Neo Solar Power Sells Taiwan Solar Projects worth NT$1.46 billion to Chailease Finance Co., initiating new cooperative business model between Taiwan solar companies and financial institutions.

Neo Solar Power Corporation (3576 TT) (“NSP”, or “the Company”), a world-class leading producer of high quality solar cells, announced that its subsidiary, General Energy Solutions Inc. (“GES”) signed a agreement of selling 71 Taiwan solar power stations with total capacity of 22.5MW to Chailease Finance Co., Ltd. The transaction is that GES sells 100% original capital contribution of its subsidiary, Yong Tang Ltd. to Chailease Finance Co., Ltd.

Investing in solar power stations promises higher and steady return than general financial instruments, and therefore attracts many financial institutions and investors to participate. GES’s subsidiary, Yong Tang Ltd. has built up 71 solar power stations with total capacity of 22.5MW in Taiwan, and total asset value for these projects is worth NT$1.46 billion. The transaction is the first of its kind in Taiwan that solar company sells solar power stations in a whole package to a financial institution, and thus has significant meaning to the industry. Solar power stations can guarantee expected cash-flow for at least 20 years, which similar to fixed-income products. It’s a very good long-term asset to hold for leasing or insurance companies.

GES has received orders to build solar projects in Japan, the United States, Taiwan, and the UK. Among them, Japan market accounted for the highest percentage in the portfolio, and the UK market has also reached to 15MW scale. The total project pipelines, including new contract signed and projects under constructions for GES in 2014 is about 80MW. Following more and more new solar power stations completed, the electricity selling income, plus the new business cooperation model between NSP and financial institutions will bring the growth momentum to NSP revenue, and also contribute profits to NSP in the long run.