JYT, a Chinese PV company that provides both equipment and products, announced on August 10 that it will be reallocating the funding that was originally set aside for the development of the Wuhai project to the development of the Leshan project. JYT said that the Wuhai project has been delayed due to issues related to the permitting process. The construction phase of the project will not start on the previously scheduled date. Therefore, the related funding will now be purposed for the Leshan project in order to improve the efficiency of the company’s capital utilization and meet the company’s needs with respect to long-term growth. This news was first reported by other Chinese renewable energy news websites.
The Wuhai project in the Inner Mongolia Autonomous Region comprises 10GW per year of production capacity for mono-Si rods used in the manufacturing of high-efficiency PV products. The Leshan project in Sichuan Province comprises 22GW per year of production capacity for mono-Si rods and wafers used in the manufacturing of high-efficiency PV products. JYT originally raised RMB 2.090074 billion in net proceeds to fund the Wuhai project. The company will now be using 83.94% of that amount and the associated interest to fund the development of the Leshan project.
Wuhai JYT New Energy is in charge of the implementation of the Wuhai Project, while Leshan JYT Semiconductor Materials is in charge of the implementation of the Leshan Project. Both are JYT’s wholly-owned subsidiaries. The respective locations of the Wuhai and Leshan projects are the Haibowan Industrial Park and the Wuqiaotong New Industrial Base.
According to the original development schedule for the Wuhai project, the construction phase was to take two years, and the project will enter operation in January 2023. The latest, revised schedule has pushed back the operational date to December 2023. JYT said that the reassignment of the funding and the extension of the project does not constitute a connected transaction.
The total investment in the Leshan project is currently estimated at RMB 5.36352 billion, of which RMB 4.1596 billion is set aside for construction works and RMB 1.20392 billion is set aside for working capital. The funding for the Leshan project will include not only the amount that was originally for the Wuhai project but also other sources of capital. JYT will be drawing from its own cash reserve and obtaining additional funding through loans and outside investments (that would not affect the company’s existing shareholding structure).