Hong Kong, China, 18 December 2014 - 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, the Company entered into the Connected Transaction Subscription Agreement with CMNE and Magicgrand Group Limited (“Magicgrand”), and the Zhongli Subscription Agreement with Zhongli New Energy (Hong Kong) Investment Limited (“Zhongli”), to raise HK$380 million in aggregate. The subscriptions increased the shareholding of CMNE and parties acting in concert with it in United PV to 1,042,455,621, representing 21.99% of the enlarged issued share capital of the Company. 

Pursuant to the subscriptions, CMNE and Magicgrand will subscribe for an aggregate of 200 million shares in cash at a subscription price of HK$1.0, representing approximately 4.22% of the enlarged issued share capital of the Company; and Zhongli will subscribe for an aggregate of 180 million shares in cash at a subscription price of HK$1.0, representing approximately 3.80% of the enlarged issued share capital of the Company.

The subscription price of HK$1.0 per share represents a premium of approximately 12.36% to the closing price of HK$0.890 per share at Hong Kong Stock Exchange on 18 December 2014, and a premium of approximately 12.61% to the average closing price of HK$0.888 per share for the last five consecutive trading days up to and including 18 December 2014. The aggregate net proceeds derived from the subscriptions will be used as the Company’s general working capital.

Following China Merchants Group (“CMG”)’s stake increase in CMNE on 15 December 2014, the stake increase in United PV in cash indicates CMG’s determination in expanding the new energy business by the combination of industry and finance. Mr. LU Zhenwei, Managing Director of China Merchants Capital and Chairman of China Merchants Technology, said: “With the financing arrangement this time, United PV will obtain more capital to lower its gearing ratio and expand the solar power plant business at a steadier and healthier pace. In the future, we will support United PV with resources by establishing energy funds with important strategic partners and jointly acquiring projects with banks and financial leasing companies. In addition, with the introduction of CMG’s management experience and systems, we will help the Company to further enhance its operation and management efficiency, building an innovative and outstanding enterprise for CMG. ”