As filed pursuant to Rule 424(b)(5)
Registration No. 333-252137
PROSPECTUS SUPPLEMENT
(to Prospectus dated January 15,
2021)
RENESOLA LTD
100,000,000 Ordinary Shares represented
by 10,000,000 American Depositary Shares
We are offering 100,000,000 ordinary shares,
represented by 10,000,000 American Depositary Shares (which we refer to herein as ADSs) pursuant to this prospectus supplement
and accompanying prospectus to several institutional investors. Each ADS represents ten ordinary shares in ReneSola Ltd.
ADSs representing our ordinary shares are
listed on The New York Stock Exchange, or NYSE, under the symbol “SOL.” The last reported sale price of ADSs representing
our ordinary shares on January 22, 2021 was $33.55 per ADS.
Investing in our securities
involves a high degree of risk. You should review carefully the risks and uncertainties described under the heading “Risk
Factors” beginning on page S-4 of this prospectus supplement and page 6 of the accompanying prospectus, as well as
the risks and uncertainties described under the heading “Risk Factors” contained in our annual report on Form 20-F
for the year ended December 31, 2019, before investing in our securities.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of this prospectus supplement. Any representation to the contrary is a criminal offense.
We have engaged H.C.
Wainwright & Co., LLC (“Wainwright” or the “Placement Agent”), as our exclusive placement agent in
connection with this offering. The Placement Agent is not required to sell any specific number or dollar amount of securities,
but will assist us in this offering on a reasonable best efforts basis. The Placement Agent has no obligation to buy any of the
securities from us or to arrange for the purchase or sale of any specific number or dollar amount of securities. We have agreed
to pay the Placement Agent the placement agent fees set forth in the table below.
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PER ADS
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TOTAL
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Offering Price
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$
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25.00
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$
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250,000,000
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Placement Agent Fees (1)
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$
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1.35
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$
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13,500,000
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Proceeds, before expenses, to us
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$
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23.65
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$
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236,500,000
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(1)
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In addition, we have agreed to reimburse the placement agent for certain expenses. See “Plan of Distribution” beginning on page S-8 of this prospectus supplement for additional information with respect to the compensation we will pay the placement agent.
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Delivery of the ADSs is expected to be made on or about January 27, 2021, subject to the satisfaction of customary conditions.
H.C. Wainwright & Co.
The date of this prospectus supplement
is January 25, 2021
TABLE OF CONTENTS
Prospectus Supplement
Prospectus
ABOUT THIS PROSPECTUS SUPPLEMENT
This prospectus supplement
and accompanying prospectus relates to the offering of our securities. Before buying any of the securities that we are offering,
we urge you to carefully read this prospectus supplement, the accompanying prospectus, any free writing prospectus that we have
authorized for use in connection with this offering, and the information incorporated by reference as described under the headings
“Where You Can Find More Information” and “Incorporation of Certain Documents by Reference” in this prospectus
supplement. These documents contain important information that you should consider when making your investment decision.
This document is comprised
of two parts. The first part is this prospectus supplement, which describes the specific terms of this offering and also adds to,
and updates information contained in, the accompanying prospectus and the documents incorporated by reference into this prospectus
supplement and the accompanying prospectus. The second part, the accompanying prospectus, including the documents incorporated
by reference into the accompanying prospectus, provides more general information, some of which may not apply to this offering.
Generally, when we refer to this prospectus, we are referring to the combined document consisting of this prospectus supplement
and the accompanying prospectus. In this prospectus supplement, as permitted by law, we “incorporate by reference”
information from other documents that we file with the Securities and Exchange Commission, or the SEC. This means that we can disclose
important information to you by referring to those documents. The information incorporated by reference is considered to be a part
of this prospectus supplement and the accompanying prospectus and should be read with the same care. When we make future filings
with the SEC to update the information contained in documents that have been incorporated by reference, the information included
or incorporated by reference in this prospectus supplement is considered to be automatically updated and superseded. In other words,
in case of a conflict or inconsistency between information contained in this prospectus supplement and information in the accompanying
prospectus or incorporated by reference into this prospectus supplement, you should rely on the information contained in the document
that was filed later.
This prospectus supplement
and the accompanying prospectus are part of a registration statement on Form F-3 that we filed on January 15, 2021 with the SEC
using a “shelf” registration process with respect to up to $250,000,000 in securities that may be sold thereunder.
The shelf registration statement was declared effective by the SEC on January 25, 2020.
Under the shelf registration
process, we may offer and sell any combination of securities described in the accompanying prospectus in one or more offerings.
The purpose of this prospectus supplement is to provide supplemental information regarding us in connection with this offering
of securities.
You should rely only
on the information contained in, or incorporated by reference into, this prospectus supplement, the accompanying prospectus, and
in any free writing prospectus that we have authorized for use in connection with this offering. We have not authorized any other
person to provide you with different information. We are not making an offer to sell or soliciting an offer to buy our securities
in any jurisdiction in which an offer or solicitation is not authorized or in which the person making that offer or solicitation
is not qualified to do so or to anyone to whom it is unlawful to make an offer or solicitation. You should assume that the information
appearing in this prospectus supplement, the accompanying prospectus, the documents incorporated by reference into this prospectus
supplement and the accompanying prospectus, and in any free writing prospectus that we have authorized for use in connection with
this offering, is accurate only as of the date of those respective documents. Our business, financial condition, results of operations,
and prospects may have changed since those dates.
PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights
selected information contained elsewhere or incorporated by reference in this prospectus supplement and the accompanying prospectus.
The summary may not contain all the information that you should consider before investing in the ADSs. You should read the entire
prospectus supplement and the accompanying prospectus carefully, including “Risk Factors” contained in this prospectus
supplement and the documents incorporated by reference herein, before making an investment decision. This prospectus supplement
may add to, update or change information in the accompanying prospectus.
Our Company
About ReneSola Ltd
Prior to September 2017, we were a
leading fully-integrated solar project developer and provider of energy-efficient products based in China. We provided high quality
solar power products, including solar wafers, solar cells, solar modules and solar power projects, to a global network of suppliers
and customers, which included leading global manufacturers of solar wafers, cells and modules and distributors, installers and
end users of solar modules. We also provided processing services to our customers.
We completed a comprehensive corporate restructuring
in September 2017, after which we have become a solar project developer and operator, a pure downstream player with a robust
pipeline of projects around the world. We currently develop and sell solar power projects or sell project SPVs (project development
business), and own and operate solar power projects and sell the electricity generated by our operated solar power plants (IPP
business).
We are still in a multi-year transformation
process from a negative cash flow equipment maker to a positive operating cash flow and asset-light solar project developer. We
switched our long-term growth strategy from focusing on our traditional market in China to a global expansion roadmap. We now primarily
focus on the promising markets in the United States and Europe. We already obtained a leading market share in Poland and Hungary,
as well as some states in the United States such as Minnesota and New York. In 2019, we moved our headquarters to Connecticut,
the United States where our senior management team will be based going forward.
As of December 31, 2019, we completed
779 megawatts (“MW”) of solar power projects, including about 11 MW of new installations in China, 17 MW of ground
mounted projects in Europe, 24 MW of utility-scale projects in the U.S, and 7MW of Fit projects in Canada in 2019. We were operating
approximately 216 MW solar power projects globally as of December 31, 2019, including 172 MW in China, and recorded electricity
generation revenue from these projects. As of December 31, 2019, we had 417 MW within the late-stage of our pipeline, including
193 MW in the United States, with commercial operation date, or COD, within 2020 and 2022, of which 30MW of the solar power projects
were under construction.
Our net revenue from continuing operations
decreased from $103.0 million in 2017 to $96.9 million in 2018 and increased to $119 million in 2019. We recorded an operating
loss of $1.0 million and a net loss of $11.7 million in 2019, compared to operating income of $15.5 million and net income of $5.1
million in 2018, and operating income of $6.6 million and net income of $3.2 million in 2017.
In addition, for the year ended December 31, 2019, we had generated
positive operating cash flow of $55.9 million.
THE OFFERING
Securities offered by us pursuant to this prospectus supplement
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100,000,000 ordinary shares represented by 10,000,000 ADSs
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The ADSs
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Each ADS represents ten ordinary shares, no par value.
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ADS Depositary
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Bank of New York Mellon
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Ordinary shares outstanding before this offering
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595,817,412 ordinary shares (including ordinary shares represented by ADSs)
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Ordinary shares outstanding after this offering
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695,817,412 ordinary shares (including ordinary shares represented by ADSs)
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Offering Price Per ADS
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$25.00
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Listing
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The ADSs are listed on NYSE, under the symbol “SOL”.
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Use of Proceeds
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We intend to use the net proceeds from this offering to expand
our solar project pipeline (including combined solar/storage initiatives), to fund possible strategic acquisitions, and to meet
general working capital needs. See “Use of Proceeds.”
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Risk Factors
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Investing in our securities involves significant risks. You should read the “Risk Factors” section beginning on page S-4 of this prospectus supplement and in the documents incorporated by reference in this prospectus supplement and accompanying prospectus, including the risk factors described under the section entitled “Risk Factors” contained in our Annual Report on Form 20-F for the fiscal year ended December 31, 2019, for a discussion of factors to consider before deciding to purchase our securities.
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The number of our ordinary shares to be
outstanding immediately after this offering is based on 595,817,412 shares outstanding (excluding 8,478,780 shares represented
by 847,878 ADSs were held by the ADS Depositary, for future exercise or vest of awards under our share incentive plan, and 2,962,430
shares represented by 296,243 ADSs were held by the ADS Depositary, for potential at-the-market offering that we may conduct in
the future).
RISK FACTORS
Investment in ADSs
representing our ordinary shares involves risks. Before deciding whether to invest in ADSs representing our ordinary shares, you
should consider carefully the risk factors discussed below and those contained in the section entitled “Risk Factors”
contained in our Annual
Report on Form 20-F for the year ended December 31, 2019, as filed with the SEC on April 28, 2020, which is incorporated herein
by reference in its entirety, as well as any amendment or update to our risk factors reflected in subsequent filings with the
SEC. If any of the risks or uncertainties described in our SEC filings actually occurs, our business, financial condition, results
of operations or cash flow could be materially and adversely affected. This could cause the trading price of ADSs representing
our ordinary shares to decline, resulting in a loss of all or part of your investment. The risks and uncertainties we have described
are not the only ones facing our company. Additional risks and uncertainties not presently known to us or that we currently deem
immaterial may also affect our business operations.
Risks Related to Our Business
Registered public accounting firms in China, including our
independent registered public accounting firm, are not inspected by the U.S. Public Company Accounting Oversight Board, which deprives
us and our investors of the benefits of such inspection.
Auditors of companies whose shares are registered
with the SEC and traded publicly in the United States, including our independent registered public accounting firm, must be registered
with the U.S. Public Company Accounting Oversight Board, or the PCAOB, and are required by the laws of the United States to undergo
regular inspections by the PCAOB to assess their compliance with the laws of the United States and professional standards applicable
to auditors. Our independent registered public accounting firm is located in and organized under the laws of the PRC, which is
a jurisdiction where the PCAOB, notwithstanding the requirements of U.S. law, is currently unable to conduct inspections without
the approval of the Chinese authorities. In May 2013, the PCAOB announced that it had entered into a Memorandum of Understanding
on Enforcement Cooperation with the China Securities Regulatory Commission (the “CSRC”) and the Ministry of Finance
of the People’s Republic of China (the “MOF”), which establishes a cooperative framework between the parties
for the production and exchange of audit documents relevant to investigations undertaken by the PCAOB, the CSRC or the MOF in the
United States and the PRC, respectively. The PCAOB continues to be in discussions with the CSRC and the MOF to permit joint inspections
in the PRC of audit firms that are registered with the PCAOB and audit Chinese companies that trade on U.S. exchanges. On December
7, 2018, the SEC and the PCAOB issued a joint statement highlighting continued challenges faced by the U.S. regulators in their
oversight of financial statement audits of U.S.-listed companies with significant operations in China. On April 21, 2020, the SEC
and the PCAOB issued another joint statement reiterating the greater risk that disclosures will be insufficient in many emerging
markets, including China, compared to those made by U.S. domestic companies. In discussing the specific issues related to the greater
risk, the statement again highlights the PCAOB’s inability to inspect audit work paper and practices of accounting firms
in China, with respect of their audit work of U.S. reporting companies.
This lack of PCAOB inspections in China
prevents the PCAOB from fully evaluating audits and quality control procedures of our independent registered public accounting
firm. As a result, we and investors in our ADSs are deprived of the benefits of such PCAOB inspections. The inability of the PCAOB
to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of our independent registered
public accounting firm’s audit procedures or quality control procedures as compared to auditors outside of China that are
subject to PCAOB inspections, which could cause investors and potential investors in our stock to lose confidence in our audit
procedures and reported financial information and the quality of our financial statements.
