STRATEGY

Jetion intends to take advantage of the strong anticipated growth in the global renewable energy market to become a major player within the worldwide solar power industry. In particular Jetion will seek to capitalize on the expected extremely strong growth of the Chinese solar power industry which supplies both the fast growing domestic and export markets. In order to execute this strategy the group has planned to :-

i) Scale up manufacturing facilities through the roll-out of new product lines
ii) Move up the value chain by:
　　　　　　　　　　　　　– increasing the proportion of cells converted into modules
　　　　　　　　　　　　　– forming alliances with manufacturers of solar-system
　　　 　　　　　　　　　　 components in order to provide end to end solutions
iii) Introduce additional cost efficiencies
iv) Actively explore partnerships or selective acquisitions for new solar technologies
v) Expand the geographic reach of the products internationally and create a strong and respected industry brand.

These steps will not only enhance the margins and positioning of the group across a broader spectrum of the solar value chain than at present but will also see Jetion become one of the leading Chinese providers of solar cell, modules and systems to both domestic and international markets over the next three years.

Key Strengths

Jetion boasts the following key strengths:

Market – Jetion operates within a market place which has experienced significant recent growth and where substantial growth is projected in future and where demand is expected to outstrip supply

Management – The management team and Board have considerable sector and manufacturing expertise

Robust Capacity Growth – Jetion has demonstrated its ability to scale production facilities quickly and cost effectively to manufacture solar cells and solar modules in large volumes.

High Utilisation Rate – The monthly output of the 1st and 2nd solar cell production lines has achieved 4.5MW, which outstrips the notional designed monthly capacity of 4.2MW and is likely at the top level in the industry

Quality – The group has rapidly built a reputation for quality and reliability of its services and products

Predictable revenues – Demand for the Group’s products is expected to continue to outstrip supply in the second half of 2008 with the current order book underpinning the strong growth in production planned in the second half of the year. Forward sale agreements have been secured for 2007 through to 2009 ,therefor,the company’s revenues are optimistic and high visibility。

Access to solar-grade silicon wafers though long term supply agreements – Agreements are in place for the supply of solar grade silicon in sufficient quantities to meet the Group’s currently anticipated production needs for 2007, 2008 and over 90% of 2009.

Strong R&D Capabilities – Jetion has won 14 technology patents: of which 3 on equipment improvement, 4 on solar modules process, 7 on solar cell process. Moreover, 7 out of 14 are invention patents. The innovative process used by the group is capable of producing solar cells with high efficiency (up to 17.6%). Currently, average efficiency rate of solar cell is over 16.8%. Other producers regularly sub-contract elements of the production process to Jetion, underpinning the group’s key competencies in this area.