(STOCK CODE: 566HK) Investor Presentationen.hanergythinfilmpower.com/uploadfile/2018/0123/...Imperial Pacific (1076.HK)will invest US$7.1 billion in five stages to build a casino resort

HANERGY THIN FILM POWER GROUP LIMITED 漢能薄膜發電集團有限公司

(STOCK CODE: 566HK)

2015年5月

Investor Presentation

Strictly Private and Confidential

© 2015 Hanergy Thin Film Power Group Limited. All Right Reserved.

Agenda

I. Company Overview

II. Applications of Thin Film Technology

III. Thin Film Technology and Production Line

IV. Financial Overview

2 © 2015 Hanergy Thin Film Power Group Limited. All Right Reserved.

Who We Are

Hanergy Thin Film Power(566.HK)is one of the world’s leading thin film power enterprises

•Upstream：Silicon-based (a-Si & nc-Si), Copper Indium Gallium Selenide(CIGS)

and Gallium Arsenide (GaAs) thin film turnkey line provider

•Downstream: Engage in thin film projects and application products,

such as ground-mounted power stations, BIPV projects, household power

generation projects, agricultural application and generic products etc

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•Midstream：Thin film PV module maker


Value Chain

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Crystalline silicon technology

Difference between “Thin film” & “Crystalline silicon”

Upstream

（Without flexibility, transparency and light-weight, crystalline silicon module is

hard to be applied in many areas

Midstream

Downstream

Turnkey production line

Glass-to-glass module

Crystalline silicon

Flexible module Transparent module Crystalline silicon module

Ground mounted power station

Curved rooftop

Various application Products

Ground-mounted power station Rooftop power station

Transparent BIPV

Our Business

Thin film technology


Highly Recognized in Capital Market

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Hang Seng Composite

MidCap Index

MSCI China Index

FTSE HK Index

Mainland investors can trade Hanergy TFP（566. HK） stocks

through“Shanghai-Hong Kong Stock Connect (SHSC)”

（HKD） Stock Price


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2/1/2014 2/3/2014 2/5/2014 2/7/2014 2/9/2014 2/11/2014 2/1/2015 2/3/2015 2/5/2015

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Executive Directors Executive Directors


Mr. Li Hejun • Chairman of Hanergy Thin Film Power Group Limited

• Founder, Chairman and Chief Executive Officer (CEO) of Hanergy Holdings

• Member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC)

• Vice Chairman of All-China Federation of Industry and Commerce

• President of China New Energy Chamber of Commerce

Mr. Dai, Frank

Mingfang (Deputy

Chairman and CEO)

• Extensive

experience in

asset restructuring,

M&A, international

financing and

development of PV

business

• EMBA from

University of Texas

(U.S.)

• Executive Vice

President of

Hanergy Holding

Dr. Feng Dianbo

(Deputy Chairman)

• Experience in

business and

investment

management

• Doctorate degree

in Institutional

Economics from

Jilin University

(China)

• Executive

President of

Hanergy Holding

Mr. Liu Min

(Deputy Chairman)

• Experience in

financial

management,

project

investments,

market

development and

business

operations

• Executive

President of

Hanergy Holding

Dr. Lam Yat Ming,

Eddie, CFA, CFP

(Finance Director

and Senior Vice

President) • Extensive experience in

banking and financing

• Post-doctorate from

Shanghai Jiaotong

University

• Doctor Degree from

Chinese University of

Hong Kong

• Worked at various

financial institutions

• Research team advisor

of Korean Government,

Shanghai Futures

Exchange and

Countrywide

Financial Corp.

