On July 14, Far East Smarter Energy (600869) released an announcement, stating that “Far East Material Trading Center”, established separately by its subsidiary Far East Trading Pay Network Technology Co., Ltd. (hereinafter referred to as "Trading Pay"), has been approved by Financial Office of People’s Government of Jiangsu Province for opening.

The company said that this time, its business related to continuous spot trading platform will be operated separately at Far East Material Trading Center, carrying out business activities as an independent legal representative, to provide customers with the best commodities trading, settlement, clearing and financing services based on the electrical and electric industry. It will further practice the "internet +" national strategy, continuously enrich and improve the e-business suppliers’ product lines, focus on both online and offline activities, and continuously grow the platform flow and trading volume, to realize the company's future development strategy.

Statistics show that the predecessor of Far East Material Trading Center was China Material Exchange, a trading platform established by Smarter Energy for the problems including high purchasing and financing costs, non-transparent raw material quality and risks of bad debts that existed in the upstream part of raw material procurement. It started from the wire and cable industry, and serves electrical industrial entities, which is a continuous spot trading platform of raw materials. The profits of the platform mainly come from transaction fees, supply chain revenue and funds precipitate revenue. As pointed out by the research from Zheshang Securities, the establishment and opening of Far East Material Trading Center will mobilize the enthusiasm of the operating team, expand the trading platform, and increase the trading volume, to operate and cultivate a profit growth point for Smarter Energy in long term.

It is understood that Smarter Energy began a layout in the energy Internet from 2013, continuously implementing the intensive and extensive measures around the strategic transformation direction. For the online measures, it built one network and two platforms through its subsidiary Trading Pay; for the offline measures, it perfected the layout in the energy Internet through external acquisition, which acquired Intelligence Power, a class-A electric power design institute, to be involved in the distributed power generation and power sale area; meanwhile, it completed the acquisition of SEMEUREKA to improve its layout in power distribution, and accessed to power and energy storage battery industry through buying out Far East First.

It is noteworthy that Far East First, bought out by Smarter Energy in 2015, was particularly eye-catching, successfully included into “Announcement on Directory of Enterprises (the Fourth Batch) ‘Meeting Automobile Power Storage Battery Industry Standardized Conditions’ “published by Department of Equipment Industry of Ministry of Industry and Information Technology. For years, Far East First has focused on the R & D, manufacturing and sale of 18650 lithium-ion battery, which has the world's largest output and sales in terms of single model battery, and the most sophisticated processing and equipment. Currently, its capacity has reached a daily output of one million cylindrical lithium batteries, only behind Samsung and Panasonic in the production and sales scale. Data show that from January to March in 2016, Far East First achieved operating revenue at RMB 243,371,445.48, and a net profit at RMB 44,289,520.14.

In addition, at the critical stage of strategic transformation, Smarter Energy revised some terms in "Incentive System for Core Employees to Long-term Hold Smarter Energy Stocks" on July 13 in order to enhance the initiative of the core employees to increase the holdings of Smarter Energy stocks. Based on that, the core employees may purchase Smarter Energy stocks through the secondary markets by borrowing money from Far East Holding Group, so that the core employees could have more opportunities to become the company’s shareholders that would greatly improve the employees’ enthusiasm and cohesion, while binding the interests of the employees, enterprise and owners, which is good for the transformation, upgrading and development of the company in long run.

It is known that among 2016 China’s top 500 listed companies that was published by “Fortune Magazine”, Smarter Energy ranks No.422 with an annual operating revenue of RMB11.711 billion, and No.24 in the sub-list of mechanical equipment and equipment manufacturing industry.