On July 2020, we injected 166 million into Shanghai International Superconductor Technology Co., Limited (「Shanghai Superconductor」) by capital injection to hold 40% equity interest in Shanghai Superconductor. Shanghai Superconductor is principally engaged in the provision of superconducting cables solutions as well as the research and development of superconducting cables technologies for power grid.

The high-temperature superconducting energy transmission is considered as a revolution in the electricity industry in this century and has great potential. Superconducting cables have lower energy wastage, larger capacity, smaller in size and more stable system safeties compared to traditional electric cables, and have broad future of applications. It is predicted that by 2020, the global market for superconducting applications will reach 244 billion USD, and high-temperature superconducting cables will account for about 5% of the market. Our company focuses on the development of high-end metallic materials. After the capital injection into Shanghai Superconductor, both will have significant synergies in the development of business and R&D capabilities. At the same time, Pujiang International Group can also take advantages of its technologies to enter the field of new infrastructure, and seize the opportunities to develop.