2.539 Billion Yuan! JA Solar and Ancai Hi-Tech Sign for PV Glass

PVTIME – On June 16, Henan Ancai Hi-Tech co.,Ltd. (600207.SH) disclosed a Strategic Cooperation Agreement signed with JA Solar (002459.SZ) on sales of photovoltaic glass. Ancai Hi-Tech and its holding subsidiaries will supply approximately 89.1 million square meters of photovoltaic glass (calculated based on 3.2mm single glass) to JA Solar and its holding subsidiaries in the duration of June 2022 to May 2025.

The estimated total contract value is about CNY 2.539 billion (tax included), as the average price of 3.2mm photovoltaic glass is 28.5 yuan per square meter (tax included) released by SCI Price Center in June 2022. The contract value accounts for about 76.04% of the main business income of 3.339 billion yuan in 2021 audited by Ancai Hi-Tech. And the contract amount exceeds the audited main business income of the company in the last fiscal year by more than 50% while the absolute amount exceeds 500 million yuan, which is a major sales contract. Yet the calculation above is not a price or performance commitment.

Ancai Hi-Tech stated that the new partnership is an important step for it to increase the sales of photovoltaic glass products, such as large-size and thin plates, and further improve its business performance. Meanwhile, the company remains its independence as its main business will not rely on the contract signed with JA Solar. What is more, the production capacity of the company has been expanded rapidly, for new PV glass projects has been kicked off by Jiaozuo Ancai and Xuchang Ancai, the company’s holding subsidiaries, to meed the huge demands of high-quality PV glasses from overseas customers.