Mr. Katsuhiko Kodaira , President and Mr. Masashige Kodaira, Senior Director of Kitamura Kiden Co., Ltd.(KKC) arrived at SIH, Tokyo from Nagano in Sept. 14th, 2017, with whom Mr. Yinfa Meng, President of SIH attended the working conference. They specially studied the proposal to promote the capitalization of Shanghai SK and discussed the issues concerning the competition within the industry in the process of capitalization. KKC suggested that it would sell a part of shares to a fund company, which helped solve the issues about the competition within the industry, also was conducive to the capitalization of Shanghai SK. Mr. Meng expressed that SIH would have a positive attitude towards any proposal favorable to Shanghai SK capitalization, unless the proposal was neither legal nor flawless. After the discussion, the two presidents agreed that they would seek the advice of all shareholders as soon as possible and conduct the necessary process of study and evaluation, thus go all out to promote the capitalization.