On February 3, GCL-Poly Energy Holdings Limited officially announced through online live broadcast that its subsidiary Jiangsu Zhongneng Polysilicon Technology Development Co., Ltd., an entity for R&D and manufacturing of FBR-produced FBR granular polysilicon, had an annual production capacity increase from the previous 6,000 tons to 10,000 tons, officially entering the 10,000-ton capacity scale and adding another technological innovation matrix to the field of photovoltaic raw materials in China.

At 10: 00 a.m., the first batch of products of the new capacity of FBR granular polysilicon of Jiangsu Zhongneng was officially put into production. At the commissioning ceremony, many downstream customers certified GCL-Poly Si particle products in real time. The responsible person of GCL-Poly’s Si particle team answered and interacted with the global investors. Zhu Gongshan, Chairman of the Board of Directors of GCL-Poly and responsible persons of relevant enterprises attended the event.

The smooth improvement of the production capacity of FBR granular polysilicon shows that GCL-Poly has fully mastered various mature processes and mass production technologies of FBR granular polysilicon through nearly ten years of technical research and development and process improvement. Through the construction and operation management of the 10,000-ton project, GCL-Poly is now equipped with advanced technical advantages and large-scale replicability in project planning and construction, artificial intelligent operation of core equipment, digital control of safe production and systematic verification of product quality.

In recent years, GCL-Poly has obtained strong support from downstream customers in the process of product testing and certification. Through the use of 100% pure FBR granular polysilicon, customers have produced perfect single crystal products. With the customers’ verification and recognition, the market prospect is promising. GCL-Poly will continue to implement the established plan for improving the capacity of FBR granular polysilicon, and promote the technological change and quality improvement of PV materials.

The competitive advantages of core technology of GCL-Poly’s FBR-produced FBR granular polysilicon were shared at the event: excellent product indicators, with FBR-produced FBR granular polysilicon meeting the electronic grade and the photovoltaic high-efficiency N-type demand; lower production cost, 30% lower than that of silicon rods under the same conditions; obvious downstream supporting gains, i.e., FBR granular polysilicon helping customers improve the level of process intelligence; customer product gains, i.e., FBR-produced FBR granular polysilicon significantly reducing the production cost of single crystal products for downstream customers; complete implantation of a “carbon cycle” system in the whole manufacturing process, realizing carbon emission reduction by carbon neutral.

It is worth noting that the customer recognition and market trust of GCL-Poly FBR-produced Si particle products has been continuously improved, the downstream customer verification continues to advance, and the coverage rate of long-term production capacity orders is increasing day by day. According to reports, the world’s major downstream manufacturers have fully passed the crystal pulling test of FBR granular polysilicon, so that FBR granular polysilicon can better meet the requirements of customers on single crystal process improvement and green intelligent manufacturing. At present, GCL-Poly is deepening its strategic cooperation with customers. Major downstream enterprises have signed long-term purchase orders for silicon with Jiangsu Zhongneng.

This was confirmed at the commissioning ceremony that day. During the event, Zhang Changxu, deputy general manager of Zhonghuan Semiconductor, Jin Junmiao, assistant president of JA Solar, and Yang Hao, general manager of Hongyuan New Materials, as customer representatives, spoke highly of the high-quality certification results of Si particle products.

It is also known that GCL-Poly’s Si particle products perform excellently in carbon footprint, helping to achieve China’s goal of carbon neutral before 2060. According to calculation, the production of Si particle per kilogram saves about 45 KWHs of electric energy and about two-thirds of heat energy compared with the traditional Siemens method, making it a leader in the industry in terms of affordable access to the Internet and low carbon emission.

At the commissioning ceremony, GCL-Poly also designed a Q&A session for investors, providing public answers and online interaction on issues of concern to global investors.

On February 2nd, for the latest development of polysilicon purchase agreement, GCL-Poly announced the purchase agreements with Longi Green Energy Technology Co., Ltd. and Tianjin Zhonghuan Semiconductor Corporation.

According to the polysilicon purchase agreement between Jiangsu Zhongneng and seven subsidiaries of Longi., Jiangsu Zhongneng will sell a total of no fewer than 91,400 tons of polysilicon to Longi and its seven subsidiaries from March 2021 to December 2023. In order to meet customers’ expectation of FBR granular polysilicon, the supply of polysilicon will include Si particle products. Longi and its subsidiaries will place polysilicon purchase orders on a monthly basis according to their demand. The price will be negotiated by the parties according to market conditions.

Jiangsu Zhongneng signed a polysilicon purchase agreement with Tianjin Huanrui Electronic Technology Co., Ltd., a subsidiary of Tianjin Zhonghuan Semiconductor Corporation. According to the polysilicon purchase agreement, Jiangsu Zhongneng will sell a total of 350,000 tons of polysilicon to Tianjin Huanrui from January 2022 to December 2026. In order to meet the customer’s expectation for FBR granular polysilicon, the annual polysilicon supply will include a large proportion of the actual output of the existing and future planned Si particle capacity of Jiangsu Zhongneng. Tianjin Huanrui will place individual orders to purchase polysilicon on a monthly basis according to its needs, the pricing of which follows the principle of yearly pricing mechanism and will be determined by both parties through consultation based on the market conditions. Upon expiration of this agreement, both parties will continue to implement the relevant provisions of this agreement for 1-2 cycles through friendly consultation.