As part of a continued regulatory focus in the United States
on access to audit and other information currently protected by national law, in particular PRC law, on May 20, 2020, the U.S.
Senate passed S. 945, the Holding Foreign Companies Accountable Act, or the Act, which was passed by the U.S. House of Representatives
on December 2, 2020 and signed into law by U.S. President Donald Trump on December 18, 2020. In essence, the Act requires the SEC
to prohibit foreign companies from having its securities traded on U.S. securities exchanges or “over-the-counter”
if a company retains a foreign accounting firm that cannot be inspected by the PCAOB for three consecutive years, beginning in
2021. This legislation or other efforts to increase U.S. regulatory access to audit information could cause investor uncertainty
for affected issuers, including us, and the market price of our ADSs could be adversely affected, and we could be delisted if we
are unable to cure the situation to meet the PCAOB inspection requirement in time.
In addition, on June 4, 2020, U.S. President
Donald Trump issued a memorandum ordering the President’s Working Group on Financial Markets, or the PWG, to submit a report
to the President within 60 days of the memorandum that includes recommendations for actions that can be taken by the executive
branch and by the SEC or PCAOB on Chinese companies listed on U.S. stock exchanges and their audit firms, in an effort to protect
investors in the U.S. On August 6, 2020, the PWG released a report recommending that the SEC take steps to implement the five
recommendations outlined in the report. In particular, to address companies from non-cooperating jurisdictions that do not provide
the PCAOB with sufficient access to fulfill its statutory mandate, or NCJs, including China, the PWG recommends enhanced listing
standards on U.S. stock exchanges. This would require, as a condition to initial and continued exchange listing, PCAOB access
to work papers of the principal audit firm for the audit of the listed company. Companies unable to satisfy this standard as a
result of governmental restrictions on access to audit work papers and practices in NCJs may satisfy this standard by providing
a co-audit from an audit firm with comparable resources and experience where the PCAOB determines it has sufficient access to
audit work papers and practices to conduct an appropriate inspection of the co-audit firm. The report permits the new listing
standards to provide for a transition period until January 1, 2022 for listed companies, such as us. If we fail to meet the new
listing standards before the deadline specified thereunder due to factors that may be beyond our control, we could face possible
de-listing from the NYSE, deregistration from the SEC and/or other risks, which may materially and adversely affect, or effectively
terminate, our ADS trading in the United States.
Risks Related to this Offering
You will experience immediate dilution in the net tangible
book value per share of the ADSs you purchase.
Since the offering price per share of our
ADSs being offered is higher than the net tangible book value per share of our ADSs, you will suffer immediate dilution in the
net tangible book value of the ADSs you purchase in this offering. Based on the price of $25.00 per ADS, if you purchase ADSs in
this offering, you will suffer immediate dilution of approximately $1.907 per share ($19.07 per ADS) in the net tangible book value
of the shares. See the section entitled “Dilution” for a more detailed discussion of the dilution you will incur if
you purchase ADSs in this offering.
We have broad discretion in the use
of the net proceeds of this offering and may not use them effectively.
We intend to use the net proceeds from
this offering for expansion of our new project pipeline and general working capital purposes. However, our management will have
broad discretion in the application of the net proceeds from this offering and could spend the proceeds in ways that do not improve
our results of operations or enhance the value of ADSs representing our ordinary shares. The failure by management to apply these
funds effectively could result in financial losses that could have a material adverse effect on our business, cause the price
of ADSs representing our ordinary shares to decline and delay the development of our product candidates.
You may experience
future dilution as a result of future equity offerings.
In order to raise additional capital, we
may in the future offer additional ADSs or other securities convertible into or exchangeable for ADSs representing our ordinary
shares at prices that may not be the same as the price per ADS in this offering. We may sell ADSs or other securities in any other
offering at a price per ADS that is less than the price per ADS paid by investors in this offering, and investors purchasing ADSs
or other securities in the future could have rights superior to existing shareholders. The price per ADS at which we sell additional
ADS or securities convertible or exchangeable into ADS, in future transactions may be higher or lower than the price per ADS paid
by investors in this offering.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus supplement,
the accompanying prospectus and the documents incorporated in it by reference contain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act
of 1934, as amended, or the Exchange Act, that involve risks and uncertainties. Forward-looking statements relate to future events
or our future financial performance and include information concerning our possible or assumed future results of operations, business
strategies, financing plans, competitive position, industry environment, potential growth opportunities, the progress and timing
of our clinical trials or product candidate development programs, the effect of existing and future regulations and the effects
of competition. These statements are based on our current expectations, beliefs and assumptions, and on information currently available
to our management. In some cases, you can identify forward-looking statements by the use of words such as “anticipate”,
“expect”, “intend”, “plan”, “seek”, “may”, “will”, “should”,
“could”, “would”, “believe”, “estimate”, “project”, “predict”,
“potential”, “continue”, or the negative of such terms or similar expressions. These forward-looking statements
are only predictions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, levels
of activities, performance and other factors to be materially different from those anticipated in such forward-looking statements.
Factors that might cause such differences include the risks discussed in “Risk Factors.”
You should consider
these factors and the other cautionary statements made in this prospectus supplement, the accompanying prospectus or the documents
we incorporate by reference in this prospectus supplement or the accompanying prospectus as being applicable to all related forward-looking
statements wherever they appear in this prospectus supplement, the accompanying prospectus or the documents incorporated by reference.
We caution investors not to place significant reliance on the forward-looking statements contained herein. These statements, like
all statements in this prospectus supplement, speak only as of the date hereof (unless another date is indicated) and we undertake
no obligation to update or revise the statements, except as may be required under applicable securities laws.
USE OF PROCEEDS
We estimate that the net proceeds from
this offering, after deducting placement agent fees and offering expenses payable by us, will be approximately $236.5 million.
We intend to use the net proceeds of this
offering to expand our solar project pipeline (including combined solar/storage initiatives), to fund possible strategic acquisitions,
and to meet general working capital needs.
DILUTION
If you invest in the
ADSs in this offering, your interest will be diluted to the extent of the difference between the offering price per ADS paid by
purchasers in this offering and our pro forma as adjusted net tangible book value per ADS after completion of this offering.
Our net tangible book value as of September
30, 2020 was approximately $103,350,435, or $0.20 per ordinary share ($2.00 per ADS). Our pro forma net tangible book value as
of September 30, 2020, which gives effect to (i) the completion of the at-the-market offering that was launched on August 11, 2020,
(ii) the October 11, 2020 offering of 1,538,462 ADSs at $3.25 per ADS, (iii) the completion of the at-the-market offering that
was launched on December 17, 2020, (iv) the December 22, 2020 offering of 2,105,264 ADSs at $9.50 per ADS, and (v) the January
7, 2021 offering of 2,500,000 ADSs at $16.00 per ADS, was $176,107,882, or $0.296 per ordinary share ($2.96 per ADS). Net tangible
book value per share represents the amount of our total tangible assets less total liabilities attributed to ReneSola Ltd divided
by the total number of ordinary shares outstanding.
Our as-adjusted pro
forma net tangible book value as of September 30, 2020, which gives effect to (i) the sale by us of 100,000,000 ordinary shares
represented by 10,000,000 ADSs offered pursuant to this prospectus supplement at the offering price of $25.00 per ADS, (ii) the
completion of the at-the-market offering that was launched on August 11, 2020, (iii) the October 11, 2020 offering of 1,538,462
ADSs at $3.25 per ADS, (iv) the completion of the at-the-market offering that was launched on December 17, 2020, and (v) the December
22, 2020 offering of 2,105,264 ADSs at $9.50 per ADS, (vi) the January 7, 2021 offering of 2,500,000 ADSs at $16.00 per ADS, and
after deducting placement agent fees and other estimated offering expenses, would have been $412,441,932, or $0.593 per ordinary
share ($5.93 per ADS). This represents an immediate increase in net tangible book value attributable to this offering of $0.297
per ordinary share ($2.97 per ADS) to the then existing shareholders and an immediate dilution of $1.907 per ordinary share to
new investors ($19.07 per ADS).
The following table illustrates the net
tangible book value dilution per ADS to shareholders after the issuance of ordinary shares under this prospectus supplement:
Offering price per ADS
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$
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25.00
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Net tangible book value per ADS as of September 30, 2020
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$
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2.00
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Pro forma net tangible book value per ADS
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$
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2.96
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Increase in net tangible book value per ADS attributable to the offering
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$
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2.97
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As-adjusted pro forma net tangible book value per ADS after giving effect to the offering
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$
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5.93
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Dilution in net tangible book value per ADS to new investors
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$
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19.07
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PLAN OF DISTRIBUTION
Pursuant to an engagement letter dated January
23, 2021, we have engaged H.C. Wainwright & Co., LLC, the Placement Agent, to act as our exclusive placement agent in
connection with this offering. Under the terms of the engagement letter, the Placement Agent is not purchasing the securities offered
by us in this offering, and is not required to sell any specific number or dollar amount of securities. The terms of this offering
were subject to market conditions and negotiations between us, the Placement Agent and the prospective investors.
The Placement Agent proposes to arrange
for the sale of the ADSs we are offering pursuant to this prospectus supplement and accompanying prospectus to several investors
through securities purchase agreements directly between such investors and us. We will only sell to investors who have entered
into securities purchase agreements with us.
The Placement Agent will have no authority
to bind us by virtue of the engagement letter. Further, the Placement Agent does not guarantee that it will be able to raise new
capital in any prospective offering. The Placement Agent may engage sub-agents or selected dealers to assist with this offering.
We may not sell the entire amount of the securities being offered pursuant to this prospectus supplement.
Delivery of the securities offered hereby
is expected to occur on or about January 27, 2021, subject to the satisfaction of customary conditions.
Fees and Expenses
The following table
show the total placement agent fees we will pay in connection with the sale of the securities in this offering, assuming the purchase
of all of the securities we are offering.
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Per ADS
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Placement Agent Fees
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$
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1.35
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Total
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$
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13,500,000
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We have agreed to pay to the Placement Agent
a cash fee equal to 5.4% of the aggregate gross proceeds raised in this offering. Roth Capital Partners, LLC and Raymond James
& Associates, Inc. are both acting as financial advisors in connection with this offering.
We estimate the total expenses payable by us for this offering to be approximately $13,665,950, which amount includes (i) a Placement
Agent’s fee of $13,500,000, assuming the purchase of all of the securities we are offering; (ii) reimbursement of the accountable
expenses of the Placement Agent equal to $75,000, including the legal fees of the Placement Agent being paid by us (none of which has
been paid in advance); (iii) the Placement Agent’s clearing expenses in the amount not exceeding $15,950 in connection with this
offering; and (iv) other estimated expenses of approximately $75,000, which include legal, accounting, printing costs and various fees
associated with the registration and listing of our shares.
We have agreed to pay the Placement Agent, subject to certain
exceptions, a tail fee equal to the cash compensation in this offering, if any investor, who was contacted or introduced to the
Company by the Placement Agent during the term of its engagement, provides us with capital in any public or private offering or
other financing or capital raising transaction during the 18-month period following the termination or expiration of our engagement
agreement.
We have also granted a right of first refusal to the Placement
Agent to act as the lead manager, lead placement agent or lead agent if we or any of our subsidiaries finances or refinances any
indebtedness or makes a public offering, including an at the market offering, or private placement of equity, equity-linked or
debt securities during the 18 months following the consummation of this offering.
Listing
The ADSs are listed
on NYSE, under the symbol “SOL”.
Indemnification
We have agreed to indemnify
the Placement Agent and specified other persons against some civil liabilities, including liabilities under the Securities Act,
and the Securities Exchange Act of 1934, as amended, or the Exchange Act, and to contribute to payments that the Placement Agent
may be required to make in respect of such liabilities.
Regulation M
The Placement Agent
may be deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act and any fees received by it and
any profit realized on the sale of the securities by it while acting as principal might be deemed to be underwriting discounts
or commissions under the Securities Act. The Placement Agent will be required to comply with the requirements of the Securities
Act and the Exchange Act including, without limitation, Rule 10b-5 and Regulation M under the Exchange Act. These rules and regulations
may limit the timing of purchases and sales of our securities by the Placement Agent. Under these rules and regulations, the Placement
Agent may not (i) engage in any stabilization activity in connection with our securities; and (ii) bid for or purchase any of our
securities or attempt to induce any person to purchase any of our securities, other than as permitted under the Exchange Act, until
they have completed their participation in the distribution.
Other Relationships
From time to time, the Placement Agent has
in the past and may provide in the future, various advisory, investment and commercial banking and other services to us in the
ordinary course of business, for which it may receive customary fees and commissions. However, except as disclosed in this prospectus
supplement, we have no present arrangements with the Placement Agent for any services. The Placement Agent acted as our exclusive
placement agent for our September 2020, October 2020, December 2020, and previous January 2021 registered direct offerings, for
which it received compensation.
