Solargiga Announces 2010 Annual Results Turnover Surged by 181.6% to RMB1,854.8 Million

Accelerate capacity expansion

Proactively implement lateral expansion and vertical integration

HONG KONG, March 28, 2011 /PRNewswire-Asia/ --

Financial Highlights

China's leading monocrystalline silicon solar ingots and wafers manufacturer, Solargiga Energy Holdings Limited ("Solargiga" or the "Company", HKSE Stock Code: 757, Taiwan Depositary Receipts: 9157TT, and its subsidiaries, the "Group"), today announced its annual results for the year ended 31 December 2010.

During the year under review, following the recovery of the global economy, the market demand for solar energy products rebounded. As a result, raw material prices and product prices have been relatively stable. With the help of increasing demand of solar energy products in the market, the industry has got back into its healthy and rapid path of development. Solargiga successfully captured the opportunity during market recovery with turnover surging 181.6% to approximately RMB 1854.8 million while gross profit amounted to approximately RMB 413.2 million. The Group has turned around to profit in the year. Profit attributable to equity shareholders of the Company reached approximately RMB 214.1 million and earnings per share rose to approximately RMB 11.85 cents. The board of directors of Solargiga recommended the payment of a final dividend of RMB 3.5 cents (HK 4.1 cents) per share for the year ended 31 December 2010.

Mr. HSU You Yuan, CEO and Executive Director of Solargiga said, "Since countries around the world gradually overcome the economic shocks brought by the financial crisis, the global solar energy industry gradually recovered, while market demand has also rebounded. For the year under review, we have expanded the production capacity of monocrystalline silicon solar ingots and wafers, which we excel others in terms of technology. Hence, our operating performance improved substantially and successfully turned around to profit. Moreover, we have completed the deployment for stepping into the production of multicrystalline products to achieve lateral expansion and have participated in the production of downstream photovoltaic cells and modules to achieve vertical integration. We expect these will provide us stronger growth momentum in the coming year."

As of 31 December, 2010, the Group was equipped with 397 monocrystalline ingot pullers, 83 wiresaws and 4 multicrystalline casting furnaces. The Group's annual production capacities of silicon solar ingots and wafers were approximately 800MW and 600MW, respectively, and its annual production capacity of photovoltaic solar module was 50MW. With thriving market demand for solar energy products, the number of orders for its products increased accordingly. Shipment volumes of self-manufactured silicon solar ingots and wafers kept growing during the year under review, reached 77MW and 225MW respectively, while the processing volumes of solar ingots and wafers reached 26MW and 6MW.

For the year under review, the company carried out various acquisitions in order to achieve the target of balanced lateral expansion and vertical integration. In July 2010, the Group acquired a 51% equity interest in Qinghai Chenguang New Energy Co., Ltd., of which upon acquisition the name has been changed to Solargiga Energy (Qinghai) Co., Ltd., to jointly invest in constructing a factory with 192 monocrystalline solar ingot pullers. Upon the completion of construction, the annual production capacity of monocrystalline silicon ingots of the Group will add up to 1.2GW. In the meantime, the Group successfully expanded into the business of multicrystalline silicon solar ingots and wafers. The Group established a joint venture with Liaoning Oxiranchem, Inc. in September 2010 to jointly invest in a 500MW multicrystalline silicon solar ingots and wafers project.

In order to gradually implement its vertical integration business model, the Group has also expanded its business to the downstream of installing solar energy photovoltaic modules and systems through its 51% controlling interest in Jinzhou Jinmao Photovoltaic Technology Company Limited and has also acquired Jinzhou Huachang Guangfu Photovoltaic Technology Company Limited which is principally engaged in the manufacturing of solar cells. At present, it has an annual production capacity of solar cells of 300MW. The acquisition will boost the development of downstream business of the Group and secure a reliable supply source of solar cells to support the development of module business and improve its operating efficiency. Meanwhile, by understanding the needs of downstream customers, the Group can also promptly develop new silicon solar ingot and wafer products needed by the customers, thus bringing synergy effect to the existing business of manufacturing ingots and wafers.

