Regal Group, Inc. ("Regal" or the "Company") (OTCBB: RGLG) and its
wholly-owned subsidiary, UHF Logistics Ltd ("UHF"), announced that
pursuant to the Request for Proposal ("RFP") put out to tender by
Henan Electric Power Company ("HEPC") for its subsidiary, Henan
Electric Power Measurement Center ("HEPMC") on a smart 3D logistics
warehouse project in May 2010, the tender has been awarded to
Kunming Shipbuilding Equipment Company ("KSEC"), a subsidiary of
China Shipbuilding Corp and whose automated logistics system is
widely used in the tobacco, food, national defence, automotive and
pharmaceutical industries. A related purchase order for RMB1.03
million (approximately US$155,600) for primarily UHF RFID tags, has
subsequently been granted to UHF's operating subsidiary, Shenzhen
Rui Pu Da Electronic Technology Company Ltd. ("RPD"), by Beijing
Guo Du Times Science & Technology Co. Ltd., a sub-contractor of
KSEC for the related 3D logistics warehouse management system
project component and a leading IT systems integrator and
application developer in the country. The smart RFID-enabled meter
application, underlying the imbedded RFID tag in each individual
power meter, is one of the first automation process undertaken in
the power industry in China to optimize the bulk procurement and
inspection process, achieve better inventory control, enhance the
meter reading process and perfect the authentication of individual
meters installed at each household. This is also the first time in
China that RFID tags are being embedded directly into the inner
casing of each household meter during the meter production process
for unique identification and life cycle management/maintenance
purposes. Delivery on this initial purchase order is anticipated to
be completed by December 15, 2010.
HEPMC is China's first provincial measurement center adopting a
"province-centered" model for consolidated smart power measurement.
HEPMC was officially inaugurated in Zhengzhou, central Henan
Province, on February 5, 2010, Henan Province is the first province
in China to consolidate all meter measurement works previously
undertaken by prefecture cities located in the province. The Center
intends to employ state-of-the-art intelligent automated energy
meter testing systems and automated three-dimensional logistics
warehousing systems to integrate company resources, standardize
energy measurement and data transfer, centralize electrical meter
inspection and calibration to allow for annual inspection capacity
of over 1.5 million units of single phase meters and 100,000 units
of three-phase energy meters in the Henan Province, and unify
storage and distribution of power meter inventory. HEPC is one of
24 provincial electrical power companies under the umbrella of
State Grid Corporation of China ("SGCC"), the largest electric
power transmission and distribution company in China.
This 3D logistics warehouse management system RFP is the first
phase plan execution of an advanced metering infrastructure
initiative for the Henan Province and the underlying intent behind
this RFP covers 2 primary areas:
1. Development of an Intelligent Automated Single-phase Energy Meter
Testing System. The final testing system is intended to have a projected
capacity to inspect and calibrate 1.5 million units of single-phase
energy meters annually and its construction is scheduled to be completed
in 2 phases. The first trial phase is expected to service annual
inspection capacity of 750,000 units and this RFP cover goods and
services required to complete first trial phase construction.
2. Development of an Intelligent Warehousing and Logistics Management
Information System for the storage, testing of and distribution
logistics for power meters.
"This initial purchase order of RFID tags for the Henan Electric
Power Measurement Center project is the result of two years of hard
work and perseverance to perfect an integrated solution for the
power industry and improve their ability to share up-to-date
information about stock and goods in transit, and comply with
functional requirements for single phase meters under new standards
promulgated by State Grid Corporation. We strive to incorporate
today's emerging technologies into the fabric of our lives and are
pleased to witness that our vision to make RFID mainstream in the
electric power industry is a step closer to fuller adoption across
different principles and business processes in the industry," Mr.
Sammul Su, Chairman of Regal commented.
"Henan Electric Power Measurement Center is a subsidiary of
Henan Electric Power Company which maintains and operates the
provincial power transmission network, an integral part of the
Central China Power Network covering Henan, Hubei, Hunan and
Jiangxi Provinces. With a population base of over 100 million,
Henan is the most populous province in China and Henan Power, one
of the largest power utilities in the State Grid Corporation of
China, has potentially the largest provincial power transmission
network in China that will continue to grow over the next few
years. In anticipation of growing energy consumption resulting from
socio-economic development in Henan, Henan Power has commenced upon
its five-year plan to develop its advanced next-generation power
grid and UHF is committed to advancing its RFID technology platform
to support this growth," added Mr. Su. "The key to our
differentiation from our competitors and success path lies in our
unique combination of customizing technology with our deep market
knowledge and key industry relationships. Our objective moving
forward is to continue staying on top of industry demand, and
strengthen our foothold in emerging market sectors in the
country."
The China Electric Power Industry and RFID
Applications for Power Distribution and Retail Systems
Sector
China is the world's second-largest electricity consumer, after
the United States. By the end of 2007, China's total installed
capacity amounted to 713 million kilowatts. Total energy
consumption increased by 7.8% equivalent to 2.65 billion tons of
standard coal while the amount of electric power generated grew by
14.1% in 2007, to 3263.2 TWh. China's power demand continued a
steady growth momentum in 2008, up 13% year on year. By the end of
2010, it is expected that the total installed capacity will reach
900 GW and annual generation of electricity will exceed 3700 TWh.
China's power industry, boosted by an accelerated process of
industrialization and urbanization, is projected to have an average
annual growth rate of 6.6% to 7.0% for the next ten years.