LEGAL MATTERS
Except as otherwise set forth in the applicable
prospectus supplement, certain legal matters in connection with this offering will be passed upon for us by Kirkland &
Ellis International LLP, our special United States counsel, to the extent governed by the laws of the State of New York, and by
Harney Westwood & Riegels LLP, our special legal counsel as to the British Virgin Islands law, to the extent governed
by the laws of the British Virgin Islands. Legal matters as to PRC law will be passed upon for us by Zhong Lun W&D Law Firm,
Shanghai Branch, our counsel as to PRC law. Ellenoff Grossman & Schole LLP is counsel for the Placement Agent in connection
with this Offering.
EXPERTS
The financial statements and the related
financial statement schedule, incorporated in this prospectus by reference from the Company’s
annual report on Form 20-F for the year ended December 31, 2019, have been audited by Grant Thornton, an independent registered
public accounting firm, as stated in their reports, which are incorporated herein by reference. Such financial statements and
financial statement schedule have been so incorporated in reliance upon the reports of such firm given upon their authority as
experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We file reports with the SEC on an annual
basis using Form 20-F and current reports on Form 6-K. The SEC maintains a website that contains annual, quarterly, and current
reports, proxy statements, and other information that issuers (including us) file electronically with the SEC. The SEC’s
website address is http://www.sec.gov. You can also obtain copies of materials we file with the SEC from our Internet website found
at www.renesolapower.com. Our stock is quoted on the NYSE under the symbol “SOL.”
This prospectus is
only part of a registration statement on Form F-3 that we have filed with the SEC under the Securities Act and therefore omits
certain information contained in the registration statement. We have also filed exhibits and schedules with the registration statement
that are excluded from this prospectus, and you should refer to the applicable exhibit or schedule for a complete description of
any statement referring to any contract or other document. You may inspect a copy of the registration statement, including the
exhibits and schedules, without charge, at the public reference room or obtain a copy from the SEC upon payment of the fees prescribed
by the SEC.
INCORPORATION BY REFERENCE
The SEC allows us to “incorporate
by reference” the information we file with them. This means that we can disclose important information to you by referring
you to those documents. Each document incorporated by reference is current only as of the date of such document, and the incorporation
by reference of such documents shall not create any implication that there has been no change in our affairs since the date thereof
or that the information contained therein is current as of any time subsequent to its date. The information incorporated by reference
is considered to be a part of this prospectus and should be read with the same care. When we update the information contained in
documents that have been incorporated by reference by making future filings with the SEC, the information incorporated by reference
in this prospectus is considered to be automatically updated and superseded. In other words, in the case of a conflict or inconsistency
between information contained in this prospectus and information incorporated by reference into this prospectus, you should rely
on the information contained in the document that was filed later.
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our Annual Report on Form 20-F for the year ended December 31, 2019 filed on April 28, 2020; and
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Our annual report on Form 20-F for the fiscal year ended December
31, 2019 filed on April 28, 2020 contains a description of our business and audited consolidated financial statements with a report
by our independent auditors. These financial statements are prepared in accordance with accounting principles generally accepted
in the United States, or U.S. GAAP.
We also incorporate by reference into this
prospectus additional documents that we may file with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after
the date of this prospectus and prior to the sale of all ADSs or ordinary shares registered hereunder or the termination of the
registration statement, but excluding any information deemed furnished and not filed with the SEC.
Any statements contained in a previously
filed document incorporated by reference into this prospectus is deemed to be modified or superseded for purposes of this prospectus
to the extent that a statement contained in this prospectus, or in a subsequently filed document also incorporated by reference
herein, modifies or supersedes that statement.
This prospectus supplement may contain information
that updates, modifies or is contrary to information in one or more of the documents incorporated by reference in this prospectus.
You should rely only on the information incorporated by reference or provided in this prospectus supplement. We have not authorized
anyone else to provide you with different information. You should not assume that the information in this prospectus supplement
is accurate as of any date other than the date of this prospectus supplement or the date of the documents incorporated by reference
in this prospectus supplement or the prospectus.
We will provide to each person, including
any beneficial owner, to whom this prospectus is delivered, upon written or oral request, at no cost to the requester, a copy of
any and all of the information that is incorporated by reference in this prospectus.
You may request, orally or in writing, a
copy of these documents, which will be provided to you at no cost, by contacting:
Ke Chen
Chief Financial Officer
3rd Floor, 850 Canal St
Stamford, CT 06902
U.S.A
Tel: +1(347) 577 9055 x115.
Fax: +1 (347) 577-9985
PROSPECTUS
ReneSola
Ltd
$250,000,000
Shares
Preferred Shares
Debt Securities
We may offer and sell from time to time
shares, preferred shares and debt securities of ReneSola Ltd in any combination from time to time in one or more offerings. The
securities offered by this prospectus will have an aggregate offering price of up to $250 million. The shares may be represented
by American Depositary Shares, or the ADSs. Any preferred shares which have been authorized for issue and debt securities may be
convertible into or exercisable or exchangeable for our shares, ADSs representing our shares or other securities. This prospectus
provides you with a general description of the securities we may offer. The ADSs are listed on the New York Stock Exchange and
traded under the ticker symbol “SOL.”
Each time we sell the securities, we will
provide a supplement to this prospectus that contains specific information about the offering and the terms of the securities.
The supplement may also add, update or change information contained in this prospectus. You should carefully read this prospectus
and any supplement before you invest in any of our securities.
We may sell the securities independently
or together with any other securities registered hereunder through one or more underwriters, dealers and agents, or directly to
purchasers, or through a combination of these methods, on a continuous or delayed basis. See “Plan of Distribution.”
If any underwriters, dealers or agents are involved in the sale of any of the securities, their names, and any applicable purchase
price, fee, commission or discount arrangements between or among them, will be set forth, or will be calculable from the information
set forth, in the applicable prospectus supplement.
Investing in our securities involves
risks. See the “Risk Factors” section contained in the applicable prospectus supplement and in the documents we incorporate
by reference in this registration statement to which this prospectus forms a part to read about factors you should consider before
investing in our securities.
Neither the Securities and Exchange
Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy
of the disclosures in this prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is January 25,
2021
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
You should read this prospectus and any
prospectus supplement together with the additional information described under the heading “Where You Can Find More Information
About Us” and “Incorporation of Documents by Reference.”
In this prospectus, unless otherwise indicated
or unless the context otherwise requires,
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“we,” “us,” “our company,” “our” or “ReneSola” refers to ReneSola Ltd, a British Virgin Islands company, its predecessor entities and its subsidiaries;
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“China” or “PRC” refers to the People’s Republic of China, excluding, for the purposes of this prospectus and any prospectus supplement, Taiwan and the special administrative regions of Hong Kong and Macau;
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all references to “RMB” or “Renminbi” refer to the legal currency of China; all references to “$,” “dollars” or “U.S. dollars” refer to the legal currency of the United States; all references to “£” and “pounds sterling” refer to the legal currency of the United Kingdom; all references to “€” or “euro” refer to the official currency of the European Union and the currency that is used in certain of its member states;
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“ADSs” refers to American depositary shares, each of which represents 10 of our shares, and “ADRs” refers to American depositary receipts that may evidence the ADSs; and
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“shares” refers to shares of ReneSola Ltd with no par value.
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This prospectus is part of a shelf registration
statement that we filed with the U.S. Securities and Exchange Commission, or the SEC, using a “shelf” registration
process. By using a shelf registration statement, we may sell our shares (including shares represented by ADSs), preferred shares
and debt securities or any combination of any of the foregoing from time to time in one or more offerings on a continuous or delayed
basis. This prospectus only provides you with a summary description of these securities. Each time we sell the securities, we will
provide a supplement to this prospectus that contains specific information about the securities being offered and the specific
terms of that offering. The supplement may also add, update or change information contained in this prospectus. If there is any
inconsistency between the information in this prospectus and any prospectus supplement, you should rely on the prospectus supplement.
Before purchasing any of the securities, you should carefully read both this prospectus and any supplement, together with the additional
information described under the heading “Where You Can Find More Information About Us” and “Incorporation of
Documents by Reference.”
You should rely only on the information
contained or incorporated by reference in this prospectus and in any prospectus supplement. We have not authorized any other person
to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely
on it. We will not make an offer to sell the securities in any jurisdiction where the offer or sale is not permitted. You should
assume that the information appearing in this prospectus and the applicable supplement to this prospectus is accurate as of the
date on its respective cover, and that any information incorporated by reference is accurate only as of the date of the document
incorporated by reference, unless we indicate otherwise. Our business, financial condition, results of operations and prospects
may have changed since those dates.
WHERE YOU CAN FIND MORE INFORMATION
ABOUT US
This prospectus and any prospectus supplement
are part of a registration statement that we filed with the SEC and do not contain all of the information in the registration statement.
The full registration statement may be obtained from the SEC or us, as indicated below. Forms of documents establishing the terms
of the offered securities are filed as exhibits to the registration statement. Statements in this prospectus or any prospectus
supplement about these documents are summaries and each statement is qualified in all respects by reference to the document to
which it refers. You should refer to the actual documents for a more complete description of the relevant matters. You may inspect
a copy of the registration statement at the SEC’s Public Reference Room in Washington, D.C., as well as through the SEC’s
website.
We file reports and other information with
the SEC. Information filed with the SEC by us can be inspected and copied at the Public Reference Room maintained by the SEC at
100F Street, N.E., Washington, D.C. 20549. You may also obtain copies of this information by mail from the Public Reference Section of
the SEC at prescribed rates. Further information on the operation of the SEC’s Public Reference Room in Washington, D.C.
can be obtained by calling the SEC at 1-800-SEC-0330.
The SEC also maintains a website that contains
reports, proxy and information statements and other information about issuers, such as us, who file electronically with the SEC.
The address of that site is http://www.sec.gov.
Our website address is http://www.renesolapower.com.
The information on our website, however, is not, and should not be deemed to be, a part of this prospectus.
INCORPORATION OF DOCUMENTS BY REFERENCE
The SEC allows us to “incorporate
by reference” the information we file with them. This means that we can disclose important information to you by referring
you to those documents. Each document incorporated by reference is current only as of the date of such document, and the incorporation
by reference of such documents shall not create any implication that there has been no change in our affairs since the date thereof
or that the information contained therein is current as of any time subsequent to its date. The information incorporated by reference
is considered to be a part of this prospectus and should be read with the same care. When we update the information contained in
documents that have been incorporated by reference by making future filings with the SEC, the information incorporated by reference
in this prospectus is considered to be automatically updated and superseded. In other words, in the case of a conflict or inconsistency
between information contained in this prospectus and information incorporated by reference into this prospectus, you should rely
on the information contained in the document that was filed later.
We incorporate by reference the documents
listed below:
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our annual report on Form 20-F for the fiscal year ended December 31, 2019 filed with the SEC on April 28, 2020;
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Exhibit 99.1 to our report on Form 6-K filed with SEC on December 16, 2020, containing our Condensed Consolidated Interim Financial Statements
for the six months ended June 30, 2020;
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the description of our shares and American depositary shares contained in the registration statement on Form 8-A (File No. 001-33911) filed with the SEC on January 11, 2008, including any amendment and report subsequently filed for the purpose of updating that description; and
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with respect to each offering of the securities under this prospectus, all our subsequent annual reports on Form 20-F and any report on Form 6-K that indicates that it is being incorporated by reference, in each case, that we file or furnish with the SEC on or after the date on which the registration statement is first filed with the SEC and until the termination or completion of the offering under this prospectus.
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Our annual report on Form 20-F for
the fiscal year ended December 31, 2019 filed on April 28, 2020 contains a description of our business and audited consolidated
financial statements with a report by our independent auditors. These financial statements are prepared in accordance with accounting
principles generally accepted in the United States.
Unless expressly incorporated by reference,
nothing in this prospectus shall be deemed to incorporate by reference information furnished to, but not filed with, the SEC. Copies
of all documents incorporated by reference in this prospectus, other than exhibits to those documents unless such exhibits are
specifically incorporated by reference in this prospectus, will be provided at no cost to each person, including any beneficial
owner, who receives a copy of this prospectus on the written or oral request of that person made to:
Ke Chen
Chief Financial Officer
3rd Floor, 850 Canal St
Stamford, CT 06902
U.S.A
Tel: +1(347) 577 9055 x115.
Fax: +1 (347) 577-9985
You should rely only on the information
that we incorporate by reference or provide in this prospectus. We have not authorized anyone to provide you with different information.
We are not making any offer of these securities in any jurisdiction where the offer is not permitted. You should not assume that
the information in this prospectus or any prospectus supplement is accurate as of any date other than the date on the front of
those documents.
