Stock Code: Longi Green Energy Technology Co.Ltd(601012) stock abbreviation: Longi Green Energy Technology Co.Ltd(601012) Announcement No.: Lin 2022024 bond Code: 113053 bond abbreviation: long 22 convertible bond
Longi Green Energy Technology Co.Ltd(601012)
About signing Qujing (phase II) monocrystalline silicon rod and wafer project
Announcement of supplementary investment agreement
The company and all members of the board of directors guarantee that there are no false records, misleading statements or major omissions in the contents of the announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
Contract type and amount: this agreement is the supplementary agreement of Longi Green Energy Technology Co.Ltd(601012) (hereinafter referred to as the “company”) Qujing (phase II) investment project with an annual output of 20GW monocrystalline silicon rods and wafers (hereinafter referred to as the “investment supplementary agreement”), and the specific investment amount shall be subject to the project feasibility analysis and calculation approved by the competent authority within the company.
Project construction progress: the specific implementation progress shall be subject to the approval of the competent authority within the company.
Conditions for effectiveness of the contract: the contract shall come into force on the date when it is approved by the competent authority of each party, signed and sealed by the person in charge, legal representative or authorized representative of each party.
Impact on the performance of listed companies: after the signing of this supplementary investment agreement, the investment scale of Qujing (phase II) monocrystalline silicon rod project will remain unchanged with an annual output of 20GW, and the investment scale of monocrystalline silicon wafer project will be changed from 20GW to 30GW. The implementation of the project will help the company further improve the production capacity of high-efficiency monocrystalline silicon rods and wafers. The company will convene the board of directors according to the project implementation plan to analyze and calculate the feasibility of the project and disclose it in time.
Risk tips:
1. Before the implementation of the project, the internal review procedures of the company need to be performed.
2. If the implementation conditions and financing environment change due to relevant national or local policy adjustment, project approval and so on, the implementation of the project may be subject to the risk of postponement, change, suspension or termination.
3. Since the investment and construction of the project may put pressure on the company’s cash flow, the company will make overall fund arrangement to ensure the smooth implementation of the project.
1、 Basic information on signing of supplementary investment agreement
(I) signing of original investment agreement
According to the company’s strategic development needs, the company signed the project investment agreement (hereinafter referred to as the “original agreement”) with Qujing Municipal People’s government and Qujing Economic and Technological Development Zone Management Committee on September 22, 2020, Reach cooperation intention on the company’s new investment in the construction of 20GW / a monocrystalline silicon rod and silicon wafer project in Qujing (phase II project) (see the relevant announcement disclosed by the company on September 23, 2020 for details).
(II) signing of supplementary investment agreement
According to the company’s future capacity layout and planning, the company signed the supplementary agreement on investment of Qujing (phase II) single crystal silicon rod and silicon wafer project with Qujing Municipal People’s government and the Management Committee of Qujing Economic and Technological Development Zone on March 4, 2022. The investment scale of Qujing (phase II) single crystal silicon rod project remains unchanged, The investment scale of monocrystalline silicon wafer project is changed from 20GW per year to 30GW.
(III) basic information of the counterparty
1. Name: Qujing Municipal People’s government and Qujing Economic and Technological Development Zone Management Committee of Yunnan Province
2. Relationship with listed companies: no relationship.
China China one belt, one road richly endowed by nature, China’s economic development zone is the most important supporting point for the development strategy of the Yangtze River economic belt. China’s frontier opening up area, the core construction area of the economic zone of Bangladesh, China and Yunnan, has abundant Cecep Solar Energy Co.Ltd(000591) resources, abundant hydropower generating capacity, and industrial silicon output ranks among the top of China. 2、 Main contents of supplementary investment agreement
Party A: Qujing Municipal People’s Government
Party B: Qujing Economic and Technological Development Zone Management Committee
Party C: Longi Green Energy Technology Co.Ltd(601012)
The supplementary investment agreement signed this time intends to make the following changes and supplementary agreements to the original agreement:
1. All parties agree to change the construction scale of Qujing (phase II) monocrystalline silicon rod and wafer project from 20GW monocrystalline silicon rod and wafer to 20GW monocrystalline silicon rod and 30GW monocrystalline silicon wafer; Changes in project operation time, number of productive equipment and production supporting facilities due to project scale adjustment and construction period change shall be clarified by agreement of relevant parties and relevant procedures shall be improved. (the specific investment budget and project construction cycle shall be subject to the feasibility calculation approved by the competent authority within the company)
2. This supplementary investment agreement has the same legal effect as the original agreement. In case of any inconsistency with the original agreement, the provisions of this supplementary investment agreement shall prevail.
3. The three parties shall jointly abide by the obligations agreed in this supplementary investment agreement. If they fail to perform the relevant obligations, the breaching party shall compensate the observant party for the actual economic losses.
4. This supplementary investment agreement shall come into force after Party A, Party B and Party C perform the corresponding decision-making procedures, sign by the legal representative or its authorized representative, and affix the official seal of the unit.
3、 Impact on the company
After the signing of this supplementary investment agreement, the investment scale of Qujing (phase II) monocrystalline silicon rod project will remain unchanged with an annual output of 20GW, and the investment scale of monocrystalline silicon wafer project will be changed from 20GW to 30GW, which is in line with the strategic needs of the company’s future capacity planning. After the project is put into operation, it is conducive to the company to further improve the capacity of high-efficiency monocrystalline silicon rod and wafer and seize the development opportunities of photovoltaic market, Continuously improve market competitiveness. The company will convene the board of directors according to the project implementation plan to analyze and calculate the feasibility of the project and disclose it in time. The signing and performance of the above supplementary investment agreement will not affect the business independence of the company.
4、 Risk tips
(I) before the implementation of this investment project, the internal review procedures of the company need to be performed.
(II) if the implementation of this investment project changes due to national or local policy adjustment, project approval and other implementation conditions and financing environment, the implementation of the project may be subject to the risk of postponement, change, suspension or termination. (III) since the construction and implementation of the investment project may put pressure on the company’s cash flow, the company will make overall fund arrangement and reasonably determine the source of funds, payment method and payment arrangement to ensure the smooth implementation of the project. It is hereby announced.
Longi Green Energy Technology Co.Ltd(601012) board of directors March 7, 2002
