NSP Successfully Raised NT$2.88 Billion through Rights Issue

Neo Solar Power Corporation (3576 TT) (“NSP”, or “the Company”), a leading producer of high quality solar cells and modules in Hsinchu, Taiwan, today announced that the company has successfully completed the Rights Issue of 160 million new common shares. Each share was priced at NT$18 and the company has raised NT$2.88 billion through this offering. This is the first successful Rights Issue from Taiwan-based solar companies this year.

As the deadline of China 2015 feed-in tariff rates approaches to the end of June 2016, the rush orders from China has becoming slow. Less product order visibility and further price drops have becoming more often, which make some noises to the demand and capital market. However, in view of the growth potential of renewable energy and CO2 emission cut is the consensus globally, and no matter the high-efficiency & high-reliability of NSP product, cost reduction progress, or global market strategy, NSP all stands with outstanding performance. Therefore the existing shareholders as well as institutional investors shows strong support and active participation of this Rights Issue. The success of this offering also reflects investors’ confidence of NSP’s future performance and their recognitions of the company’s strategy of going forward to downstream solar system market other than focusing on manufacturing high-efficiency solar cells and modules.

Many market research institutions forecast global solar installations this year will be in 60~65GW, which still representing a two-digit growth in YoY terms, and has potential to jump into 80GW in year 2018. The growth momentum for solar energy is huge. NSP stands as leading position in the solar industry and possess excellent R&D and management team, it is believed that, with this proceeds, not only can NSP strengthen its Balance Sheet, but it will have more resources to cooperate with partners in Taiwan & worldwide to develop downstream solar system projects together and enhance the overall competitiveness of NSP Group.