The following are the highlights of the Chairman’s Q&A session at the 2018 Annual General Meeting.

The Chairman read from his letter to shareholders dated 4th June 2018. He wished to reiterate that the Board sends their best wishes to the outgoing director Li Jiawei for her speedy return to full health and to thank her for her valuable contribution to our work with our major shareholder and our joint venture partners. The Board is seeking to appoint a suitable replacement at the earliest opportunity.

The Chairman then took questions from the floor. At the commencement, there was a conversation with one particular shareholder who wished to raise a number of points starting with a question about the auditors expressing no opinion on the financial statements and in his opinion it was not an annual report, then concerning the outcome of the recently concluded litigation between the company and that particular shareholder and then, subsequently, the DBC contract. The Chairman and Managing Director considered much of this touched on the litigation that was recently concluded satisfactorily in the company’s favour but was still covered by a confidentiality agreement. So, the particular shareholder was invited by the Chairman to release the Board from their confidentiality obligations in order that they could respond in full to the questions posed. The particular shareholder declined and therefore that part of the Q&A discussion was concluded and it is considered inappropriate to report further because of the confidentiality obligations.

Q: Is litigation against all the former directors?

Chairman: No, not all the former directors.

Q: What is going to happen to my shares and is there a difference between my ordinary and my B shares and what is there value?

A: The Company Secretary explained there was no meaningful difference between the ordinary shares and B ordinary shares and for all practical purposes they can be treated as the same. They have the same voting rights and the same fractional ownership rights in the company. The Company Secretary said that he was often asked about the value of our shares particularly from smaller shareholders who had bought their shares when the company was listed or enquiries regarding probate. The company was no longer listed and there were no market makers in the shares. Therefore, it was very difficult to apply a public market value for the shares. Ultimately, it was what price a buyer and a seller were prepared to buy and sell their shares between themselves. However, as a broad and very much an informal guide, if you divide the company’s net worth as indicated in the 2017 Accounts by the number of shares in issue, you get a figure of approximately 3p per share. Or, if we look at the price of the new shares issued or the tender offer for shares in our two most recent corporate events, the price was 2p per share.

Q. Can you tell us more about our Chinese investment and the lack of valuation information updates which the auditors brought to our attention?

Chairman: We have a 20% stake in our Chinese joint venture, Zhongying, with our partner Kaidi which group has a substantial position in China in the green renewable energy field. This area is very much in vogue in China and it is where China wants to be. Kaidi has many clean energy producing factories and has been set a larger target by the Chinese Government. Where does that leave us? We are working very hard with Kaidi to find a way together of using our presence in London, and the capital markets here, probably to raise capital which will be needed in future by the group. There is the much publicised factory being built in Finland and that itself is a very large project. We were expecting to receive further substantial information on Zhongying’s assets by the time of this annual General Meeting but we find we are in a bit of a waiting phase due to a restructure of the Chinese business. We expect to receive more information later in the year. So, there is no way for me to tell you definitively the future of course but my vision is to see that happen and to deal with that in the course of next year.

Q: Kaidi is a private group. Any hope that a re-listing is likely to be in the UK?

Chairman: We have done a lot of work on this aspect and where might be the best place to list for the new group or whether we go private as a first step. We have investigated New York, Paris, Frankfurt, London, Hong Kong and Singapore for instance. No final decision has yet been taken but it does look like London is probably the most appropriate location. London and New York are the places if you want to raise money in the green energy space and this is notwithstanding there isn't great affinity at the moment between China and the USA. Paris is too small and Frankfurt is not best suited either.

Q: Who is Richpoint?

Chairman: They are our major shareholder who we have now met with a few times and they are very supportive of our activities.

Q: Did they submit a proxy?

Chairman: Yes they did. All together we have received over 400 million proxy votes in favour of the resolutions.

Q: Will there be an increase in shares?

Chairman: We have no plans to do that.

Q: If there is will there be an opportunity for shareholders to bid? I’d like to know if there is an opportunity to bid for shares. I don’t think there is liquidity in the shares but I do believe in the future. I am supportive of what you were doing but it does seem to be at quite a high annual cost.

Chairman: I understand the point about costs but it is not possible to deal with these very important possible future capital initiatives and all the various systems and their regulations and dealing with our partners without doing a huge amount of a professional work which, if we succeed, will be of great benefit to our shareholders and the company’s value in the future. Sometimes you just have to invest to gain. There has been a return for those who wanted out and we facilitated a mechanism for those who wanted to leave our journey and those that wanted to leave took that opportunity. For those that remain, what we have been doing and what we are doing may result in great benefit in the future but that can't be done without the levels of internal organisation that we have put in place.

Q: I would like to thank the Board for their efforts? We are grateful to you for what you've done and you should be paid something for your efforts and you can't do it for free. How long before we might see some movement on what you discussed?

Chairman: Thank you. It really is up to our partners in the Far East but we are working very hard on this and we hope to be out again to meet with our joint venture partners later this year and to obtain more information.