Form 8-K Home System Group

Events or Changes Between Quarterly Reports

What is Form 8-K?
  • Accession No.: 0001204459-07-000914 Act: 34 File No.: 000-49770 Film No.: 07925284
  • CIK: 0001172319
  • Submitted: 2007-06-18
  • Period of Report: 2007-06-18

FORM 8-K HTML

homesystemf8k0618.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

FORM 8-K
CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): June 18, 2007 (June 15, 2007)

HOME SYSTEM GROUP
(Exact name of registrant as specified in its charter)
     
Nevada 000-49770 43-1954776
(State of Incorporation) (Commission File No.) (IRS Employer ID No.)
 
No. 5A, Zuanshi Ge, Fuqiang Yi Tian Ming Yuan,
Fu Tian Qu, Shenzhen City
People’s Republic of China
(Address of Principal Executive Offices)
   
Registrant’s Telephone Number, Including Area Code: (+86) 755 -83570142
   
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

£    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

£    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

£    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

£    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 1.01. Entry into a Material Definitive Agreement.

On June 15, 2007, Oceanic Well Profit, Inc. ("Oceanic"), the wholly owned subsidiary of Home System Group (the "Company"), entered into a definitive asset purchase agreement (the "Agreement") with Ms. Huiping Cheng, an individual. Pursuant to the Agreement, Oceanic will acquire from Ms. Cheng certain stainless steel coffee pot production equipment, together with all related materials and patent technology owned by Ms. Cheng (together, the "Purchased Assets"). As consideration for the acquisition, Oceanic will pay to Ms. Cheng RMB15,000,000 (approximately $1,967,084) in accordance with the following schedule: (a) RMB 1,500,000 (approximately $196,708) is payable within 15 days of the signing of the Agreement; (b) RMB 1,500,000 is payable within 15 days after the production equipment for vacuum coffee pot manufacturing is installed and operable; and (c) RMB 12,000,000 (approximately $1,573,667) is payable within 15 days after completion of the transfer of all the Purchased Assets.

The Agreement contains various representations, warranties, and covenants of the parties and Ms. Cheng agrees to indemnify the Company against any loss, liability, damage or expense arising directly or indirectly from any inaccuracy in, breach of, or any failure to perform her obligations under the Agreement. If Oceanic fails to pay for the Purchased Assets on time, then it will be obligated to pay Ms. Cheng liquidated damages at a rate of 1/10000 of the unpaid purchase price per day and Oceanic will be further liable if damages result to Ms. Cheng due to such delay. However, if Oceanic is not able to acquire the Purchased Assets or perform its obligations due to a failure by Ms. Cheng, then Ms. Cheng will be obligated to pay Oceanic liquidated damages at a rate of 1/10000 per day of the aggregate payment already made by the Company and Ms. Cheng will be further liable if damages result to Oceanic due to such failure. The Agreement is governed by the laws of the People’s Republic of China and the parties have agreed to submit any unresolved dispute to arbitration before the Zhongshan Arbitration Committee.

The Agreement may be amended by agreement of the parties and it may be terminated (a) by the mutual written consent of the parties or (b) by the Company if the transaction is not completed by July 31, 2007.

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Asset Purchase Agreement. An English translation of Agreement is filed as Exhibit 2.1 to this Current Report.


Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

2.1 English Translation of Asset Purchase Agreement, dated June 15, 2007, between Oceanic Well Profit, Inc. and Ms. Huiping Cheng.

 

 

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: June 18, 2007 HOME SYSTEM GROUP
   
  By:        /s/ Weiqiu Li  
  Name:   Weiqiu Li
  Title:     Chief Executive Officer

 


EXHIBIT INDEX

Exhibit No. Description
   
2.1 English Translation of Asset Purchase Agreement, dated June 15, 2007, between Oceanic Well Profit, Inc. and Ms. Huiping Cheng.

 



ASSET PURCHASE AGREEMENT HTML

exh21.htm



Asset Purchase Agreement


Party A:

Oceanic Well Profit, Inc.

