdaq Stockholm First North under the ticker: ENERS. www.enersize.com