Mr. Chen Li (Executive Vice President) • Experience in

financial, risk management and arranging finance

• MBA from the University of International Business and Economics (China)

• Senior Vice President of Hanergy Holding

Mr. Li Guangmin

(Financial

Controller)

• Over 10 years of

experiences in

finance and

accounting

• Executive

Controller of

Financial

management center

of Hanergy

Holdings

Agenda

I. Company Overview

II. Thin Film Technology and Production Line

III. Applications of Thin Film Technology



Distribute Generation

Ground-mounted power station

In March 2015, National Energy Administration (NEA), released the official solar PV installation target

for 2015 of 17.8GW

Great Potential of the Chinese PV Market

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Period for 20 years

Subsidy for distributed generation

PV Project ¥0.42/kW‧h

Feed-in-Tariff scheme for

ground-mounted PV Station

¥0.90、0.95、1.00/kW‧h

Period for 20 years

Encourage Local Governments to develop its

own subsidized policies on top of those

offered by the Central Government

Accumulated PV installed capacity

targeted at 70GW in 2017

50% 50%

Market forecast


Downstream Power Generation Business — 8 newly established business units

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BIPV BU

8 Key Business Units

Agricultural Applications

BU

Household Power

Generation BU

Automobile Applications

BU

Specialty Products BU

Generic Products

BU

We have established the Product Development Group in Silicon Valley, USA, collaborating with our Beijing Product Development Center

Electronics BU

Commercial Unmanned Drones BU


Application I - BIPV

BIPV Solution Provider – design, R&D, manufacture, system integration, installation and operation

Focus on the use of colorful and/or partially-transparent thin film modules which are integrated with building

materials such that solar power can be generated as part of the overall building design

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Hanergy Headquarter

APEC Conference Center (2014)

BIPV Curtain Wall in Jiangsu


Application II – Household Power Generation

One-stop renewable energy solution provider, we offer customized service from design, installation, to grid-connection. Modules with flexibility, light-weight and size adjustability characteristics are suitable for all kinds of rooftops

We have launched the sale of the Hanergy residential thin film power system in IKEA stores in Britain, Netherland and Switzerland in 2014. We are the first independent third party agent supplying its own branded goods within IKEA stores. In 2014, around 2,000 sets of residential thin film power systems have been sold in Europe’s IKEA stores. We plan to enter other EU countries including Germany, Spain, Italy and France

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Residential Power Generation Solution

Installation on Rooftop

Our PV Systems Entering into Europe through IKEA


Application III – Agricultural Applications

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BIPV on Greenhouse

There is great potential in the distributed PV power generation within the agricultural industry

The translucent thin film back electrode module is the only PV module product that can satisfy the light requirements of

agricultural crops. Our modules have the ability to absorb only visible lights in violet, blue and green, allowing red and

infrared lights to be absorbed, which are essential components for plant growth and satisfies the needs of plant

photosynthesis


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Application IV – Automobile Applications

Our thin film modules with characteristics

of flexibility, light-weight can be widely

used for car roofs, car sunroofs and vehicle

charging systems

Applying Thin Film Power Technologies in Air Conditioning System of Aston Martin Racing Cars Fully Solar-powered Sightseeing Vehicle

Fully Solar-powered Dining Car


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Fully Solar-powered Automobiles（Artistic Image）

Application IV – Fully solar-powered automobiles

• Cooperate with foreign and domestic automobile design entities to

develop fully solar-powered vehicles

• Integrate a 6 m² GaAs soft thin film solar module into each vehicle

• Expect to launch solar-powered cars this year


Application V：Electronics

With the high conversion efficiency of our thin film modules and the further development of

flexible thin film products, the demand of portable and wearable solar retail products will be

revolutionary in the further market

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Application VI – Generic Products

Good low-light performance

Cells can be attached to fabrics, backpacks, on or in the containers, providing a constant supply of

green power

Hanergy Solar Tent Hanergy Solar Rapid Deployment System

Hanergy Solar Backpack


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Can be used on satellites, space exploration, with targeted customers and high profit margins

Our GaAs technology has huge application potential in this area in the future

Application VII – Specialty Products

Solar Satellite Solar Satellite


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Application VIII – Commercial Unmanned Drones

Our modules can be used on drones within relatively centralized customer groups and high profit margins

Market of huge potential in the next 3 years

Solar Drone Solar Drone


2014 Downstream Business Progress

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Ground-mounted PV Power Station 2014 Sold: 180MW Under construction: 469 MW Filed projects: Approximately 370MW Proposed Projects: Approximately 300MW