 

Party B:

Ms. Huiping Cheng

 

In order to optimize the industrial structure, adapt to business development, and maximize the interests of both sides, Party A and B friendly consulted and reached the following agreement.

 

1.

Party A agrees to acquire from Party B all the supporting production equipment for vacuum coffee pot manufacturing (the “Equipment”), all the existing raw material, work in progress and finished product, and all relevant patent technology owned by Party B (together, the “Purchased Assets”).  Details of the Purchased Assets are listed on Schedule 1 attached hereto.

 

2.

Party B agrees to sell Party A the Purchased Assets.

 

3.

Based on the above asset evaluation, both parties agree that the acquisition price shall be RMB15,000,000.

 

4.

Timing of Payment

 

Within 15 days from the date of the signing of this Agreement (the “Effective Date”), Party A shall pay Party B RMB1,500,000; within 15 days after the Equipment is installed and begins to operate, Party A shall pay Party B RMB1,500,000; with 15 days after completion of the transfer of all the Purchased Assets, including all Equipment and inventories, Party A shall pay Party B RMB12,000,000.

 

5.

Within 3 days after the Effective Date, Party A and Party B will both establish an asset verification team to verify all of the Purchased Assets for transfer and conveyance to Party A.

 

6.

Party B represents and warrants that upon transfer, Party A will have good title and full right and interest to the Purchased Assets and be in possession of all property and assets.  All tangible personal property is in good and safe operating condition and repair.  It further represents and warrants to Party A that it is selling and transferring the Purchased Assets to Party A free and clear of all:  (a) liens, claims, mortgages, and other encumbrances (“Encumbrances”); and (b) liabilities that, if not paid or satisfied by Party B, could give rise to any Encumbrances.  Party B shall hold harmless and indemnify Party A from and against any loss, liability, damage or expense arising directly or indirectly in connection with any inaccuracy in or breach of, or any failure to perform or comply with, any representation, warranty, covenant, obligation or other provision of the Agreement.

 

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7.

Breach of Contract

 

(1)

After the Effective Date, the parties must consciously perform their obligations set forth herein.  If either party fails to completely fulfill its obligations, such party will be liable to the other party in accordance with applicable law and with the relevant provisions of the Agreement.

 

 (2)

If Party A fails to pay for the Purchased Assets on time, Party A shall pay Party B liquidated damage at a rate of 1/10,000 of the unpaid purchase price per day. If Party A defaults and damages result to Party B, and the liquidated damages paid by Party A cannot cover Party B’s actual loss, Party A must pay additional compensation in accordance with applicable law.

 

(3)

In the event that Party A is not able to acquire the Purchased Assets on schedule or perform its obligations due to reasons caused by Party B, Party B shall pay Party A liquidated damages at a rate of 1/10,000 per day of the aggregate payment which has already been made by Party A.  If Party B defaults and damages result to Party A, and the liquidated damages paid by Party B cannot cover Party A’s actual loss, Party B must pay additional compensation in accordance with applicable law.

 

8.

Amendment or Termination

 

The parties may amend the Agreement upon agreement.  In the event that the parties agree to amend this Agreement, an updated agreement shall be made accordingly.  The Agreement may be terminated (a) by the mutual written consent of the parties or (b) by Party A if the transaction is not completed by July 31, 2007.

 

9.

Assumption of Costs

 

All the costs and expenses relating to the transfer of the Purchased Assets, such as notary fees, legal fees, assessment or audit fees, business registration fees will be borne by Party A.  However, Party B shall pay all sales, value added, business, transfer and documentary taxes payable in connection with the transactions contemplated by this Agreement and issue the relevant invoices to Party A.  

 

10.

Governing Law and Dispute Settlement

 

This Agreement shall be governed by and construed in accordance with the laws of the People's Republic of China.  In the event of any dispute arising out of or related to this Agreement, both parties should friendly resolve it through consultation.  If no resolution is reached, either party may submit the dispute to the Zhongshan Arbitration Committee.

