Lattice is a private firm founded by Prof. Fengyi Jiang (an expert in LED technology), Dr. Min Wang and funded by reputable private equity and venture capital funds with expertise in new technologies such as GSR Ventures, Mayfield Fund, AsiaVest, Temasek Holdings, Keytone Ventures. The Company’s other shareholders include the management team and small private investors.

The total project cost is approximately $100 million and consists of capital expenditures related to the purchase of up to 20 MOCVD machines and build out of a new manufacturing facility. IFC’s proposed funding is yet to be determined but it is projected to be up to $20 million.

17.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	17.50

* These investment figures are indicative

The Company is headquartered in and has its manufacturing operations in the high-tech development zone located in Nanchang, Jiangxi Province, China.

IFC’s expected development impact resulting from a potential investment in Lattice includes: Contributing to the development of Jiangxi Province which has a much lower GDP per capita (US$2,200) compared to the average GDP per capita in China (US$3,200). Helping China address climate change challenges by financing a company that manufactures energy efficient LED technology. The success of this Project will provide the development of an important technology notably for more energy efficiency lighting, computer monitors, notebook and TV displays. Creating employment opportunities for both operational and management positions (around 1000 new employees) in a frontier region.

(i) Attract additional investment: IFC’s funding is expected to provide confidence that will attract other international investors and banks to the Company. (ii) Environmental and social standards: IFC’s partnership can help the Company to achieve higher levels of social and environmental best practices.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because it may create a limited number of specific environmental and social impacts that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. Key environmental, health and safety, human resources and social issues that were reviewed included: environmental and social management system (scope and implementation); quality and sustainability of water resources; emissions to the environment – air, water and subsurface; solid, and hazardous waste and materials management, including transportation; life and fire safety; community and occupational health and safety; energy use and efficiency; community engagement; and land acquisition. Lattice Power has an actively engaged management program and has presented specific plans to address key issues and gaps to ensure continued compliance with local regulatory requirements as well as consistency with IFC Performance Standards and applicable environmental, health and safety guidelines.