SPECIAL NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus, any accompanying prospectus
supplement and the information incorporated herein and therein by reference may contain “forward-looking” statements
intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These
statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding
future events, which may or may not occur. Words such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “potential,”
“should,” “will,” “would,” or similar expressions, which refer to future events and trends,
identify forward-looking statements. We do not guarantee that the transactions and events described in this prospectus or in any
prospectus supplement will happen as described or that they will happen at all. You should read this prospectus and any accompanying
prospectus supplement completely and with the understanding that actual future results may be materially different from what we
expect. The forward-looking statements made in this prospectus and any accompanying prospectus supplement relate only to events
as of the date on which the statements are made. We undertake no obligation, beyond that required by law, to update any forward-looking
statement to reflect events or circumstances after the date on which the statement is made, even though our situation may change
in the future.
Whether actual results will conform with
our expectations and predictions is subject to a number of risks and uncertainties, many of which are beyond our control, and reflect
future business decisions that are subject to change. Some of the assumptions, future results and levels of performance expressed
or implied in the forward-looking statements we make inevitably will not materialize, and unanticipated events may occur which
will affect our results. The “Risk Factors” section of this prospectus directs you to a description of the principal
contingencies and uncertainties to which we believe we are subject.
This prospectus also contains or incorporates
by reference data related to the solar power market in several countries. These market data, including industry demand and product
pricing, include projections that are based on a number of assumptions. Demand for solar generated electricity may not ultimately
increase at the rates expected, or at all. The failure of the market to grow at the projected rates may materially and adversely
affect our business and the market price of our securities. In addition, the rapidly changing nature of the solar power market
and related regulatory regimes subjects any projections or estimates relating to the growth prospects or future condition of our
market to significant uncertainties. If any one or more of the assumptions underlying the market data proves to be incorrect, actual
results may differ from the projections based on these assumptions. You should not place undue reliance on these forward-looking
statements.
OUR COMPANY
Overview
Prior to September 2017, we were a
leading fully-integrated solar project developer and provider of energy-efficient products based in China. We provided high quality
solar power products, including solar wafers, solar cells, solar modules and solar power projects, to a global network of suppliers
and customers, which included leading global manufacturers of solar wafers, cells and modules and distributors, installers and
end users of solar modules. We also provided processing services to our customers.
We completed a comprehensive corporate
restructuring in September 2017, after which we have become a solar project developer and operator, a pure downstream player
with robust pipeline projects around the world. We currently develop and sell solar power projects or sell project SPVs (project
development business), and own and operate solar power projects and sell the electricity generated by our operated solar power
plants (IPP business).
We are still in a multi-year transformation
process from a negative cash flow equipment maker to a positive operating cash flow and asset-light solar project developer. We
switched our long-term growth strategy from focusing on our traditional market in China to a global expansion roadmap. We now primarily
focus on the promising markets in the United States and Europe. We already obtained a leading market share in Poland and Hungary,
as well as some states in the United States such as Minnesota and New York. In 2019, we moved our headquarters to Connecticut,
the United States where our senior management team will be based going forward.
As of December 31, 2019, we completed
779 megawatts (“MW”) of solar power projects, including about 11 MW of new installations in China, 17 MW of ground
mounted projects in Europe, 24 MW of utility-scale projects in the U.S, and 7MW of Fit projects in Canada in 2019. We were operating
approximately 216 MW solar power projects globally as of December 31, 2019, including 172 MW in China, and recorded electricity
generation revenue from these projects. As of December 31, 2019, we had 417 MW within the late-stage pipeline, including 193
MW in the United States, with commercial operation date, or COD, within 2020 and 2022, of which 30MW of the solar power projects
were under construction.
Our net revenue from continuing operations
decreased from $103.0 million in 2017 to $96.9 million in 2018 and increased to $119 million in 2019. We recorded operating loss
of $1.0 million and net loss of $11.7 million in 2019, compared to operating income of $15.5 million and net income of $5.1 million
in 2018, and operating income of $6.6 million and net income of $3.2 million in 2017.
In addition, for the year ended December
31, 2019, we had generated positive operating cash flow of $55.9 million
RISK FACTORS
Please see the factors set forth under
the heading “Item 3. Key Information — D. Risk Factors” in our most recently filed annual report on Form 20-F,
which is incorporated in this prospectus by reference, as updated by our subsequent filings under the Securities Exchange Act of
1934, as amended, and, if applicable, in any accompanying prospectus supplement before investing in any of the securities that
may be offered or sold pursuant to this prospectus.
USE OF PROCEEDS
We intend to use the net proceeds from
the sale of the securities registered as set forth in the applicable prospectus supplement.
ENFORCEABILITY OF CIVIL LIABILITIES
We are incorporated in the British Virgin
Islands to take advantage of certain benefits associated with being a British Virgin Islands company, such as political and economic
stability, an effective judicial system, a favorable tax system, the absence of exchange control or currency restrictions and the
availability of professional and support services. However, certain disadvantages accompany incorporation in the British Virgin
Islands. These disadvantages include that the British Virgin Islands has a less developed body of securities laws as compared to
the United States and provides significantly less protection to investors. In addition, British Virgin Islands companies do not
have standing to sue before the federal courts of the United States.
Our organizational documents do not contain
provisions requiring that disputes be submitted to arbitration, including those arising under the securities laws of the United
States, between us, our officers, directors and shareholders. An important part of our operations is conducted and a significant
portion of our assets is located outside the United States. Some of our directors and officers are nationals or residents of jurisdictions
other than the United States, and some or all of their assets are located outside the United States. As a result, it may be difficult
or impossible for a shareholder to bring an original action against us or such persons in a British Virgin Islands or China court
in the event that a shareholder believes that his or her rights have been infringed under the U.S. federal securities laws or otherwise.
It may also be difficult for a shareholder to enforce in U.S. courts judgments obtained in U.S. courts based on the civil liability
provisions of the U.S. federal securities laws against us and our officers and directors, some of whom are not residents of the
United States and whose assets are located outside of the United States. In addition, there is uncertainty as to whether the courts
of the British Virgin Islands or the PRC would recognize or enforce judgments of U.S. courts against us or such persons predicated
upon the civil liability provisions of the securities laws of the United States or any state. There is no statutory recognition
in the British Virgin Islands of judgments obtained in the United States, although the courts of the British Virgin Islands will
generally recognize and enforce a non-penal judgment of a foreign court of competent jurisdiction without retrial on the merits.
It is uncertain whether British Virgin Islands or PRC courts would be competent to hear original actions brought in the British
Virgin Islands or the PRC against us or such persons predicated upon the securities laws of the United States or any state.
Our corporate affairs are governed by our
memorandum and articles of association, or Articles, and by the BVI Business Companies Act, 2004 and common law of the British
Virgin Islands. The rights of shareholders to take legal action against our directors and us, actions by minority shareholders
and the fiduciary responsibilities of our directors to us under British Virgin Islands law are to a large extent governed by the
common law of the British Virgin Islands. The common law of the British Virgin Islands is derived in part from comparatively limited
judicial precedent in the British Virgin Islands as well as from English common law, which has persuasive, but not binding, authority
on a court in the British Virgin Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under
British Virgin Islands law are not as clearly established as they would be under statutes or judicial precedents in the United
States. In particular, the British Virgin Islands has no securities laws as compared to the United States, and provides significantly
less protection to investors. In addition, British Virgin Islands companies may not have standing to initiate a shareholder derivative
action before the federal courts of the United States.
As a result of all of the above, our public
shareholders may have more difficulties in protecting their interests through actions against our management, directors or major
shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States.
Harney Westwood &
Riegels LLP, our counsel as to British Virgin Islands law, and Zhong Lun W&D Law Firm, Shanghai Branch, our counsel as to PRC
law, have advised us that there is uncertainty as to whether the courts of the British Virgin Islands and PRC, respectively, would:
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recognize or enforce judgments of United States courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States; or
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entertain original actions brought in each respective jurisdiction against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States.
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Harney Westwood & Riegels LLP
has further advised us that the United States and the British Virgin Islands do not have a treaty providing for reciprocal recognition
and enforcement of judgments of U.S. courts in civil and commercial matters and that a final judgment for the payment of money
rendered by any federal or state court in the United States based on civil liability, whether or not predicated solely upon the
U.S. federal securities laws, would not be automatically enforceable in the British Virgin Islands. We have also been advised that
any final and conclusive monetary judgment for a definite sum obtained against the company in U.S. federal or state courts would
be treated by the courts of the British Virgin Islands as a cause of action in itself and sued upon as a debt at common law so
that no retrial of the issues would be necessary provided that:
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the U.S. federal or state court had jurisdiction in the matter and the company either submitted to such jurisdiction or was resident or carrying on business within such jurisdiction and was duly served with process;
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the judgment given by the U.S. federal or state court was not in respect of penalties, taxes, fines or similar fiscal or revenue obligations;
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(iii)
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the judgment was not procured by fraud;
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recognition or enforcement of the judgment in the British Virgin Islands would not be contrary to public policy; and
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the proceedings pursuant to which judgment was obtained were not contrary to natural justice.
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A British Virgin Islands court may impose
civil liability on us or our directors or officers in a suit brought in the courts of the British Virgin Islands against us or
these persons with respect to a violation of U.S. federal securities laws, provided that the facts surrounding any violation constitute
or give rise to a cause of action under British Virgin Islands law.
Zhong Lun W&D Law Firm, Shanghai Branch
has advised us further that the recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedures
Law. Courts in the PRC may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedures
Law based on treaties between PRC and the country where the judgment is made or on reciprocity between jurisdictions. As there
is currently no treaty of reciprocity between PRC and the United States governing the recognition of a judgment, there is uncertainty
as to whether a PRC court would enforce a judgment rendered by a court in the United States.
TAXATION
Material income tax consequences relating to the purchase, ownership
and disposition of any of the securities offered by this prospectus will be set forth in the applicable prospectus supplement relating
to the offering of those securities.
DESCRIPTION OF THE SECURITIES
The following is a description of the terms
and provisions of our shares, including shares represented by ADSs, preferred shares and debt securities that we may offer and
sell using this prospectus and any accompanying prospectus supplement. These summaries are not meant to be a complete description
of each security. This prospectus and any accompanying prospectus supplement will contain the material terms and conditions for
each security. The accompanying prospectus supplement may add, update or change the terms and conditions of the securities as described
in this prospectus.
DESCRIPTION OF SHARE CAPITAL
We are a British Virgin Islands company
and our affairs are governed by our memorandum and articles of association, or Articles, and the British Virgin Islands Business
Companies Act of 2004 (as amended), which is referred to as the Companies Law below.
As of December 31, 2020, we are authorized
to issue a maximum of 800,000,000 no par value shares of a single class, and the number of shares issued and outstanding are 582,258,622
and 570,817,412, among which 8,478,780 shares represented by 847,878 ADSs were held by The Bank of New York Mellon, our depositary
for the ADSs (the “Depositary”), for future exercise or vest of awards under our share incentive plan, and 2,962,430
shares represented by 296,243 ADSs were held by the Depositary, for potential at-the-market offering that we may conduct in the
future.
The following are summaries of material
provisions of our Articles and the Companies Law insofar as they relate to the material terms of our shares.
Shares
General.
All of our outstanding shares are fully paid and non-assessable. Certificates representing the shares are issued in registered
form. Our shareholders who are non-residents of the British Virgin Islands may freely hold and vote their shares.
Dividends.
By a resolution of directors, we may declare and pay dividends in money, shares, or other property. Our directors may from time
to time pay to the shareholders such interim dividends as appear to the directors to be justified by the profits of our company.
No dividends shall be declared and paid unless the directors determine that immediately after the payment of the dividend the value
of our assets will exceed our liabilities and we will be able to satisfy our liabilities as they fall due. The holders of our shares
are entitled to such dividends as may be declared by our board of directors subject to the Companies Law.
Unissued
Shares. Our unissued shares shall be at the disposal of the directors who may without prejudice to any rights previously
conferred on the holders of any existing shares or class or series of shares offer, allot, grant options over or otherwise dispose
of shares or other securities to such persons, at such times and upon such terms and conditions as we may by resolution of the
directors determine. Before issuing shares for a consideration other than money, the directors shall pass a resolution stating
the amount to be credited for the issue of the shares, their determination of the reasonable present cash value of the non-money
consideration for the issue, and that, in their opinion, the present cash value of the non-money consideration for the issue is
not less than the amount to be credited for the issue of the shares.
Voting
Rights. Each share is entitled to one vote on all matters upon which the shares are entitled to vote. We are required
by our Articles to hold an annual general meeting each year. Additionally, our directors may convene meetings of our shareholders
at such times and in such-manner and places within or outside the British Virgin Islands as the directors consider necessary or
desirable. Upon the written request of shareholders holding 10% or more of the outstanding voting rights attaching to our shares
the directors shall convene a meeting of shareholders. The director shall give not less than 14 days’ notice of a meeting
of shareholders to those persons whose names at the close of business on a day to be determined by the directors appear as shareholders
in our share register and are entitled to vote at the meeting.
