PVTIME – According to a LONGi Group announcement on the evening of February 23, its subsidiary LONGi Solar intends to acquire an 100% stake in Ningbo Jiangbei Yize New Energy Technology Co., Ltd. (hereby referred to as “Ningbo Yize”) for the price of 1.78 billion yuan.
Ningbo Yize operates in the sales of photovoltaic cells and modules as well as the leasing of its existing plants. Ningbo Yize’s production bases are located in Vietnam and its main holding companies include Vina Cell Technology Co., Ltd., Vina Solar Technology Co., ltd., Yize International Co., Ltd., Shanghai Yize New Energy Technology Group Co., Ltd., and Guangxi Yize International Trade Co., Ltd. Currently, it has an annual production capacity of more than 3GW in solar cells and 7GW in modules while proving to be profitable.
LONGi Group says that this equity acquisition will quickly help the company obtain overseas cell and module production capability, circumvent overseas trade barriers, enhance the company’s overall competitiveness, and is in line with the company’s long-term planning and development strategy.
According to the announcement, as of September 2019, Ningbo Yize had total assets of 3.1 billion yuan and net assets of 1.386 billion yuan. In 2018, it achieved revenue of 2.337 billion yuan and recorded a net profit of 63 million yuan. In the first three quarters of 2019, it achieved revenue of 2.056 billion yuan and recorded a net profit of 248 million, a year-on-year increasing of 293%.
Regarding this acquisition, an industry insider told PVTIME during an interview, “LONGi’s acquisition of Ningbo Yize speeds up its vertical integration strategy and allows it to further promote the 166mm wafer. As we all now, the 210mm silicon wafer has been making rapid advancements since its launch last year. Presently, aside from LONGi and Jinko Solar, many other manufactures are backing 210mm, especially cell manufacturing giants Tongwei and Aiko Solar. Among component manufactures, JA Solar, Risen Energy, and Trina Solar are also vigorously promoting 210mm while LONGi mainly only promotes the 166mm wafer. Therefore, in the face of severe competition, attempting to broaden its sales channels through acquisitions is LONGi’s main objective.”
