Company Information for Jetion Holdings Limited

AIM-JHL

http://www.jetion.com.cn

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AIM; JHL

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Company Statement

Jetion is a fast growing manufacturer of high quality solar cells and modules which convert sunlight directly into electricity. The group was founded in December 2004 and is located in the Jiangsu Province (about two hours from Shanghai) in the People’s Republic of China. The group’s products are deployed in a wide variety of industries, including generation, illumination, street lighting, national defence and maritime. Jetion has approximately 300 employees, nearly all of whom are based at its manufacturing facility in the Jiangyin Municipality.

In response to the world-wide growth in solar power Jetion has imported industry leading manufacturing equipment from Germany, Italy and the United States and currently boasts two state-of-the-art 25 MW solar cell production lines (constituting 50 MW of capacity per annum). Jetion is well placed for future expansion with over 1million square feet of land (including manufacturing, office and warehouse space), that will enable scaling up of the manufacturing facilities to 100 MW per annum by the end of 2008.

The increased awareness on renewable energy and climate change has led to demand of solar power elements outstripping supply with Government subsidies and falling costs and prices continuing to support the industry growth. Jetion is arguably better placed than many of its competitors due to its capacity to seamlessly expand its manufacturing facilities, whilst benefiting from the local low tax rates and low labour costs.

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 :-

1.　　Scale up manufacturing facilities through the roll-out of two additional product lines
2. 　　Move up the value chain by
　　　– increasing the proportion of cells converted into modules
　　　– establishing facilities to slice wafers from solar grade silicon ingots/crystals and
　　　– forming alliances with manufacturers of solar-system components in order to 　　　provide end to end solutions
3.　　Introduce additional cost efficiencies
4.　　Actively explore partnerships or selective acquisitions for new solar technologies
5. 　　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

Scalability of manufacturing capacity – Jetion has demonstrated its ability to scale production facilities quickly and cost effectively to manufacture solar cells and solar modules in large volumes.

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

Predictable revenues – Forward sale agreements have been agreed for 2007-2009

Revenue generating and profitable – Jetion is profitable and had revenues for year ended 2006 of US$ 45.5million with the one production line in operation. March 2007 saw the commencement of the second production line with two further lines planned for 2008 installation.

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, (of the two production lines currently in use).

High efficiency rate – The innovative process used by the group is capable of producing solar cells with high efficiency (up to 17.6%). Three patent applications have been lodged for this and a further nine are under consideration. Other producers regularly sub-contract elements of the production process to Jetion, underpinning the group’s key competencies in this area.

Company Diagram

Operations and Technology

Products and Production Process

Solar power generation technology is founded upon silicon, a common element that comprises approximately 25% of the earth’s crust by mass. When light falls on high purity silicon, the PV (photovoltaic) effect causes the release of electrons from the silicon atoms. When silicon is fashioned into a solar cell with collection electrodes, the PV effect generates an electrical current.

Solar cells are produced from raw silicon materials in a multistage process. Firstly raw quartzite sand is processed into bulk silicon, which is subsequently melted and formed into blocks or ‘ingots’. The ingots are cut and sliced to produce ‘wafers’ which form the basis of a solar cell. Solar cell manufacturers (such as Jetion) add electrodes to the wafer for electrical connectivity. The wafers are then cleaned and treated prior to their introduction into the manufacturing process.

Solar cells are usually mounted in large arrays known as ‘solar modules’ electrically interconnected and sealed under toughened glass to protect them from the weather. Solar modules, together with various system components such as batteries, charge controllers and inverters, form the basis of a complete solar power system.

Solar power systems can be connected to the electricity grid or used in isolated units, as ‘off-grid’ power. When electrical grid connection is possible, any excess electricity can be fed back into the system and sold. Off-grid systems are found where grid access is physically difficult or economically unattractive, such as portable, remote, off-shore locations or developing countries.

The diagram illustrates the group’s position in the solar power supply chain.

The following provides a brief overview of the most important steps in the Group’s solar cell manufacturing process:

Texturing and cleaning: The solar cell manufacturing process begins with wafer surface texturing which reduces the solar cell’s reflection of sunlight, followed by surface cleaning of the cells.

Diffusion: Next, through a thermal process, a negatively charged coating is applied to the positively charged raw wafers in a diffusion furnace. At the high furnace temperature, the phosphorous atoms diffuse into the wafer surface. As a result, the wafer now has two separate layers: a negatively charged layer on the surface and a positively charged layer below it.

Isolation: To achieve a clean separation of the negative and positive layers, the edges of the wafers are isolated through etching, a process that removes a very thin layer of silicon around the edges of the solar cell resulting from the diffusion process.

Anti-reflection coating: An anti-reflection coating is then applied to the front surface of the solar cell to enhance its absorption of sunlight.

Printing: In a screen-printing process, silver paste is printed and aluminium is pasted to the front and back surfaces of the solar cell to act as contacts, with the front contact in a grid pattern to allow sunlight to be absorbed.

Co-firing: Subsequently, contacts are connected through an electrode firing process in a conveyor belt furnace at high temperature. The high temperature causes the silver paste to become embedded in the surface of the silicon layer forming a reliabl electrical contact. The aluminium paste on the back of the cell serves as a mirror for particles which further enhances the efficiency level.

Testing and sorting: Finally, the Group completes the manufacturing of solar cells by testing and sorting. The finished cells are sorted according to efficiency levels and optical criteria. Each cell is tested and assigned to a performance and quality class depending on the testing results.

The solar modules are then assembled by interconnecting multiple solar cells through taping and stringing into a desired electrical configuration. The interconnected cells are laid out, laminated in a vacuum, cured by heating and then packaged in a protective lightweight anodised aluminium frame. The solar modules are sealed and weatherproofed and are able to withstand high levels of ultraviolet radiation, moisture and extreme temperatures.

Geographical Spread

R&D and Production - China

Sales - Liechtenstein

Board of Directors and Key Management

Dipesh J. Shah OBE, FRSA	Chairman
Lijin Gai	Chief Executive Officer
Wenyan Xu	Chief Operating Officer
Stephen Hon Cheung So	Finance Director
Chris Xunan Chen	Corporate Development Director
David William Howitt Steeds	Non-Executive Director
Gabriel Kow	Non-Executive Director

Company Address

No. 1011,Zhencheng Road
Shengang, China Jiangyin Municipalty


Telephone:	+86 510 8668 7300
Email:	info[at]jetion.biz
Website:	http://www.jetion.com.cn

Additional Address/Key Contact

Jetion Europe Ltd.

Pradafant 11
Vaduz
Liechtenstein
FL-9490

Capital

74,209,676 ordinary shares

Nominated Brokers

Collins Stewart Europe Limited
8th Floor
88 Wood Street
London EC2V 7QR

Nominated Advisors