Far East Holding Group Invested RMB500 Million to Become a Shareholder of Jiangsu Private Investment

Far East Holding Group’s holding subsidiary- Far East Smarter Energy Co., Ltd. (abbreviation: Smarter Energy; stock code: 600869) - disclosed its 2015 Annual Report and 2016 First Quarter Report in the night of 28^th. The reports show Smarter Energy realized an operating revenue of RMB11.711 billion in 2015, a year-on-year increase of 3.16%; a net profit attributable to shareholders of listed companies at RMB 422 million, a year-on-year increase of 131.11%; and an increase in the cumulatively total remuneration of employees at 14.47%, with the per capita monthly wage and per capita daily wage up 19.93% and 17.95% year on year, respectively. The reports exhibit great performance achieved by Smarter Energy in both of the business layout and operating results since its strategic transformation, which has drawn high attentions from the capital markets. After above good news was disclosed, Far East Holding Group continues its strategic layout by investing RMB500 million to be involved in establishment of Jiangsu Private Investment Holdings Co., Ltd. (hereinafter referred to as "Jiangsu Private Investment").

Jiang Xipei (the first from left in the second row) was present

 at the agreement signing ceremony of Jiangsu Private Investment

Jiang Xipei (the third from left in the first row) signed on the spot

Concerned by the government of Jiangsu Province, and promoted and guided by Jiangsu Federation of Industry and Commerce, and Wuxi Municipal Government, Jiangsu Private Investment was established by 11 private enterprises in Jiangsu, including Far East Holding Group Co., Ltd., Jiangsu Shagang Group Co., Ltd., GCL Capital Management Co., Ltd., Hongdou Group Co., Ltd., Jiangsu Yangzijiang Shipyard Co., Ltd., and Jiangsu Chengxing Industrial Group Co., Ltd., with the registered capital of RMB 8.6 billion.Far East holding Group invested RMB 500 million, accounting for 5.81% of the registered capital. On April 25, 2016, Jiangsu Private Investment held its first Shareholders' Meeting, and voted to elect the members of the 1^st-term Board of Directors and the 1^st-term Board of Supervisors. Chairman of the Board and CEO of Far East Holding Group Jiang Xipei was elected as a Shareholder Supervisor and Chairman of the Board of Supervisors of Jiangsu Private Investment.

The on-site of the agreement signing ceremony

 It is known that during the next 5 years, Jiangsu Private Investment plans to realize a scale of net assets exceeding RMB60 billion; corporate value exceeding RMB120 billion; and the total assets under management exceeding RMB500 billion. It also plans to cultivate more than 10 domestic and overseas listed companies; build financial holding platforms with basically complete functions; and strive to achieve an overall listing for Jiangsu Private Investment.

 Adhering to the strategy of "main business + investment", Far East Holding Group has implemented an important measure for the development strategy to invest in Jiangsu Private Investment. In the future,Far Eastwill use platform to expand its business areas, combine an industry operation with capital operation effectively and enhance the company's core competitiveness and profitability. In the same time, it will jointly promoteFar Eastto head toward the goal as “a global investment management expert” through equity investment, mergers and acquisitions and other investment mechanisms.

 As of April 30, 2016, Far East Holding Group has invested cumulatively in 325 enterprises, of which 74 have completed the listing procedures (25 are new third market), 3 have been approved and wait for initial public offering, and 26 are pre-announcement. With an accelerating examination and approval of IPO, the high-quality enterprises invested by Far East Holding Group will continue to be seen in the capital markets.