Together We Build A Green World

Transcription

1 Together We Build A Green World Stock Code: HK March 2014

2 Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be Forward Looking Statements, including those relating to United Photovoltaics Group Limited s ( United PV or the Company ) general business plans and strategy, its future financial conditions and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual financial results and future development of United PV may differ materially from these Forward Looking Statements due to a number of factors. The Forward Looking Statements contained in this presentation speak only as of the date of this presentation, and hence and it may not reflect the current views of United PV. United PV may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. The information contained in this presentation does not constitute an offer, an advertisement in respect of an offer or a proposal or an invitation to make an offer to sell, or a recommendation to subscribe for or purchase any securities of the Company. The Company, its directors and officers make no representations as to its accuracy or completeness of the information. The users are urged to read the notices, announcements, circulars and reports published by the Company on the website of The Hong Kong Stock Exchange. 1

3 Company Overview One of the leading solar power plants investor and operator in China Achieved grid connection for 531.7MW solar power plants * Polys ilicon Ingots Wafers C ells Modules Systems & Applications Solar Value Chain Upstream Downstream On-grid Solar Power Plants State Grid End Users S trategic alliance with many industry leaders and state owned enterprises China Merchants New Energy Group(CMNEG)initiatively established Photovoltaic Green Ecosystem O rganization ( PGO ), an industry consortium which is engaged in the sustainable development of solar PV projects Strong support from China Merchants Group Mature business model and sound risk management Strong financing capabilities for project development United PV is s ued a s eries of totally US $120 million convertible bonds via private placement in O ctober and November 2013 United PV completed the placing of HK$93.5 million new s hares to Value Partners and Yinhua Fund on 20 th November 2013 United PV completed the placing of HK$825.6 million new shares to not fewer than six Placees on 29 th January 2014 Note: C ompletion of 195MW projects acquisition is ongoing 2

4 Rapidly growing solar IPP portfolio Positive regulatory development MW* Achieved gridconnection by the end of 2013 Xinjiang Gansu (100MW) Inner Mongolia (195MW*) Fixed 20-year feed-in-tariff Provides recurring annuity-type income stream Long-term pipeline Qinghai (200MW*) Hebei Jiangsu (23.8MW) Strong financing capabilities in place Partners Region Cap. Schedule Zhongli Talesun China Singyes CTIEC/Huawei Q inghai, Gansu, Xinjiang, Jiangsu Hunan, Guangdong China, Europe, North America and Japan c. 2 GW MW Q MW G D S olar Jinchang,Gansu 400MW Note: 1.Only 2.1 MW of the 20 MW Shenzhen project is grid connected 2. Completion of 195MW Inner Mongolia project acquisition is ongoing MW Qinghai project is grid connected and trial running Operating 3 Hunan Shenzhen (20MW*) Hong Kong (HQ) Intention to acquire Fujian (10.8MW) 3

5 Shareholding structure United PV s shareholders comprises leading players across the solar value chain as well as top institutional investors Others 77.36% And parties acting in connect with it 13.52% GCL (HKSE:3800) 6.08% Zhongli Talesun (SZ:002309) 3.04% 6.75% 3.51% 1.72% Convertible Bonds Holders (HKSE:0686) Invesco, a leading independent global investment management team Value Partners, one of the largest Asian based fund houses Fosun, C hina' s largest privately-owned conglomerate China Orient Asset, wholly owned subsidiary of MO F York Capital, a leading hedge fund based in the U.S. Yinhua Fund, C hina' s leading Q DII fund Note: 1. Shareholder structure as of 10 Feb Number of outstanding shares: 3,948,782,575 shares 2. All the information in relation to funds, brokers and investment companies are from online news 4

6 Investment highlights 1 Benefits from recent positive regulatory developments in China 2 Robust project pipeline 3 Unique platform of PV plants operation created from strategic alliances with industry leading and state owned enterprises 4 Strong sponsorship from China Merchants Group 5 Prudent business model and sound risk management policies 6 Strong financing capabilities for project development 5

7 1 Benefits from recent positive regulatory developments in China I II III July 2013: Increase of solar installations target in China by GW of solar capacity by 2015, up from previous target of 21GW August 2013: Clarity and certainty on FiT regime Regional tariffs ranging between RMB per kwh fixed for 20 years upon installation RMB0.42 per kwh adder to benchmark price for distributed projects August 2013: Debottlenecking of subsidy payments Guaranteed funding by doubling of renewable energy surcharge to RMB0.015 per kwh Streamlined disbursement mechanism Monthly payments schedule IV December 2013: National Energy Administration notice Solar power is prioritized to be transmitted by the State Grid, which will be monitored by National Energy Administration Solar power generation shall not be restricted except situation caused by the force majeure or potential risk to stability of grid operation 6

