★保密
Hanergy Thin Film Power Group Proposed Scheme of Arrangement Update
April 2019 01 Scheme Highlights 05 Value Propositions
02 Financial Overview 06 Appendix (1)：Corporate Content Highlights and Core Mgmt Team 03 Business Model 07 Appendix (2)：Technology Lines
04 Growth Prospects 08 Appendix (3)：Market Applications
2 / 73 Scheme of Arrangement Highlights
3 / 73 Scheme of Arrangement Highlights
Reasons
• In accordance with the Listing Rule amendments of the Stock Exchange of Hong Kong effective August 1, 2018, the Company, if being suspended from trading until July-end, will face delisting consequence
• Through this scheme of arrangement and prospective subsequent listing in A-share market, the possible intrinsic value of the Company shall be revealed
• As the Company has possessed high-tech of know-how in flexible thin film solar technology, this is well- poised to benefit from China’s tremendous support to renewable energy industries
• Companies with similar high-tech solar businesses have been well received by China’s capital market, so the Company finds the Mainland A-share market more inviting
4 / 73 Scheme of Arrangement – Action Items and Time Frame
Salient Points Expected Timetable • The Offeror, being the controlling shareholder, and the Major items Date Company made a joint announcement of the Scheme of Dispatch of Court-approved Scheme of Arrangement Arrangement on February 26, 2019 documents and notices of the court meeting and SGM April 25, 2019 to independent shareholders • The Offeror has proposed to independent shareholders a share swap of one share of 566 share for one SPV share Closure of the register of members for determining the entitlement to attend and vote at the Court Meeting May 14 to 18, 2019 • Officiating this scheme requires an approval of independent and the SGM shareholders at the court meeting and Special General Meeting Latest time for lodging forms of proxy in respect of 10am on May 16, 2019 • Once the scheme is effective, the 566 shares held by Court Meeting and SGM independent shareholders will be swapped with schemed From 10am on May 18, SPV shares and then are cancelled, and its HKEx listing will Court Meeting and SGM 2019 be withdrawn Announcement of the results of the Court Meeting and • Upon successful listing in A-share market, independent SGM May 19, 2019 shareholders will hold shares of the A-share listed company through actual stakes of SPV Withdrawal of the listing of the Shares on the Stock Exchange June 11, 2019
Latest time to dispatch new SPV Shares certificates June 18, 2019
5 / 73 Proposed Return to A-Share Listing
Ultimate Objective：to assimilate Company businesses onto the new prospective PRC company in order to prepare for A-share listing
Upon completion of the scheme, relevant professionals (sponsors, legal teams, financial advisors and other intermediaries) are to be recruited for preparation and execution of A-share listing works in compliance of PRC listing rules and regulations.
6 / 73 Financial Overview
7 / 73 Growth of Revenue & Profit Continued with Unabated Exponential Growth in 2018
2016~2018 Revenue Performance in 2018 vs. 2017 （unit：HK$ million） 21,252
6,147 Net 4,483 Revenue Profit 2016 2017 2018 up 2.5 Surged 2016~2018 Net Profit 18.9 times （unit：HK$ million） Times 5,193
Huge gain in net profit was mainly attributable to major technological breakthrough, great driving force of various state policies in supporting the industries in thin-film power generation, mobile energy, advanced equipment production and new materials 252 261 of new energy alternatives, as well as excellent establishment 2016 2017 2018 opportunities of multiple solar tech-related industrial park projects
8 / 73 Resilient Profitability Coupled With High Investment Returns in 2018
2016~2018 Gross Profit Margin VS 2016~2018 Return on Shareholders’Equity 39.4% 57.0% 57.9% 43.5% 3.4% 3.2%
2016 2017 2018 2016 2017 2018
2016~2018 Net Profit Margin 2016~2018 Return on Assets 17.3%
24.4%
5.6% 4.2% 1.9% 1.3%
2016 2017 2018 2016 2017 2018
9 / 73 Business Models
10 / 73 Business Models: Focus on Upstream and Downstream Industry Chains to Build a Thin Film Solar Power Ecosystem
Upstream Midstream Downstream Major Customers Technology R&D of Production of Thin Film Power Products and End Production Lines Cells/Modules and Solutions Customers
