Koon Holdings Ltd

Electric Power Generation

As part of its strategy to generate additional recurring income to the Group, Koon acquired a stake in Tesla Holdings Pty Ltd ("Tesla") in July 2010.

Tesla is an Australian energy infrastructure company which has successfully attained capacity credit allocations from the Independent Market Operator ("IMO") of Western Australia. These allocations provide Tesla an incentive by granting a recurring source of income for the initial capital investment of power generation plants.

Tesla now owns and operators a total of four 9.9MW diesel power plants in Western Australia. The first plant was commissioned in August 2011 and the remaining three was completed in late 2012.

To date, Koon owns 74.1% equity stakes in Tesla.