On June 2, 2018, Dang Yu Pan submitted a preliminary non-binding proposal letter to the Highpower International, Inc.’s board of directors. In the proposal letter, Dang Yu Pan proposed to acquire, through an acquisition vehicle to be formed by Dang Yu Pan, all of the outstanding shares of common stock that are not already directly or indirectly beneficially owned by Dang Yu Pan for cash consideration equal to US$4.80 per share of common stock to be funded by a combination of debt and equity capital arranged by Dang Yu Pan. It is anticipated Dang Yu Pan will roll over his equity interests in the Issuer to such acquisition vehicle. The proposal letter stated that Dang Yu Pan expects commitments for the debt financing, subject to terms and conditions set forth therein, to be in place when the definitive agreements for the acquisition are executed. Dang Yu Pan also stated in the proposal letter that he is only interested in pursuing the acquisition and does not intend to sell his stake in the Company to a third party.