Principally engages in: Purchasing production line Principally engages in: • Research and development, design, equipment with turnkey • Research and development, design, assembly, sales and delivery of thin film solutions from the Group to sale and delivery of thin film solar solar energy cell/module production produce solar cells/modules, energy systems and mobile solar equipment and turnkey production which are then sold those to energy application products lines, as well as providing technical the Group and other • Providing technical services and support services customers for use in Major clients are those third-party downstream businesses support, construction and customers focusing on the midstream maintenance services to smart mobile energy manufacturing downstream applications and industries product customers This sector represents the principal • Major clients are third-party income source of the company, customers of distributors, system accounting for approximately 92% of integrators, investors and landlords total income in 2018 • Profit/Revenue models: Profit/Revenue models: • Sales of downstream products and • Sales of production line equipment solutions solutions • Technical services, and construction • Technical services, project construction and other services and maintenance services • Commanding higher profit margin than the midstream and downstream business segments
11 / 73 Growth Prospects
12 / 73 贵州项 Global Consensus on Energy Transformation and Low Carbon Development 目概览
On 12 December 2015, nearly 200 parties from around the Chinese President Xi Jinping reiterated at COP21 that the world participated in the United Nation Framework Convention country plans to peak carbon dioxide (CO2) emissions by on Climate Change, and all had unanimously approved of The the year 2030 or thereabouts, and will work diligently to Paris Agreement. All parties will strengthen global response to achieve that point earlier. It will lower CO2 emissions per the threat of climate change and accelerate the peaking of unit of GDP by 60%-65% in comparison of year 2005, and greenhouse gas emissions in order to achieve zero greenhouse will increase the share of non-fossil fuels as primary energy gas emissions by end of the second half of this century. sources to about 20% by 2030.
13 / 73 贵州项 Global Solar Energy Industries Have Grown Rapidly Over the Past 目概览 Few Years, so Solar Energy Has Emerged as The Most Significant Renewable Energy Power Source
2013-2018 Global Photovoltaics Installation Capacity（GW）
600
Newly Added 508.3 500 Cumulative 405 400
304 300 227
200 177 140.4 102 103.3 100 77 50 40.4 36.6
0 2013 2014 2015 2016 2017 2018
Data source：IHS、Energy Trend、CPIA etc.
14 / 73 贵州项 Over 20% of Global Primary Energy Consumption is Expected to be 目概览 Power with Solar Energy by 2050
Statistics and Estimation of Different Energy Sources in Global Energy Consumption Geothermal energy Other renewable energy Solar thermal energy Renewable energy will be commanding over 50% of global energy consumption PV and solar thermal by 2050, over 20% of which energy is from solar energy.
By end of this century, Wind energy
Biomass (modern) renewable energy is
consumption EJ/a Primary energy Biomass (traditional) Hydropower expected to be over 80% of Nuclear power global energy Natural gas Coal consumption, with which Petroleum over 60% is from solar energy.
Data source：China’s State Grid Energy Research Institute
15 / 73 According to China’s State Grid Energy Research Institute, Cumulative 贵州项 Installed Capacity of China’s Solar Energy Industries will Reach 目概览 1,560GW by 2050, Accounting for 30% of All Electricity Sources
Installed Capacity and Share of All Installed Capacity and Share of All Electricity Sources by 2035 Electricity Sources by 2050 Off-shore windBiomass & Pumped Storage, Off-shore windBiomass & Pumped Storage, power ,others, 0.4, 0.6, 2% 1.1, power, 0.7,others, 1.3, 3% 1.7, Photothermal Photothermal1% , 3% 1% 3% 0.5, Electricity, 1.6, Coal Electricity, Gas Electricity, 1% 3% 7.8, 15% 3.1, Coal Electricity , Photovoltaics 6% Nuclear Electricity, 8.7, 12.8, Electricity, 2.3, 21% 31% Photovoltaics Electricity, 15.6, 4% On-shore wind 30% Gas Electricity , Hydro Electricity, power, [值], [百分 2.1, 5.4 , 比] Hydro Electricity, 5% On-shore wind 10% Nuclear, 1.8, 5.0 , 12% power, 13, 25% 4%
Data source：China’s State Grid Energy Research Institute
16 / 73 Thin Film Solar Power Plays an Integral Part of Solar Power Industry 贵州项 目概览 because of its Flexibility, Lightweight and Broad Applications
Rigid or flexible, foldable, hard Thin Film Solar Power to break, wide applications Becomes a Key Development Direction Flexibility of Solar Power Industry Lightness
Can be used in Silicon module is about 15kg/m2 various industries Five Major Advantages of vs. thin film module is about and able to Wide Applications Thin Film Solar Power 3kg/m2 only. Those can be generate power Technologies mounted on lightweight steel from all things rooftops, and suitable for mobile
Good Performance energy source application in Weak Light Conditions Good appearance, can be made into Good Appearance, different colors based on demand, Colorful, Transmittance can be integrated into architecture In lieu of weak light condition or partially shaded, and allow good light transmittance thin film solar modules can generate higher energy output than silicon solar modules
