Solargiga Acquires 51% Interest in Qinghai Chenguang With a Consideration of RMB 45.9 Million

USA - English

• USA - English

HONG KONG, July 6 /PRNewswire-Asia/ -- China's leading monocrystalline silicon solar ingots and wafers manufacturer, Solargiga Energy Holdings Limited (''Solargiga'' or the ''Company'', HKSE Stock Code: 757, Taiwan Depositary Receipts: 9157TT, and its subsidiaries, the ''Group''), announced that the Company entered into a cooperation agreement (the "Agreement") with the Xining Economic & Technology Development Zone Administration Committee on 6 July 2010 whereby the Company intends to acquire 51% interest in Qinghai Chenguang New Energy Co., Ltd. ("Qinghai Chenguang"). The consideration of the acquisition will be RMB 45.9 million and will be paid by way of capital increase through cash injection. Solargiga and Qinghai Chenguang will jointly invest in the construction of monocrystalline silicon solar ingots production facilities with an annual production capacity of 2,000 tonnes.

Qinghai Chenguang New Energy Co., Ltd is located in Qinghai Dongchuan Industrial Zone. It is expected that upon the completion of the acquisition, Qinghai Chenguang will commence the construction of a production plant with a planned annual production capacity of 2,000 tonnes of monocrystalline silicon solar ingots, which can accommodate 192 monocrystalline solar ingot pullers. The total investment amount of the project will be RMB 300 million, 30% of which will be funded by Solargiga and the existing shareholders of Qinghai Chenguang by proportionate shareholding, while the rest will be funded by bank loans.

The construction of the new production plant will be divided into 2 phases. The first phase will commence in 2010 whereby 96 monocrystalline solar ingot pullers are expected to be installed by the end of 2010. The first phase is expected to commence production in April 2011 and full production capacity is expected to be reached in July 2011 with an annual production capacity of 1,000 tonnes of monocrystalline silicon solar ingots. The construction of the second phase will commence by the end of 2011 with an additional 96 monocrystalline solar ingot pullers to be installed at the end of 2012. Full capacity is expected to be reached in mid 2013. Upon the completion of the whole project, Qinghai Chenguang will have an annual production capacity of 2,000 tonnes of monocrystalline silicon solar ingots.

According to the Agreement, the Xining Economic & Technology Development Zone Administration Committee will take charge in coordinating the tender invitation for the construction of Qinghai photovoltaic power station and will ensure the use of solar modules produced by Solargiga in Qinghai receive top priority as permitted under local law and regulations. In addition, Qinghai Chenguang intends to build a 200 KW photovoltaic demonstration power station in the production plant area, which will be sponsored by the Xining Economic & Technology Development Zone Administration Committee under the national policy of ''Golden Sun Programme''.

Commenting on the agreement, Mr. HSU You Yuan, CEO and Executive Director of Solargiga, said, ''The cooperation between the Company and the Xining Economic & Technology Development Zone Administration Committee pursuant to the Agreement will be in line with the aim of the PRC Government to develop the solar ingots industry in Xining Economic & Technology Development Zone and promote this industry to become a new strategic industry in Qinghai Province. It will also accelerate the production expansion plan of Solargiga so as to satisfy the demand from customers. With the competitive edges in resources and energy in Qinghai Province, the Group will further improve its production efficiency. Looking ahead, the group would continue to seek new business opportunities for development, grasp the huge market opportunities to increase market share and reward our shareholders with satisfactory business performance.''

About Solargiga Energy Holdings Limited

Solargiga is a leading manufacturer of monocrystalline silicon solar ingots and wafers in the People's Republic of China (''PRC''). In addition to the offering of monocrystalline silicon solar ingots and wafers, the Group has extended into the manufacture of multicrystalline silicon solar ingots and wafers, the production and sales of photovoltaic modules as well as installation of photovoltaic systems in 2009. Our products are used for the manufacture of photovoltaic cells which are important components of solar energy generation systems. Currently, our annual ingot production capacity is approximately 350MW, annual wafer production capacity is approximately 210MW, while the annual capacity of photovoltaic modules is approximately 50MW. After the completion of production expansion in the third quarter of 2010, the annual production capacity of ingots and wafers will reach 700MW and 420MW respectively, while the annual capacity of photovoltaic modules will be approximately 100MW.

The Group operates its major production facilities of solar ingots and wafers in Jinzhou, Liaoning Province, the PRC. In addition, the Group operates polysilicon reclaiming and upgrading facilities in Shanghai and Jinzhou which currently have an aggregate annual designed production capacity of 4,200 tonnes. Already a market leader in the PRC, the Group aspires to be the world's largest monocrystalline silicon solar ingot and wafer producer as well as one of the key players in the multicrystalline silicon solar product business through rapid capacity expansion and technology upgrade. Since 2009, Solargiga has started to develop its downstream photovoltaic module and system installation businesses through the formation of a joint venture company in Jinzhou to realize vertical integration.

Issued by Porda International (Finance) PR Group for and on behalf of Solargiga Energy Holdings Limited. For further information, please contact:

     Ms. Helen Chung
     Tel:  +852-3150-6730
     Email: [email protected]

     Ms. Kylie Yeung
     Tel:  +852-3150-6770
     Email: [email protected]

     Ms. Cara Pang
     Tel:  +852-3150-6736
     Email: [email protected]

     Ms. Abbey Zhao
     Tel:  +852-3150-6752
     Email: [email protected]
     Fax:   +852-3150-6728

SOURCE Solargiga Energy Holdings Limited