Liu Hanyuan Joins Tongwei Group to Play a Photovoltaic Divine Comedy

On the date, Chairman of the National Committee of the Chinese People's Political Consultative Conference, known as the “first person of photovoltaic new energy” in China, and Liu Hanyuan, Chairman of Tongwei Group’s Board of Directors, said in an interview: “The key is whether we look at this issue from the perspective of excess or not. If you look from a static or planned perspective, there is such a problem, and it is also an objective fact. However, at the same time, it should be noted that under the market mechanism, if there is anything missing, there will be people who will produce anything, especially if it is broad. Market prospects, industries or industries with large stage profits will surely attract various capital inflows. Therefore, in reviewing and rethinking the development of the industry today, I prefer to respect the laws of the market and treat them objectively. this phenomenon."

For China, the space for photovoltaic applications in China is much larger than that of the EU market. The annual increase in electricity consumption and stocks is much greater than the sum of all EU countries. Therefore, the world's largest photovoltaic application market should also be in China. As far as the domestic market is concerned, maintaining exports and exports and actively occupying the international market is a leg; the other leg must be to make the domestic photovoltaic market bigger and stronger.

For enterprises, they need to think about how they are really stronger and bigger. For the country, they need to form supportive measures and policy guidance to support the development of China's photovoltaic industry as soon as possible. It should be pointed out that China’s lighting conditions and photovoltaic resources are much better and richer than most other photovoltaic powers in the world, such as Germany. Solar output per unit area is almost 150% to 200% of that of Germany. There are sufficient conditions in China. And reasons to accelerate the development of solar photovoltaic industry. However, how to really speed up the start of the domestic market, as soon as possible so that the domestic leg is thick and strong, and really play a major role, is an important issue that urgently needs to be answered by the government and the industry in the current market environment.

On June 28, 2012, Tongwei Co., Ltd. stated in its announcement that the controlling shareholder's subscription of non-public offering of shares constitutes a connected transaction:

The company plans to issue 127,931,769 A shares in a non-public offering to Tongwei Group Co., Ltd. (hereinafter referred to as “Tongwei Group”). Tongwei Group intends to subscribe for all the non-public offering shares in cash.

Before the non-public issuance of shares, Tongwei Group holds 55.06% of the company's shares, which is the controlling shareholder of the company. According to the "Stock Exchange Listing Rules" of the "Shanghai Stock Exchange," this transaction constitutes a related party transaction.

The shareholders of Tongwei Group are Mr. Liu Hanyuan and Ms. Guan Yamei. The two are husband and wife. They hold 80% and 20% of the shares of Tongwei Group respectively. Mr. Liu Hanyuan is the actual controller of Tongwei Group.

Tongwei Group was established in 1992 and does not engage in the production and operation of actual products. Its main business is foreign investment management and trading business. Its main assets are held as 55.06% stake in the company, 34.72% equity of Sichuan Yongxiang Co., Ltd., 100% equity of Sichuan Tongli Construction Engineering Co., Ltd., 60% equity of Chengdu Goodmaster Pet Food Co., Ltd., Sichuan Tongwei Real Estate Co., Ltd. 100% equity of the responsible company. After nearly two decades of development, Tongwei Group has developed into a large-scale private technology enterprise with agricultural and new energy as the two main industries and rapid development in the chemical, pet food, IT, construction and real estate industries.

As of December 31, 2011, Tongwei Group had total assets of RMB 9.717 billion and net assets of RMB 3.138 billion. In 2011, it achieved operating revenue of 131.21 billion yuan and net profit of 84 million yuan. From 2009 to 2011, the operating income of Tongwei Group continued to increase, the total assets and net assets continued to expand, and its operating strength continued to increase.

At present, Tongwei Group is aiming at the grand vision of “improving the quality of human life and achieving the world's aquatic product licensing”, unswervingly developing the main industry of feed and aquatic products, actively expanding the industrial chain, and making every effort to build world-class health and safety food suppliers. At the same time, Tongwei Group is developing the polysilicon and solar photovoltaic industry, and is committed to building world-class solar photovoltaic companies and world-class clean energy companies.