Stock Code: Longi Green Energy Technology Co.Ltd(601012) stock abbreviation: Longi Green Energy Technology Co.Ltd(601012) Announcement No.: Lin 2022028
Bond Code: 113053 bond abbreviation: long 22 convertible bond
Longi Green Energy Technology Co.Ltd(601012)
Announcement on signing major investment agreements
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: the contract type is an investment agreement. The investment project is invested by the project subsidiary of Longi Green Energy Technology Co.Ltd(601012) (hereinafter referred to as “the company”) with an investment of about 19.5 billion yuan (including working capital). Project construction progress: the specific implementation progress shall be subject to the progress approved by the competent authority within the company.
Conditions for effectiveness of the contract: this Agreement shall come into force after being signed by the legal representatives or authorized representatives of all parties, stamped with official seal or special seal for contract, and approved by the competent authorities of all parties.
Impact on the current performance of listed companies: the project is not expected to have an impact on the current operating income of the company. The company will convene a board of directors to analyze and calculate the feasibility of the project according to the project implementation plan 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. Given that the investment and construction of the above projects may put pressure on the company’s cash flow, the company will make overall fund arrangements to ensure the smooth implementation of the project.
1、 Basic information of investment agreement signing
(I) signing of the agreement
According to the needs of strategic development, the company signed the investment cooperation agreement with the people’s Government of Inner Mongolia Eerduosi Resources Co.Ltd(600295) city (hereinafter referred to as “party a”) and the people’s Government of Yijinholo banner (hereinafter referred to as “Party B”) on March 12, 2022 to invest in the construction of 20GW monocrystalline silicon rod and chip project in mengsu Economic Development Zone of Yijinholo banner, Inner Mongolia Eerduosi Resources Co.Ltd(600295) City, Inner Mongolia Autonomous Region 30GW high-efficiency single crystal cell project and 5GW high-efficiency photovoltaic module project (hereinafter referred to as “the project”) have reached cooperation intention. The amount of the investment project to be submitted to the shareholders’ meeting or the board of directors for approval before implementation.
(II) basic information of the counterparty
1. Name: Inner Mongolia Eerduosi Resources Co.Ltd(600295) Municipal People’s government and people’s Government of Yijinholo banner
2. Relationship between the counterparty and the listed company: no relationship.
2、 Main contents of investment agreement
Party A: Inner Mongolia Eerduosi Resources Co.Ltd(600295) Municipal People’s Government
Party B: People’s Government of Yijinholo banner
Party C: Longi Green Energy Technology Co.Ltd(601012)
(I) basic information of the project
1. Project Name: 20GW / a monocrystalline silicon rod and chip project, 30GW high-efficiency monocrystalline cell project and 5GW high-efficiency photovoltaic module project.
2. Project investment content: Party C will set up each project holding subsidiary in Yijinholo banner of Inner Mongolia Eerduosi Resources Co.Ltd(600295) city as the operation subject of each project. The project subsidiary will lease the plant, warehouse and ancillary facilities of Party B or the lessor designated by Party B, and be responsible for the purchase, installation and commissioning of production and process equipment of the project, working capital investment and project operation management.
3. Investment estimate of Party C’s project company (including working capital): the estimated investment amount of the project with an annual output of 20GW single crystal silicon rod and chip is 7.6 billion yuan, the estimated investment amount of the project with an annual output of 30GW high-efficiency single crystal cell is 10.3 billion yuan, and the estimated investment amount of the project with an annual output of 5GW high-efficiency photovoltaic module is 1.6 billion yuan. (the company will conduct project feasibility analysis and calculation based on the actual needs of project construction and operation according to the project implementation plan, and the specific investment budget shall be subject to the amount approved by the competent authority within the company)
4. Construction period: according to the conditions agreed in the contract, since the plant, warehouse and ancillary facilities are handed over to Party C’s project company for use, the production time of the above projects shall not exceed 6 months and the time to reach production shall not exceed 24 months. The specific implementation progress shall be subject to the progress approved by the competent authority within the company.
5. Project construction site: West Zone of Jiangsu Industrial Park, mengsu Economic Development Zone, Yijinholo banner, Inner Mongolia Eerduosi Resources Co.Ltd(600295) City, Inner Mongolia Autonomous Region.
(II) main rights and obligations of each party
Party C shall establish the project company in accordance with the agreement, apply for administrative approval related to production and operation in accordance with the law, and carry out compliance operation; Party A and Party B are responsible for supervising the relevant administrative license approval procedures, providing, coordinating and ensuring appropriate preferential policies and resources.
(III) liability for breach of contract
1. If Party A fails to meet the conditions agreed in the contract within 24 months from the date when Party C’s 30GW battery project is put into operation, Party C has the right to adjust the construction progress of 20GW monocrystalline silicon rod and silicon wafer project and 5GW high-efficiency photovoltaic module project according to the actual market situation. The delay of project construction cycle caused by this reason will not be regarded as the breach of contract by Party C and Party C’s project company.
2. During the performance of this agreement, if the agreement cannot be performed or terminated due to force majeure, the parties shall have the right to terminate the contract and shall not be liable for liquidated damages, but shall send a written notice of termination to the opposite party of this agreement.
3. In addition to the above reasons, if either party fails to perform relevant obligations on time, the breaching party shall be liable for the losses caused to the observant party.
(IV) dispute settlement
Disputes and differences arising from the execution of this Agreement shall be settled by Party A, Party B and Party C through negotiation. If the negotiation fails, a lawsuit may be brought to the people’s court with jurisdiction in the place where the plaintiff is located according to law.
(V) effective conditions
It shall come into force after being signed by the legal representative or authorized representative of Party A, Party B and Party C, stamped with the official seal or special seal for contract, and approved by the competent authority of each party.
3、 Impact on the company
The project investment agreement signed this time is in line with the company’s future capacity planning, which is conducive to the company to give full play to its leading advantages in technology and products, seize the development opportunities of photovoltaic market, further improve the company’s capacity scale and continuously improve its market competitiveness. The project is not expected to have an impact on the company’s current operating income. The company will convene a board of directors to analyze and calculate the feasibility of the project according to the project implementation plan and disclose it in time. The signing and performance of the above investment agreement will not affect the business independence of the company.
4、 Risk tips
(I) before the implementation of the investment project signed this time, the internal review procedures of the company need to be performed.
(II) if the implementation of the contracted 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) considering that the investment and construction of the above projects 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 14, 2002