A meeting of shareholders is duly constituted
if, at the commencement of the meeting, there are present in person or by proxy not less than 50% of the votes of the shares entitled
to vote on shareholder resolutions to be considered at the meeting. If a quorum is present, notwithstanding the fact that such
quorum may be represented by only one person, then such person or persons may resolve any matter and a certificate signed by such
person and accompanied, where such person be a proxy, by a copy of the proxy form shall constitute a valid resolution of shareholders.
If within two hours from the time appointed
for the meeting a quorum is not present, the meeting, if convened upon the requisition of shareholders, shall be dissolved; in
any other case it shall stand adjourned to the next business day at the same time and place or to such other time and place as
the directors may determine, and if at the adjourned meeting there are present within one hour from the time appointed for the
meeting in person or by proxy not less than one third of the votes of the shares of each class or series of shares entitled to
vote on the resolutions to be considered by the meeting, those present shall constitute a quorum but otherwise the meeting shall
be dissolved. The chairman, may, with the consent of the meeting, adjourn any meeting from time to time, and from place to place,
but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which
the adjournment took place.
An action that may be taken by the shareholders
at a meeting may also be taken by a resolution of shareholders consented to in writing without the need for any notice, but if
any resolution of shareholders is adopted otherwise than by the unanimous written consent of all shareholders, a copy of such resolution
shall forthwith be sent to all shareholders not consenting to such resolution.
Mandatory
Tender Offer. Except with the consent of our board of directors, when (a) any person acquires, whether or not by
a series of transactions over a period of time, our shares which (taken together with shares held or acquired by persons acting
in concert with that person) carry 30% or more of the voting rights of our company; or (b) any person who together with persons
acting in concert with him, holds not less than 30% but not more than 50% of our voting rights and acquires additional shares resulting
in an increase in the percentage of the voting rights held by that person or any person acting in concert with him, such person
is required to extend an offer to holders of all the issued shares in our company pursuant to our Articles.
Transfer
of Shares. Certificated shares in our company may be transferred by a written instrument of transfer signed by the transferor
and containing the name and address of the transferee, but in the absence of such written evidence of transfer the directors may
accept such evidence of a transfer of shares as they consider appropriate. We may also issue shares in uncertificated form. We
shall not be required to treat a transferee of a registered share in our Company as a member until the transferee’s name
has been entered in the share register.
The register of members may be closed at
such times and for such periods as the board of directors may from time to time determine, not exceeding in whole thirty days in
each year, upon notice being given by advertisement in a leading daily newspaper and in such other newspaper (if any) as may be
required by the law of British Virgin Islands and the practice of the New York Stock Exchange.
The board of directors may decline to register
a transfer of any share to a person known to be a minor, bankrupt or person who is mentally disordered or a patient for the purpose
of any statute relating to mental health. The board of directors may also decline to register any transfer unless:
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(a)
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any written instrument of transfer, duly stamped (if so required), is lodged with us at the registered office or such other place as the board of directors may appoint accompanied by the certificate for the shares to which it relates (except in the case of a transfer by a recognized person or a holder of such shares in respect of whom we are not required by law to deliver a certificate and to whom a certificate has not been issued in respect of such shares);
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(b)
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there is provided such evidence as the board of directors may reasonably require to show the right of the transferor to make the transfer and, if the instrument of transfer is executed by some other person on his behalf, the authority of that person to do so;
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(c)
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any instrument of transfer is in respect of only one class or series of share; and
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(d)
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in the case of a transfer to joint holders, the number of joint holders to whom the share is to be transferred does not exceed four.
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Liquidation.
In the case of the distribution of assets by a voluntary liquidator on a winding-up of our company, subject to payment of, or to
discharge of, all claims, debts, liabilities and obligations of our company any surplus assets shall then be distributed amongst
the shareholders according to their rights and interests in our company according to our Articles. If the assets available for
distribution to members shall be insufficient to pay the whole of the paid up capital, such assets shall be shared on a pro rata
basis amongst members entitled to them by reference to the number of fully paid up shares held by such members respectively at
the commencement of the winding up.
Calls
on Shares and Forfeiture of Shares. Our board of directors may from time to time make calls upon shareholders for any
amounts unpaid on their shares in a notice served to such shareholders at least 14 days prior to the specified time and place of
payment. The shares that have been called upon and remain unpaid at the specified time are subject to forfeiture.
Redemption
of Shares. The Companies Law provides that subject to the memorandum and articles of association of a company, shareholders
holding 90% or more of all the voting shares in a company, may instruct the directors to redeem the shares of the remaining shareholders.
The directors shall be required to redeem the shares of the minority shareholders, whether or not the shares are by their terms
redeemable. The directors must notify the minority shareholders in writing of the redemption price to be paid for the shares and
the manner in which the redemption is to be effected. In the event that a minority shareholder objects to the redemption price
to be paid and the parties are unable to agree to the redemption amount payable, the Companies Law sets out a mechanism whereby
the shareholder and the company may each appoint an appraiser, who will together appoint a third appraiser and all three appraisers
will have the power to determine the fair value of the shares to be compulsorily redeemed. Pursuant to the Companies Law, the determination
of the three appraisers shall be binding on the company and the minority shareholder for all purposes.
Variations
of Rights of Shares. If at any time the issued or unissued shares are divided into different classes of shares, the
rights attached to any class may only be varied, whether or not we are in liquidation, with the consent in writing or by resolution
passed at a meeting by the holders of not less than 50% of the issued shares of that class.
Inspection
of Books and Records. Holders of our shares have a general right under British Virgin Islands law to inspect our books
and records on giving written notice to our company. However, the directors have power to refuse the request on the grounds that
the inspection would be contrary to our interests. However, we will provide our shareholders with annual audited financial statements.
Preferred Shares
Our company may from time to time amend
and restate our Articles to create one or more classes or series of preferred shares. Pursuant to paragraph 12 of the Articles,
a shareholder resolution or a director resolution is currently required to amend the Articles, which shall take effect upon the
registration of the amended and restated Articles by the Registrar of Corporate Affairs in the British Virgin Islands. Prior to
any issuance of preferred shares, our board of directors may, acting by resolutions of directors, amend the Articles to create
one or more classes of preferred shares and authorize the registration of the amended and restated Articles by the Registrar of
Corporate Affairs in the British Virgin Islands. Our board of directors may, by resolutions of directors, determine the rights,
privileges, restrictions and conditions attached to the preferred shares, including the designations, powers, preferences and relative,
participating, optional and other rights, if any, and the qualifications, limitations and restrictions thereof, if any, including,
without limitation, the number of shares constituting each such class or series, dividend rights, conversion rights, redemption
privileges, voting powers, full or limited or no voting powers, and liquidation preferences, of each series that we may sell under
this prospectus and applicable prospectus supplements and to increase or decrease the size of any such class or series of preferred
shares, but not below the number of any class or series of preferred shares then issued and outstanding plus the number of shares
of such class reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any
outstanding securities issued by our company convertible into such class of shares. The rights conferred upon the holders of the
shares of any class shall not, unless otherwise expressly provided by the terms of issue of the shares of that class, be deemed
to be varied by the creation or issue of further shares ranking pari passu therewith or superior thereto. The amended and
restated Articles providing for the establishment of any class or series of preferred shares may, to the extent permitted by law,
provide that such class or series shall be superior to, rank equally with, or be junior to the preferred shares of any other class
or series.
Once the class of preferred shares has
been created, preferred shares may then be issued at such times, to such persons, for such consideration and on such terms as our
board of directors may by resolution determine. We will describe the terms of any class or series of preferred shares we offer
in the applicable prospectus supplement.
Differences in Corporate Law
The Companies Law differs from laws applicable
to United States corporations and their shareholders. Set forth below is a summary of the significant differences between the provisions
of the Companies Law applicable to us and the laws applicable to companies incorporated in the United States and their shareholders.
Protection for Minority Shareholders
Under the laws of most U.S. jurisdictions,
majority and controlling shareholders of a company generally have certain “fiduciary” responsibilities to the minority
shareholders. Corporate actions taken by majority and controlling shareholders which are unreasonable and materially detrimental
to the interest of minority shareholders may be declared null and void. Notwithstanding, the minority shareholders may have less
protection for their rights under British Virgin Islands law than they would have under U.S. law.
Powers of Directors
Unlike most U.S. jurisdictions, the directors
of a British Virgin Islands company, subject in certain cases to the approval of the court (which will generally require shareholder
approval), may implement the sale, transfer, exchange or disposition of any asset, property, part of the business, or securities
of the company, if the board determines such transaction to be in the best interests of the company, its creditors, or its shareholders,
with the exception that shareholder approval is required for any sale, transfer, lease exchange or other disposition of more than
50% in value of the assets of the company other than in the usual or regular course of business of the company.
Conflict of Interests
Similar to the laws of most U.S. jurisdictions,
when a director becomes aware of the fact that he has an interest in a transaction which the company is to enter into, he must
disclose it to the board. However, with sufficient disclosure of the interest in relation to that transaction, the director who
is interested in a transaction entered into or to be entered into by us may (i) vote on a matter relating to the transaction;
(ii) attend a meeting of directors at which a matter relating to the transaction arises and be included in the quorum;
and (iii) sign a document on behalf of the company, or do any other thing in his capacity as a director, that relates to the
transaction.
Written Consent and Cumulative Voting
Similar to the laws of most U.S. jurisdictions,
under the British Virgin Islands law, shareholders are permitted to approve matters by way of written resolution in place of a
formal meeting. The Companies Law does not make a specific reference to cumulative voting, and our current Articles of Association
have no provisions authorizing cumulative voting.
Independent Directors
There is no requirement for a majority
of the directors of the company to be independent as a matter of British Virgin Islands law.
Investigating Power and Suspension
of Shareholder’s Rights
Regulation 24.3 of our Articles grants
us investigating power with respect to the ownership of our shares. This is done by sending a written notice, or the section 793
notice, to any shareholder or other person whom we have reasonable cause to believe has, or had, an “interest” (e.g.
owns, controls or has certain rights over shares) in our relevant shares at some time during the three years immediately preceding
the date of issue of the section 793 notice. A person who receives a section 793 notice must respond with the required information
within 14 days following the date of service of the notice. Default in complying with the notice in relation to any shares, or
the default shares, either on the part of the shareholder or on the part of some other interested person, could result in the rights
of the shares being suspended if our board of directors has served a disenfranchisement notice on the holder of the default shares.
Redemption
Our shares are not redeemable at the shareholders’
option. Subject to the Companies Law, we may redeem our shares only with the consent of the shareholders whose shares are to be
redeemed, except that the consent from the shareholders is not needed under the circumstances of (i) the compulsory redemption
with respect to fractional shares held by our shareholders in the circumstance of share division, and (ii) the compulsory
redemption, at the request of the shareholders holding 90% of the votes of the outstanding shares entitled to vote, of the remaining
issued shares.
Takeover Provisions
Our Articles do not alter the general provisions
of the Companies Law or any other British Virgin Islands law and therefore measures such as a poison pill would have to be in place
before a takeover offer is in contemplation, as, if not, the directors might be seen as exercising their powers for an improper
purpose in trying to introduce such a measure.
Furthermore, prior to the issuance of any
additional classes of shares there would need to be an amendment to our Articles to create the new class of shares and to set out
the rights and obligations attaching to those shares in our Articles This may be done following a resolution of directors or a
resolution of shareholders (as more particularly set out in the section “Preferred Shares” above). If at any time the
shares of our company are divided into different classes, a variation of the rights of any such class will not be triggered by
but note that the creation and issue of a further class with rights ranking pari passu therewith or superior thereto. The introduction
of a poison pill mechanism involving the issue of a new class of shares would require an amendment to our Articles but such amendment
could be approved by way of shareholder resolution or by a resolution of directors.
Shareholder’s Access to Corporate
Records
A shareholder is entitled, on giving written
notice to the company, to inspect the company’s (i) memorandum and articles of association; (ii) register
of members; (iii) register of directors; and (iv) minutes of meetings and resolutions of members and of those
classes of members of which he is a member.
The directors may, if they are satisfied
that it would be contrary to the company’s interests to allow a member to inspect any document listed above (or any part
thereof), refuse the member to inspect the document or limit the inspection of the document. The board may also authorize a member
to review the company’s account if requested.
Indemnification
British Virgin Islands law does not limit
the extent to which a company’s articles of association may provide for indemnification of officers and directors, except
to the extent any such provision may be held by the British Virgin Islands courts to be contrary to public policy, such as to provide
indemnification against civil fraud or the consequences of committing a crime.
Under our Articles, we may indemnify our
directors or any person who is or was, at the request of the company, serving as a director of, or in any other capacity is or
was acting for, another body corporate or a partnership, joint venture, trust or other enterprise against expenses (including legal
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such persons in connection with legal,
administrative or investigative proceedings to which they are a party or are threatened to be made a party by reason of their acting
as our directors or agents. To be entitled to indemnification, these persons must have acted honestly and in good faith and in
the best interest of the company, and they must have had no reasonable cause to believe their conduct was unlawful.
