Hong Kong, China, 14 April 2015 - 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, is pleased to announce today that, Guodian Wulatehouqi Solar Power Company Limited (“Guodian Wulatehouqi”), a subsidiary of the Company, and China Kangfu International Leasing Company Limited (“China Kangfu”) entered into a finance lease agreement (“Agreement”), China Kangfu will provide United PV with a finance lease of RMB300 million at an interest rate of 6.49%.
Pursuant to the Agreement, China Kangfu will purchase the leased assets owned by Guodian Wulatehouqi with RMB300 Million. Guodian Wulatehouqi owns a solar power plant with an installed capacity of 40MW in Wulatehouqi, Inner Mongolia, China. China Kangfu will lease the leased assets back to Guodian Wulatehouqi for a period of 10 years, which is expected to commence from 20 April 2015, for an aggregate lease consideration of approximately RMB399 million to be paid in 40 quarterly installments in cash.
On the same date, China Kangfu and Guodian Wulatehouqi also entered into an agreement, pursuant to which China Kangfu shall provide Guodian Wulatehouqi with consultancy services in connection with the Agreement and Guodian Wulatehouqi shall pay China Kangfu a total consultancy fee of RMB51 million.
Mr. Zhenwei LU, Executive Director of United PV, said: “The low interest finance lease provides the Company with more liquidity, allowing the Company to make better allocation of resources, it has also increased our access to different sources of low interest financing and optimised our financing structure in mainland. It signifies our financial partners’ recognition and confidence in United PV’s general performance and development strategies. Looking forward, leveraging on the strong capital base of the Company and the rapid development of the solar industry, United PV is expecting a growth in its solar installations and striving to become the most influential solar power plant operator.”
