* EBITDA is defined as earnings before finance income, finance costs, taxation, depreciation and fair value gains/losses, which also excludes other costs arising from business combinations and share of results of associates.

Hong Kong, China, 28 August 2015 - United Photovoltaics Group Limited (“United PV” or the “Company”, stock code: 00686.HK, with its subsidiaries, collectively the “Group”, whose largest shareholder is China Merchants New Energy Group “CMNE”), a leading solar power plant investor and operator in China, today announced its interim results for the six months ended 30 June 2015 (the “Period”). 

During the Period under review, the Company’s revenue surged 125% to RMB283 million (2014: RMB126 million). EBITDA for the solar power plants business increased approximately 227% as compared to the corresponding period in 2014, due to the increase in volume of electricity generation by solar power plants. The Group and its associates recorded an increase of approximately 139% in volume of electricity generation to approximately 402,390MWh as compared to the corresponding period last year (2014: approximately 168,349MWh).

Proactive Investment and Operation of Solar Power Plants

During the Period, the investment and operation of solar power plants continue to be the Company’s major business and main driver of its revenue. The Group continues to focus its resources in expanding its solar power plant business; it completed the acquisitions of 7 grid-connected solar power plants with a total installed capacity of 160MW in Xinjiang and Inner Mongolia, China. As of 30 June 2015, the Group and its associates beneficially own 21 solar power plants (2014: 13) with a total installed capacity of 637MW, representing an increase of 36.4% as compared to the corresponding period last year (2014: 467MW). 

During the first half of 2015, United PV’s business was in the fast lane to growth. The Group kicked off its major acquisition plan of large solar power plants in May by proposing to an independent third party to acquire 4 solar power plant projects with a total installed capacity of approximately 170MW. Later, the Group announced a proposal on an acquisition of 17 solar power plant projects with a total installed capacity of 930MW from Hareon Solar, as known as the world’s largest single acquisition of solar power plants. In August, the Company was granted the rights to develop 100MW solar power plant in Datong, Shanxi Province, by the National Energy Administration (NEA) under the “Top Runner Programme”. Thereby, the Company is exposed to an opportunity to realize the advanced Chinese solar technology and leading technology and to participate in industrial exchange in the National Advanced Photovoltaic Technology Demonstration Base, striving to promote industrial upgrading and competitive advantage. It is believed that these large-scale solar power plant acquisitions will bring about satisfactory returns to the Company in the coming years.

Innovative Financing

The Group is an industrial pioneer in financing. During the Period, the Group entered into agreements or Memorandum of Understanding with several sizable well-known financial institutions and companies, such as China Orient Asset Management (International) Holding Limited, Fosun International Limited, Chinastone Capital Management (Shanghai) Limited, China Merchants Fund Management Limited, expected to raise up to approximately HKD4,800million (equivalent to approximately RMB3,794 million), which would provide a reliable source of funding for the rapid expansion of the solar power business of the Company.

Future Prospect

The Chinese government is committed to increasing the national installed capacity of solar power plants from 28.05GW in 2014 to 100GW in 2020, implying that the Chinese solar power industry will enter into a new phase of rapid development. During the implementation of the ‘‘thirteenth five-year’’ plan, it is expected to maintain a growth rate of 20GW to 30GW in solar power electricity generation each year. It is believed that the solar power industry would become one of the leading segments in China’s energy industry. The Group strives to bring forth its motto of ‘‘Together We Build a Greener Home’’ and to provide safe and clean green new energy. In light of the increasing demand for solar energy and supportive government policies, the Company has high confidence about the prospect of the solar power industry. The Company will further increase its installed capacity, accelerate business integrations and enhance operational efficiency, so as to create greater returns for its investors.