On July 11, 2013, Shenzhen SED approved the proposal to establish joint venture the thirteenth Extraordinary Meeting of its Sixth Board of Directors, the Board of Directors agreed to jointly fund with Philips Electronics China BV for the establishment of Shenzhen CFL Sang Fei smart lighting Technology Co., Ltd. (tentative name, the final name based on the approved business license).

The registered capital of this joint venture is up to 100 million Yuan, Shenzhen SED invested its own funds of 70 million Yuan in cash, accounting 70% interest of the joint venture, Philips invested 30 million Yuan in cash from legitimate sources outside China, taking up 30% interest of the joint venture.

In accordance with the agreement, the joint venture will provide lighting products related to intelligent lighting and control systems sales and system integration; intelligent system solutions for low-carbon urban applications and development, production, sales of related products and system integration; engineering construction and operation services of intelligent carbon urban application of systems.