17 / 73 贵州项 Since 2015, Over 30 Supportive Policies/Directives are Issued in Supporting of 目概览 Thin Film Solar Power and Mobile Energy in China since 2015
MIIT’s “Guidelines for Development of Key and Common Industrial Technologies (2015)”, 2015 Clearly states “To support R&D of CIGS battery production technologies particularly the technologies of mass production of CIGS in roll-to-roll manufacturing”
“Energy Technology Revolutionary Innovation Action Plan”, 2016
• Proposes to develop technologies, know-how and mass production of thin film CIGS solar cells, to notably improve the conversion rate of solar cells and its core substrate materials in China
• “Made in China 2025 – Energy Equipment Implementation Proposal”, 2016
• To include CIGS thin film solar cells with over 21% conversion rate and/or higher GaAs based solar cell conversion rate over 43% as major tasks of PV technological breakthroughs
“Guiding Catalogue of Key Products and Services for Strategic Emerging Industries”, 2017
• To include, flexible GaAs and CIGS solar cells and modules, and its multi-layers encapsulation technology systems onto the catalogue
“Opinions of the State Council on Supporting Shanxi Province in Further Deepening Reform and Promoting the Transformation and Development of the Resources-Based Economy”, 2017
• Cleary states to“Establish a spearhead in mobile solar energy industries including thin film solar power to become the leader of mobile energy”, and elevate mobile solar energy to the national strategic level
“Action Plan for Intelligent PV Industry Development (2018-2020)”, 2018
• Clearly states to“Promote the collaboration and integration of advanced PV products for consumer products, outdoor products, transportation vehicles, aerospace and aviation, military and defense in terms of encouraging development of comprehensive mobile solar products, e.g., solar chargers, backpacks, clothes, solar drones, fast-charging stations”
18 / 73 贵州项 Thin Film Solar Energy has been identified and accounted for the 6 目概览 most important areas among 9 National Emerging Strategic Industries
China’s 9 National Emerging Strategic Industries are characterized by knowledge & technological intensive, low consumption of material resources, high growth
New New potential and outstanding collective benefits. Thin film Energy Materials solar energy has accounted for 6 of those industries： High-end New Energy Equipment Vehicles High-end equipment manufacturing Manufacturing
Energy New materials Next 6/9 Efficient & Generation Environmental IT Protection New energy
Digital Biotechnology New energy vehicles Innovation Related Services Energy efficient and environmental technologies
Next generation information technology
19 / 73 Thin Film Solar Energy Enables All Things to Generate Power which is much Different from Traditional Silicon-based Solar Energy（1/2）
Thin Film Traditional Solar Energy Silicon based Solar Energy
VS
Materials Materials New compound semiconductor materials: Traditional Crystalline Silicon materials Copper Indium Gallium Selenide/Gallium Arsenide, etc. Process Process Semiconductor vacuum/thin film coating process Crystalline extrusion, non-vacuum process Solar Cell chips Solar Cell chips Flexible Fragile and unbendable
20 / 73 Thin Film Solar Energy Enables All Things to Generate Power which is much different from Traditional Silicon-based Solar Energy（2/2）
Thin Film Traditional Solar Energy Silicon Solar Energy
Enables all Photovoltaic things to (PV) power generate station electricity VS End Customer End Customer Corporate and individual customers from all industries Investors and owners of PV power plants
Function Positioning Function Positioning Amalgamated functions, enables everything to generate power Enables PV power plants to generate and sell electricity Value Properties Value Properties Closely integrated with industries to enhance product value, To pursue lower cost feed-in tariff when compared to enabling all things to generate electricity fossil fuels energy
21 / 73 汉瓦、汉墙 Thin Film Solar Technology now Mainly Used in Building and Mobile 市场前景 Energy Applications
Aerospace
Power Applications in mobile Applications in Transportation Applications generation Applications energy: tile building sector: Application in building in mobile of thin film Aerospace/Aviation HanWall sector solar energy Consumer energy Power Transportation electronics & HanTile generation outdoor wall Consumer Electronics sports Combination & Outdoor Sports of military and civilian Civil-Military Integration
22 / 73 汉瓦、汉墙 Application Cases of Hanergy Thin Film Solar Energy Technology 市场前景
Applications in building sector: Applications in mobile energy sector:
HanTile Project in Huangshan Town, Lijiang City, Yunnan HanTile Villa Project, Hunan Province Province Aerospace Transportation
HanWall Overseas Chinese Town Headquarter Building of State Project, Heyuan, Guangdong Collaboration of Military Outdoor Products Power Investment Corporation Province and Civilian usage
