Best stock to invest in – New Energy Exchange Limited Has A Market Cap of $3 Million, But Owns $54 Million of Liquid Stock

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Esplanade Capital Issues Open Letter to the Board of New Energy
Exchange Limited — Urges the Company to Reregister with the SEC
to Maximize Value for Shareholders

Esplanade Capital LLC, a significant shareholder of New
Energy Exchange Limited

announced today that it has issued an open letter to the Board
urging the Company to reregister with the SEC in order to maximize
value for shareholders. The full text of the letter follows:

April 25, 2017

New Energy Exchange Limited (f.k.a. Renewable Energy Trade Board
Board of Directors
Shun Tak Centre West Tower
Unit 1407
168-200 Connaught Road
Central, Hong Kong

Dear Members of the Board of Directors (the “Board”):

Esplanade Capital LLC (“Esplanade” or “We”) urges New Energy
Exchange Limited (the “Company”, “EBODF”, or “NEX”) to reregister
with the U.S. Securities and Exchange Commission (the “SEC”) in
order to maximize value for shareholders.

Having exercised
extensive due diligence since 2013, We have verified that EBODF
retains a $54 million equity position in a liquid $3 billion
enterprise value, publicly traded company in Hong Kong. This
stake compares to EBODF’s current microscopic market
capitalization of $3 million. In addition, We can also confirm
that EBODF owns two Italian solar assets worth at least ~$32

While we believe EBODF is carrying significantly more asset
value, including operating solar power plants in China, Europe,
and the US, and indeed some, albeit potentially modest,
liabilities, we cannot fully corroborate these balance sheet items
precisely due to EBODF having deregistered and “gone dark” in
2013. By reregistering, EBODF will provide shareholders an
accurate inventory of its assets and liabilities while likely
revealing an even greater mismatch between market and book value.

Through the management of Esplanade Capital Partners I LLC and
Esplanade Capital Electron Partners LP, We and our affiliates have
maintained a significant position in EBODF since 2013. As
background, Esplanade was founded in 1999 and has been investing
in the solar sector since 2004.

In fourteen years of solar investing, We have never encountered
an opportunity as obscure and undervalued as EBODF. After
discovering EBODF, an unregistered (since March 2013) but U.S.
publicly-traded company, through our deep, global solar network,
we conducted multidimensional due diligence through management
meetings in New York, Hong Kong, and Shanghai, analysis of EBODF
legacy SEC filings, and careful dissection of Stock Exchange of
Hong Kong Limited (“HK Exchange”) filings from sister-company United

Photovoltaics Group Limited (686 HK), a leading solar
independent power producer controlling ~1.4 gigawatts of solar
power plants in China and the UK and wielding an ~US$3 billion
enterprise value.

As context, We define the verifiable assets as EBODF’s
335,683,070 share stake in 686 HK validated through HK Exchange
filings as of April 19, 2017 and two Italian solar power plant
assets acquired in June 2014. To wit, shares of 686 HK,
EBODF’s largest verifiable asset, have appreciated ~71% in 2017
while the Company’s shares remain largely unchanged.


After privately imploring management to reregister with the SEC
and file updated financials to no avail, We have exhausted our
patience and are forced to bring this matter to the public. The
status quo cannot persist as shareholder value is being

For the sake of transparency, we are including details on the
verifiable assets since most investors likely haven’t reviewed the
HK Exchange filings outlining EBODF’s 686 HK stake and industry
press detailing EBODF’s acquisition of two Italian solar power
plants in June 2014.

EBODF owns 335,683,070 shares of 686 HK (~4.5% of shares
outstanding) as confirmed by a HK Exchange filing on April 19, 2017 (see page

EBODF’s stake in 686 HK
is worth ~US$54 million at current market values
. Other
major holders of 686 HK include China
Merchants New Energy Group
(a massive China state-owned
enterprise controlling 26.8% of 686 HK and ~17% of EBODF), ORIX

Asia Capital (a US$95 billion Japanese asset management
company controlling 14.4% of 686 HK), and the Asian Development
Bank’s Asia Climate Partners (the US$150 billion
regional development bank controlling 4.5% of 686 HK) all of whom
invested ~US$167
million alongside EBODF in 686 HK in March 2017

In that March 2017 686
share subscription,
EBODF purchased 68,799,449 shares of 686 HK at
HK$0.5814 per share

(see “subscription price” on pages 18-21) versus 686 HK’s
current share price of HK$1.25 thereby creating ~$6 million of
equity value for EBODF shareholders in this single transaction
(greater than twice the entire market capitalization of EBODF

In terms of the Italian solar power plant assets, EBODF acquired two
projects comprising 13.1MW in June 2014
. Based on the
remaining subsidies and cash flow for each project, we estimate
these two assets are worth at least ~US$32.0 million.


Whether simply a US Dollar denominated tracking stock for 686 HK
or a solar independent power producer, EBODF is deeply undervalued
and must reregister to maximize shareholder value and minimize the
valuation gap.

Esplanade welcomes the opportunity to discuss the path forward
directly with the Board.


Shawn W. Kravetz

cc: Alan Li Shan (electronically), Maggie Qiu Ping
(electronically), Lu Zhenwei (electronically)

Esplanade Capital is a Boston based investment management
firm founded in 1999 to manage capital for a small number of
like-minded families, private investors, and institutions

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