PVTIME - On December 14th, LONGi issued an “Announcement on the Signing of Major Purchase Contracts.” According to the statement, seven subsidiaries of LONGi have signed a five-year polysilicon material purchase agreement with Xinte New Energy. From 2021 to December 31. 2025, the total volume of polysilicon materials exchanged between the two parties will not be less than 270,000 tonnes, and based on current market prices, the total contract value is approximately 19.235 billion yuan.
LONGi President Li Zhenguo and TBEA Chairman Zhang Xin (Photo: TBEA)
As a holding subsidiary of TBEA Co., Ltd., Xinte Energy Co., Ltd. (stock code: HK1799) is a high-tech enterprise that specializes in the research and development of photovoltaic power generation products, silicon-based new materials, advanced ceramics, zirconium-based new materials, powdered new materials, etc.
According to the announcement, the total contract value would have accounted for about 82.24% of LONGi’s 2019 operating costs, and the per annual average contract value would have accounted for 16.45% of LONGi’s 2019 operating costs. LONGi said that the signing of this long-term purchase agreement is in line with the company’s future business needs and will stabilize the company's long-term supply of polysilicon raw materials through lock-in volume, monthly price bargaining, and batch purchasing.