SGOCO Group, Ltd. (NASDAQ: SGOC) is a company focused on product design, distribution and brand development in the Chinese display and computer product market. SGOCO shares have increased in value by about 130% since the beginning of 2016 after an acquisition of a clean technology company, Boca International Limited, and recent strategic agreement between Boca and a Korean company Blue F.I. Group.
On December 30th SGOCO has announced of an important acquisition of Boca International Limited, which will help the technology company to advance its product design, more effective distribution and brand development in the Chinese display and computer market. As for Boca, which is now a subsidiary of SGOOCO, the company develops and manufactures Phase Change Material (PCM) storage system products, which is a widely used substance with a high heat of fusion. The substance is capable of storing and releasing large amounts of energy, and as a result is saving energy consumption and increases the speed limit for computers.
As China is becoming more aware of environmental issues, the local government heavily invests in companies who practice environmentally friendly operations. Phase Change Material storage system is environmentally friendly and is designed to be used for more than ten years. China has already applied several regulations on the matter, which resemble in many ways the approach of Europe to clean energy. This includes regulations that will impact sales of electronic products, like restrictions on batteries and accumulators that contain mercury, and other hazardous substances.
SGOOCO, through BOCA International, managed to get cooperative agreement with a Korean company Blue F.I. Group. Under the terms of the agreement, BOCA authorized Blue F.I. Group to be the exclusive distributor of Boca's phase change energy storage system in South Korea.
Blue F.I. Group is a company with a focus on construction, property, energy and electricity development in South Korea, China, Pakistan, United Arab Emirates, Egypt and other countries. Blue F.I. Group’s total investment value is more than $1.5 billion. The Korean company can use Boca’s PCM to reduce costs of energy and improve durability of the energy provided.
Korea is now one of the major consumers of electricity in its apartment buildings, entertainment areas and hotels, and has a very large demand of electronic energy saving products for both cold and heat air conditioning. Boca’s phase change energy storage system can reduce electricity consumption, and in the long run, help to fight climate change by reducing carbon emission.