Furthermore, the Group has successfully secured the stable supply of polysilicon raw materials for the next few years and maintained cost control, so as to support the long term and stable development of the Group. The Group has signed long-term polysilicon supply agreements with Wacker and Hemlock, which are internationally renowned polysilicon suppliers. In order to maintain a sustainable business, the Group has been actively identifying new potential overseas customers during the year under review and strived to increase the proportion of overseas market in its total turnover. For the year ended 31 December 2010, the proportion of turnover from overseas customers to the Group's overall turnover has raised from approximately 22% last year to approximately 40% for the year under review. In the long run, the Group plans to gradually increase the proportion of overseas market sales to total sales volume to 50%, in order to secure diversified sources of revenues.

Looking ahead, the Group will endeavor to expand its production scale and accelerate the expansion of production capacity. It is expected that by the end of 2011, the Group's production capacity of silicon ingots and wafers will reach 1,700MW and 1,400MW respectively, in which, the production capacity of monocrystalline silicon solar ingots and wafers will reach 1,200MW and 900MW respectively, while the production capacity of multicrystalline silicon solar ingots and wafers will reach 500MW by the end of 2011. As a result of vertical integration, the production capacity of downstream solar energy photovoltaic modules will further increase from 50MW at the end of 2010 to 150MW. Furthermore, other than the two pilot power stations in Jinzhou, Liaoning Province and Pingdingshan, Henan Province which are currently in operation, an additional 13.5MW project of "Golden Sun Programme" will be completed within this year. By then, the Group will successfully integrate the lateral expansion with vertical integration and bring further synergy effect to the Group.

Mr. HSU You Yuan, CEO and Executive Director of Solargiga added, "As people's awareness of environmental protection has been growing, together with the efforts being placed by governments of different countries on energy conservation and greenhouse gas emissions reduction increased significantly, and the importance of solar energy on the strategic level for different countries increased, various countries and organisations have been actively promoting the development of solar energy industry, making it a global trend to use renewable energy such as solar energy to replace traditional fossil energy, while bringing along promising prospects for the development of solar energy industry. The Group will strive to accelerate the expansion of production capacity, explore overseas markets and proactively seek new business growth drivers. We aspire to become the world's largest monocrystalline silicon solar ingot and wafer manufacturer and become one of the key players in the multicrystalline silicon solar product market."

About Solargiga Energy Holdings Limited

Solargiga Energy Holdings Limited is a leading manufacturer of monocrystalline silicon solar ingots and wafers in the People's Republic of China ("PRC"). In addition to the offering of monocrystalline silicon solar ingots and wafers, the Group has extended into the manufacture of multicrystalline silicon solar ingots and wafers, the production and sales of photovoltaic cells and modules as well as the installation of photovoltaic systems. Currently, our annual monocrystalline silicon solar ingot production capacity amounted to approximately 800MW, annual monocrystalline silicon solar wafer production capacity is approximately 600MW, while the annual capacity of photovoltaic modules is approximately 50MW.

The Group operates its major production facilities of solar ingot and wafer in Jinzhou, Liaoning Province, the PRC. In addition, the Group operates polysilicon reclaiming and upgrading facilities in Shanghai and Jinzhou. Also, the monocrystalline silicon solar ingot production line in Xining City, Qinghai Province, in which the Group owns 51% controlling interest, is under construction. Already a market leader in the PRC, the Group aspires to be the world's largest monocrystalline silicon solar ingot and wafer producer as well as one of the key players in multicrystalline silicon solar product business through rapid capacity expansion and technology upgrade. Since 2009, Solargiga has started to develop its downstream solar module and system installation businesses through the formation of joint venture company in Jinzhou as well as the acquisition of solar cell business in Jinzhou which has an annual production capacity of 300MW to realize vertical integration.

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