Stock Code: Longi Green Energy Technology Co.Ltd(601012) stock abbreviation: Longi Green Energy Technology Co.Ltd(601012) Announcement No.: Lin 2022037
Bond Code: 113053 bond abbreviation: long 22 convertible bond
Longi Green Energy Technology Co.Ltd(601012)
Announcement on the progress of the company’s investment in Yunnan Province
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.
1、 Basic information of investment agreement signing
According to the strategic development needs of Longi Green Energy Technology Co.Ltd(601012) (hereinafter referred to as “the company”), the company signed a strategic cooperation framework agreement with the people’s Government of Yunnan Province on March 10, 2016 on the company’s investment in the construction of monocrystalline silicon rod silicon wafer, high-efficiency battery module and characteristic agricultural photovoltaic power station industrial chain in Yunnan Province, Drive the 100 billion single crystal photovoltaic industry cluster and Yunnan Province to give relevant preferential policy support to reach a strategic cooperation intention (for details, please refer to the relevant announcement disclosed by the company on March 12, 2016).
Since 2016, the company has successively signed project investment agreements with Yunnan Provincial Development and Reform Commission, Energy Bureau, Baoshan Municipal People’s government, Lijiang Municipal People’s government, Chuxiong Yi Autonomous Prefecture People’s government, Tengchong Municipal People’s government, Qujing Municipal People’s government and other places in Yunnan Province to promote the effective implementation of the above strategic agreements. By the end of 2021, the company has formed about 67gw of crystal drawing capacity and 57gw of slicing capacity in Yunnan Province. The construction project of Lijiang phase III with an annual output of 10GW monocrystalline silicon rod, Qujing phase II with an annual output of 20GW monocrystalline silicon rod and 30GW monocrystalline silicon wafer and Qujing with an annual output of 30GW monocrystalline battery have not been started or put into operation.
2、 Progress
On April 1, 2022, the company received the letter of Yunnan Provincial Development and Reform Commission on clarifying Longi Green Energy Technology Co.Ltd(601012) relevant electricity prices (yfggyh [2022] No. 103), informing that the preferential electricity price policies and measures enjoyed by the company in Yunnan Province have been cancelled according to the requirements of relevant national departments to clean up the preferential electricity price policies. Since September 1, 2021, all electricity prices of the company have been formed through electricity market trading, Direct settlement with power grid enterprises.
3、 Impact on the company
By the end of 2021, the company’s slicing capacity in Yunnan accounted for about 54% of the company’s total capacity. Since the company’s investment projects in Yunnan Province can no longer implement the electricity price agreed by both parties in the original cooperation agreement, the production cost of investment enterprises in Yunnan Province will be increased to a certain extent. The electricity charge accounts for about 15% of the whole process processing cost of silicon wafer, which will have a certain adverse impact on the company’s profits. In addition, the unfinished part of the above-mentioned company’s investment projects in Yunnan has the risk of change. The company will disclose the progress in time in accordance with the stock listing rules of Shanghai Stock Exchange and other relevant regulations. Please pay attention to the investment risk.
It is hereby announced.
Longi Green Energy Technology Co.Ltd(601012) board of directors April 6, 2002
