Goldpoly New Energy Holdings Limited ("Goldpoly" or"the Company,"HK stockcode:686, whose largest shareholder is China Merchants New Energy Group "CMNE"), on 6 Sept announced that two wholly-owned subsidiaries, together with Huabei Expressway Co., Ltd ("Huabei Expressway"), acquired the entire equity interest of a 23.8 MW on-grid solar power plant project in Xuzhou, Jiangsu Province from Suzhou Gong Ye Yuan Qu Zhong Fu Investment Management Company Limited. A total of RMB 450 million is invested to fuel the acquisition. Upon completion of the acquisition, each party will own a 50% equity interest in the project.
Huabei Expressway was established upon approval of the Ministry of Transport and the State Economic and Trade Commission. It is a public joint stock company principally engaged in the operation of the Beijing-Tianjin-Tanggu expressway. It is an advanced expressway operator with core business covering the development, construction and operation of toll roads. A 26.82% equity stake in Huabei Expressway is held by China Merchants Hua Jian Highway Investment Co Ltd, a wholly-owned subsidiary of China Merchants Group. Thus China Merchants Group is the largest shareholder of Huabei Expressway.
Located in Fengxian, Xuzhou, Jiangsu, the 23.8 MW solar power plant covers an area of 600 thousand square meters and accommodates 5,822 agricultural greenhouses. It is currently the world's largest project for on-grid ecological agriculture roof-top photovoltaic power generation. The solar power plant was connected to the grid in 2011 and generated approximately 28 million kWh per year. If 335 grams of coal are required to produce one kWh of electricity, it means the project helps save 9,380 tons of standard coal every year and reduces carbon dioxide emissions by 24,600 tons as a result. Pursuant to the agreement, the electricity tariff of the project stands at RMB 2.4 per kWh, which constitutes the standard on-grid power tariff offered by the State and the subsidies offered by the Jiangsu provincial government. The selling party will provide a pledge guarantee for the revenue of electricity generation.
Mr. Alan LI, Executive Director/CEO of Goldpoly, said: "The 23.8 MW ecological agriculture photovoltaic power generation project facilitates the application of new energy in developing large-scale agriculture. It therefore maximizes the benefits achieved from land resources management and strategically promotes sustainable economic development. Both Huabei Expressway and Goldpoly are responding positively to the policies issued by the State Council on promoting the healthy development of the photovoltaic industry. Our landmark cooperation will surely accelerate the development of a low-carbon economy which integrates green environmental practices with new energy."
Mr. ZHENG Haijun, Secretary of the Party Committee/Deputy General Manager of China Merchants Hua Jian Highway Investment Co Ltd and Huabei Expressway Chairman, said: "Fully aware of the enormous development potential of the photovoltaic industry, the government has devoted great efforts to support the essential part of the new energy sector and promote its application. As a proactive response to the government policies, the cooperation between Huabei Expressway and Goldpoly on the solar power plant project marks our solid step towards developing a new industry that applies new energy in fostering ecological agriculture."