One of the World’s Top Leading Photovoltaic Power Plant Enterprise Construct a Steadfast Financial Platform Future Development

 (26 Mar 2015 – Hong Kong) GCL New Energy Holdings Limited (“GCL New Energy or the “Company”, Stock Code: 451.HK) and its subsidiaries (together, the “Group”) is pleased to announce its final results for the nine months period ended 31December 2014 (the “Reporting Period”).For the Reporting Period, the Group’s total revenue was approximately HK$1,172.9 million. Gross profit margin for the Reporting Period was approximately 8.1%. Loss attributable to owners of the Company for the Reporting Period wasapproximately HK$112.7 million (For the year ended 31 March 2014 (the “Prior Reporting Period”): approximately HK$173.3 million), mainly due to amortisation of expenses related to share options as well as the increase in cost and expenses due to expansion into solar energy business.The basic and diluted loss per share attributable to owners of the Company for the Reporting Period was approximately 0.90HK cents (the Prior Reporting Period: approximately 2.11 HK cents).

For the Reporting Period, as most of the Company’s solar farms achieved on-grid connection in late December, revenue contributed by solar energy business amounted to HK$0.8 million. Revenue contributed by printed circuit board business (“PCB Business”) amounted to HK$1,172.1 million. Gross margin slightly decreased to 8.1% for the Reporting Period from 8.2% for the Prior Reporting Period as a result of inflation in staff and other production costs. The Group will continue to implement stringent cost control measures to different production cycles of the PCB business so as to reduce the production cost and improve the gross margin.

Leveraging On the Advantages of Being the Biggest Independent Power Producing Company, the Company Is Growing into One of the World’s Leading Photovoltaic Power Plant Enterprises

As at 31 December 2014, installed capacity of the photovoltaic power stations of the Company which were completed and approved for on-grid connection exceeded the Company’s target, and reached 615.5 MW. The Company also planned for additional 2.0 GW, 2.5GW and 3.0 GW on-grid capacities for 2015-2017. As at 28 February 2015, the additional capacity under construction and installed capacity completed with approval for on-grid connection reached 1.26 GW.During the Reporting Period, through intensive acquisitions and developments, the Group successfully expanded into solar energy business and developed a significant amount of solar farm projects throughout different regions of the PRC. As at 31 December 2014, the Company completed the construction and obtained the approval for on-grid connection for the following projects: JinhuZhenhui 100MW ground-mounted solar farm project and Suqian 10.4MW rooftop distributed solar farm project in Jiangsu province, Xiangdao 130MW ground-mounted solar farm project in Inner Mongolia Autonomous Region, Yu County 50MW and Licheng 30MW ground-mounted solar farm projects in Shanxi province, Hami Yaohai 60MW and Hami Ourui 20MW ground-mounted solar farm projects in Xinjiang province; and Shuqimeng 17.5MW rooftop distributed solar farm project in Zhejiang province. In addition, the Group completed the acquisition of Delingha 100MW ground-mounted solar farm project in Qinghai province by end of December, which can immediately contribute revenue to the Group as the Delingha solar farm project was already grid-connected.

On 9 May 2014, the Company announced the completion of the placement and the subscription which raised approximately HK$1.64 billion, and with the change of the Company name GCL New Energy becoming effective on the same date. The subscription and the placing aforementioned were also rewarded “Best Transaction 2014” by the prestigious Acquisition International Magazine in the UK. On 8 October 2014, the Company placed additional shares to raise a further HK$740 million and was admitted to MSCI Index in November 2014. In February 2015, GCL New Energy was awarded “Most Excellent Investment Holding Company (Hong Kong)” by Corporate Livewire, a UK organisation.

Diversifying Financing Avenue to Construct a Steadfast Financial Platform for Future Development

For fund management, the Company strengthened its communications with banks and various financial institutions to expand its financing avenue. Different financial measures were adopted to ensure rational and effective use of funds. Finance costs amounted to HK$18.6 million for the Reporting Period (Prior Reporting Period: HK$30.3 million).

In 2014, GCL New Energy was granted credits by many large financial institutions and made considerable progress with respect to foreign financing. On 29 December, GCL New Energy announced that the Company and its subsidiaries entered into a revolving loan agreement for US$80 million with BOCI Leverage and Structural Financing Limitedto provide working capital and finance the solar power plants for GCL New Energy. The loan was the first financial loan in the PRC for overseas solar power plants taken out based on the repayment capacity of the project and is guarantee-free and revolving. It represented an innovative way of coordinating domestic and overseas finances and financing for GCL New Energy in a historic cooperation with PRC banks. The loan provided revolving financing of key importance for the Company’s solar power plant projects in the phase of construction before they obtained long-term financing. Meanwhile, the loan can fill in the funding needs in the gap between the construction and the on-grid connection of solar power plants as the loan was taken out based on the repayment capacity of the projects, creating a new financing platform in cross-border cooperation that will be beneficial for the Company’s sustained development. Meanwhile, a fund management company has been set up by GCL New Energy in cooperation with banks and other financial institutions, planning to set up funds to support the future development of the Company’s businesses.

Looking forward,Mr. TANG Cheng, Chairman of the Group, said, “In 2014, different policies regarding the photovoltaic industry were fine-tuned and finalized, which rationalised the industry. We believe that as the industry is becoming mature and different complementary policies will be implemented, the installed photovoltaic capacity of the PRC in 2015 will be significantly increased, especially that of distributed power plants. We will make regional plans in Inner Mongolia, Xinjiang, Ningxia, Shaanxi, Shanxi, Jiangsu and other regions according to the present conditions of photovoltaic industry in the nation,leveraging on this opportunity to make use of our advantages in terms of development, construction and operation. We insist on our strategy of combining industrial and financial means, taking a technology-based approach, gathering more talents to create synergy and innovation, dedicated to the promotion of renewable energy and encouraging structural transformation of regional economies. We will focus on the development of in-house development capacity and accumulation of self-developed projects. The Company will also focus on the development of carefully selected regions in response to the prevailing conditions of photovoltaic market. We will adopt strict fund management and investment management initiatives, perfect our project manager responsibility system and improve our information management platform. We pursue both autonomous developments and joint developments of photovoltaic plants in tandem with our partners to increase the total installed capacity as well as the proportion of autonomous development. We should yield higher returns for all our investors by future business integration, better management of our operation, and increasing operation efficiency.”

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