Goldpoly New Energy Holdings (00686.HK) has only years of losses to show as of now. However, there is hope on the horizon as recent developments suggest that the firm could be headed for better times. Good backing from its controlling shareholder, strong partners and several upcoming projects give enough reason to hope that Goldpoly’s future will be very different from its past.
The second-tier solar cell maker last year signaled its intention to move into the solar farm business. Beijing’s announcement of a bold solar sector support plan this July has proved the company’s instincts were right.
And it wasted no time in building its assets after the government raised the solar installation target and followed it up by unveiling new benchmark solar on-grid tariffs and subsidy plans for distributed power.
In August, the Goldpoly group entered into three agreements to acquire solar power plants involving total generation capacity of 800 megawatts (MW). Last month, the company boosted its portfolio with a 500 MW deal, under which it will join hands with an investment arm of China National Petroleum Corp. to buy solar power projects in Xinjiang, Gansu and Inner Mongolia.
The company’s Gansu Jiayuguan 100 MW solar power plant achieved on-grid connection in June. All these major projects and upcoming ones add up to almost 1 Gigawatt (GW). While it may not seem like a lot, one should bear in mind that China’s solar power industry is still in its infancy with no major market leader. The installed solar power capacity in the country was only about 7 GW last year.
Through China Merchants New Energy Group (CMNE), state-owned China Merchants Group is Goldpoly’s number one shareholder. So, Goldpoly could be an important building block in CMNE’s grand ambition to become the biggest solar energy player.
CMNE has just inked a 300MW deal with photovoltaic module maker Yingli Green Energy. And it is expected to ink more such deals. Now, any hints of injecting some assets into Goldpoly would come as a big plus for the latter.
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