GCL Poly subsidiary secures public backing for its operations in Xuzhou

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Chinese polysilicon giant GCL Poly has announced it will make a RMB1.35 billion ($201 million) commitment to a clean energy investment partnership in the Chinese city of Xuzhou – and could well secure a slice of that outlay for its own coffers further down the line.

In an after-hours announcement to the Hong Kong Stock Exchange on Friday, GCL Poly Energy Holdings Ltd announced its indirect, non-wholly owned polysilicon-making subsidiary Jiangsu Zhongneng Polysilicon Technology Development Co Ltd would be contributing around 40% of the RMB3.35 billion Xuzhou Zhongping GCL Industrial Upgrading Investment Fund LLP.

GCL has spent big on a huge expansion of its polysilicon production capacity and needs an outlet for its product and, handily for the poly maker and solar project developer, the terms of the investment fund it is bankrolling in Xuzhou permit the partners to authorize investment in another indirect, non-wholly owned GCL Poly Energy subsidiary: Xinjiang GCL New Energy Material Technology.

With the stated purpose of the investment fund being to promote the “industrial transformation and upgrading of Jiangsu Zhongneng and the competitiveness of Xuzhou enterprises” in PV and clean energy, the cash pile can also be used to invest in “the intelligent slicing project” being planned by GCL Poly Energy Holdings.

GCL’s Jiangsu Zhongneng unit will hold the largest stake in the fund – 40.26% – with the state-owned Xuzhou City Guidance Fund and the Xuzhou Economic and Technological Development Zone Jinlong Lake City Investment Co Ltd among four holders of a 14.92% interest.

Jiangsu Zhongneng will also nominate two members of the eight-strong decision making committee that will decide which projects the fund will invest in.

Elsewhere on the Hong Kong exchange, Wanchai-based solar manufacturer Solargiga this morning announced a 53.1% rise in ingot, wafer, cell and module shipments from January to April, compared with the opening quarter of last year.

According to the company’s unaudited first-quarter figures it shipped 707.3 MW of products to the end of March, up from 462.1 MW in the same period last year.

That added up to production revenues of RMB921.5 million, up from RMB637.5 million in Q1 2018, although “other revenue” fell 93.9% by the same comparison, from RMB19.7 million to just RMB1.2 million in the first three months.

That added up to a 40.4% rise in overall revenues by comparison of opening quarters, from RMB657.2 million last year to RMB922.7 million.