Prior to 1994 electricity supply was managed by electric power
bureaus of the provincial governments in the country. To end the
State Power Corporation's (SPC) monopoly over the power industry
(who previously owned 46% of the country's electrical generation
assets and 90% of the electrical supply assets), China's State
Council dismantled the corporation in December 2002 and set up 11
smaller companies. These smaller companies included two electric
power grid operators, five electric power generation companies and
four relevant business companies.
One of the two electric power grid operators, State Grid
Corporation of China (SGCC) is the largest electric power
transmission and distribution company in China. Headquartered in
Beijing, with registered capital of RMB 200 billion and a service
area covering 26 provinces, autonomous regions and municipalities
equal to 88% of the national territory, SGCC owns and manages 5
regional power grid companies and 24 provincial electric power
companies, of which Henan Electric Power Company is one of its
subsidiaries.
The electrical power industry is commonly split up into four
processes: electricity generation, (including power plant
generation) electric power transmission, electricity distribution
and electricity retailing. RFID technology is gaining momentum in
the energy industry and starting to establish a footprint across
these four basic functions. Perfected in the defence and logistics
sectors, RFID can now be employed by power plants for everyday
tasks ranging from workforce security, tracking fuel consumption,
to monitoring plant exhaust. Power utilities can use RFID for
metering, monitoring losses along pipelines, tracking the location
of hidden assets and for monitoring the performance of treatment
processes. Fleet monitoring, mobile and fixed asset location, and
hazardous waste handling can be enhanced through RFID
deployment.
There also exists considerable opportunity for radio frequency
and RFID devices to improve the tracking, monitoring, and
management of power transmission systems. These can include simple
tasks such as labelling transformers and towers with RFID chips to
monitoring devices equipped with radio transmission technology. The
memory in the RFID chips can store the unique serial number and can
be a backup to a painted serial number. The ID of the chip can be
read by a handheld device and correlated to information regarding
its maintenance. The memory in the chip can also be used to store
critical information that can be downloaded locally (including
temperature and last maintenance date).
The power distribution and retail systems include the
infrastructure to carry electricity from high-voltage transmission
systems to the end customer. The assets for power distribution
include a series of step down sub-transmission and primary
distribution systems. This is followed by a secondary distribution
system that includes the poles, transformers, reclosers,
capacitors, voltage regulators, and electric meters. The geographic
distribution and the high numbers of each asset class necessitate
the use of low-cost standardized items. These items should be
reliable (having a life span of 20 or more years) and easy to
replace. RFID devices can be used to form mesh networks for "smart"
electricity meters, preventing the need for manual reading of the
meters and allowing for rapid response to high use. This is
increasingly becoming mandated as new houses move towards having
"greener" credentials.
For a 3D modeling view of the proposed smart logistics warehouse
to be constructed for HEPMC, please see attached URL link:
http://www.uhflogistics.com/recent-projects.html
About Regal Group, Inc.
Regal Group, Inc. is a publicly traded company with headquarters
in Phoenix, Arizona. Regal is strategically positioning itself in
key industry sectors in China and recently completed the
acquisition of UHF Logistics Ltd., a HK-incorporated holding
company, which, through its wholly owned Chinese operating
subsidiaries, is focused on the development, marketing and
implementation of UHF RFID products and solutions in China since
2006. Regal trades on the NASDAQ OTC BB under the ticker symbol:
RGLG.
Forward-Looking Statements & Risks
Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and
uncertainties. Words such as "expects," "intends," "plans," "may,"
"could," "should," "anticipates," "likely," "believes" and words of
similar import also identify forward-looking statements.
Forward-looking statements are based on current facts and analyses
and other information that are based on forecasts of future
results, estimates of amounts not yet determined and assumptions of
management, including, but not limited to, the Company's belief
that Regal and/or its subsidiaries can identify and successfully
negotiate business prospects in Asia, and that the Company can
successfully operate such prospects. Actual results may differ
materially from those currently anticipated due to a number of
factors and risks beyond the reasonable control of the Company.
In addition to the risks associated with forward-looking
statements, statements in this news release are subject to
additional risks, which include, among others, the corporate
disclosure, governance and regulatory requirements of the People's
Republic of China (the "PRC"), and PRC regulations relating to,
among others, cross-border mergers and acquisitions, product
liability and currency exchange rates. Even though the transaction
is completed, anticipated synergies or other intended benefits of
the transaction may not be realized, and the prospects of the
combined entity will remain subject to all the general risks
associated with the RFID industry, the public securities markets
and risks related to doing business in China, such as the PRC's
economic, political and social environment, and matters relating to
PRC taxes, repatriation of profit and currency conversion,
acquisition and appropriation of land use rights, foreign
investments, permits and business licenses, employment contracts,
government intervention, shareholders' rights and enforcement of
judgments, as well as the developing PRC legal system. The Company
cautions that the foregoing list of material risks is not
exhaustive.
When relying on the Company's forward-looking statements and
information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. Additional information on risks and other
factors that may affect the business and financial results of the
Company can be found in filings of the Company with the U.S.
Securities and Exchange Commission. The Company undertakes no
obligation to publicly revise these forward-looking statements to
reflect events or circumstances that arise after the date
hereof.
Contact: Regal Group, Inc. Investor Communications Toll-Free:
1-888-367-3077 Email: ir@regalgroupinc.com
www.regalgroupinc.com
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