AikoSolar announced on April 4 that its holding subsidiary, AikoSolar (Zhejiang) had recently signed the Partnership Agreement of Hangzhou Yunlu Equity Investment with Zhuhai Tongpei Equity Investment Management Partnership. According to the agreement, AikoSolar (Zhejiang), as a limited partner, subscribed a capital contribution of RMB 350 million yuan in currency, accounting for 99.9997% of the total capital contribution. The target fund was invested in the equity of Asia Silicon (Qinghai) Co., Ltd (Asia Silicon).
Asia Silicon was established in 2006, with its main businesses including the research and development and production of poly crystalline silicon materials and industrial silicon, the operation of solar power plants, and the research and development and manufacturing of electronic gases. The company has a production capacity of 90,000 tons/year of poly crystalline silicon, 9,000 tons/year of optical fiber grade tetrachloride, 200 tons/year of electronic special gas, and 185 MW grid connected solar power station with approximately 3,000 employees. In 2022, the poly crystalline silicon production was approximately 50,000 tons.
The company, founded by Shi Zhengrong, a veteran of China’s solar industry, officially began the IPO of the Science and Technology Innovation Board in 2020. However, due to the impact of many historical legacy issues, the company ultimately withdrew its listing application documents in April 2022. In December 2022, cement enterprise Hongshi Holding Group officially acquired Asia Silicon and became the actual controller of the company.
Although Asia Silicon has limited production capacity, its industrial technology and product quality are relatively recognized in the industry. In the announcement, AikoSolar also disclosed the strong technological research and development capabilities of the Asia Silicon. In 2013, as one of the first enterprises to meet the Photovoltaic Manufacturing Industry Standards, it conducted research on energy-saving technology for reduction furnaces in 2017, and became the first enterprise to supply n-type cell material for Longi Solar in 2020. Currently, they have 255 authorized patents, seven scientific and technological achievements, and led and participated in the preparation of eight national standards and three industry standards.
AikoSolar stated that the purpose of this investment is to strengthen upstream and downstream cooperation in the industry, form long-term strategic partnerships, improve the cost competitiveness and quality competitiveness of the company’s upstream supply chain, and rely on the industry experience, management, and resource advantages of fund managers to expand investment channels, enhance the company’s comprehensive competitiveness and risk resistance.
In addition to the Asia Silicon, AikoSolar has previously participated in the silicon wafer starters such as Guangdong Gaojing and the silicon material provider Qinghai Lihao. In 2022, the company achieved a revenue of RMB 35.075 billion yuan, a year-on-year increase of 126.72%, realized a net profit attributable to the parent company of RMB 2.328 billion yuan, with a significant year-on-year growth to turn losses into profits.