23 / 73 Bright Prospects for Thin Film Solar Energy Market –Marketable Size to Exceed RMB110 Trillion by 2020
2019-2023 Marketable Size for Thin Film Solar Energy - Global and China （UVSnit ：RMB trillion）
Global China
126.3 121.2 116.3 111.7 107.3
18.9 19.7 20.5 21.4 22.3
2019 2020 2021 2022 2023
Data source：Accenture Research Report
24 / 73 Value Propositions
25 / 73 Value Propositions
World's largest GW level Continuous growth in Global leader in the delivery capability of thin revenue and profit, as thin film solar film solar production line evidenced by an explosive energy industry growth in 2018
1 2 3 4 5 6
World's top-notch Highly recognized product Key national-supported scientists team and innovation capability industry with a promising R&D capabilities prospect
26 / 73 THANK YOU Appendix 1：Corporate Highlights and Management Team
28 / 73 Company Profile
Hanergy Thin Film Power Group Limited A high-tech energy enterprise listed on the Hong Kong Stock Exchange Since entering into the thin film solar energy industry in 2009, our current principal activities have included: Research and development, design, assembly, sales and delivery of production equipment and turnkey production lines for thin film solar energy cells/modules as well as the provision of related technical services Research and development, design, sales and delivery of thin film solar energy power generation systems and products of mobile energy applications Provision of technical services and support, construction and maintenance to upstream production lines and downstream applications and products
29 / 73 Integration of Global Leading Thin Film Solar Technologies
Company Name
Location Germany, Sweden Silicon Valley, United States Arizona, United States Silicon Valley, United States
Year of 1983 2004 1996 2008 Establishment Copper indium gallium Copper indium gallium Copper indium gallium Gallium arsenide (GaAs) selenide(CIGS) selenide(CIGS) selenide(CIGS) (flexible technology) Technology (glass-substrate, co- (glass-substrate/flexible, (flexible, co-evaporation evaporation method) sputtering deposition method) technology)
• Founder Lars Stolt is the Father • 18 US venture capital • GSE is one of the world's • World record holder of of CIGS technology mass institutions jointly invested more pioneers in flexible thin film conversion efficiency for GaAs production than USD 600 million in the solar energy and has devoted single-junction cells, breaking • CIGS technology development company itself to the R&D and mass the world record for 6 began in 1983 with over 35 • More than 14 years of R&D to production of flexible film consecutive times since 2010 years of R&D and technological mass production experience products for more than 15 years • Broke the world record for experience • World leading technology in • With world-leading flexible double-junction cells with 31.6% Position in • Solibro production line has CIGS, equipment, target and product encapsulation conversion efficiency in 2016 been in mass production for Industry product development technology and unique ICI • From 2012 to 2013, it was over 10 years, making its • Possess the world's only CIGS encapsulation technology ranked as one of the top 50 technology and process mature one-stop automatic winding • CIGS flexible products are most disruptive enterprises in and stable magnetron sputtering coating purchased by the US Army for the world by MIT Technology system, complete all the CIGS using in soldier mobile battery Review thin film deposition processes chargers without breaking the vacuum
30 / 73 Nine Major Technology R&D Centers around the World
Hanergy Global Solibro Research AB, Technology MiaSolé Hi-Tech, Upsala, Sweden R&D Base Silicon Valley, United States Beijing, China Application Product R&D Center Beijing, China Solibro Hi-Tech, Alta Devices, Thalheim, Germany Hanergy BIPV R&D Silicon Valley, United States Center, Wujin, Jiangsu
Hanergy R&D Center, Global Solar Energy, Chengdu, Sichuan Tucson, Arizona, United States
• Nine R&D centers around the world: three in the United States, one in Germany, one in Sweden, and four in China
31 / 73 The World's Leading Scientists and Strength in R&D (1/2)
Lars Stolt Yuanmin Li Xixiang Xu Atiye Bayman Eli Yablonovitch Harry Atwater
