On January 3, 2018, Yangtze Optical Fibre and Cable Joint Stock Limited Company (hereinafter referred to as “YOFC” with its stock code: 6869.HK) and Baosheng Science and Technology Innovation Co., Ltd. (hereinafter referred to as “Baosheng Stock” with its stock code: 600973.SH) signed a joint venture agreement for submarine cable project at Yangzhou Guesthouse beside the beautiful Slender West Lake. Xie Zhengyi, Secretary of Yangzhou Municipal Committee of CPC, Chen Yang, a standing member of municipal Committee of CPC and executive vice mayor, Jiang Aixiang secretary of Party working committee of municipal economic and technological development zone, Chen Xi, director of management committee of municipal economic and technological development zone and other officials of Yangzhou City made personal appearances to extend congratulations, and among others Chairman Yang Zeyuan and Vice President Liang Wenxu of Baosheng Group and Vice Presidents Xia Chengjun and Chen Dayong of Baosheng Stock on one side and Chairman Ma Jie, Vice President and Board Secretary Zhou Lijing, CFO Liang Guanning and Manager of Strategic and Marketing Department Zhou Qinmin of YOFC on the other side attended the signing ceremony.

At present, when the global marine economy entered a new era featured with comprehensive development, innovations of marine science and technology will bring a number of market opportunities. In May 2017, National Development and Reform Commission and State Oceanic Administration published the13thFive-Year Plan for Developing National Marine Economy, which points out to build a global layout view for the marine economy, adapt to and guide new normal developments of the marine economy, upgrade the structure and hierarchy of the ocean industry, and improve the ability to innovate marine science and technology. Along with a rapid development in cloud computing, internet of things, mobile internet and other fields, the need on globalization is increasing constantly. Submarine optical cable becomes a development base for building ICT strategies and energy internet, and is considered by more and more governments and organizations as an important strategic asset to be planned and developed.

Facing new opportunities, the alliance between two giants YOFC and Baosheng Stock as two leading companies in optical fibre and cable and power cable industry is based on the value idea of “Stick to the Real Industry for Common Development”. They will fully exploit their own strengths in technology, brand, market and other aspects, and form a common new competitive edge in ocean engineering. By cooperating in projects, they will ceaselessly expand and improve their industry chains, and build a reciprocity and mutual benefit relationship to jointly step in an ocean economy era and serve for marine informatization. They will conduct all-round cooperation in R&D, manufacturing, selling, installation, cabling and technical consultation in respect of submarine optical cable, submarine power cable, power-optic composite cable, special submarine cable, direct current cable, high voltage cable, extra high voltage cable, umbilical cable, trailing cable, OPGW and other products and their accessories.

For this purpose, they have jointly established “Baosheng-YOFC Submarine Cable Science and Technology Co., Ltd.” with its registered capital of RMB 1 billion and with its business scope including design, R&D, manufacturing and selling of submarine cable, submarine optical cable,power-optic composite cable, special submarine cable and other products and their accessories and flexible connectors for ocean engineering use, as well as export and import of any of the aforesaid technologies.

The conclusion of the joint venture agreement for the submarine cable project will surely render the domestically largest and globally leading service base for manufacturing marine cables, so thatYOFC can expand its market from the land to the sea and build the system integration and consultation service capacity over communicating engineering and power engineering fields. Looking into the future, YOFC will, under the mission of “Intelligent Alliance and Happy Life” and the core values of “Customer, Responsibility, Innovation and Win-Win”, transform itself from a manufacturer to a comprehensive solution provider which is devoted to being a leader in information transmission and intelligent alliance.

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YOFC is the largest supplier of optical preform, fibre and cable in the world, mainly producing and selling a variety of standard optical fibre preforms, optical fibres and optical cables widely used in communications industry, and also designing and customizing special optical fibre and cable of the specifications specified by customers, including integration system, engineering design and services. The products are widely applied by many communication operators such as China Mobile, China Unicom and China Telecom and in electricity, transportation, education, national defense, spaceflight, chemical engineering, petroleum and health care. YOFC provides quality products and services in more than 60 countries and regions in the world like America, Japan, South Korea, China Taiwan, Southeast Asia, Middle East and Africa. Since it formally went into operation in 1992, its production and sales of optical fibre and cable products has ranked first in China for 25 consecutive years. YOFC was successfully listed on the main board of Hong Kong Exchanges and Clearing Limited in December 2014, entering the period of strategic opportunities for full-speed development.

Baosheng Science and Technology Innovation Co., Ltd. is an A-share listed company affiliated to AVIC and is the only large state-owned holding company in the wires and cables industry of China. Now, it has more than 500 product types, more than 10,000 models and more than 900,000 specifications covering 7 major categories, i.e. power cables, controlling and instrument wires and cables, high-frequency data and network wires and cables, signal cables, electromagnetic wires, overhead wires, and building wires, as well as all high, middle, low cables and systems, precise conductors and high polymer material products, and it can provide the design and installation of electric engineering, intelligent equipment, construction of PV power station and EPC contracting services. The products are widely applied in nuclear power, ocean engineering, ships and warships, superconductivity, intelligent equipment, G-series high-speed trains and other high-end equipment fields with the coverage of all provinces, municipalities, autonomous regions and Hong Kong, Macao and Taiwan of China and of more than 40 countries and regions in Southeast Asia, Middle East, South America, European and Australia. It breaks through the monopoly of foreign and transnational corporations in the special cables and materials for special use as part of priorities in China and plays an important role in localization of these cables and materials.