(Yicai Global) May 23 -- Shares of Irico Group New Energy surged after the group based in northwest China’s Shaanxi province announced the signing of a two-year contract to supply photovoltaic glass totaling CNY2 billion (USD302 million).
Irico [HKG: 0438] closed up 13.6 percent at HKD9.72 (USD1.24) today, while buyer GCL System Integration Technology [SHE: 002506] gained 1.2 percent to CNY3.43 (51.44 US cents).
From this month to April 2024, GCL System will give priority to purchasing photovoltaic glass from Irico, the pair said in statements issued late on May 20.
The value of the deal is about CNY2 billion based on the market price of 3.2-millimeter coated PV glass. A research report by Tianfeng Securities earlier this month noted that the current price of 3.2mm coated PV glass is about CNY28.5 (USD4.3) per square meter.
In the past two years, the total amount of PV glass bought by GCL Energy Technology, a unit of GCL System Integration Technology, from Irico tallied just CNY66 million (USD9.9 million), and the total amount of PV glass purchased from all suppliers only reached CNY160 million, the company said.
It added that the reason for the significant increase in the purchase of PV glass is due to the company’s demand for raw materials after the completion and operation of its new photovoltaic module factory in Hefei, the capital of China’s Anhui province.
GCL System Integration Technology’s 2021 annual report showed that part of the solar module production capacity of the first phase of the Hefei production base has been completed and put into operation. It is expected that after full production in the third quarter this year, the firm total solar module production capacity will jump to 20 gigawatts from 5 GW before the plant was put into operation.
GCL System Integration Technology is a major supplier of integrated design and solutions for photovoltaic power generation systems in China. Its parent company, GCL Group, ranks second in the world for total installed capacity of photovoltaic power plants, according to the company’s website.
Irico made China’s very first color kinescope and first liquid crystal glass substrate. In recent years, it has shifted focus from traditional color picture tubes to new fields such as solar glass, photovoltaic power stations, and new electronic materials.