 

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11.

Effectiveness

 

This Agreement will be effective upon the signatures by the parties.  Both parties agree to report the change of ownership of the Purchased Assets to the relevant government Departments after the agreement become effective.

 

12.

This Agreement shall be executed in six counterparts.  Each party shall keep one original and the related company shall keep one, and the remaining original copies shall be given to the relevant departments.

 

Party A: Oceanic Well Profit, Inc.

 

/s/ Weiqiu Li


Name:  Weiqiu Li

Title: CEO

Date:  6/15/2007

 

Party B: Huiping Cheng

 

/s/ Huiping Cheng


Name: Huiping Cheng

Date: 6/15/2007



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Schedule 1

PURCHASED ASSETS

1. Plant and Equipment

Number Equipment/Product name Model Manufacturers Quantity
1 Heavy Shear Bed 2.5m N/A 1
2 Mixer   Guangzhou Keyun 1
3 Table 0.8*1.5m Guangzhou Keyun 10
4 Supporting Platform 1.5*2.5m Guangzhou Keyun 1
5 Automatic Welding Longitudinal 1,-350 Guangzhou Keyun 2
6 Automatic Welding Longitudinal 1,-250 Guangzhou Keyun 4
7 Manual Bending Table I.C-351 Guangzhou Keyun 1
8 Pneumatic Pressure Straight Seamer LT 300 Guangzhou Keyun 2
9 Pneumatic Volume Cone Machine CL-350 Guangzhou Keyun 1
10 Heightening Stretcher 200T Foshan Zhonglian 2
11 General Stretcher 100T Foshan Zhonglian 3
12 Boiler 1Cubic Guangzhou Keyun 1
13 Oil Cleaning Cars   Foshan 1
14 Clean Stainless Steel Barrel 800*800 Guangzhou Keyun 2
15 Stainless Steel Clean Cage   Guangzhou Keyun 6
16 Gantry 3m, 500kg Guangzhou Keyun 1
17 Longitudinal Welding Tables   Guangzhou Keyun 6
18 Hand Pump   N/A 2
19 Edge Cutting Machine   Guangzhou Keyun 24
20 Lathe-foot Liquid Compression Machine   Guangzhou 4
21 International Punch 16T Shunde 1
22 International Punch 25T Shunde 1
23 Pillar Hydraulic Plastic Plane   Guangzhou Keyun 1
24 Cleaning Groove (stainless steel )   Guangzhou Keyun 2
25 Cleaning Pool (stainless steel )   Guangzhou Keyun 2
26 Liquid Heating Rods 3KW Guangzhou 11
27 Brazing Table   Guangzhou Keyun 1
28 Suspended Welder (standard)   Guangzhou Keyun 4
29 Suspended Welder (light)   Guangzhou Keyun 5
30 Suspended Welding Tables   Guangzhou Keyun 8
31 Hydraulic Pillar Fixed Ring Welder DN-150 Guangzhou Keyun 4

