United PV Acquires 40MW Solar Power Plants in Xinjiang and Hebei

United Photovoltaics Group Limited (“United PV” or the “Company”, stock code: 00686.HK, whose largest shareholder is China Merchants New Energy Group “CMNE”), a leading solar power plant investor and operator in China, was pleased to announce on 1 December that, United Photovoltaics (Changzhou) Investment Co., Ltd. (“United PV (Changzhou)”), a wholly-owned subsidiary of the Company acquired two solar power plants with a total installed capacity of approximately 40MW from Zhaoxin Energy Investment (Shanghai) Co., Ltd. (“Zhaoxin Energy Investment”).

Pursuant to the agreement, United PV (Changzhou) has agreed to acquire the entire equity interests in Wujiaqu Lishang Photovoltaics Power Co., Ltd. and Tangshan Zhaoxin Solar Power Co., Ltd., together with two solar power plants with an aggregate installed capacity of approximately 40MW in Wujiaqu, Xinjiang Uyghur Autonomous Region and Tangshan, Hebei Province. It is expected that the two solar power plants would achieve on-grid connection and commence operation at the end of December 2015 and first quarter of 2016 respectively. The total consideration of not more than RMB356 million would be financed by internal resources and external financing.

In regard of the proposed acquisitions, United PV (Changzhou) has also agreed to assist Zhaoxin Energy Investment in obtaining financing from banks and financial institutions in an aggregate loan amount of no more than RMB257 million for the construction and development of the Wujiaqu Plant and the Tangshan Plant.

Mr. Alan LI, Chairman of the Board and CEO of the Company, said: “It is United PV’s strategy to identify suitable investment opportunities to acquire solar power plants with good prospects and potential for stable returns. This acquisition will strengthen the Company’s existing solar power plant portfolio and further expand United PV’s scale of business in the solar energy sector to enhance return to the shareholders.”