China Power does JV deal for domestic growth
Jinzhou Yangguang Energy has entered into a processing contract with CPI Solar Power, a subsidiary of China Power Investment Corporation (CPI). The deal will see Jinzhou, a subsidiary of Solargiga, provide processing services to CPI in respect of 73 MW solar modules before the end of 2014.
The Processing Contract enables the Company to expand its business cooperation with CPI, one of the five state-owned power generation companies in China. CPI will become the Group's second largest client in terms of total sales volume after Sharp Corporation.
The Chinese government actively promotes the domestic photovoltaic application market demands. As one of the five state-owned power generation groups in China, CPI is strong on the development and construction of domestic new energy and plays an important role in the PV market in particular.
The Group has maintained stable partnership with CPI in the area of PV ingot and wafer businesses with stable increase shipment volume. The Processing Contract expands and deepens the cooperation scope between the Group and CPI and boosts the shipment volume of various products. Therefore, based on the 2014 total shipment volume of the Group covering the entire PV industry chain, CPI will become the Group's second largest client after Sharp.
It is noteworthy that upon the Processing Contract being entered into, CPI is starting to widely adopt new high-end monocrystalline silicon wafer products which is developed by the Group recently for producing monocrystalline silicon cells. Highly cost-competitive 280W modules can be produced by using new high-end monocrystalline silicon wafer products. Therefore, construction cost of PV system will be reduced and investment return rate of PV power generation will be improved.
