With Chinese solar glass maker and project developer Xinyi Solar planning to expand both operations next year, the Wuhu-based company today announced plans for a shares issue to raise HK$1.31 billion (US$167 million).
Xinyi experienced an up and down year in 2018 when it came to solar glass prices, as its recent full-year figures revealed, but is pressing ahead nevertheless with plans for two new 1,000 ton/day production lines in Beihai in China’s autonomous region of Guangxi.
With the production lines slated to open in the first and second quarters of next year, an announcement to the Hong Kong Stock Exchange today outlined plans for parent company Xinyi Glass to issue 380 million shares in Xinyi Solar – almost 5% of the subsidiary’s current stock – to raise funds, before repurchasing a similar holding in its subsidiary so that its interest is not significantly diluted.
Retaining an interest
Xinyi Glass, which manufactures all manner of non PV-related products, is set to retain a 25.28% stake in Xinyi Solar if all goes to plan – only marginally down from its current 26.53% interest.
Documents outlining the shares issue and top-up plan explain Xinyi Solar expects to boost its coffers by a net HK$1.31 billion after the fundraising, and would devote the money to capital expenditure on solar farm projects, solar glass production capacity expansion and the ubiquitous ‘general working capital’.
Xinyi’s recent financials set out how it quickly switched focus to project development after Beijing announced an intent to rein in public subsidies for solar at the end of May last year and its project development arm saw growth of more than 30% as it generated profits of HK$1.44 billion.