On August 18, 2008, Seiko Technology and Jiangxi Xuyang Reddy High-Tech Co., Ltd. (hereinafter referred to as “Xuyang Reddy”) signed a “Strategic Cooperation Agreement” in Jiujiang City, Jiangxi Province, and both parties agreed to implement solar photovoltaic technology. We will carry out multi-level and all-round long-term development strategic partnerships in strategic procurement of special equipment, establishment of information communication and sharing mechanisms, and enhancement of research and development and application of new products and technologies.

According to the agreement, the first phase of the cooperation project between the two parties will mainly focus on the annual production of 500 megawatts of polycrystalline silicon wafer production line invested by Xuyang Reddy. Based on the first phase of Xuyang Reddy, the JJL240 solar polycrystalline silicon ingot furnace will be used. According to the overall plan, construction scale and step-by-step investment plan of the Xuyang Reddy production line project, Seiko provides about 60 JJL500 models for Xuyang Reddy from the date of signing this agreement to 2010. Solar polysilicon ingot furnace and other solar photovoltaic auxiliary equipment to meet the construction needs of Xuyang Reddy's annual production of 500 MW polysilicon chip production line project.

During the strategic cooperation period, Seiko Technology will be the sole strategic cooperation supplier and source base for key equipment such as solar polysilicon ingot furnace for Xuyang Reddy's annual production of 500 MW polysilicon chip production line project. Xuyang Reddy will become Seiko Technology An important demonstration base for key equipment for solar photovoltaic projects such as solar polysilicon ingot furnaces. The key equipment of solar energy projects such as JJL500 solar polysilicon ingot furnace produced by Seiko Technology will be provided to Xuyang Reddy according to the construction scale and investment plan of the annual output of 500 MW polysilicon chip production line project invested by Xuyang Reddy. The quantity, time and product sales price of the goods will be agreed upon separately.

In addition, according to Xuyang Reddy's proficiency in equipment and process technology, Seiko Technology will be responsible for the technical transformation of the JJL240 solar polysilicon ingot furnace used in the first phase of Xuyang Reddy, expanding the loading capacity of the batch of equipment, Reduce the production cost of Xuyang Reddy products while improving production efficiency.

On the same day, Shaoxing County Seiko Electromechanical Research Institute Co., Ltd. (hereinafter referred to as "Institute") and the company's holding subsidiary, Shaoyang Reddy signed a "Solar Polysilicon Ingot Furnace Sales Contract" with a total price of 57.35 million yuan. According to the contract, The institute will provide 20 sets of JJL240 solar polysilicon ingot furnaces and their auxiliary equipment to Xuyang Reddy from November to December 2008. The signing of the above contract will speed up the marketization process of the company's solar polysilicon ingot furnace and enhance the operating performance of the company and the research institute.