Chinese polysilicon manufacturer GCL Technology Holdings Ltd. will set up a CNY 2.06 billion limited partnership to acquire a 42.5% stake in Inner Mongolia Xinyuan Silicon Material Technology Co., Ltd., keeping the granular silicon producer as a non‑wholly owned subsidiary, according to a statement to the Hong Kong Stock Exchange this week.
The move appears to signal mounting consolidation pressure in China’s polysilicon sector, in line with recent reports indicating that China’s six largest polysilicon producers are developing a $7 billion plan to slash oversupply and stabilize prices.
The partnership, formed with China Cinda Asset Management Co. Ltd. and other investors, will purchase equity interests from Hongyuan Green Energy and Tibet Ruihua for CNY 2.01 billion. Cinda will contribute CNY 1.3 billion as a limited partner, while GCL Suzhou will add CNY 760 million. Smaller contributions will come from three general partners, including GCL Xuzhou.
The transaction, announced after trading hours on Dec. 8, qualifies as a disclosable and connected transaction under Hong Kong listing rules, but is exempt from shareholder approval. GCL said the terms were fair and reasonable, with board approval including independent directors.
The deal comes as China’s six largest polysilicon producers reportedly weigh a $7 billion consolidation plan to cut overcapacity and stabilize prices. Analysts have said that such moves could potentially lift wafer demand and push prices higher across the solar supply chain.
Ru Jialin, the director of international cooperation department at the China Photovoltaic Industry Association (CPIA), told pv magazine last week that the Chinese government likely wants market players to resolve the overcapacity problem by themselves, but declined to comment directly on reports about the consolidation push.
“We advocate market-oriented ways to solve the problem,” Ru said on the sidelines of the recent China-EU Solar & Energy Storage Industries Dialogue 2025 in Düsseldorf, Germany. “I think the most effective way is to follow the market trend.”
GCL, one of the country’s leading polysilicon and wafer suppliers, reported that the target company had CNY 4.79 billion in revenue in 2024 but a net loss of CNY 605 million.
Cinda will receive a fixed annualized return of 6.5% on its investment, with redemption obligations falling to GCL’s Zhongneng subsidiary, according to the stock exchange statement. The partnership’s financial results will be consolidated into GCL’s accounts until certain triggering events occur, said GCL Technology.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.