Summit Networks Announces the Completion of Reverse Merger
Hengshui, China, Feb. 02, 2021 (GLOBE NEWSWIRE) -- Summit Networks, Inc. (the “Company”) (OTC Markets: SNTW) announced today that the Company has completed its reverse acquisition through entering into a series of contractual arrangements with Hengshui Jingzhen Environmental Company Limited (“Hengshui Jingzhen”) and Hengshui Jinzhen’s shareholders (the “Reverse Merger”). As a result of these contractual arrangements, under U.S. GAAP, the Company is considered the primary beneficiary of Hengshui Jingzhen and thus may consolidate Hengshui Jingzhen’s financial results in the Company’s consolidated financial statements. The combined entity will focus on the business of chemicals and hazardous waste recycling services.
Hengshui Jingzhen generated revenue mostly from three business lines: waste incineration; waste disposal; waste utilization. For the fiscal year ended September 30, 2020, Hengshui Jingzhen achieved revenue of $9.5 million and a net income of $2.8 million.
Shuhua Liu, CEO of the Company, commented, “We are very excited to have completed the Reverse Merger. This is a major milestone of our Company that will provide us with access to new investors, strategic partners, and new sources of capital. We anticipate this transaction will help us enhance our visibility within the industry and broaden our market reach to build long-term shareholder value. At the same time, it represents an important step forward in advancing our global expansion plans.”
Following the Reverse Merger, the Company’s management team consists of:
Shuhua Liu, Chairwoman of the Board, Chief Executive Officer
Chaolong (Charlene) Huang, Chief Financial Officer and Director
Jun Du, Chief Operation Officer
Kano Hiroshi, Chief Technology Officer
In accordance with "U.S. GAAP, Hengshui Jingzhen’s historical financial statements as of period ends, and for periods ended, prior to the Reverse Merger will become the historical financial statements of the Company in all future filings with the Securities and Exchange Commission (the “SEC”). For additional information related to the Company's business and the Reverse Merger, please see the Current Report on Form 8-K filed on January 26, 2021 and the Company’s other periodic reports filed with the SEC and available on SEC’s website (www.sec.gov).
About Hengshui Jingzhen Environmental Company Limited
Founded in 2015, Hengshui Jingzhen is a leading private integrated waste service enterprise in Hebei, China. The company provides services in chemical and hazardous waste collection, transfer, disposal and recycling. With advanced technology for efficiently disposing and utilizing hazardous waste, Hengshui Jingzhen operates through three business lines: waste incineration, waste disposal, and waste utilization. Its customer base spans several industries, including fine chemical, healthcare and pharmaceutical, energy, and steel manufacturing. Equipped with advanced pollution prevention facilities, Hengshui Jingzhen currently has three major plants: an incineration plant, an acidic and alkaline wastes disposal plant, and a hydrochloric acid waste comprehensive utilization plant.
