Shanghai 26^th May 2017 ZXZC - Smarter Energy released announcement on May 24th that it plans to transfer 40% shares of Detroit Electric to the shareholder Far East Holding Group for free. Far East Holding Group will enjoy rights and burden obligations in accordance with the agreement, and all joint-venture parties will re-assign relevant agreements. In the meantime, the company will not hold any shares of the joint venture company or burden any obligations.

Smarter Energy points out that, the private placement and financing cycle is longer than expected, and it also takes longer time to apply for alternative energy vehicle license. Share transfer is conducted to effectively allocate resources, promote key industrial project acquisition and develop international businesses. Besides, Detroit Electric has completed company registration till the announcement date, but no business has started. Smarter Energy has not financed yet.

Smarter Energy has passed the Proposal in respect of Establishing an Alternative Energy Vehicle Joint-venture Company in February 18th this year, planning to invest a total of USD 240m to co-establish Detroit Electric Automobile Co. Ltd. Company with Detroit Electric and China Yixing Environmental Protection Science and Technology Industrial Park Development General Company. Smarter Energy holds 40% of the joint-venture company, while Detroit Electric and Yixing Environmental Protection Science and Technology Industrial Park hold 50% and 10% shares respectively.

It's known that the business scope of Detroit Electric includes R&D and manufacturing of electric vehicles’ systems, electric motor, gearboxes, battery parts, battery management systems, vehicle controlling units and designing and R&D of electric automobiles, covering BEV cars, off-road vehicles, commercial vehicles and sporting cars.