• Father of CIGS, founder • Co-CTO of HIT High- • Co-CTO of HIT High-end • Chief Technology • Father of Photonic • Founder and Chief of Solibro and current end Equipment Industry Equipment Industry Officer of MiaSolé Band-Gap concept Technical Consultant of Chief Technology Company Company • Led MiaSolé to become • Won the IEEE William R. Alta, USA Officer of the company • Advisor member of • Engaged in the study and an enterprise with the Cherry Award, The • Ph.D. in Electrical • Member of the SEMI China development of highest scale Julius Springer Prize, Engineering from the Scientific Advisory • 30 years of research semiconductor material production efficiency in The R. W. Wood Prize, Massachusetts Institute Committee of experience in the field and silicon-based thin film the field of thin-film The Mountbatten of Technology, Visiting Helmholtz Center in of semiconductor film photovoltaic technologies solar energy Medal of the British IET Professor at the Berlin and solar cells for 30 years • Obtained 9 US patents and The IEEE Edison California Institute of • Obtained 21 patents • Obtained more than 40 • Set a world record for and 9 patents of other Medal Technology, Director of and has published more patents at home and “the conversion efficiency countries • Director of Center for Science, Energy and than 130 papers in abroad.;Melissa over 70 of widespreadEric Wallinamorphous Olle Lundberg Energy Efficient Sustainability at Rothick authoritative journals at academic papers have silicon and amorphous Electronics Science College home and abroad been published in silicon germanium triple- (E3S), a Fellow of the • Assumed the Director • Awarded the Chemical several international junction cells” IEEE, the OSA, and the of the EFRC of DOE Science and Technology authoritative journals • Obtained more than 20 APS, Honor Member of • Won The IEEE "William Award by the Swedish patents at home and the AIEE R. Cherry Award" Association of Chemical abroad and has published Engineers in 2007 more than 110 papers in international authoritative journals
32 / 73 The World's Leading Scientists and strength in R&D (2/2)
Jian Ding Scott Wiedeman Brendan Kayes Eric Wallin Olle Lundberg
• Senior Vice • Chief scientist of • Doctor of Applied • Ph.D. in Physics, • Ph.D. in Electronics, President of Global Solar Energy Physics, California Linkoping Uppsala University Hanergy Thin Film • With 30 years of Institute of University • Expert in research Power Group solar cell R&D Technology • Expert in thin film and development • • Ph.D. in Materials experience IEEE senior member, technology of CIGS thin film Science and • Obtained 4 patents led the team to research, especially technology and co- Engineering from Melissa in the United States Eric Wallin create a worldOlle Lundberg record University of of 28.8% single PVD technology evaporation California, Berkeley junction solar cells method • With 30 years of efficiency research experience • Obtained 16 US in semiconductor patents; published equipment over 20 academic manufacturing and papers in journals advanced solar and academic technology conferences
33 / 73
Global Leader in Thin Film Solar Technology, Breaking and Holding Multiple World Records in Conversion Efficiency
GaAs (single-junction): Solar cells’ conversion efficiency is 29.1%, the modules’ conversion GaAs single-junction solar cells conversion efficiency set a new world record for 6 consecutive times efficiency is 25.1%，both are world records. Flexible Among them, the solar cells conversion efficiency GaAs Technology set a new world record for 6 consecutive times. GaAs (double-junction): Solar cells conversion efficiency is 31.6%, broke the world record in 2016
Solibro CIGS glass-substrate film have a CIGS conversion efficiency of 18.72%, adopting co- Technology evaporation method
Miasolé’s CIGS flexible thin film solar cell has a CIGS conversion efficiency of 19.4%, adopting Technology sputtering method
GSE’s CIGS flexible thin film solar energy cell CIGS have a conversion efficiency of 19.3%, adopting Technology co-evaporation method
34 / 73 Global Leader in Quantity and Quality of Patents
The Group’s patent of "Manufacturing The Group was granted the “China’s As of December 31, 2018, Hanergy filed more than device and method for large-scale Patent” award for its patent “an 5,000 patent applications, including 1,700 invention production of thin film solar energy cells" atomization device for production of won the "China Patent Award alloy metal powder” at the “China’s patent applications and 1,211 patent licensing. (Excellence)" by the National Intellectual Patent” Awards of the Bank of Property Administration, PRC in 2018 Communications Cup 2018
35 / 73 The World's Super GW-Class Equipment Thin Film Solar Production Line Capacity Manufacturer with the Strongest Delivery Capability
Solibro Production Line Miasole Production Line
• Shandong Zibo Industrial Park • Shanxi Datong Industrial Park Project, 300MW Project, 300MW Major • Jingzhou Shunbai Project, 150MW Major • Shandong Zibo Industrial Park project • Nanjing Yineng Project, 300MW project Project, 300MW • Heilongjiang Yineng Project, • Jingzhou Shunbai Project, 150MW 300MW • Chengdu Dongteng Project, • Dezhou Yineng Project, 300MW 150MW
GSE Production Line Amorphous Silicon BIPV Production
• Sichuan Mianyang Industrial Park Line Project，600MW • Jingzhou Shunbai Project, Major • Anhui Bengbu Jinneng Mobile Major project 300MW Industrial Park Project, 600MW project (including HanTile production line)
