GCL signs PV supply deals for 370 MW in China


Shenzhen-based China Resources will also buy frames, combiner boxes, inverters, transformers and cables that will be used in the project for CNY 51.5 million, ($7.5 million) from green-tech research firm Zhongjian Zhonghuan and Nanjing GCL New Energy, which is a indirect wholly owned unit of GCL New Energy. China Resources Leasing will then lease all of the equipment to group unit Suixi GCL, for CNY 263.9 million, payable in quarterly instalments over a period of eight years.

In addition, China Resources Leasing has agreed to pay CNY 260 million ($38 million) to buy solar panels and other PV system equipment for a 50 MW solar array that Ruyang GCL — a unit of GCL New Energy — plans to build in Ruyang, Henan province.

As part of that deal, China Resources Leasing will then lease that equipment to Ruyang GCL for CNY 318.8 million ($46.2 million) over a period of of eight years, in addition to providing CNY 31.2 million (4.5 million) of unspecified consulting services to GCL New Energy. When the leasing arrangement ends, Ruyang GCL will buy the equipment back from China Resources Leasing for the nominal price of 100 yuan.

In a statement to the Hong Kong stock exchange, GCL New Energy said that the leasing arrangements will help to provide the group with funds to build solar projects and shore up its working capital.

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Separately, Linzhou Xinchuang — another indirect wholly owned subsidiary of GCL New Energy — secured a 12-month, non-revolving credit facility of up to CNY 330 million ($48 million) from the Beihuan branch of the Bank of Zhengzhou. In a related transaction, leasing firm Henan Honesty bought an undisclosed amount of 310 W solar panels — as well as other unspecified balance-of-system equipment — from Linzhou Xinchuang for CNY 220 million ($32 million). Henan Honesty has agreed to rent those components back to Linzhou Xinchuang for a period of 12 years for CNY 280.1 million ($40.6 million). Henan Honesty will also buy additional 300 W and 310 W solar panels from Linzhou Xinchuang for CNY 70 million yuan, and then rent them back to the GCL New Energy group for 91.3 million yuan over a period of 12 years.

The leasing arrangements are similar to other agreements that GCL New Energy has signed in the past. Most recently, it agreed to sell $14 million of PV manufacturing equipment to China Finance in two separate transactions last October.

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