Based on the Statement, Changfeng and EDF Group will further discuss the feasibility to establish a Joint Venture Company (the "Joint Venture") and jointly invest and operate in energy utilization projects in Sanya City. Changfeng and EDF Group respectively will own 50% each of the Joint Venture. This Statement creates no new legal obligations for Changfeng or the EDF Group.
Electricité de France (the "EDF Group")
The EDF Group is the world’s biggest electricity generator. It covers every sector of expertise, from generation to trading and transmission grids. For almost 20 years, the EDF group has been aggressively developing business in China, and established a China division in Beijing. The EDF Group’s activities in Asia (China, Thailand, Vietnam, Laos) are part of its deliberate growth strategy. Under this strategy, the EDF Group is involved in long-term projects, which reflect the spirit of co-operation and partnership, and a commitment to the Group’s corporate and environmental values.
Haitang Bay
Haitang Bay is one of the five major bays in Sanya City, Hainan Province. It is a flagship project being promoted by the Hainan provincial government to build Hainan Island into an international tourism destination by 2020. The size of the Haitang Bay development area is estimated at 98.7 square km and includes approximately 24 km of beachfront. It is planned to build this area into a new township and house with more than twenty (20) five-star hotels by 2020. Haitang Bay will be a fully developed world-class vacation township with a population of 250,000. The city has estimated that gas usage in this area will exceed 60 MM M3 per annum by 2020. Changfeng has received the approval to build an LNG storage plant in the Haitang Bay. Currently, there are twelve newly built hotels, including the Hilton, and Sheraton-chains, in operation and using the natural gas supplied by Changfeng.
