NSP Successfully Sold Zhunan FAB with NT$ 1,252 million

Neo Solar Power Corporation (“NSP”, or “the Company”, publicly listed on Taiwan Stock Exchange, Ticker: 3576 TT), a world-class leading integrated PV solution provider with expertise in high conversion efficiency products and global solar system development capabilities in Hsinchu, Taiwan, announced that the Company has successfully sold its Zhunan FAB to Maxchip Electronics Corporation through the open bidding process. The total transaction amount is near NT$1,252 million.

NSP Zhunan FAB was obtained through the merger with DelSolar Co. Ltd. in 2013. The FAB was original used for manufacturing multicrystalline solar cells and modules. However, in responding to the Company’s business transformation of exiting multicrystalline solar cell market and focusing on monocrystalline PERC product, lowering operating expense and activating idle assets, NSP has gained Board approval earlier to sell Zhunan FAB through open bidding. The whole building was designed under energy saving concept and has won LEED-NC (Leadership in Energy and Environmental Design – New Construction) from the U.S. Green Building Council. It also equipped with sound facilities for buyer to start production immediately. The buyer can also enjoy the land leasing advantage from Zhunan Science Park as well. Therefore this open bidding has attracted many bidders and Maxchip Electronics has won the bid in the end.

After selling Zhunan FAB, NSP’s Taiwan manufacturing sites will be centralized in Hsinchu Science Park and Tainan Technology Industrial Park and focusing on manufacturing high efficiency solar cells and modules. In sum, this transaction helps NSP to activate idle assets, increase cash inflow, and strengthen the balance sheet to expedite the emersion of business transformation benefit.