News of SAS BOD resolution to merge with Sunrise Global Solar Energy Co., Ltd. (2013/08/12)

1.Date of occurrence of the event:2013/08/12
2.Name of the company:Sino-American Silicon Products Inc.
3.Relationship to the Company (please enter "head office" or "affiliate
company"):head office
4.Reciprocal shareholding ratios:NA
5.Cause of occurrence:
SAS merges Sunrise Global Solar Energy Co., Ltd. to integrate
solar business resources

In order to integrate solar business resources so as to improve
performanceand strengthen competitiveness, Sino-American Silicon
Products Inc. (5483 TT,hereinafter referred to as SAS) will merge
Sunrise Global Solar Energy Co.,Ltd. (5217 TT, hereinafter referred
to Sunrise) which SAS owned 50.95% shares.SAS is the existing company
and Sinosolar is the extinguished company. The share swap ratio for the
merger is 2.16 Sunrise common share for each SAS common share. The
merger is approved by BOD of both companies on August 12, 2013 and has
to be approved by Sunrise's Shareholder-meeting on September 30, 2013.
The merger closing date is tentatively scheduled on January 1, 2014.
Yuanta Securities Corp. is the financial advisor of this merger.

SAS is the professional solar silicon wafer manufacturer listed in OTC
and invests semiconductor wafer business and sapphire business and SAS
consolidated revenue of NT$10.3 billion for June 30, 2013. Sunrise is
the global solar cell manufacturer that produces mono high efficiency
solar cells and Sunrise revenue of about NT$1.63 billion in the first
half of this year, gross margin was 8.63%, net-income margin was 6.7%,
net- income reached NT$103 million and earnings per share reached
NT$0.41. The technical threshold of mono cells is higher than multi
cells and Sunrise owned certain technical advantages. Sunrise signed a
joint R&D cooperation scheme with internationally renowned academic
institutions, international equipment manufacturers, raw material
suppliers, whether products or cost control has a good performance.
The technology of Sunrise is leading the industry especially the Celco
cells technology that enhances the conversion efficiency of P-type
mono solar cells to more than 20.6% and the average conversion efficiency
reaches 20.2%. The modules installed that use Celco cells have less power
loss and the highest power output generation. The technology of Sunrise is
comparable with the international companies and Sunrise maintains many
international customers

Recent solar market gradually improved and the worst-case scenario of the
industry had been in the past. SAS has been thinking that in terms of
business scale and cost, the solar cell manufacturers in Taiwan have no
advantages. But as for the product quality and conversion efficiency,
Taiwan solar cell manufacturers have the core competitiveness. Therefore,
SAS wants to make differentiation with other manufacturers rather than
rely on economies of scale to compete. The high-conversion efficiency of
products is the characteristics of SAS and Sunrise is also a good high
conversion efficiency solar cell manufacturers. Through this merger, SAS
can achieve the objective of vertical integration and also meet the needs
of customers at different levels. Overall, by the benefits generated after
the merger, SAS will enhance the international competitiveness of the
company and create a unique position in the market and finally create
greater benefits for shareholders and employees.

6.Countermeasures:NA
7.Any other matters that need to be specified:NA



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