Hong Kong, China, 5 September 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, was pleased to announce that United PV, Huabei Expressway Co., Ltd. (“Huabei Expressway”, listed in Shenzhen with stock code: 000916.SZ), a company under China Merchants Group, and Jiangsu Yongneng New Energy Investment Limited (“Jiangsu Yongneng”) signed a three-way sale and purchase agreement. United PV and Huabei Expressway will jointly acquire 93.68% equity interest in Guodian Kezuohouqi Photovoltaics Company Limited (“Guodian Kezuohouqi”) from Jiangsu Yongneng for a total consideration of RMB74.94 million (equivalent to approximately HK$94.43 million). Guodian Kezuohouqi owns a solar power plant with a total installed capacity of approximately 40MW in Keerqinzuoyihouqi (“Kezuohouqi”), Inner Mongolia.
For the acquisition, the Company will invest RMB7.49 million (equivalent to approximately HK$9.44 million) for a shareholding of 9.37% and Huabei Expressway will invest RMB67.45 million (equivalent to approximately HK$84.98 million) for a shareholding of 84.31%. The remaining 6.32% equity interest will continue to be held by Guodian Naiman Windpower Company Limited (“Naiman Windpower”), which will be responsible for the operation and maintenance of the according power plants. In addition, the Company, Huabei Expressway, Naiman Windpower and Jiangsu Yongneng entered into an electricity guarantee agreement regarding the acquisition. Jiangsu Yongneng and Naiman Windpower undertake the average annual power generating volume, with an average annual value of 58,210,000 kWh, for a period of 20 years commencing from the date of commencement of operations of the power plant. Moreover, the Company entered into a call option agreement with Huabei Expressway. The Company is entitled to exercise its call option within three months from the end of the period of three years after the acquisition to acquire part of the equity interest in Guodian Kezuohouqi owned by Huabei Expressway.
Mr. Zhenwei LU, Executive Director of United PV, said: “We are delighted to sign the sale and purchase agreement to implement the acquisition. The power plant will help generate synergistic effects with its desirable investment prospect. The acquisition of minority stake and the signing of call option agreement enable the Group to have more control over its investment strategy in its investment target. It is expected the joint acquisition with Huabei Expressway under China Merchants Group again will help consolidate the Group’s resources and allow both companies to leverage on their advantages.”
Mr. LU added: “As highlighted by Mr. WU Xinxiong, Director of the National Energy Administration, during the Asia-Pacific Economic Cooperation Energy Ministers Meeting on 2 September, the supply of clean energy remains a priority in advancing sustainable development, ensuring energy security and adapting to climate change. As promised in the Beijing Declaration passed during the meeting, the share of renewables in the Asia-Pacific Region energy mix, including in power generation, will double from 2010 levels by 2030. As a representative of state-owned enterprises, United PV and Huabei Expressway under China Merchants Group will strengthen the synergy within the Group, join again to echo the central government’s call to responsibly promote the development of clean energy and solar power business. We are committed to injecting new momentum into the green economic development and achieving the goal soon.”