GOLDENSOLAR(01121) intends to establish a joint venture company with Jungeneng and LONGi Green Energy Technology(601012.SH) to produce HBCCECEP Solar Energy cells.

GOLDENSOLAR (01121) announced that on September 19, 2024, its indirect wholly-owned subsidiary, Jinyang (Quanzhou), had entered into a joint venture agreement with JUH and LONGi. According to this agreement, the contracting parties agreed to establish a joint venture company with a registered capital of RMB 659 million. After its establishment, the joint venture company will be owned by JUH, Jinyang (Quanzhou), and LONGi with 52.51%, 27.31%, and 20.18% equity respectively. According to the agreement, the contracting parties are required to make their respective contributions in installments in the following manner: JUH must inject assets totaling RMB 267 million and cash of RMB 79 million within three months and nine months after the establishment of the joint venture company. Jinyang (Quanzhou) must inject assets totaling RMB 109 million and cash of RMB 71 million within three months after the establishment of the joint venture company. LONGi must inject assets totaling RMB 133 million within three months after the establishment of the joint venture company, by injecting LONGi assets. The joint venture company will be named Jinlong (Xi'an) New Energy Technology Co., Ltd., with a business scope of producing and selling CECEP Solar Energy batteries, subject to final registration approval by the Xi'an Market Supervision Administration and/or the State Administration for Market Regulation. The contracting parties have decided to establish the joint venture company to produce HBC CECEP Solar Energy batteries, upgrading LONGi's Xi'an Aerospace Industrial Base's four PERC production lines to high-efficiency HBC production lines. After meeting efficiency and quality standards, the contracting parties intend for the joint venture company to sell most of the produced HBC CECEP Solar Energy batteries to LONGi or its affiliated companies, who will further package them into components for sale. Additionally, Jinyang (Quanzhou) will bear the cost of maintaining the validity of the project's HBC product-related intellectual property rights during the effective period of the joint venture agreement. Within 60 working days from the establishment date of the joint venture company, Jinyang (Quanzhou) should enter into an intellectual property license agreement with the joint venture company, under which it will license the joint venture company to pay a licensing fee to use all the intellectual property rights needed to produce and manufacture HBC products. The announcement states that the new HBC products have higher efficiency and other advantages. The directors believe that the group will be able to commercialize the HBC product technology through this cooperation and replicate this partnership model in the future, bringing excellent returns to shareholders.