Firenze, November 15, 2024 – EL.EN. and YOFCfollowing the communication of the agreement signed by the parties regarding the possible purchase by YOFC of a majority stake in the companies active in the laser cutting business unit of the El.En. group, namely Penta Laser Zhejiang with its controlled Chinese companies, and Cutlite Penta Srl and its Brazilian subsidiary Cutlite do Brasil, El.En. and YOFC wish to provide further details on the possible strategies for the future development of the group under YOFC's leadership, with particular attention to the strategic role of Cutlite Penta.
 

YOFC is a large and financially very solid corporation, headquartered in China and major player on the international stage, with a significant portion of its capital equal to 23.73% held by Prysmian an Italian leading industrial company in the design and production of cabling systems. YOFC's highly qualified management has a clear strategic vision of its own development through diversification and integration and sees the laser cutting business as both as an opportunity for integration with its start-up Everfoton, engaged in the development and manufacturing of high-power fiber laser sources, and as an opportunity for diversification into the promising market of laser systems for manufacturing.

YOFC already extensively supplies its products and excellent technology in the West and thus has extensive experience in operating within these markets.

Therefore, based on these characteristics, YOFC is the ideal partner to take over from El.En. to effectively continue the development of the companies of the business unit, also taking into due consideration the strategic peculiarities of each of them. The valuations provided for the companies within the proposed agreement also reflect the contingent difficulties of certain relevant markets like China and Italy. The valuations are not indicative of the wider design that sees YOFC and El.En.  fully aligned, in their respective roles, in the commitment to see the business unit quickly expand.
 

The peculiarities of Cutlite Penta, a market leader with strong brand identity tied to its fully Italian design, management and manufacturing, played a key role in the stunning revenue growth that the company was able to achieve in the very last years, and YOFC is fully committed in supporting flawless transition to its ownership, providing the needed support   for the planned expansion of the business of Cutlite especially in the international markets.
 

Mr Dan Zhuang, CEO of YOFC, said: “YOFC is thrilled by this attractive investment opportunity: the companies it is proposing to acquire possess considerable intrinsic value and growth potential that YOFC is ready to enhance with its means and organization and with the continuing support of El.En. which could become a valuable long term business partner.  YOFC places paramount strategic value to Cutlite’s authentic Italian brand identity and is committed to ensure full continuity in its Italian management, in Cutlite Penta's manufacturing management and facilities that in our plans will continue to deliver a fully “made in Italy” Italian product. We are prepared to support Cutlite's ambitious growth plans by providing the necessary resources and assistance, drawing on our extensive experience and long-standing presence in the Western markets.

We also plan to strictly coordinate and cooperate with El.En., which as fully committed minority shareholder continues to oversee the business unit represented by Cutlite, fulfilling with its local support the necessary needs for the effective development of Cutlite in all aspects. Finally, the goal of YOFC’s investment strategy is to see Cutlite emerge stronger in its market effectiveness and Italian identity, far from being drawn into the identity of an Asian laser machine manufacturer, elevating Cutlite's technical and commercial position to excellence on the global stage.”
 

Gabriele Clementi, president of El.En., said: “We are very pleased with this opportunity because we believe that a successful agreement is based on the ability to find a strategic and prestigious partner, such as YOFC, which brings with it experience, vision and opportunities to continue to grow the company by enhancing the path already taken, but also paving the way for a future of development and innovation with the right balance between tradition and new challenges. A fair and well-considered transaction in fact, not only rewards the current value but creates new opportunities for both parties, opening new horizons for a prosperous and sustainable future, ensuring that the company continues to grow and progress even under new leadership”.