On September 1th, 2016, SpaceX's Falcon 9 rocket carrying Amos-6 satellite exploded on a launch pad. This explosion destroyed Amos-6 satellite built by the Israeli satellite company Space-Communication Ltd. (Hereinafter referred to as SCC).
SCC is Xinwei Group’s valued partner in the satellite industry. On August 24th, the Group and its affiliated companies signed a share purchase agreement with SCC on the planned acquisition of its 100% shares.
Our group feels deep regret about the explosion and destruction of Amos-6 satellite and expresses its condolences to SCC.
This acquisition is yet to be delivered and there are agreed terms that the acquisition is contingent on the successful launch of Amos-6. Thus losses caused by the Amos-6 failure will not exert impact on our group’s finances.
Our group has maintained close communication with SCC about the explosion’s impact on the ongoing transaction between the two, and will jointly evaluate the transaction and make further consultations. The negotiation progress will be disclosed in a timely manner.
Failures and accidents happened from time to time in humans’ aerospace history. For more convenient and reliable communications, mankind has been committed to endless explorations and brave innovations. This explosion will make no difference to the satellite strategy of Xinwei Group. The Group will be ever more determined to construct integrated space and terrestrial information network and make continuous contributions to the world’s technological progress.
Beijing Xinwei Technology Group Co., Ltd.
September 2nd, 2016