Kong Sun buys 100 MW for $80.3 million

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The wholly owned group unit has agreed to buy a 95% equity stake in Jiayuguan Xiehe New Energy for CNY 123.4 million ($18.1 million) from Huayuan Hongsheng Energy Technology. Jiayuguan Xiehe New Energy — which was established in 2013 — is building a 50 MW array in Jiayuguan, Gansu province. The installation is partially finished, with the first unspecified phase already connected to the grid.

The special project company posted an unaudited net loss after taxation of CNY 1.5 million in 2016, with total assets valued at CNY 127.7 million. Upon completion of the equity stake sale, it will become a non-wholly owned subsidiary of Kong Sun. The transaction will be finalized within 30 days, by means of a single payment, according to a statement to the Hong Kong stock exchange.

Kong Sun Yongtai has also agreed to buy entire equity interest in Lintan Tianlang New Energy Technology for CNY 87.09 million from Huayuan Hongsheng Energy Technology, a PV investor based in Beijing. The project company is now building a 20 MW solar array in Lintan county, Gansu province. The undisclosed first phase of the project has already been connected to the grid.

Upon completion of the transaction, Lintan Tianlang New Energy Technology — which was established in late 2015 — will become a wholly owned unit of Kong Sun. It recorded a net loss of CNY 53,000 in the year to the end of December 2016.

Separately, Kong Sun Yongtai Investment agreed to buy another special purpose vehicle from Zhengxin Tianhang (Shaanxi) Electricity Technology for CNY 336.9 million. It will finalize its acquisition of the 100% equity stake via a one-off payment within the next 30 days, after which it will take control of an operational 30 MW solar array that the project company built in Yulin, Shaanxi province.

Kong Sun – which started as a property investor before moving into solar investment –  recorded a profit of CNY 54.8 million in 2016, from a a loss of CNY 98.9 million in the preceding year, as its operational PV portfolio roughly doubled in size. Its solar projects generated roughly 522.7 GWh in the January-May 2017 period, up from 374.7 GWh in the January-April period and 273,296 MWh a year earlier. Its total installed PV capacity stood at 1.2 GW at the end of May, up slightly from approximately 1.15GW at the end of December.

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