GCL System Integration Announces Plan to Raise 5 Billion Yuan to Fund Major Projects Including Silicon Reclaim Service

CHANGCHUN, China, January. 20, 2020 /PVTIME/ --
On the evening of January 17, GCL System Integrations (hereby referred to as “the
company”) announced its plan to adjust its previous private placement proposal after
communicating with Hefei Dongcheng Industrial Investment Co., Ltd. and other prospective
investors. The new plan aims to increase the capital raised from the original
3.282 billion yuan to 5 billion yuan via private placement of 1.012 billion new
shares approved by the Securities Regulation Commission on July 18 of 2019. The
approval is valid for six months.

According to the company, operating in a
capital and technology-intensive industry, it has been affected by factors such
as the macroeconomic environment, industry policies, and the fierce increase in
competition and price drops for the company’s photovoltaic products. In order
to adapt to these changes, the company has shifted its strategic focus from
domestic markets to the overseas market. Moreover, in 2018, the company announced
its intentions of establishing a “second core business” by entering the
promising silicon wafer reclaim market.  

The company will allocate 2.75 billion yuan into
a large-diameter silicon wafer reclaim project, another 750 million yuan into
the development of a shingled module production project with an annual
production capacity of 2.5GW in Funing, Jiansu province, and use the remaining 1.5
billion yuan to supplement working capital. Additionally, the location of the
large-diameter silicon wafer reclaim project has been changed from Xuzhou to
Hefei, one of the nations largest semiconductor production centres.

Although wafer reclaim process technology is
relatively mature internationally, it is still quite under developed domestically.
The company believes that the above mentioned 2.75 billion yuan investment will
fill the current wafer reclaim services gap present in the domestic semiconductor
industry chain and allow the company to optimize its module production structure
and enhance profitability. The smooth development of the large-diameter silicon
wafer reclaim project will be supported by the introduction of mature
manufacturing and production technologies and expert personnel from countries
such as Taiwan, the United States, and Singapore.

In terms of shingled solar module
production, the company has been actively engaged in research and development
and personnel training since 2015. With a patent portfolio consisting of 31
patents, the company has successfully penetrated overseas markets including the
European Union, the United States, Japan, and Australia, laying a solid
foundation for expansion in both domestic and foreign markets for its shingled
products.

According to the company, in the past two years, shingled modules have gained a relatively strong growth momentum with its comparative advantage in terms of improved efficiency and potential power gain of 15-20W. Moreover, shingled modules can effectively reduce the cost of electricity for photovoltaic power stations. For every 5W increase in the power used by power stations, the system investment cost decreases by 0.03 yuan/W.

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