Our group today announced that it has signed a framework agreement with Liaoning Energy to establish 18 new joint ventures ("JV") in Chaoyang, Liaoning Province, China to co-develop 900MW of wind power projects. Each of the new joint ventures will be responsible for a single wind farm project with each having an initial target installed capacity of 49.5 MW. The total investment of each JV would not exceed RMB 500 million. The remaining part of the total investment will be raised by each new joint venture through external debt. Out of the 18 new JVs, 9 JVs China WindPower holds 55% equity capital, and Liaoning Energy holds the rest of 45%. And the other 9 new wind power plants, Liaoning Energy possess 55% equity capital and the remaining 45% by the Group. As for project financing arrangement, any capital needs other than the equity capital of the wind power joint venture will be financed by banking facilities.

Liaoning Energy is a state-owned enterprise in China owned by the Assets Supervision and Administration Commission of the Liaoning Provincial Government. It is principally engaged in the development of power, high technology and energy saving projects, and manufacturing and sale of related equipment and facilities in China. Our group has had several great collaborations with Liaoning Energy. The signing of the agreement represents a new stage in cooperation between the Group and Liaoning Energy following the establishment of seven joint ventures last year. Both parties will leverage on their advantages in financing and project development & construction to enhance the development of wind power in Liaoning Province. Liaoning Province has great advantages in wind power development on aspects such as access to the power grid, wind source quality, electricity price and the assimilative capacity of the local consumption.
Additionally, this project has received strong supports from the government of Chaoyang City in Liaoning Province to laid a good foundation for the success in future development."