36 / 73 Product Innovation Capabilities Highly Recognized by the Industry
HanTile HanWall HanRoad Hanergy Solar HanPack HanPaper Humbrella Vehicle
HanTile won the TIA Three-curved single-glass HanTile The fourth generation of GaAs solar In the famous Red Dot Design Products including HanPack, Ecological Design Award at won the German iF Gold Award cells was nominated in 2019 Prism Award in Germany, HanPaper HanPaper, Humbrella won the Gold the 2018 World Industrial HanTile single-glass tubular tiles, Awards Plus-in won the Red Dot in Award for Science and Technology Design Conference HanPack and others won the iF product design category. Innovation at the 2018 Creative design awards International Innovation Festival 37 / 73 Good Momentum in Upstream and Downstream Business Development
Multiple production line projects have been Numerous high-quality Mobile energy business reached a delivered and put into production construction projects signed number of major cooperation
• Shandong Zibo Industrial Park Project 300MW Solibro • Jingzhou Shunbai Project 150MW Production • Nanjing Yineng Project 300MW line • Heilongjiang Yineng Project 300MW • Dezhou Yineng Project 300MW
• Shanxi Datong Industrial Park Project 300M Roof-top power generation Miasole Partnered with Boeing's Aurora Flight Sciences, to • Shandong Zibo Industrial Park Project 300MW project for Beiling’s Production highest building “China provide flexible GaAs solutions for its large solar • Jingzhou Shunbai Project 150MW line Zun Building” drones • Chengdu Dongteng thin-film solar energy 150MW
GSE • Anhui Bengbu Jinneng Mobile Industrial Park Production Project 600MW line • Sichuan Mianyang Industrial Park Project 600MW
Amorphous • Jingzhou Shunbai Project 300MW silicon BIPV HanWall BIPV project for Entered into a sales NASA is conducting a test on the Group’s GaAs Production Overseas Chinese Town agreement for the sale of thin film solar technology line in Heyuan, Guangdong HanWall and other products Province with ETS in Australia
Well-known partners
38 / 73 Experienced Senior Management Team
Mr. Si Haijian（Chief Executive Officer） Mr. Yuan, Yabin（Chairman） • Years of experience in financial management and general • Worked in CPPCC National Committee management • Worked in Capital Aerospace Machinery Corporation • MBA degree of Beijing Jiaotong University • Bachelor degree in engineering of Harbin Institute of • Fellow member of the Association of Chartered Certified Technology, Master degree in business administration of Accountants Tsinghua University • Certified Internal Auditor and a Certified Public Accountant of the PRC
Dr. Lam Yat Ming, Eddie（Vice Chairman） Mr. Zhang Bin（Executive Director, Senior Vice • Years of experience in banking and financing President） • Doctor of philosophy degree in Finance of Hong Kong • With 30 years’ experience in corporate brand and sales Chinese University management • Post-doctorate in Financial Engineering of Shanghai • Master degree in engineering of Beihang University Jiaotong University • Worked as the Vice President of Jomoo Kitchen & • Chartered Financial Analyst, Certified Financial Planner Bathroom Appliances Co., Ltd. • Worked at various financial institutions
Mr. Xu Xiaohua（Executive Director, Vice President） Mr. Huang Songchun（Executive Director, Senior • Master degree in microelectronics and solid-state Vice President） electronics of Institute of Semiconductors at the Chinese • Years of experience in financial management Academy of Sciences • Bachelor degree in economics of Beijing Jiatong • Responsible for the domestic operations of Hanergy’s University flexible industrial application department and research • Worked in Guangshen Railway Company and development of new technology for Hanergy’s equipment business department
39 / 73 Appendix (2): Technology Lines
40 / 73 World's Leading Technology Lines
Technology line 1: Solibro CIGS glass-substrate film
SOLIBRO technology production line
Germany-based Solibro’s Technology: CIGS glass-substrate film with conversion efficiency reaching 18.72%
Product Features: Smart appearance, excellent high-temperature performance, convenient installation, excellent self- cleaning function, and easy maintenance
Target Markets: Household systems, distributed, ground-mounted power stations
41 / 73 World's Leading Technology Lines
Technology line 2: Miasolé CIGS flexible thin film (sputtering method)
Miasolé technology production line and cells
US-based MiaSolé’s Technology: Miasolé’s CIGS flexible thin film solar cell with conversion efficiency of 19.4%
Product Features: High conversion efficiency, light weight, ultra-thin, bendable, direct adhesion and low installation cost, suitable for lightly loaded and curved roofs, and applicable for the development of civil products
Target Markets：Flexible industrial roofs, outdoor consumer goods, electronics, special products, vehicle applications
