Goldpoly New Energy Holdings Limited has entered into an agreement with GD Solar Co Ltd, NARI Technology Development Co Ltd, GUODIAN Inner Mongolia New Energy Investment Ltd, Poly Solar Technologies Co Ltd, and Forty-eighth Research Institute of China Electronics Technology Group Corp for the acquisition of 400 MW of solar power plants, subject to the fulfillment of certain conditions.
According to the agreement, GD Solar, NARI, GUODIAN Inner Mongolia New Energy, Poly Solar Technologies and Forty-eighth Research Institute will build solar power plants in China. GD Solar will conduct engineering, procurement and construction (EPC) activities and own 100% equity in the projects. Goldpoly will acquire the projects from GD Solar after the solar power plants are connected to grids and have passed inspections. Goldpoly will acquire from GD Solar certain completed solar power plants with an aggregate electricity generation capacity of approximately 400 MW.
The acquisition's fulfillment conditions include having passed relevant PRC government regulatory requirements; obtaining all approval documents from relevant government authorities; completing construction and having been connected to grids; EPC contracts having been approved by third party and financial requirements etc. Provided that the internal rate of return for the total investment of the Company will not be less than 9%, the consideration will be calculated based on the on-grid electricity price and other data as a reference.
Mr. XU Zhong, General Manager of GD Solar said, "GD Solar has been committed to the development and application of new energy since its setup. With this partnership, we will bring into play to the overall strength and successful experience of our project design, equipment, construction, installation, commissioning and operational capabilities to provide the most reliable quality assurance for the future with Goldpoly and CMNE's long-term cooperation based on a solid foundation, and also boost the confidence of the entire PV industry."
Mr. Alan LI, Executive Director/CEO of Goldpoly, said: "We are very pleased to promote the solar application market and the photovoltaic industry's healthy development alongside photovoltaic enterprises, while also building up a long-term strategic partnership. We believe that by leveraging industry experience along with the commitment of photovoltaic industry peers of all parties, we will work together to enhance the industrial process as well as to achieve a greener level of social responsibility. Goldpoly will continue to expand its footprint in the solar power business through these projects and to become one of the world's leading photovoltaic power plant operators, while striving to achieve the dream of building green homes."