SCHEDULE 1

PURCHASED ASSETS, CONT’D

1. Plant and Equipment, cont’d

Number Equipment/Product name Model Manufacturers Quantity
32 Four Exchanges Holes Aerodynamic Combination Welder DN-75 4 Guangzhou Keyun 2
33 Pneumatic Exchange Spot Welder DN-75 4 Guangzhou Keyun 5
34 Pneumatic Exchange Storage Spot Welder IDR-1500 Guangzhou Keyun 1
35 Pneumatic Central Steamer TC-300 Guangzhou Keyun 5
36 Pneumatic Pressure Machine   Guangzhou Keyun 10
37 Vertical Girth Welding Machine OL-250 Guangzhou Keyun 6
38 Vacuum Unit 64 tag Guangzhou Keyun 2
39 Vacuum Unit 60 tag Guangzhou Keyun 1
40 Vacuum Unit 48 tag Guangzhou Keyun 1
41 Hydraulic Sealed-off Clamp   Guangzhou Keyun 3
42 Stainless Electrolysis Machine 10 tag Guangzhou Keyun 1
43 Stainless Electrolysis Machine 16 tag Guangzhou Keyun 1
44 Electrolysis Current 3KVA Guangzhou 2
45 Acid Pump(all stainless steel)   Guangzhou 2
46 Cleaning Pool (stainless steel )   Guangzhou 2
47 Electric Dryer   Guangzhou Keyun 2
48 Hot Air Dryer   Guangzhou Keyun 2
49 Dry Blast Machine dry blast Dongguan Baitong 3
50 Four Columns Hydraulic Low Covered Plastic Plane   Guangzhou Keyun 2
51 Double Abrasive Belt Polishing Machine   Dongguan 2
52 Dedicated Bottom Cover Splitting-ray Machine   Guangzhou Keyun 2
53 Mixing Polishing Machine   Guangzhou Keyun 1
54 Polishing Motor 5KW Jiangmen 12
55 Vacuum Test Table 20 tag Guangzhou Keyun 10
56 Bottom Cover Column Pneumatic Exchange Welder DN-75 Guangzhou Keyun 2
57 Small Mouth bottles Pneumatic Exchange Exclusive Spot Welder DN 75 Guangzhou Keyun 5
58 Seed Welder DDR-700 Guangzhou Keyun 3
59 Conveyor 13M Guangzhou Keyun 2
60 Conveyor 12M Guangzhou Keyun 2
61 Stainless Steel Temperature Measurement Line 6M Guangzhou Keyun 1
62 Window Air-conditioner 2W Guangzhou 2

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SCHEDULE 1

PURCHASED ASSETS, CONT’D

1. Plant and Equipment, cont’d

Number Equipment/Product name Model Manufacturers Quantity
63 Lathe C6150HK Wuhan Hanri 1
64 Lathe C6132 Guangzhou 2
65 Universal Milling 3HP N/A 1
66 Vertical Wheel Machine 750W Jiangsu 2
67 Vertical Drill 25 Zhejiang 1
68 Pipe Cutting Machine   Guangzhou Keyun 2
69 Pneumatic Pipe Straightening Machine   Guangzhou Keyun 1
70 Pipe Bore Machine   Guangzhou 2
71 Pipe Straightening Machine   Guangzhou Keyun 1
72 Hydraulic Forklifts 3T Shanghai 2
73 Fan   Shunde 2
74 Welder 200K Japan Hitachi 1
75 Albino Pool 1000*1000 Guangzhou Keyun 1
76 Die Shelf   Guangzhou Keyun 9
77 Air Compressors AW105010 Shenzhen 6
78 Argon Arc Welder TIG150A Japan Hitachi 3
79 Argon Arc Welder TSP 300 Japan Matsushita 3
80 Argon Arc Welder AT-150 Guangzhou Lijin 4
81 Argon Arc Welder TIG 160 Shanghai 1
82 Argon Arc Welder TIG 160S Shenzhen 1
83 Argon Arc Welder TIG-2009 Shenzhen 2
84 Argon Arc Welder TIG-150A Tangshan Matsushita 1
85 Argon Arc Welder TIG-250P Guangzhou 1
86 Argon Arc Welder WS-315 Shanghai 2
87 Manually Punching Machine   Fujian 1
88 Locksmith Table 1.2m*2.4m Guangzhou 1
89 Floor Firm Fan FS 75 Zhongshan 13
90 Fan KYT-25 Zhongshan 5
91 Tool Cabinets mid-small type Guangzhou 11
92 Cutting Machine      