Insofar as indemnification for liabilities
arising under the U.S. Securities Act of 1933, as amended, or the Securities Act, may be permitted to directors, officers or persons
controlling us under the foregoing provisions, we have been advised that in the opinion of the SEC, such indemnification is against
public policy as expressed in the Securities Act and is therefore unenforceable.
Mergers and Similar Arrangements
Under the laws of the British Virgin Islands,
two or more companies may merge or consolidate in accordance with Section 170 of the Companies Law. A merger means the merging
of two or more constituent companies into one of the constituent companies, and a consolidation means the uniting of two or more
constituent companies into a new company. In order to merge or consolidate, the directors of each constituent company must approve
a written plan of merger or consolidation which must be authorized by a resolution of shareholders.
While a director may vote on the plan even
if he has a financial interest in the plan of merger of consolidation, in order for the resolution to be valid, the interest must
have been disclosed to the board forthwith upon him becoming aware of such interest. The transaction will not be avoidable if the
shareholders approve it.
Shareholders not otherwise entitled to
vote on the merger or consolidation may still acquire the right to vote if the plan of merger or consolidation contains any provision
which, if proposed as an amendment to the memorandum or articles of association, would entitle them to vote as a class or series
on the proposed amendment. In any event, all shareholders must be given a copy of the plan of merger or consolidation irrespective
of whether they are entitled to vote at the meeting or consent to the written resolution to approve the plan of merger or consolidation.
The shareholders of the constituent companies
are not required to receive shares of the surviving or consolidated company but may receive cash, debt obligations or other securities
of the surviving or consolidated company, or other assets, or a combination thereof. Further, some or all of the shares of a class
or series may be converted into a kind of asset while the other shares of the same class or series may receive a different kind
of asset. As such, not all the shares of a class or series must receive the same kind of consideration.
After the plan of merger or consolidation
has been approved by the directors and authorized by a resolution of the shareholders, articles of merger or consolidation are
executed by each company and filed with the Registrar of Corporate Affairs in the British Virgin Islands.
A shareholder may dissent from a mandatory
redemption of his shares, an arrangement (if permitted by the court), a merger (unless the shareholder was a shareholder of the
surviving company prior to the merger and continues to hold the same or similar shares after the merger) and a consolidation.
A shareholder properly exercising his dissent rights is entitled to payment of the fair value of their shares.
A shareholder dissenting from a merger
or consolidation must object in writing to the merger or consolidation before the vote by the shareholders on the merger or consolidation,
unless notice of the meeting was not given to the shareholder. If the merger or consolidation is approved by the shareholders,
the company must within 20 days give notice of this fact to each shareholder who gave written objection, and to each shareholder
who did not receive notice of the meeting. Such shareholders then have 20 days to give to the company their written election in
the form specified by the Companies Law to dissent from the merger or consolidation, provided that in the case of a merger, the
20 days starts when the plan of merger is delivered to the shareholder.
Upon giving notice of his election to dissent,
a shareholder ceases to have any rights of a shareholder except the right to be paid the fair value of his shares. As such, the
merger or consolidation may proceed in the ordinary course notwithstanding the dissent.
Within seven days of the later of the delivery
of the notice of election to dissent and the effective date of the merger or consolidation, the company must make a written offer
to each dissenting shareholder to purchase his shares at a specified price that the company determines to be their fair value.
The company and the shareholder then have 30 days to agree upon the price. If the company and the shareholder fail to agree on
the price within the 30 days, then the company and the shareholder shall each designate an appraiser and these two appraisers shall
designate a third appraiser. These three appraisers shall fix the fair value of the shares as of the close of business on the day
before the shareholders approved the transaction without taking into account any change in value as a result of the transaction.
Shareholders’ Suits
Similar to the laws of most U.S. jurisdictions,
British Virgin Islands law permits derivative actions against its directors. However, the circumstances under which such actions
may be brought, and the procedures and defenses available may result in the rights of shareholders of a British Virgin Islands
company being more limited than those of shareholders of a company incorporated and/or existing in the United States.
The BVI does not have provision for “class
actions.” It does however provide for “representative action”, whereby a representative maybe appointed to represent
parties with the same interest. In such cases those parties will typically be bound by any decision in the proceedings... Section 184C(1) of
the Companies Law specifically provides for the process by which a claim may be brought “derivatively” on behalf of
a company by one of its shareholders. Importantly, proceedings may not be brought by a shareholder without leave of the court.
The courts of the British Virgin Islands may, on the application of a shareholder of a company, grant leave to that shareholder
to bring proceedings in the name and on behalf of that company, or intervene in proceedings to which the company is a party for
the purpose of continuing, defending or discontinuing the proceedings on behalf of the company. In determining whether to grant
leave, the High Court of the British Virgin Islands must take into account (i) whether the shareholder is acting in good faith.
(ii) whether the derivative action is in the interests of the company taking account of the views of the company’s directors
on commercial matters. (iii) whether the proceedings are likely to succeed.(iv) the costs of the proceedings in relation
to the relief likely to be obtained. and (v) whether an alternative remedy to the derivative claim is available.
Leave to bring or intervene in proceedings
may be granted only if the High Court of the British Virgin Islands is satisfied that (i) the company does not intend to
bring, diligently continue or defend, or discontinue the proceedings, as the case may be or (ii) it is in the interests of
the company that the conduct of the proceedings should not be left to the directors or to the determination of the shareholders
as a whole.
DESCRIPTION OF AMERICAN DEPOSITARY SHARES
American Depositary Shares
The Bank of New York Mellon, as depositary,
will register and deliver ADSs. Each ADS will represent ten shares deposited with The Bank of New York Mellon acting through an
office located in the United Kingdom, as custodian for the depositary. Each ADS will also represent any other securities, cash
or other property which may be held by the depositary. The depositary’s corporate trust office at which the ADSs will be
administered and its principal executive office is located at 240 Greenwich Street, New York, New York 10286.
You may hold ADSs either (A) directly
(i) by having an American Depositary Receipt, which is a certificate evidencing a specific number of ADSs, registered in your
name, or (ii) by holding ADSs in the Direct Registration System, or DRS, or (B) indirectly through your broker or other
financial institution. If you hold ADSs directly, you are an ADS holder. This description assumes you hold your ADSs directly.
If you hold the ADSs indirectly, you must rely on the procedures of your broker or other financial institution to assert the rights
of ADS holders described in this section. You should consult with your broker or financial institution to find out what those procedures
are.
DRS, is a system administered by The Depository
Trust Company, or DTC, pursuant to which the depositary may register the ownership of uncertificated ADSs, which ownership shall
be confirmed by periodic statements sent by the depositary to the ADS holders entitled thereto.
As an ADS holder, we will not treat you
as one of our shareholders and you will not have shareholder rights. British Virgin Islands law governs shareholder rights. The
depositary will be the holder of the shares underlying your ADSs. As a holder of ADSs, you will have ADS holder rights. A deposit
agreement among us, the depositary and you, as an ADS holder, and the beneficial owners of ADSs set out ADS holder rights as well
as the rights and obligations of the depositary. New York law governs the deposit agreement and the ADSs.
The following is a summary of the material
terms of the deposit agreement. Because it is a summary, it does not contain all the information that may be important to you.
For more complete information, you should read the entire deposit agreement and the form of ADR which contains the terms of your
ADSs. You can read a copy of the deposit agreement that we previously filed. You may also obtain a copy of the deposit agreement
at the SEC’s Public Reference Room which is located at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information
on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You may also find the registration statement
and the attached deposit agreement from the SEC’s website at http://www.sec.gov.
Dividends and Other Distributions
How will you receive dividends and
other distributions on the shares?
The depositary has agreed to pay to you
the cash dividends or other distributions it or the custodian receives on shares or other deposited securities, after deducting
its fees and expenses. You will receive these distributions in proportion to the number of shares your ADSs represent.
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Cash. The depositary will convert any cash dividend or other cash distribution we pay on the shares into U.S. dollars, if it can do so on a reasonable basis, and can transfer the U.S. dollars to the United States. If that is not possible or if any government approval is needed and cannot be obtained within a reasonable period, the deposit agreement allows the depositary to distribute the foreign currency only to those ADS holders to whom it is possible to do so. It will hold the foreign currency it cannot convert for the account of the ADS holders who have not been paid. It will not invest the foreign currency and it will not be liable for any interest.
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Before making a distribution, any withholding taxes
or other governmental charges that must be paid will be deducted. See “Payment of Taxes.” The depositary will distribute
only whole U.S. dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate
during a time when the depositary cannot convert the foreign currency, you may lose some or all of the value of the distribution.
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Shares. The depositary may distribute additional ADSs representing any shares we distribute as a dividend or free distribution. The depositary will only distribute whole ADSs. It will sell shares which would require it to deliver a fractional ADS and distribute the net proceeds in the same way as it does with cash. If the depositary does not distribute additional ADSs, the outstanding ADSs will also represent the new shares. The depositary may sell a portion of the distributed shares sufficient to pay its fees and expenses in connection with that distribution.
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Rights to purchase additional shares. If we offer holders of our securities any rights to subscribe for additional shares or any other rights, the depositary may make these rights available to you. If the depositary decides it is not legal and practical to make the rights available but that it is practical to sell the rights, the depositary will use reasonable efforts to sell the rights and distribute the proceeds in the same way as it does with cash. The depositary will allow rights that are not distributed or sold to lapse. In that case, you will receive no value for them.
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If the depositary makes rights available to you, it
will exercise the rights and purchase the shares on your behalf. The depositary will then deposit the shares and deliver ADSs to
you. It will only exercise rights if you pay it the exercise price and any other charges the rights require you to pay.
U.S. securities laws may restrict transfers and cancellation
of the ADSs represented by shares purchased upon exercise of rights. For example, you may not be able to trade these ADSs freely
in the United States. In this case, the depositary may deliver restricted depositary shares that have the same terms as the ADSs
described in this section except for changes needed to put the necessary restrictions in place.
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Other Distributions. The depositary will send to you anything else we distribute on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, the depositary has a choice; it may decide to sell what we distributed and distribute the net proceeds, in the same way as it does with cash; or, it may decide to hold what we distributed, in which case ADSs will also represent the newly distributed property. However, the depositary is not required to distribute any securities (other than ADSs) to you unless it receives satisfactory evidence from us that it is legal to make that distribution. The depositary may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution.
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The depositary is not responsible if it decides that
it is unlawful or impractical to make a distribution available to any ADS holders. We have no obligation to register ADSs, shares,
rights or other securities under the Securities Act. We also have no obligation to take any other action to permit the distribution
of ADSs, shares, rights or anything else to ADS holders. This means that you may not receive the distributions we make on our
shares or any value for them if it is illegal or impractical for us to make them available to you.
Deposit, Withdrawal and Cancellation
How are ADSs issued?
The depositary will deliver ADSs if you
or your broker deposits shares or evidence of rights to receive shares with the custodian. Upon payment of its fees and expenses
and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, the depositary will register the appropriate
number of ADSs in the names you request and will deliver the ADSs to or upon the order of the person or persons entitled thereto.
How do ADS holders cancel an American
Depositary Share?
You may turn in your ADSs at the depositary’s
corporate trust office. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer
taxes or fees, the depositary will deliver the shares and any other deposited securities underlying the ADSs to you or a person
you designate at the office of the custodian. Or, at your request, risk and expense, the depositary will deliver the deposited
securities at its corporate trust office, if feasible.
How do ADS holders interchange between
Certificated ADSs and Uncertificated ADSs?
You may surrender your ADR to the depositary
for the purpose of exchanging your ADR for uncertificated ADSs. The depositary will cancel that ADR and will send you a statement
confirming that you are the owner of uncertificated ADSs. Alternatively, upon receipt by the depositary of a proper instruction
from a holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, the depositary will
execute and deliver to you an ADR evidencing those ADSs.
Voting Rights
How do you vote?
You may instruct the depositary how to
vote the deposited securities. Otherwise, you will not be able to exercise your right to vote unless you withdraw the shares your
ADSs represent. However, you may not know about the meeting enough in advance to withdraw the shares.