Distributed PV projects On-grid projects: Approximately 37 MW Under construction: Approximately 67 MW Filed projects: Approximately 36MW

IKEA Europe Sold in 2014: Around 2,000 sets of solar power systems for home-use

Hanergy Online Shop has opened, more application products can be found at http://www.hanergyshop.com/

Vehicles Tesla Solar super-charger Aston Martin Rooftop solar panels Formula-E： Rapid Deployment Solar System

Stores for household solar products More than 30 flagship stores and direct-sales retail points for household solar products Released over 20 residential products


Rooftop PV Power Station — Guangqi Honda Distributed PV Generation Project

17 MW Distributed PV Generation Project Located at Guangqi Honda’s Existing Factory

• The largest distributed PV power generation project in the automobiles industry in China

• Solved the difficulty in installing and fixing PV modules on PVC flexible roofs by applying its advanced thin film technology, which occupies around 240,000 square meters and generates an average of 19 million KWH of electricity per annum

• Effectively block UV, extending the life of PVC coils on the roof, and the plant temperature can be reduced by about 3℃due to solar panels covering the roof, so that air conditioning usage is lower to further save energy indirectly


Imperial Pacific (1076.HK)will invest US$7.1 billion in five stages to build a casino resort in Saipan, and has secured the land use right over a site of two square kilometers for a thin film power project with installed capacity of 100MW which will provide electricity for the resort in the future. The installed capacity for the first phase of the thin film power station is expected to reach 10MW, which will provide enough electricity to the casino in preliminary stage.

Ground-mounted PV Power Generation — Saipan Project


• Annual power generation: 2,000h × 1W = 2 kW·h • Electric charge: US$0.3 /kWh • Annual income: 2 kW·h × US$0.3 /kWh =US$0.6 • Investment return period：2-3 years

Investment return period

Cooperation details

• Imperial Pacific International and Hanergy TFP signed a memorandum of understanding to set up a joint venture special purpose company to build thin film photovoltaic power stations on the islands in the Pacific Ocean. The venues for development of thin film power stations include, but are not limited to the Commonwealth of Northern Mariana Islands (which includes Saipan), Guam, the Republic of Palau, the Federated States of the Micronesia and the Republic of Marshall Islands

• Imperial Pacific will pay electricity fee to the joint venture at a favorable rate as compared with the average electricity fee set by local power companies.

Ground-mounted PV Power Generation — Saipan Project


BIPV Power Station — Wu Han Project

Wuhan Huangpi District Government will fully leverage on the historical opportunity of the requirements for the construction of a society which is environmentally friendly and resources conserving, and will actively make efforts in new urbanization, new rural construction, standardized construction for tourism as well as advancing the development of applications for modern agriculture. We understand that there are plans to complete:

The target of promoting the applications of 100,000 sets of household thin film power generation systems

The construction of 20,000 acres of photovoltaic agricultural greenhouses(or to complete the construction target of 600MW of aggregate power generation)


2015 Hanergy Applications Full-channel Strategies

— Hanergy online shopping platform

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Marketing thin film products in China and worldwide

Commercial System

Residential System

Portable Products


2015 Hanergy Applications Full-channel Strategies — Flagship stores across the country


Currently, there are over 40 flagship stores and direct-sales retail points in operation in China

Hanertgy Shanghai Flagship Store Hanergy Hangzhou Flagship Store Hanergy Shenzhen Flagship Store

Hanergy Released over 20 Residential Products Mobile Power PV Product Display in Chengdu Flagship Store

Agenda

I. Company Overview





R & D Strength: 8 R&D Centers around the World


R & D Strength：Talents and Patents


The core competitive strength for Hanergy derives from operating R&D divisions with our scientists, 600 master degree

holders and 130 staff members consisting of senior engineers

Hanergy is confident to open up markets and bring new technologies with over 1,000 licensed patents in the PRC, the

USA, Europe, Japan and Korea. 70% of the patents are innovative patents.