3


SCHEDULE 1

PURCHASED ASSETS, CONT’D

2. Fixture Parts

No. Name of Product Name of Fixture Quantity Unit
93   External Liner Rolling Bar 1 Set
94   External Liner Incision 1 Set
95   External Liner Undercut 1 Set
96   Internal Liner Incision 1 Set
97   Internal Liner Undercut 1 Set
98   External End-Liner Trimming Cut 1 Set
99   Internal End-Liner Trimming Cut 1 Set
100 KA019A External Head-Liner Incision 1 Set
101   External Head-Liner Undercut 1 Set
102   Internal Head-Liner Incision 1 Set
103   Internal Head-Liner Undercut 1 Set
104   External Liner Bracing Welding 1 Set
105   Internal Liner Bracing Welding 1 Set
106   Internal Liner Suspended Welding 1 Set
107   Sealed Welding 2 Set
108   Internal Head-Liner Incision 1 Set
109   Internal Head-Liner Undercut 1 Set
110 KA019B Internal End-Liner Trimming Cut / Set
111   External End-Liner Trimming Cut / Set
112   Sealed Welding / Set
113   External Liner Incision 1 Set
114   External Liner Undercut 1 Set
115   Internal Liner Incision 1 Set
116   Internal Liner Undercut 1 Set
117   External Bottom-Cover Trimming Cut 1 Set
118 ODC460 Internal End-Liner Trimming Cut 1 Set
119   Exhaust End Trimming Cut 1 Set
120   External Liner Welding Strengthen Films 1 Set
121   Firm Central Welding 1 Set
122   Screw Welding Fixture 1 Set

4


SCHEDULE 1

PURCHASED ASSETS, CONT’D

2. Fixture Parts, cont’d

No. Name of Product Name of Fixture Quantity Unit
123   External Liner Feet-Reduction 1 Set
124   Internal Liner Suspended Welding 1 Set
125   External Liner Incision 1 Set
126   External Liner Undercut 1 Set
127   Internal Liner Incision 1 Set
128 DE790 Internal Liner Undercut 1 Set
129   External bottom cover Trimming Cut 1 Set
130   External Liner Welding Strengthen Films 1 Set
131   External Liner Screw Welding 1 Set
132   Internal Liner Suspended Welding 1 Set
133   External Liner Incision 1 Set
134   External Liner Undercut 1 Set
135 236904B Internal Liner Incision 1 Set
136   Internal Liner Undercut 1 Set
137   Connecting-Ring Trimming Cut 1 Set
138   External Liner Incision 1 Set
139   External Liner Undercut 1 Set
140   Internal Liner Incision 1 Set
141   Internal Liner Undercut 1 Set
142 233803 External Bottom-Cover Trimming Cut 1 Set
143   External Bottom-Cover Rotary Extrusion 1 Set
144   Internal End-Liner Trimming Cut 1 Set
145   Internal Liner Suspended Welding 1 Set
146   External Liner Welding Strengthen Films 1 Set
147   External Liner Incision 1 Set
148   External Liner Undercut 1 Set
149   Internal Liner Incision 1 Set
150   Internal Liner Undercut 1 Set
151 CV21 External Bottom-Cover Trimming Cut 1 Set
152   Exhaust End Trimming Cut 1 Set

5


SCHEDULE 1

PURCHASED ASSETS, CONT’D

2. Fixture Parts, cont’d

No. Name of Product Name of Fixture Quantity Unit
153   Internal End-Liner Trimming Cut 1 Set
154   External Liner Rolling Bar 1 Set
155   External Liner Feet-Reduction 1 Set
156   External Liner Incision 1 Set
157   External Liner Undercut 1 Set
158   Internal Liner Incision 1 Set
159 CV0303 Internal Liner Undercut 1 Set
160   External Bottom-Cover Necking 1 Set
161   Exhaust End Trimming Cut 1 Set
162   Internal End-Liner Trimming Cut 1 Set
163   External Liner Feet-Reduction 1 Set
164   External Liner Incision 1 Set
165   External Liner Undercut 1 Set
166   Internal Liner Undercut 1 Set
167   External End-Liner Trimming Cut 1 Set
168   Internal End-Liner Trimming Cut 1 Set
169   External Liner Rolling Bar 1 Set
170   External Liner Incision 1 Set
171   External Liner Undercut 1 Set
172 CM362 Internal Liner Incision 1 Set
173   Internal Liner Undercut 1 Set
174   Internal End-Liner Trimming Cut 1 Set
175   External Liner Feet-Reduction 1 Set
176   External Liner Incision 1 Set
177   External Liner Undercut 1 Set
178 CM363 External Bottom-Cover Trimming Cut 1 Set
179   Exhaust End Trimming Cut 1 Set
180   External Liner Feet-Reduction 1 Set
181   External Liner Incision 1 Set
182   External Liner Undercut 1 Set