42 / 73 World's Leading Technology Lines
Technology line 3: GSE CIGS flexible film (co-evaporation method)
Global Solar Energy production line and cells
US-based Global Solar Energy’s Technology: GSE’s CIGS flexible thin film solar cell with conversion efficiency of 19.3%
Product Features: Light weight, ultra-thin, bendable, direct adhesion and low installation cost, it is suitable for lightly loaded and curved roofs, and applicable for the development of products in civil-military integration
Target Markets: Electronics, outdoor consumer goods, flexible industrial roofs, vehicle applications, special products
43 / 73 World's Leading Technology Lines
Technology line 4：Alta Devices GaAs Flexible Film
Cells and applications using GaAs technology
GaAs Technology：With conversion efficiency of single-junction solar cells being 29.1%, the mass production conversion efficiency of single-junction solar cells is 25.1%, the highest in the world. Moreover, double-junction solar cells broke the world record in 2016 with a conversion efficiency of 31.6% Product Features: Ultra-light, ultra-thin, bendable and easy to shape, with high conversion efficiency, and especially good performance at high temperatures and in weak light Target Markets: Mobile, portable or wearable products, outdoor products, consumer electronics and the mobile energy markets such as fully solar powered vehicles, UAVs and satellites
44 / 73 Appendix（III）： Market Applications
45 / 73 Market Applications
Construction Market Applications —Power Generation Tile Application scenarios Rooftop of residential, industrial and commercial building
Future development trend
With the demand for building rating, energy saving and investment income, aesthetics and the promotion of government demonstration projects, there will be a greater market opportunities for power generation tiles and walls.
46 / 73 Rooftop of Public Facility Installed with HanTile in Baiyin, Gansu Province
47 / 73 European-Style Rooftop Installed with HanTile in Fuzhou, Fujian Province
48 / 73 Rooftop of Villa in Suzhou, Jiangsu Province
49 / 73 Market Applications
Construction Market Applications Application scenarios — Power Generation Wall Residential building, rooftop of industrial and commercial building, photovoltaic curtain wall, sunroof
Future development trend
With the demand for building rating, energy saving and investment income, aesthetics and the promotion of government demonstration projects, there will be a greater market opportunity for solar tiles and walls.
50 / 73 Thin Film Solar Power Wall Project of Oversea Chinese Town in Heyuan, Guangdong Province
51 / 73 BIPV Project of Headquarter of State Power Investment Corporation Limited
52 / 73 Thin Film Solar Lighting Carport Project of Yanqi Lake International Convention & Exhibition Center in Beijing (where APEC meeting was held)
53 / 73 Market Applications
Portable Power Applications —Aerospace Products Application scenarios
Currently, aerospace products are mainly applied to unmanned aerial vehicle, and will be used in lunar vehicles, satellites, space stations, etc. in the future.
Future development trend
Aerospace is an industry with huge growth potential in the future. The high-efficiency thin film solar cells provide power for real-time monitoring, remote surveying and other space activities in the space
54 / 73 Boeing Aurora UAV Used Hanergy GaAs Thin Film Cell
In November 2018, the US professional media Aviation Week & Space Technology reported that Aurora, a company owned by Boeing, designed Odysseus, a solar UAV with a wingspan of 243 feet (74 meters), adopted the world-leading flexible GaAs thin film cell from a Hanergy’s affiliated company, Alta Devices.
55 / 73 Hanergy Thin Film Solar UAV
In response to the shortcoming of short flight time of traditional UAV, Hanergy applies the world’s most efficient thin film solar cell to increase the endurance of UAV, and focuses on the research and development of solar UAV with continuous flight time up to 4 to 6 hours.
56 / 73 Market Applications
Portable Power Applications —Vehicle Products Application scenarios Electric cars, RVS, cold chain cars, buses, tourist boats and other car roof or sunshade
Future development trend Among all kinds of vehicles, electric cars are the most dependent while portable power is the easiest potential market to tap in
57 / 73 In 2017, China’s First Thin Film Solar Road Developed and Designed by Hanergy Completed in Olympic Park, Beijing
Apart from replacing the traditional roads to meet the basic traffic functions, it also directly obtains clean electricity from the sun, providing portable power for innovative technologies such as "car charging, unmanned driving, intelligent roads, precise positioning, Internet of vehicles, Internet of things, big data", promoting the development of smart cities and satisfying the infinite imagination of life.
