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

At present, as the global marine economy has entered a new era featuring comprehensive development, innovations of marine science and technology will bring a number of market opportunities. In May 2017, the National Development and Reform Commission and State Oceanic Administration published its 13th Five-Year Plan for Developing the National Marine Economy, which points out the building of a global view for the marine economy, adapts to and guides new developments in the marine economy, upgrades the structure and hierarchy of the ocean industry and improves the ability to innovate marine science and technology. Along with the rapid developments in cloud computing, the Internet of Things, the mobile internet and other fields, the need for globalization is increasing constantly. Submarine optical cable have become a development base for building ICT strategies and the energy internet, and they are considered by more and more governments and organizations as an important strategic asset to be planned and developed.

Facing new opportunities, this alliance between the two giants — YOFC and Baosheng Stock, as the two leading companies in optical fibres, cables and the 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, markets and other aspects, and they will form a common new competitive edge in ocean engineering. By cooperating in projects, they will ceaselessly expand and improve their industry chains, and they will build a reciprocal and mutually beneficial relationship to jointly step into the ocean economy era and serve marine informatization. They will engage in comprehensive cooperation over R&D, manufacturing, sales, installation, cabling and technical consultation with respect to submarine optical cables, submarine power cables, power-optic composite cables, special submarine cables, direct current cables, high voltage cables, extra high voltage cables, umbilical cables, trailing cables, OPGW and other products and their accessories.

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

The conclusion of the joint venture agreement for the submarine cable project will surely render them the largest domestic and globally leading service base for manufacturing marine cables, so that YOFC can expand its market from the land to the sea and build system integration and consultation service capacity for communications 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-Oriented, Responsibility, Innovation and Win-Win,” transform itself from a manufacturer to a comprehensive solutions provider devoted to being a leader in information transmission and intelligent alliance.

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YOFC is the largest supplier of optical preform, fibres and cables in the world, mainly producing and selling a variety of standard optical fibre preforms, optical fibres and optical cables widely used in the communications industry, and it also designs and customizes special optical fibres and cables to customer specifications, including integration systems, engineering design and services. Its products are widely applied by many communication operators such as China Mobile, China Unicom and China Telecom 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 of the world like America, Japan, South Korea, Taiwan (China), Southeast Asia, the Middle East and Africa. Since it formally went into operation in 1992, its production and sales of optical fibres 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 a 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 it 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 and low cables and systems, precise conductors and high polymer materials products. In addition, it can provide design and installation for electrical engineering, intelligent equipment, the construction of PV power stations and EPC contracting services. The products are widely applied in aerospace, nuclear power, ocean engineering, ships and warships, military projects, superconductivity, intelligent equipment, G-series high-speed trains and other high-end equipment fields covering all provinces, municipalities, autonomous regions, Hong Kong, Macao and Taiwan in China, as well as more than 40 countries and regions in Southeast Asia, the Middle East, South America, Europe and Australia. It breaks through the monopoly of foreign and transnational corporations in special cables and materials for special use as is one of China's priorities, and it plays an important role in the localization of these cables and materials.