If we ask for your instructions, the depositary
will notify you of the upcoming vote and arrange to deliver our voting materials to you. The materials will (1) describe the
matters to be voted on and (2) explain how you may instruct the depositary to vote the shares or other deposited securities
underlying your ADSs as you direct, including an express indication that such instructions may be given or deemed given in accordance
with the last sentence of this paragraph if no instruction is received, to the depositary to give a discretionary proxy to a person
designated by us. For instructions to be valid, the depositary must receive them on or before the date specified. The depositary
will try, as far as practicable, subject to the laws of the British Virgin Islands and the provisions of our Articles, to vote
or to have its agents vote the shares or other deposited securities as you instruct. The depositary will only vote or attempt to
vote as you instruct. If we timely asked for your instructions but no instructions are received by the depositary from an owner
with respect to ADSs of that owner on or before the date established by the depositary for such purpose, the depositary shall deem
that owner to have instructed the depositary to give a discretionary proxy to a person designated by us with respect to the amount
of deposited securities represented by those ADSs, and the depositary shall give a discretionary proxy to a person designated by
us to vote such deposited securities. No such instruction shall be deemed given and no such discretionary proxy shall be given
with respect to any matter as to which we inform the depositary (i) we do not wish such proxy given, (ii) any matter
as to which substantial opposition exists or (iii) any matter that materially and adversely affects the rights of holders
of the shares.
We cannot assure you that you will receive
the voting materials in time to ensure that you can instruct the depositary to vote your shares. In addition, the depositary and
its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions.
This means that you may not be able to exercise your right to vote and there may be nothing you can do if your shares are not
voted as you requested.
In order to give you a reasonable opportunity
to instruct the depositary as to the exercise of voting rights relating to deposited securities, if we request the depositary to
act, we will give the depositary notice of any such meeting and details concerning the matters to be voted upon at least 45 days
in advance of the meeting date.
Fees and Expenses
Persons depositing or withdrawing shares or holders
of ADSs must pay:
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For:
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$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)
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· Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property
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· Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates
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$.02 (or less) per ADSs
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· Any cash distribution to ADS registered holders
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A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs
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· Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS registered holders
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$.02 (or less) per ADSs per calendar year
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· Depositary services
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Registration or transfer fees
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· Transfer and registration of shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares
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Persons depositing or withdrawing shares or holders
of ADSs must pay:
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For:
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Expenses of the depositary
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· Cable (including SEIFT) and facsimile transmissions (when expressly provided in the deposit agreement)
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· Converting foreign currency to U.S. dollars
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Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes
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· As necessary
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Any charges incurred by the depositary or its agents for servicing the deposited securities
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· As necessary
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The depositary collects its fees for issuance and cancellation
of ADSs directly from investors depositing shares or surrendering ADSs for the purpose of withdrawal or from intermediaries acting
for them. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed
or by selling a portion of distributable property to pay the fees. The depositary may collect its annual fee for depositary services
by deduction from cash distributions, or by directly billing investors, or by charging the book-entry system accounts of participants
acting for them. The depositary may collect any of its fees by deduction from any cash distribution payable to ADS holders that
are obligated to pay those fees. The depositary may generally refuse to provide fee-attracting services until its fees for those
services are paid.
From time to time, the depositary may make payments to us to
reimburse and/or share revenue from the fees collected from ADS holders, or waive fees and expenses for services provided, generally
relating to costs and expenses arising out of establishment and maintenance of the ADS program. In performing its duties under
the deposit agreement, the depositary may use brokers, dealers, foreign currency dealers, or other service providers that are affiliates
of the depositary and that may earn or share fees, spreads or commissions.
The depositary may convert currency itself or through any of
its affiliates, or the custodian or we may convert currency and pay U.S. dollars to the depositary. Where the depositary converts
currency itself or through any of its affiliates, the depositary acts as principal for its own account and not as agent, advisor,
broker or fiduciary on behalf of any other person and earns revenue, including, without limitation, transaction spreads, that it
will retain for its own account. The revenue is based on, among other things, the difference between the exchange rate assigned
to the currency conversion made under the deposit agreement and the rate that the depositary or its affiliate receives when buying
or selling foreign currency for its own account. The depositary makes no representation that the exchange rate used or obtained
by it or its affiliate in any currency conversion under the deposit agreement will be the most favorable rate that could be obtained
at the time or that the method by which that rate will be determined will be the most favorable to ADS holders, subject to the
depositary's obligation to act without negligence or bad faith. The methodology used to determine exchange rates used in currency
conversions made by the depositary is available upon request. Where the custodian converts currency, the custodian has no obligation
to obtain the most favorable rate that could be obtained at the time or to ensure that the method by which that rate will be determined
will be the most favorable to ADS holders, and the depositary makes no representation that the rate is the most favorable rate
and will not be liable for any direct or indirect losses associated with the rate. In certain instances, the depositary may receive
dividends or other distributions from the us in U.S. dollars that represent the proceeds of a conversion of foreign currency or
translation from foreign currency at a rate that was obtained or determined by us and, in such cases, the depositary will not engage
in, or be responsible for, any foreign currency transactions and neither it nor we make any representation that the rate obtained
or determined by us is the most favorable rate and neither it nor we will be liable for any direct or indirect losses associated
with the rate.
Payment of Taxes
You will be responsible for any taxes or other governmental
charges payable on your ADSs or on the deposited securities represented by any of your ADSs. The depositary may refuse to register
any transfer of your ADSs or allow you to withdraw the deposited securities represented by your ADSs until such taxes or other
charges are paid. It may apply payments owed to you or sell deposited securities represented by your ADSs to pay any taxes owed
and you will remain liable for any deficiency. If the depositary sells deposited securities, it will, if appropriate, reduce the
number of ADSs to reflect the sale and pay to you any proceeds, or send to you any property, remaining after it has paid the taxes.
Reclassifications, Recapitalizations and Mergers
If we:
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Then:
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Change the nominal or par value of our shares
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The cash, shares or other securities received by the depositary will become deposited securities. Each ADS will automatically represent its equal share of the new deposited securities.
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Reclassify, split up or consolidate any of the deposited securities
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Distribute securities on the shares that are not distributed to you
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The depositary may deliver new ADSs or ask you to surrender your outstanding ADSs in exchange for new ADSs identifying the new deposited securities.
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Recapitalize, reorganize, merge, liquidate, sell all or substantially all of our assets, or take any similar action
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Amendment and Termination
How may the deposit agreement be
amended?
We may agree with the depositary to amend
the deposit agreement and the ADSs without your consent for any reason. If an amendment adds or increases fees or charges, except
for taxes and other governmental charges or expenses of the depositary for registration fees, facsimile costs, delivery charges
or similar items, or prejudices a substantial right of ADS holders, such amendment will not become effective for outstanding ADSs
until 30 days after the depositary notifies ADS holders of the amendment. At the time an amendment becomes effective, you are
considered, by continuing to hold your ADS, to agree to the amendment and to be bound by the ADRs and the deposit agreement as
amended.
How may the deposit agreement be
terminated?
The depositary will terminate the deposit
agreement at our direction by mailing notice of termination to the ADS holders then outstanding at least 30 days prior to the date
fixed in such notice for such termination. The depositary may also terminate the deposit agreement by mailing notice of termination
to us and the ADS holders then outstanding if at any time 60 days shall have expired after the depositary shall have delivered
to us a written notice of its election to resign and a successor depositary shall not have been appointed and accepted its appointment.
After termination, the depositary and its
agents will do the following under the deposit agreement but nothing else: collect distributions on the deposited securities, sell
rights and other property, and deliver shares and other deposited securities upon cancellation of ADSs. Six months after termination,
the depositary may sell any remaining deposited securities by public or private sale. After that, the depositary will hold the
money it received on the sale, as well as any other cash it is holding under the deposit agreement for the pro rata benefit of
the ADS holders that have not surrendered their ADSs. It will not invest the money and has no liability for interest. The depositary’s
only obligations will be to account for the money and other cash. After termination our only obligations will be to indemnify the
depositary and to pay fees and expenses of the depositary that we agreed to pay.
Limitations on Obligations and Liability
Limits on our Obligations and the
Obligations of the Depositary; Limits on Liability to Holders of ADSs
The deposit agreement expressly limits
our obligations and the obligations of the depositary. It also limits our liability and the liability of the depositary. We and
the depositary:
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are only obligated to take the actions specifically set forth in the deposit agreement without negligence or bad faith;
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are not liable if either of us is prevented or delayed by law or circumstances beyond our control from performing our obligations under the deposit agreement;
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are not liable if either of us exercises discretion permitted under the deposit agreement;
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are not liable for the inability of any ADS holder to benefit from any distribution, offering, right or other benefit which is made available to holders of deposited securities but is not, under the terms of the deposit agreement, made available to ADS holders;
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are not liable for any special, consequential or punitive damages for any breach of the terms of the deposit agreement;
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have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the deposit agreement on your behalf or on behalf of any other party; and
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may rely upon the advice of, or information from, any person whom we believe in good faith to be competent to give such advice or information.
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In the deposit agreement, we and the depositary
agree to indemnify each other under certain circumstances.
Requirements for Depositary Actions
Before the depositary will deliver or register
a transfer of an ADS, make a distribution on an ADS, or permit withdrawal of shares, the depositary may require:
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payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any shares or other deposited securities;
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satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and
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compliance with regulations it may establish, from time to time, consistent with the deposit agreement, including presentation of transfer documents.
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The depositary may refuse to deliver ADSs
or register transfers of ADSs generally when the transfer books of the depositary or our transfer books are closed or at any time
if the depositary or we think it advisable to do so.
Your Right to Receive the Shares Underlying Your ADSs
You have the right to cancel your ADSs
and withdraw the underlying shares at any time except:
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When temporary delays arise because: (i) the depositary has closed its transfer books or we have closed our transfer books; (ii) the transfer of shares is blocked to permit voting at a shareholders’ meeting; or (iii) we are paying a dividend on our shares.
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When you or other ADS holders seeking to withdraw shares owe money to pay fees, taxes and similar charges.
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When it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to ADSs or to the withdrawal of shares or other deposited securities.
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This right of withdrawal may not be limited
by any other provision of the deposit agreement.
Direct Registration System
In the deposit agreement, all parties to
the deposit agreement acknowledge that the DRS and Profile Modification System, or Profile, will apply to uncertificated ADSs upon
acceptance thereof to DRS by DTC. DRS is the system administered by DTC pursuant to which the depositary may register the ownership
of uncertificated ADSs, which ownership shall be evidenced by periodic statements issued by the depositary to the ADS holders entitled
thereto. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of an ADS holder, to direct
the depositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that
DTC participant without receipt by the depositary of prior authorization from the ADS holder to register such transfer.
In connection with and in accordance with
the arrangements and procedures relating to DRS/Profile, the parties to the deposit agreement understand that the depositary will
not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an ADS holder
in requesting registration of transfer and delivery described in the paragraph above has the actual authority to act on behalf
of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the deposit agreement, the parties agree
that the depositary’s reliance on and compliance with instructions received by the depositary through DRS/Profile and in
accordance with the deposit agreement, shall not constitute negligence or bad faith on the part of the depositary.
Shareholder communications; inspection of register of holders
of ADSs
The depositary will make available for
your inspection at its office all communications that it receives from us as a holder of deposited securities that we make generally
available to holders of deposited securities. The depositary will send you copies of those communications if we ask it to. You
have a right to inspect the register of holders of ADSs, but not for the purpose of contacting those holders about a matter unrelated
to our business or the ADSs.
Jury Trial Waiver
The deposit agreement provides that, to
the extent permitted by law, ADS holders waive the right to a jury trial of any claim they may have against us or the depositary
arising out of or relating to our shares, the ADSs or the deposit agreement, including any claim under the U.S. federal securities
laws. If we or the depositary opposed a jury trial demand based on the waiver, the court would determine whether the waiver was
enforceable in the facts and circumstances of that case in accordance with applicable case law.
You will not, by agreeing to the terms
of the deposit agreement, be deemed to have waived our or the depositary's compliance with U.S. federal securities laws or the
rules and regulations promulgated thereunder.
DESCRIPTION OF DEBT SECURITIES
We may issue series of debt securities,
which may include debt securities exchangeable for or convertible into ordinary shares or preferred shares. When we offer to sell
a particular series of debt securities, we will describe the specific terms of that series in a supplement to this prospectus.
The following description of debt securities will apply to the debt securities offered by this prospectus unless we provide otherwise
in the applicable prospectus supplement. The applicable prospectus supplement for a particular series of debt securities may specify
different or additional terms.
The debt securities offered by this prospectus
may be secured or unsecured, and may be senior debt securities, senior subordinated debt securities or subordinated debt securities.
The debt securities offered by this prospectus may be issued under an indenture between us and the trustee under the indenture.
The indenture may be qualified under, subject to, and governed by, the Trust Indenture Act of 1939, as amended. We have summarized
selected portions of the indenture below. The summary is not complete. The form of the indenture has been filed as an exhibit to
the registration statement on Form F-3, of which this prospectus is a part, and you should read the indenture for provisions
that may be important to you.
The terms of each series of debt securities
will be established by or pursuant to a resolution of our board of directors and detailed or determined in the manner provided
in a board of directors’ resolution, an officers’ certificate and by a supplemental indenture. The particular terms
of each series of debt securities will be described in a prospectus supplement relating to the series, including any pricing supplement.
