TBEA increases capital to build 12,000 tons of polysilicon project

TBEA announced today that its subsidiary, Xinjiang Silicon, plans to implement a 1.2 million t polysilicon construction project with a total investment of 7.207 billion yuan. The construction period of the project is two years. After reaching the production capacity, the polysilicon market price will reach 300,000 yuan/t, and the total annual profit will reach 1.238 billion yuan. The company will increase its capital by 1 billion yuan.

The company stated that due to the huge investment, in order to implement the above projects, the company plans to increase the capital of Xinjiang Silicon Industry. Among them, TBEA has a monetary capital of 1 billion yuan, Xinjiang Tebian Group, the second largest shareholder of TBEA, has a monetary capital of 200 million yuan, and Xinjiang Honglian, the third largest shareholder of TBEA, has a cash capital of 60 million yuan. The Company increased its capital and shares to the Silicon Industry Corporation, and the funds required for the construction of the remaining projects were settled by banks and other means; the company also provided guarantees for the bank company’s RMB 2 billion bank loans. After the completion of the capital increase and share expansion of Xinjiang Silicon Industry, TBEA holds 1.84 billion yuan of its shares, accounting for 83.64% of its registered capital.

The silicon industry's photovoltaic industry circular economy construction project has received approval from the National Development and Reform Commission and the Ministry of Environmental Protection. The construction content of the project includes: 26000t/year polysilicon production line, 2350MW thermal power station, and supporting facilities such as office buildings, staff quarters, etc. for the project. The project construction period is 2 years. The company plans to start project bidding and start construction in mid-2011. The company expects that the project will achieve a total annual profit of 1.238 billion yuan, based on the polysilicon market price of 300,000 yuan/t after the project reaches production capacity.

Since 2008, the domestic photovoltaic industry has developed rapidly, and in the entire solar energy industry chain, due to technical bottlenecks, polysilicon is still the most economically effective link. TBEA Xinjiang Silicon Corporation began investing in polysilicon in January 2008. At present, the output has stabilized and the monthly output exceeds 100 tons, and the product qualification rate exceeds 85%. In January of this year, Xinjiang's silicon industry plans to carry out technological transformation of the 1500t/a polysilicon project, increasing its production capacity to 3,000t/a, and striving to achieve a production volume of 1200t this year and a production volume of 3,000t in 2012.

At present, the polysilicon market price is about 50 US dollars / kg, equivalent to more than 300 yuan / kg, which is also the price of polysilicon bottom region since 2007; Xinjiang silicon industry as a result of this performance measurement, there is a certain feasibility .

At present, TBEA is mainly a single power transformer. In the past two years, the company plans to invest in the integrated coal and silicon recycling project with the help of coal mine exploration reserves with over 10 billion tons of reserves. It will build integrated photovoltaic, solar cell, building and inverter integration services for the downstream of photovoltaics, and implement dual-use Xinjiang and Xi'an. The base will be developed into a large-scale energy company that integrates power transmission and transformation equipment, coal, electricity, and new energy businesses.