On March 16, 2016, the company's wholly-owned subsidiary Shenzhen Yongsheng New Energy Co., Ltd. (hereinafter referred to as "Shenzhen Yongsheng") and Jieyang Zhongcheng Group Co., Ltd. (hereinafter referred to as "Jieyang Zhongcheng") signed a "Cooperation Agreement". "Business Agreement", Shenzhen Yongsheng and Jieyang Zhongcheng plan to jointly invest in establishing "Guangdong Zhongcheng Yongsheng New Energy Co., Ltd." (subject to the name finally approved by the industry and commerce) in Jieyang, with a registered capital of RMB 100 million, of which, Shenzhen Yongsheng plans to invest 60 million yuan in cash, with a capital contribution ratio of 60%, and Jieyang Zhongcheng plans to invest 40 million yuan in cash, with a capital contribution ratio of 40% (specifically, it will be subject to industrial and commercial establishment registration).
Jieyang Zhongcheng is a high-tech enterprise focusing on the development of solar photovoltaic industry. It is one of the 50 key enterprises in strategic emerging industries in Guangdong Province and one of the 20 solar photovoltaic enterprises supported by Guangdong Province. Shenzhen Yongsheng established a joint venture with Jieyang Zhongcheng to meet the needs of the company's development strategy, accelerate the expansion of the company's energy Internet business, improve the company's energy Internet layout, and further enhance the company's overall competitiveness and profitability.