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GCL-Poly Energy Holdings Limited
Business Performance for First Quarter of 2011
The Board is pleased to announce the performance of the Group’s businesses for the first quarter of 2011.
This announcement is made pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Business Performance for First Quarter of 2011
The board of directors (the “Board”) of GCL-Poly Energy Holdings Limited (the “Company”) is pleased to announce that according to the preliminary statistics, the performance of the solar (polysilicon and wafer) and power businesses of the Company and its subsidiaries (the “Group”) for the first quarter of 2011 were as follows:
The totalpolysilicon production volume for the first quarter of 2011 was approximately 5,927 MT, representing an increase of approximately 90.5% compared with 3,112 MT over the same period of 2010 and an increase of approximately 3% compared with 5,754 MT over the fourth quarter of 2010, respectively.
The Group sold 914 MT of polysilicon for the first quarter of 2011, compared with 2,584 MT and 1,708 MT of polysilicon sold for the same period and the fourth quarter of 2010, respectively.As the Group has commenced wafer production since the first quarter of 2010, all the unsold polysilicon was consumed in-house for the wafer production.
The average selling price of polysilicon sold was US$62.2 per kg for the first quarter of 2011 (1st quarter of 2010: US$50.0 per kg; 4th quarter of 2010: US$60.1 per kg).
The Group plans to ramp up its polysilicon production volume to 46,000 MT by this year end and 65,000 MT by the end of June 2012. The Group believes that global demand for polysilicon will remain strong throughout the year of 2011.
The Group has commenced its in-house wafer production since the first quarter of 2010. During the first quarter of 2011, the Group’s total wafer production volume was 953 MW, an increase of 20.9% compared with 788 MW for the fourth quarter of 2010.
The Group’s total wafer sales volume for the first quarter of 2011 was 959 MW, up 21.7% compared with 788MW for the fourth quarter of last year. Average selling price of wafer sold was US$0.76 per watt for the first quarter of 2011 (4th quarter of 2010: US$0.82 per watt).
The Group plans to ramp up its wafer production capacity to 6.5GW by the end of this year.
As the Group has entered into three-to six-year long term wafer supply contracts with over 20 leading cell and module manufacturers that provide for aggregate sales of more than 55GW,the Board are confident that the performance of this sector will contribute significant profit to the Group during the year of 2011.
The production cost of the solar business (polysilicon and wafer) of the Group for the first quarter of 2011 continued to decrease.
Due to the consistent growth of the global photovoltaic market, the Group’s strong research and development ability and economies of scale of production resulting in continuous reduction in the production cost, all these drivers contribute to the excellent performance of the Group’s polysilicon and wafer businesses during the first quarter of 2011.
The Group’s total electricity and steam sales volume for the first quarter of 2011 were approximately 1,125,155 MWh and 1,993,724 tonnes, respectively. The total electricity sales volume for the first three months of this year was at a similar level to that of the corresponding period of last year, whereas the steam sales volume increased approximately by 10.7% compared to the same period of last year.
The information contained in this announcement represents a preliminary assessment based on the management accounts of the Group and such informationwhich has not been audited or reviewed by the Company’s auditors.
Shareholders and potential shareholders of the Company and investors are advised to exercise caution when dealing in the shares of the Company.
|By order of the BoardGCL-Poly Energy Holdings LimitedZhu Gong ShanChairman|
Hong Kong, 12 May 2011
As at the date of this announcement, the Board comprises Mr. Zhu Gong Shan (Chairman), Mr. Sha Hong Qiu, Mr. Ji Jun, Mr. Shu Hua, Mr. Yu Bao Dong, Ms. Sun Wei, Mr. Tong Yee Ming and Mr. Zhu Yu Feng as executive directors; Mr. Chau Kwok Man, Cliff and Ms. Bai Xiao Qing as non-executive directors; Mr. Qian Zhi Xin, Ir. Dr. Raymond Ho Chung Tai, Mr. Xue Zhong Su and Mr. Yip Tai Him as independent non-executive directors.
This announcement contains forward-looking statements relating to the business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this announcement. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties.