On 8 June 2015, our Company signed a share purchase agreement (the “Purchase Agreement”) with Sol Chip Limited (a company incorporated in Israel with limited liability) (“Sol Chip”) through its wholly-owned subsidiary, Super Dynasty Investment Limited (a company incorporated in Hong Kong with limited liability) (“Super Dynasty”). According to the Purchase Agreement, Super Dynasty will invest USD 4 million (equivalent to approximately HKD 31.25 million) to purchase the Preferred B-1 Shares which shall constitute, immediately following the closing, 27.78% of the share capital of Sol Chip on a fully diluted basis.

Sol Chip is an Israeli solar energy technology company preserving extensive experience in the semiconductor field, and currently it is the supplier of IOT (Internet of Things) system and energy access solutions as well, which sells sustainable solar batteries and related system solutions. The design and technology of Sol Chip is unique and leading-edge, which includes maintaining the eternal solar batteries of IOT and its communication platform etc.. Wherein the solar cell has the ability to collect electricity from artificial light, and it is small enough to be soldered to a circuit board or integrated into a semiconductor chip; and it enjoys the ability to integrate a monolithic power supply unit, semiconductors and microcontrollers, providing customers long-term self-powered device without maintenance; its photocell chip is a single power supply, and it can provide a range of voltage output as well; the power management features make it possible to provide 24-hour year-round electricity for night/darkness use of low-power devices through the energy stored by solar cells of storage capacitors; the company’s products also support the data transmission and network mesh generation with the power level much lower than the current industry standard. In addition, the company’s products have obtained three United States patents, and another three patents are in application.

Supported by the increasing supply chain and developed labor market, the manufacturing industry of semiconductors and electronic components is expected to generate USD 701.1 billion in revenue with 1.9% increase of 2015 which indicates the consecutive rebound growth of six years since the recession in 2009. The advanced solar battery technology of Sol Chip will usher huge business opportunities, and the gross margin in the next four years is expected to increase from 25% to 45%. The products of Sol Chip enjoy widely commercial space, including home automation, smart cities, precision agriculture and other aspects, and its direct and most effective applications-IOT, especially the IOT of agriculture is precisely the most promising sunrise industry in the People’s Republic of China.