Shandong Hi-Speed New Energy Group Limited announced that the Joint Venture will be a limited liability company to be established in accordance with the laws of the PRC and the provisions of the Investment Agreement. The proposed name of the Joint Venture is Shan Dong Gao Su Guo Ji Xin Neng Yuan You Xian Gong Si (Shandong Hi-Speed International New Energy Co. Ltd. (a tentative name subject to the industrial and commercial registration).

Subject to the industrial and commercial registration, it is intended that the Joint Venture shall be principally engaged in overseas photovoltaic power generation, wind power generation, energy storage, charging, smart energy management and control systems. The Total Contribution Amount was determined after arm's length negotiation among the Parties after taking into consideration the expected working capital requirements relating to the power related projects to be invested by the Joint Venture. The Group intends to finance its capital commitment in the Joint Venture using the internal financial resources and/or bank borrowings. The board of directors of the Joint Venture shall consist of five directors, two of which will be appointed by SD International Cooperation, one of which will be appointed by each of the Company, SDHS Energy Development and the labour union of the Joint Venture or other form of election, respectively.

Pursuant to the Investment Agreement, the Joint Venture shall have one supervisor without establishing a supervisory committee, whom shall be nominated by SD International Cooperation and elected at the shareholders' meeting of the Joint Venture. The Joint Venture will be accounted for as an associated company of the Company upon its establishment. The formation of the Joint Venture will enable the Group and SDHS Group to collaborate in the process of development of overseas clean energy business by leveraging their respective strengths to enhance the efficiency of development and operation as well as the use of capital, therefore sharing its risks and benefits.

As at the date of this announcement, SDHS Group is (i) directly and indirectly held as to 90% by the Shandong Provincial State-owned Assets Supervision and Administration Commission; and (ii) directly held as to 10% by Shan Dong Sheng Cai Xin Zi Chan Yun Ying You Xian Gong Si (Shandong Caixin Asset Operation Co. Ltd., a governmental institution set up by the Shan Dong Sheng Ren Min Zheng Fu (Shandong Provincial People's Government).