United PV Signs Agreement to Acquire TBEA’s 20MW Solar Power Plant in Qinghai
Time:2014-07-22

Hong Kong, China, 21 July 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 today that the Company entered into an equity transfer and engineering, procurement and construction (“EPC”) cooperative agreement with TBEA SunOasis Co., Ltd. (“TBEA”) and Xinjiang Sangou Solar Equipment Co., Ltd. (“Xinjiang Sangou”), whereby the Company intends to acquire the entire equity interests in a 20MW solar power plant owned by TBEA and Xinjiang Sangou in Gonghe county in Qinghai province and cooperate with the two companies on EPC arrangements, for a total consideration of RMB215 million (equivalent to approximately HK$270.9 million). 


The power plant is located in the same park of the Company’s existing 200MW power plant in Qinghai. The acquisition has satisfied United PV’s acquisition conditions, including: 1) the plant has been on-grid; 2) the plant has an IRR of 9%; 3) the plant has entered into a valid power purchase and sale agreement. Connected to grid at the end of December 2013, the power plant has entered into a power purchase and sale agreement with State Grid Qinghai Electric Power Company in December 2013 with a feed-in tariff of RMB1 per kWh. The power plant has average annual operating hours of approximately 1,501 and an average annual power generating volume of 30,020,000 kWh (20 year’s average). 


Mr. Zhenwei LU, Executive Director of United PV, said: “We are delighted to acquire the solar power plant. With its stable revenue and satisfactory profitability that make recurrent cash flow readily available, the power plant is an attractive investment which meets our stringent acquisition requirements. In addition, as the world’s largest EPC contractor in 2013, TBEA, the EPC contractor of the power plant, possesses strong technological advantages and solid experience in building solar power plants. United PV has been striving to explore cooperation opportunities with excellent EPC contractors to ensure the high quality standard of its projects. The acquisition of the 20MW solar power plant, which is the Company’s first power plant acquisition project this year, will achieve better synergy with its existing power plants in Qinghai with integrated management and lower operation and maintenance costs, further strengthening the Company’s leading position in the solar power station industry.”


The acquisition requires the attainment of relevant routine approvals.