By Ben Blaschke
Success Dragon International Holdings, a service provider to the gaming industry in Macau, has withdrawn its interest in the acquisition of an energy related business in mainland China and opted against exercising an option to obtain an extra HK$155 million worth of preferred shares in Primus Power Corporation.
The announcement follows the sudden resignation of Success Dragon CEO Mr Jiang Dan, Chairperson Ms Li Xuehua and non-executive director Dr Jia Limin on Wednesday, with the trio stating their intention to “focus their time and effort on other business.” Mr Jiang had only served as CEO since late March.
In a filing to the Hong Kong Stock Exchange, Success Dragon announced that Mr Tan Teng Hong had been appointed Chairman and CEO effective from 7 June 2017, with Mr Chung Yuk Lun appointed an independent non-executive Director. Mr Tan, 41, holds a Bachelor’s degree in Economics from the University of Western Australia and is a member of the board of directors of Banque de Développement de Guinée of Republic of Guinea, the filing said.
Upon announcing the departures of Mr Jiang, Ms Li and Dr Jia, Success Dragon said it would no longer pursue its renewable energy agreements, stating, “The Company has not entered into any definitive agreement in relation to the Primus option or any of the potential investments. Following Mr Jiang’s resignation, it is the Board’s decision not to exercise the Primus option or enter into any definitive agreement in relation to any of the potential investments.”
Success Dragon had previously announced in April the signing of a renewable energy management framework agreement with Dongguan Zhonghua Huamei Plastic Co to cooperate on a photovoltaic energy generation and storage project in Guangdong.
The project would have seen Success Dragon oversee the project’s energy storage solution, investing in infrastructure and assuming ownership of the electric power generated.
The company said at the time that it “has been seeking attractive investment and acquisition opportunities and expanding its business with a view to enhance its income stream and shareholders’ value.
“The Company is intending to expand into the renewable energy solution businesses … the directors of the Company reckon that signing the Agreement will enhance the Company’s business profile on developing renewable energy solution and storage system.”
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