Over 1,000 Licensed Patents Our Scientists

Lars Stolt Li Yuanmin Xu Xixiang Atiye Bayman Eli Yablonovitch Harry Atwater

Urs Schoop Scott Wiedeman Gang He Gregg Higashi Eric Wallin Olle Lundberg

R & D Strength：One of The World’s Most Innovative Companies

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Hanergy ranked 23rd, as the only company from China’s energy sector.

MIT Technology Review


Advantages of Thin Film Power Technology


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Light Weight Flexibility Transparency

High Energy Yield under Low

Light Irradiance

Better Comparable Performance at

High Temperatures

4 High Efficiency

Thin film modules

Glass

Thin film power technology is the best choice for distributed generation and has extensive application prospects

Technological Route I: Flexible GaAs Module（Alta Devices）


GaAs Cell and Solar Automobiles attached with GaAs Modules

Alta Devices：Listed as the world’s Most Disruptive Companies by MIT Technology Review for two years Alta Devices has the thinnest, lightest, highest efficiency GaAs thin film solar technology in the world, certified by NREL, single junction at 28.8%, dual junction 30.8%

Characteristic：ultra-light, ultra-thin, bendable, customizable to shapes, high efficiency, excellent temperature coefficient and low-light performance

Target Market: mobile, portable or wearable applications, outdoor, consumer products, drones and satellites

Technological Route I: Localization of GaAs technology（Alta Devices）

In April 2015, Hanergy TFP and the Huangpi District People’s Government in Wuhan City have entered into an investment cooperation agreement, pursuant to which Hanergy TFP will invest in a project to construct a GaAs thin film solar cell R&D and production line with a capacity of 10MW to further explore application areas in the future

Economies of Scale

Cost effectiveness

Support from Major shareholder

Synergy Effects

Lower procurement costs by scale production

MiaSole, Solibro, GSE, Alta Devices acquisition enhances R&D potential

Production costs in China much lower than in Europe and the USA

Optimize costs by upgrading production line

Share technologies

Assist in establishing sales channels

Helps in early development of products


Our

advantages

Technological Route II：Glass-backed CIGS Module (Solibro)


SOLIBRO Production Workshop Production Line of SOLIBRO

Solibro of Germany：Point-source co-evaporation of the functional layers on glass substrate; R&D

efficiency 21%, certified by Fraunhofer ISE；production efficiency 16%, increased by 1% each year, the world’s highest efficiency glass-backed CIGS module fabricated with evaporation

Characteristics: good temperature coefficient/easy to install/self-cleaning, easy to maintain/German Engineering

Target Market：Residential power generation, distributed power plants, ground mounted plants

Technological Route III : Flexible CIGS Module - Sputtering (Miasole)


MiaSolé Workshop MiaSolé Cell Production

Miasole Technology：Sputtering, functional layers on flexible substrate, production efficiency of 16.5%, increased by 1% each year, the world’s highest efficiency flexible CIGS thin film

Characteristic：high efficiency/ light weight/ultra thin/bendable/glue-affixed/low installation cost/for weight sensitive and curved rooftops/ incorporated for civilian applications

Target Market：consumer products, flexible rooftops, automobiles, special products and electronics

Technological Route IV : Flexible CIGS Module – Co-evaporation (GSE)


Global Solar Energy Workshop Global Solar Energy Cell Production

Global Solar Energy Technology：Point-source co-evaporation；World’s leading cell connection technology（Integrated Cell Interconnect）

Characteristic：high efficiency/ light weight/ultra thin/bendable/glue-affixed/low installation cost/for weight sensitive and curved rooftops/ incorporated for civilian applications

Target market： consumer products, flexible rooftops, automobiles, special products and electronics

Technological Route V：Silicon-Germanium Thin Film Module


Chamber Production Workshop of Si-Ge Thin Film

Silicon Germanium Technology：Advanced Plasma Enhanced Chemical Vapor Deposition（PECVD）, low manufacturing and operation cost, customized in shape, color and transparency

Characteristics: consistent quality, good temperature coefficient, high tolerance for shading, high transparency for red light

Targeted Market：BIPV, including curtain walls, residential power generation systems, and agriculture

Business Highlights

37 © 2015 Hanergy Thin Film Power Group Limited. All Rights Reserved.