58 / 73 Courier Vehicle
Hanergy cooperated with JD to develop an intelligent solar energy courier vehicle - perfectly solves the short mileage problem of delivery vehicles, which can improve the endurance capacity by 30%-50%, reduce the operating cost and improve the battery life of courier vehicles. It can also provide power support for Internet intelligent central control system, anti-theft system and mobile phone.
59 / 73 Courier Vehicle
Subsequent to the collaboration with DHL and JD for launching courier vehicles, more than a dozen express delivery giants such as ZJS, STO, ZTO and Post EMS also installed Hanergy thin film solar modules on the of those vehicles.
60 / 73 Solar-Powered Vehicle Two major disruptive innovations have re-defined new energy vehicles: 1. Direct solar power generation disrupts the traditional charger-dependent electric vehicles; 2. Such vehicles alter the inherent concept of “distance per charge” of traditional electric vehicles, making “zero charging” during medium and short distance travel. With sunlight, the vehicles are able to “charge themselves while traveling”, driving a “zero charging” distance 10%-15% more than that of common electric vehicles, making “zero charging” medium and short distance travel possible in urban areas.
61 / 73 Cooperate with Fuyao Glass to Develop Solar Roof of Vehicles
62 / 73 Installation of Solar Modules in the Aston Martin Roof Supplying power to the air-conditioning system: If turning on the air conditioner, extra consumption of the driver's physical strength can be reduced. However, it will weaken the output capacity of the engine to a certain extent. Therefore, using solar panel is better for complementing the air conditioning system.
63 / 73 Installation of Solar Modules in Golf Cart
64 / 73 Hanergy Thin Film Solar Powered Vehicle, Providing Electricity for Travelling
房 车
65 / 73 Tianjin Zhongxin Ecological City Bus Station
66 / 73 Fully Thin Film Solar Powered Boat
In 2016, Hanergy and Ecuador KARA SOLAR built jointly a fully thin film solar- powered boat “Yapi Long Tapiapia” for transportation services in the Amazon River areas.
67 / 73 Thin Film Solar Powered Luxurious Yacht In July 2017, as a traffic tool for carrying tourists, a thin film solar powered luxurious yacht was put into use on Dongting Lake. This is a new green vessel developed by Hanergy jointly with Wuhan University of Science and Technology and Hunan Haiquan Yacht Co., Ltd.
As a solar ship with the largest tonnage in China, the yacht not only promotes the ecological economic construction of Dongting Lake and shows the ecological civilization of this area developing green economy, but also enhances the competitiveness of shipbuilding enterprises, complying with the development policy of China geared to encouraging scientific and technological innovation and the transformation and upgrading of the shipbuilding industry.
68 / 73 Shared Bikes
A solar power panel mounted on basket of each Mobike, charges the bicycle battery through sunlight, and satisfies the electricity demand of various types of switch locks, electronic payment settlement, GPS and communication modules of Mobike “smart lock”. .
69 / 73 Market Applications Mobile Energy Applications - Consumer Electronics, Outdoor Products
Applications scenarios
Outdoor products: outdoor clothing, backpacks, tents, lamps, cookware
Consumer electronics: mobile phone cases, smart wearable devices, etc
Future trends
With the development of the integration of outdoor products and intelligent equipment will form a new and broad market space.. After the future of consumer electronics in terms of function, battery life and creativity, the market potential of wearable devices is gradually released.
70 / 73 Solar Power Paper
You only need to open the solar energy powered paper and put it in the sun to charge the device. USB output port, can charge mobile phones, Bluetooth speakers, digital cameras, e- books and other electronic products; 2.5 hours fully charge a mobile phone, 9 minutes of sunshine can charging 10% (iphone X) .
71 / 73 Solar Power Pack
Business / Leisure / School / Travel / Charging Helper It is specially designed for computer, pad, mobile phone and other equipment to recharge, large capacity, double inner bag, clearer distinction, more orderly storage, three-layer composite plus cotton decompression design, more comfortable when carrying for a long time.
72 / 73 Humbrella
It is the world's first multi-functional umbrella based on flexible thin film solar technology developed by Hanergy. A layer of efficient and flexible thin film solar cells laid on the surface of the umbrella allows power generation during both sunny and cloudy days： 1. Fully charged Humbrella can store 40,000 mA (mAh) of electricity, which can meet the basic electricity demand of all day, and can guarantee up to 10 hours of nighttime illumination; 2. It can be easily carried when folded, to achieve energy supply anytime, anywhere; 3. Zero emissions, it can replace the use of some diesel generators.
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