Hong Kong, China, 28 May 2015 –United Photovoltaics Group Limited (“United PV” or the “Company”, stock code: 00686.HK, whose largest shareholder is China Merchants New Energy Group “CMNE”) is pleased to announce today that, the Company entered into a formal subscription agreement with China Huarong International Holdings Limited (“Huarong International”) for USD100 million convertible bond subscriptions today. Pursuant to the agreement, Huarong International will subscribe for the 7% three-year convertible bonds in the principal amount of US$100 million issued by the Company, at the conversion price of HK$1.3. The proceeds from which will be used for the acquisition of solar power plants in China.

Huarong International is an indirectly wholly-owned subsidiary of China Huarong Asset Management Co., Ltd. (“China Huarong”), principally engaged in investment business. With the approval of the State Council of China, China Huarong was established as a state-owned non-banking financial corporation in 2012 jointly by the Ministry of Finance and China Life Insurance (Group) Company. It is one of the largest four financial assets management companies in China with total assets of over RMB600 billion by the end of 2014.

Since the early 2015, United PV’s financing plan has topped the industry. The Company has partnered up with China Orient Asset Management, Fosun International, Chinastone, China Merchants Fund, BC Capital, China Merchants Yinke, Credit Suisse and CITIC Capital through the issue of convertible bonds that amounted to approximately HK$6 billion in the past six months. 

On May 26, United PV has signed a contract with Huaxia Life to develop solar power plants in China, with a total installed capacity of 1GW and an aggregate consideration of RMB9 billion, opening up a new situation that brings Chinese insurance fund into solar power plants.

As a large state-owned financial enterprise, China Huarong possesses not only strong financial capital, but also unique advantages in connecting with local governments. United PV, a leading solar power plant investor and operator in China, provides a quality platform for China Huarong to boost the distribution of the emerging industry.

United PV is set to become a role model of effective combination of industry and finance, thus creating dynamics in sourcing financing capital through the collaboration with sizable financial institutions to jointly create a cross-border platform for the combination of new energy and finance.