6


SCHEDULE 1

PURCHASED ASSETS, CONT’D

2. Fixture Parts, cont’d

No. Name of Product Name of Fixture Quantity Unit
183   External Liner Feet-Reduction 1 Set
184   Internal Liner Incision 1 Set
185   Internal Liner Undercut 1 Set
186 PA1056 Internal Liner Rotary Slot 1 Set
187   External Liner Rotary Jib 1 Set
188   External Bottom-Cover Trimming Cut 1 Set
189   External Bottom-Cover Correcting Bevel Edge 1 Set
190   External Bottom-Cover Necking 1 Set
191   Exhaust End Trimming Cut 1 Set
192   Internal End-Liner Trimming Cut 1 Set
193   External Liner Incision 1 Set
194   External Liner Undercut 1 Set
195   Internal Liner Incision 1 Set
196   Internal Liner Undercut 1 Set
197 884 External Bottom-Cover Trimming Cut 1 Set
198   Exhaust End Trimming Cut 1 Set
199   Internal End-Liner Trimming Cut 1 Set
200   External Liner Feet-Reduction 1 Set
201   Firm Central Welding 1 Set
202   Internal Liner Suspended Welding 1 Set
203   External Liner Incision 1 Set
204   External Liner Undercut 1 Set
205   Internal Liner Incision 1 Set
206   Internal Liner Undercut 1 Set
207 9708 External Bottom-Cover Trimming Cut 1 Set
208   Exhaust End Trimming Cut 1 Set
209   Internal End-Liner Trimming Cut 1 Set
210   External Liner Feet-Reduction 1 Set
211   Firm Central Welding 1 Set
212   External Liner Incision 1 Set

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SCHEDULE 1

PURCHASED ASSETS, CONT’D

2. Fixture Parts, cont’d

No. Name of Product Name of Fixture Quantity Unit
213   External Liner Undercut 1 Set
214   Internal Liner Incision 1 Set
215   Internal Liner Undercut 1 Set
216 AEG External Liner Rolling Bar 1 Set
217   External End-Liner Trimming Cut 1 Set
218   External End-Liner Leveling Pressure 1 Set
219   External End-Liner Leveling Correction 1 Set
220   Internal End-Liner Trimming Cut 1 Set
221   External Liner Incision 1 Set
222   External Liner Undercut 1 Set
223   Internal Liner Incision 1 Set
224   Internal Liner Undercut 1 Set
225 4760 External Liner Rolling Bar 1 Set
226   External Liner Feet-Reduction 1 Set
227   External Bottom-Cover Trimming Cut 1 Set
228   External End-Liner Screw Welding 1 Set
229   Exhaust End Trimming Cut 1 Set
230   Internal End-Liner Trimming Cut 1 Set
231   External Liner Incision 1 Set
232   External Liner Undercut 1 Set
233 9715C Internal Liner Incision 1 Set
234   Internal Liner Undercut 1 Set
235   External Bottom-Cover Trimming Cut 1 Set

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SCHEDULE 1

PURCHASED ASSETS, CONT’D

3. Mold Parts

No. Name of Product Name of Mold Quantity Unit
1   External Liner Blanking Mold 1 Set
2   Internal Liner Blanking Mold 1 Set
3   Firm Central Turn-over Mold 1 Set
4 9708 External Liner Stretching Mold 1 Set
5   Internal Liner Stretching Mold 1 Set
6   External End-Liner Stretching Mold 1 Set
7   Internal Head-Liner Stretching Mold 1 Set
8   Exhaust End Stretching Mold 1 Set

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