Jinzhou Yangguang already holds a 96% stake in Jinzhou Jinmao, which owns a 75.89% stake in the target company, which manufactures PV modules. Solargiga Energy’s total stake in Jinzhou Motech will increase to 93.69% following Jinzhou Yangguang’s purchase of the 17.8% stake.
“The acquisition allows the group to simplify the shareholder structure of Jinzhou Motech and Jinzhou Jinmao… to facilitate the further future consolidation of multiple photovoltaic module manufacturing companies into one photovoltaic module manufacturing company with larger capacity,” Solargiga Energy said.
Jinzhou Motech’s registered capital currently stands at CNY 64.04 million, according to a statement to the Hong Kong stock exchange. It posted a net profit after tax of CNY 2.02 million in the year to the end of December 2017, with total assets valued at CNY 359.5 million.
In March, Solargiga Energy reported a net profit of CNY 107.5 million for 2017, reversing a net loss of CNY 239.149 million in the previous year. Full-year revenue jumped more than 32% year on year to CNY 999.6 million.
Also in March, Jinzhou Chuanghui New Energy — a wholly owned unit of Solargiga Energy — announced plans to spend CNY 160 million to build a 1 GW PV module production line. Mass production is set to begin at the end of the current quarter.
Last September, Solargiga Energy also announced plans to invest in 1.2 GW of monocrystalline silicon ingot and monocrystalline silicon wafer output capacity in Qujing, China’s Yunnan province.