We may issue any amount of debt securities
under the indenture, which may be in one or more series with the same or different maturities, at par, at a premium or at a discount.
We will set forth in a prospectus supplement, including any related pricing supplement, relating to any series of debt securities
being offered, the initial offering price, the aggregate principal amount offered and the terms of the debt securities, including,
among other things, the following:
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the title of the debt securities;
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the price or prices (expressed as a percentage of the aggregate principal amount) at which we will sell the debt securities;
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any limit on the aggregate principal amount of the debt securities;
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the date or dates on which we will repay the principal on the debt securities and the right, if any, to extend the maturity of the debt securities;
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the rate or rates (which may be fixed or variable) per annum or the method used to determine the rate or rates (including any commodity, commodity index, stock exchange index or financial index) at which the debt securities will bear interest, the date or dates from which interest will accrue, the date or dates on which interest will be payable and any regular record date for any interest payment date;
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the place or places where the principal of, premium, and interest on the debt securities will be payable, and where the debt securities of the series that are convertible or exchangeable may be surrendered for conversion or exchange;
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any obligation or right we have to redeem the debt securities pursuant to any sinking fund or analogous provisions or at the option of holders of the debt securities or at our option, and the terms and conditions upon which we are obligated to or may redeem the debt securities;
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any obligation we have to repurchase the debt securities at the option of the holders of debt securities, the dates on which and the price or prices at which we will repurchase the debt securities and other detailed terms and provisions of these repurchase obligations;
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the denominations in which the debt securities will be issued;
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whether the debt securities will be issued in the form of certificated debt securities or global debt securities;
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the portion of principal amount of the debt securities payable upon declaration of acceleration of the maturity date, if other than the principal amount;
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the currency of denomination of the debt securities;
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the designation of the currency, currencies or currency units in which payment of principal of, premium and interest on the debt securities will be made;
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if payments of principal of, premium or interest on, the debt securities will be made in one or more currencies or currency units other than that or those in which the debt securities are denominated, the manner in which the exchange rate with respect to these payments will be determined;
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the manner in which the amounts of payment of principal of, premium or interest on, the debt securities will be determined, if these amounts may be determined by reference to an index based on a currency or currencies other than that in which the debt securities are denominated or designated to be payable or by reference to a commodity, commodity index, stock exchange index or financial index;
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any provisions relating to any security provided for the debt securities;
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any addition to or change in the events of default described in the indenture with respect to the debt securities and any change in the acceleration provisions described in the indenture with respect to the debt securities;
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any addition to or change in the covenants described in the indenture with respect to the debt securities;
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whether the debt securities will be senior or subordinated and any applicable subordination provisions;
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a discussion of material income tax considerations applicable to the debt securities;
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any other terms of the debt securities, which may modify any provisions of the indenture as it applies to that series; and
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any depositaries, interest rate calculation agents, exchange rate calculation agents or other agents with respect to the debt securities.
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We may issue debt securities that are exchangeable
for and/or convertible into ordinary shares or preferred shares. The terms, if any, on which the debt securities may be exchanged
and/or converted will be set forth in the applicable prospectus supplement. Such terms may include provisions for exchange or conversion,
which can be mandatory, at the option of the holder or at our option, and the manner in which the number of ordinary shares, preferred
shares or other securities to be received by the holders of debt securities would be calculated.
We may issue debt securities that provide
for an amount less than their stated principal amount to be due and payable upon declaration of acceleration of their maturity
pursuant to the terms of the indenture. We will provide you with information on the U.S. federal income tax considerations, and
other special considerations applicable to any of these debt securities in the applicable prospectus supplement. If we denominate
the purchase price of any of the debt securities in a foreign currency or currencies or a foreign currency unit or units, or if
the principal of and any premium and interest on any series of debt securities is payable in a foreign currency or currencies or
a foreign currency unit or units, we will provide you with information on the restrictions, elections, specific terms and other
information with respect to that issue of debt securities and such foreign currency or currencies or foreign currency unit or units
in the applicable prospectus supplement.
We may issue debt securities of a series
in whole or in part in the form of one or more global securities that will be deposited with, or on behalf of, a depositary identified
in the prospectus supplement. Global securities will be issued in registered form and in either temporary or definitive form. Unless
and until it is exchanged in whole or in part for the individual debt securities, a global security may not be transferred except
as a whole by the depositary for such global security to a nominee of such depositary or by a nominee of such depositary to such
depositary or another nominee of such depositary or by such depositary or any such nominee to a successor of such depositary or
a nominee of such successor. The specific terms of the depositary arrangement with respect to any debt securities of a series and
the rights of and limitations upon owners of beneficial interests in a global security will be described in the applicable prospectus
supplement.
The indenture and the debt securities will
be governed by, and construed in accordance with, the internal laws of the State of New York, unless we otherwise specify in the
applicable prospectus supplement.
PLAN OF DISTRIBUTION
We may sell or distribute the securities
offered by this prospectus, from time to time, in one or more offerings, as follows:
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to dealers or underwriters for resale;
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directly to purchasers; or
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through a combination of any of these methods of sale.
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The prospectus supplement with respect
to the securities may state or supplement the terms of the offering of the securities.
In addition, we may issue the securities
as a dividend or distribution or in a subscription rights offering to our existing security holders. In some cases, we or dealers
acting for us or on our behalf may also repurchase securities and reoffer them to the public by one or more of the methods described
above. This prospectus may be used in connection with any offering of our securities through any of these methods or other methods
described in the applicable prospectus supplement.
Our securities distributed by any of these
methods may be sold to the public, in one or more transactions, either:
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at a fixed price or prices, which may be changed;
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at market prices prevailing at the time of sale;
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at prices related to prevailing market prices; or
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Sale through Underwriters or Dealers
If underwriters are used in the sale, the
underwriters will acquire the securities for their own account, including through underwriting, purchase, security lending or repurchase
agreements with us. The underwriters may resell the securities from time to time in one or more transactions, including negotiated
transactions. Underwriters may sell the securities in order to facilitate transactions in any of our other securities (described
in this prospectus or otherwise), including other public or private transactions and short sales. Underwriters may offer the securities
to the public either through underwriting syndicates represented by one or more managing underwriters or directly by one or more
firms acting as underwriters. Unless otherwise indicated in the applicable prospectus supplement, the obligations of the underwriters
to purchase the securities will be subject to certain conditions, and the underwriters will be obligated to purchase all the offered
securities if they purchase any of them. The underwriters may change from time to time any initial public offering price and any
discounts or concessions allowed or reallowed or paid to dealers.
If dealers are used in the sale of securities
offered through this prospectus, we will sell the securities to them as principals. They may then resell those securities to the
public at varying prices determined by the dealers at the time of resale. The applicable prospectus supplement will include the
names of the dealers and the terms of the transaction.
In compliance with the guidelines of the
Financial Industry Regulatory Authority, Inc., or FINRA, the maximum discount or commission to be received by any FINRA member
or independent broker-dealer may not exceed 8% of the aggregate amount of the securities offered pursuant to this prospectus and
any applicable prospectus supplement.
Direct Sales and Sales through Agents
We may sell the securities offered through
this prospectus directly. In this case, no underwriters or agents would be involved. Such securities may also be sold through agents
designated from time to time. The applicable prospectus supplement will name any agent involved in the offer or sale of the offered
securities and will describe any commissions payable to the agent. Unless otherwise indicated in the applicable prospectus supplement,
any agent will agree to use its commonly reasonable efforts to solicit purchases for the period of its appointment. We may sell
the securities directly to institutional investors or others who may be deemed to be underwriters within the meaning of the Securities
Act with respect to any sale of those shares. The terms of any such sales will be described in the applicable prospectus supplement.
Offered securities may be sold at a fixed
price or prices, which may be changed, or at varying prices determined at the time of sale. Any agent involved in the offer or
sale of the offered securities in respect of which this prospectus is delivered will be named, and any commissions payable by us
to such agent will be set forth, in the supplement relating to that offering. Unless otherwise specified in connection with a particular
offering of securities, any such agent will be acting on a best efforts basis for the period of its appointment.
As one of the means of direct issuance
of offered securities, we may utilize the services of an entity through which it may conduct an electronic “dutch auction”
or similar offering of the offered securities among potential purchasers who are eligible to participate in the auction or offering
of such offered securities, if so described in the applicable prospectus supplement.
Delayed Delivery Contracts
If the applicable prospectus supplement
indicates, we may authorize agents, underwriters or dealers to solicit offers from certain types of institutions to purchase securities
at the public offering price under delayed delivery contracts. These contracts would provide for payment and delivery on a specified
date in the future. The contracts would be subject only to those conditions described in the prospectus supplement. The applicable
prospectus supplement will describe the commission payable for solicitation of those contracts.
Market Making, Stabilization and Other Transactions
Unless the applicable prospectus supplement
states otherwise, each series of offered securities will be a new issue and will have no established trading market. We may elect
to list any series of offered securities on an exchange. Any underwriters that we use in the sale of offered securities may make
a market in such securities, but may discontinue such market making at any time without notice. Therefore, we cannot assure you
that the securities will have a liquid trading market.
Any underwriter may also engage in stabilizing
transactions, syndicate covering transactions and penalty bids in accordance with Rule 104 under the Securities Exchange Act
of 1934, as amended, or the Exchange Act. Stabilizing transactions involve bids to purchase the underlying security in the open
market for the purpose of pegging, fixing or maintaining the price of the securities. Syndicate covering transactions involve purchases
of the securities in the open market after the distribution has been completed in order to cover syndicate short positions.
Penalty bids permit the underwriters to
reclaim a selling concession from a syndicate member when the securities originally sold by the syndicate member are purchased
in a syndicate covering transaction to cover syndicate short positions. Stabilizing transactions, syndicate covering transactions
and penalty bids may cause the price of the securities to be higher than it would be in the absence of the transactions. The underwriters
may, if they commence these transactions, discontinue them at any time.
Derivative Transactions and Hedging
We and the underwriters may engage in derivative
transactions involving the securities. These derivatives may consist of short sale transactions and other hedging activities. The
underwriters may acquire a long or short position in the securities, hold or resell securities acquired and purchase options or
futures on the securities and other derivative instruments with returns linked to or related to changes in the price of the securities.
In order to facilitate these derivative transactions, we may enter into security lending or repurchase agreements with the underwriters.
The underwriters may effect the derivative transactions through sales of the securities to the public, including short sales, or
by lending the securities in order to facilitate short sale transactions by others. The underwriters may also use the securities
purchased or borrowed from us or others (or, in the case of derivatives, securities received from us in settlement of those derivatives)
to directly or indirectly settle sales of the securities or close out any related open borrowings of the securities.
Loans of Securities
We may loan or pledge securities to a financial
institution or other third parties that in turn may sell the securities using this prospectus and an applicable prospectus supplement.
General Information
Agents, underwriters, and dealers may be
entitled, under agreements entered into with us, to indemnification by us, against certain liabilities, including liabilities under
the Securities Act. Our agents, underwriters, and dealers, or their affiliates, may be customers of, engage in transactions with
or perform services for us or our affiliates, in the ordinary course of business for which they may receive customary compensation.
Conflicts of Interest
Underwriters, dealers and agents may be
entitled, under agreements with us, to indemnification by us relating to material misstatements and omissions in our offering documents.
Underwriters, dealers and agents may engage in transactions with, or perform services for, us in their ordinary course of business.
Except for securities issued upon a reopening
of a previous series, each series of offered securities will be a new issue of securities and will have no established trading
market. Any underwriters to whom offered securities are sold for public offering and sale may make a market in such offered securities,
but such underwriters will not be obligated to do so and may discontinue any market making at any time without notice. The offered
securities may or may not be listed on a securities exchange. No assurance can be given that there will be a market for the offered
securities.
LEGAL MATTERS
Except as otherwise set forth in the applicable
prospectus supplement, certain legal matters in connection with the securities offered pursuant to this prospectus will be passed
upon for us by Kirkland & Ellis International LLP, our special United States counsel, to the extent governed by the laws
of the State of New York, and by Harney Westwood & Riegels LLP, our special legal counsel as to the British Virgin Islands
law, to the extent governed by the laws of the British Virgin Islands. Legal matters as to PRC law will be passed upon for us by
Zhong Lun W&D Law Firm, Shanghai Branch, our counsel as to PRC law.
EXPERTS
The consolidated financial statements as
of December 31, 2019, incorporated by reference in this prospectus and elsewhere in the registration statement, have been so incorporated
by reference in reliance upon the report of Grant Thornton, independent registered public accountants, upon the authority of said
firm as experts in accounting and auditing.
The offices of Grant Thornton are located
at 45th Floor, Raffles City, 268 Xizang Zhong Road, Huang Pu District Shanghai 200001.
10,000,000
American Depositary Shares
PROSPECTUS SUPPLEMENT
H.C. Wainwright & Co.
January 25, 2021
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