8 2 Robust project pipeline for next five years United PV has entered into framework agreements with a number of state-owned enterprises and large corporations to acquire solar power plants projects. Partners Region Capacity Plant Type Schedule Zhongli Tales un Q inghai, Gansu, Xinjiang, Jiangs u Province, China c. 2 GW Ground-mounted PV Power Plants China Singyes Hunan, Guangdong Province, China 100 MW Rooftop PV Power Plants Q CTIEC/Huawei China, Europe, North America and Japan 500 MW Ground-mounted PV Power Plants 2014 G D S olar Jinchang, Gansu Province, China 400 MW Ground-mounted PV Power Plants

9 3 Unique platform of PV plants operation created from strategic alliances with industry leading and state owned enterprises In 2013, CMNEG initiatively established Photovoltaic Green Ecosystem Organization (PGO) with industry leading and state owned enterprises Industry leaders such as GD Solar, Zhongli Tales un, S ingyes S olar and Yingli S olar take charge of development and construction of solar power plants. China Development Bank, CNPC Kunlun Trust and China Merchants Group provide financial support CMNEG/United PV to acquire and operate solar power plants Development and construction of PV Power Plants Capital Support Investment, Acquisition and Operation of PV Power Plants State Grid GD Solar GCL China Development Bank CNPC Kunlun Trust Talesun Poly Solar Technologies CETC Note: Singyes Solar Yingli Solar CTIEC Photovoltaic Green Ecos ys tem Organization is comprised of China Merchants New Energy Group, GuoDian Solar Co Ltd, NARI Technology Development Co Ltd, GUODIAN Inner Mongolia New Energy Inves tment Ltd, Poly S olar Technologies (Beijing) C o Ltd and Forty-eighth Research Institute of China Electronics Technology Group 8

10 4 Strong sponsorship from China Merchants Group China Merchants Group is a Chinese state owned corporation primarily engaged in infrastructure, financial management and real estate Total as s ets of RMB billion* Total AUM of RMB 3.6 trillion* Important source of support for CMNEG/United PV in developing s olar power business: C hina Merchants Yinke will provide conditional financing to United PV so that it can meet its near term capital commitments China Merchants Logistics granted 25-year exclusive rights to develop over 1.2 million square meters of rooftop PV power stations Note: As of the end of China Merchants Group operates nearly 7,000 km of highways along which there is a total potential installed capacity for PV of 18GW

11 5 Prudent business model and sound risk management system United PV ONLY acquires projects that fulfill the following criteria: Plants must be connected to the grid IRR of 9% Valid 20-year power purchase agreement must be in place On-going development of an intelligent PV s tation management system for its operating PV power plants The s ys tem will have the following capabilities : Real time plant monitoring Real time generation monitoring Remote adjustment of settings Alerts from cell & equipment Huawei 10 Alerts from external errors

12 6 Strong financing capabilities for project development March 2013 China Merchants Yinke issued a letter of conditional financial support for United PV C hina Merchants Yinke will provide financial support to further corporate development and operation, s ubject to fulfillment of certain conditions. September-December 2013 Joint Venture with Huabei Expressway United PV and Huabei Expressway have jointly acquired the 23.8MW solar power plant in Fe ngxian, Xuzhou, Jiangs u province. A total of RMB 450 million is invested to fuel the acquis ition through JV. November 2013 Value Partners and Yinhua Fund became shareholders C ompletion of placement of 55 million new shares to Value Partners and Yinhua Fund November 2013 CNPC Kunlun Trust jointly invest in solar power plant Kunlun Trust will jointly inves t and acquire 500MW s olar power plants by the end of year United PV and Kunlun Trust will own 60% and 40% equity interest in these projects, respectively. October & November 2013 USD120 million privately placed convertible bonds Subscribers include s ubs idiary of C hina O rient Asset, s ubs idiary of Fosun and York Capital Management based in the U.S. 11 January 2014 By the placing agents of BOC International, CLSA and Morgan Stanley C ompletion of placement of 480 million new shares to not fewer than six placees

13 Development Strategy Industry Technology Financing S trategic alliance with PG O including key members of S tate Grid, G D S olar and C ETC, etc as well as industry leaders of Yingli S olar,talesun and S ingyes, etc to rapidly grow through the acquisition of ongrid PV power plants by leveraging China Merchants strong background in prudent way C ooperate with leading R&D institutional organization( i.e. C hina Irrigation Planning and Design Institute and CETC) to apply the cutting edge technology Work with Huawei Technologies to develop intelligent PV Power Station Management System to further improve the efficiency of solar farm Strong fund raising platform Leverage overseas capital Innovative financial products for Chinese families in the future, to jointly develop the green world A leading platform for investing in and operating PV power plants in China Supportive industry policy Robust project pipeline Pioneer of Photovoltaic Green Ecosystem Sound corporate governance and risk management Strong financing capabilities Strategic alliance Strong sponsorship from CMG 12 Prudent M&A model

14 Thank you! Investor Relations United Photovoltaics Group Limited Mr. Stephan YAO Tel: