PVTIME - Recently, Zhejiang Sunflower Great Health Limited Liability Company (SunFlower, 300111.SZ), a Chinese company investing in pharmaceuticals, healthcare, and high-tech industries has announced the termination of its TOPCon production project. The joint venture will be dissolved, liquidated, and cancelled. The proposal has not yet been submitted to its general meeting for consideration.
On 14 March 2023, SunFlower announced their TOPCon production project plan. An investment agreement is set to be signed with Shaoxing Binhai New Area Integrated Circuit Industry Equity Investment Fund Partnership (L.P.) (Shaoxing Binhai) and Shanghai Longxiang Private Equity Fund Management Co, Ltd. to invest in Zhejiang Longxiang New Energy Technology Co. The facility can produce up to 10GW of TOPCon cells annually, with 5GW expected to be achieved in the first phase. The first phase requires an estimated investment of around 1.5 billion yuan.
Zhejiang Longxiang, the target company, has a registered capital of 500 million yuan. Sunflower will contribute 270 million yuan in cash, holding a 54% share, while Shaoxing Binhai will contribute 130 million yuan in cash, holding a 26% share. Shanghai Longxiang will contribute 100 million yuan in cash and hold a 20% share.
The TOPCon project aligns with Sunflower's long-term development strategy. The new partnership is expected to increase profitability and promote Sunflower's future development in the renewable energy industry. However, the project was delayed due to plant leasing issues and a decline in solar cell and module prices. To reduce investment risks and management costs, it will be terminated.
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