Revenue from upstream business grew year on year

2,757.0 3,244.0

5,955.0

0

1,000

2,000

3,000

4,000

5,000

6,000

2012 2013 2014

2014: Delivered 1,080 MW of the thin film production lines last year

Customers Status Capacity Revenue

Shangdong Macrolink

(Conglomerate)

2015 Signed contract

600MW HK$5.1 billion

Baota Investment (Oil Refinery)


1,200MW

HK$10.2 billion

Beijing Manshi Investment (Coal Mining)


600MW

HK$5,1 billion

HK$’ million

2015 1Q: Signed HK$ 20.4 billion of equipment production and services contracts in the first three months of the year. All contracts were related to independent third parties

Customers Status Capacity Revenue

Hanergy Holding 2014 delivered

1,080MW HK$ 6.0 billion

Agenda

I. Company Overview





Consolidated Financial Position

31 Dec 2013 Change 30 Dec 2014

HK$’ million HK$’ million % HK$’ million

Total Non-current Assets 9,556 169 2% 9,725

Total Current Assets 9,256 5,994 65% 15,250

Cash and Cash

Equivalents 1,368 1666 122% 3,034

Total Current Liabilities 2,556 669 26% 3,225

Net Current Assets 6,700 5,325 79% 12,025

Total Assets less Current

Liabilities 16,256 5,494 34% 21,750

Net Assets 15,841 4,652 29% 20,493

Total Equity 15,841 4,652 29% 20,493


Consolidated Income Statement

2013 Change 2014

HK$’ million HK$’ million Increase / Decrease % HK$’ million

Revenue 3,284 6,331 9,615

Cost of Sales 648 3,462 4,110

Gross Profit 2,636 2,869 5,505

Gross Margin 80% 57%

Profit before Tax 2,277 2,014 4,291

Profit for the Period 2,018 1,290 3,308

Net Margin 61% 34%

193%

534%

109%

64%

88%


-27 Percentage

-23 Percentage


Revenue Structure: Proportion of Non-connected Transaction Increases Substantially

5,955 5,955

3,378 3,378

170 170

112 112

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Sales of equipment Sales of powerstations

Sales of PV modules Sales of rooftoppower stations

Total

Revenue from non-connected transaction equals to 38% of total revenue

In 2014, the revenues arising from non-connected transaction with third-party customers accounted for around 38% of the total revenue of the Company as the Company targeted to improve its revenue structure during the Year.

Connected Transactions


Connected transactions is a historical legacy issue the arose when the Company established itself into the new PV industry. We have consistently been trying to resolve this issue. For the financial year 2014, non-connected transactions accounted for approximately 38% of the total revenue of the Company

During 2010, Hanergy Holdings ventured into PV industry. 566 (formerly named ‘Apollo Solar Energy”) was a manufacturer of upstream solar production lines and Hanergy Holdings was its client.

In 2011, Hanergy Holdings became the shareholder of the listed company through acquiring shares and thereby began the manufacture of upstream PV equipment

For FY 2014, non-connected transactions accounted for approximately 38% of the total revenue. The proportion of non-connected transactions is expected to increase continuously.

Hanergy Group acquired 566

Entering into upstream PV industry sector resulting in connected transactions

Entering into downstream PV industry chain resulting in connected transactions

目标：未来持续提高非关联交易比例

In 2013, 566 (renamed “Hanergy”) ventured into the downstream PV industry and after that, the businesses of the Group included both upstream and downstream categories of the industry.

Due to the comparatively largescale of the midstream business held by Hanergy Holdings, it was financially challenging for the Company to acquire and merge this business together with its upstream and downstream business es

Before 2010

Hanergy was committed to the development of clean energy, in particular hydropower

2011

2010 2013

2014

Thanks!


Documents

(STOCK CODE: 566HK) Investor Presentationen.hanergythinfilmpower.com/uploadfile/2018/0123/...Imperial Pacific (1076.HK)will invest US$7.1 billion in five stages to build a casino resort