GCL-Poly ranked No.1 producer of Polysilicon in China

GCL-Poly has announced 2009 financial results and detailed a major effort to diversify operations and move downstream into wafer and solar project development

and GCL-Poly have complete new Polysilicon factory 15,000MT reached  total capacity 18,000MT/year 

and will be expand 21,000MT by Dec. 2010   

this is no 1 capacity of Polysilicon producers in China

GCL-Poly expect wafer sales to contribute a majority of our revenues starting in 2010 who have started constructing in-house wafer and ingot manufacturing facilities and we target to ramp up wafer production capacity to 2 GW by end of 2010 with a production volume of 1.3 GW in 2010

Revenue from the sale of polysilicon and wafers amounted to RMB 2,537.1 million (US$371.6 million) and and RMB 262.3 million (US$38.4 million respectively)

Results Highlights:

 Revenue increased by 23.7% to RMB4,355.6 million in 2009 from RMB3,521.4 million

in 2008

 Results affected by exceptional expense items including:

1. A one-time finance charge of RMB129.7 million related to a US$300 million

short-term bank loan in relation to the merging of the solar business into the

Company which has been fully repaid

2. One-time share-based payment expenses of RMB745.8 million related to the

equity settled share option scheme and restricted share compensation scheme of

the solar business which had to be vested immediately right before the solar

business was merged into GCL-Poly

3. Goodwill impairment loss of RMB95.9 million of the power business due to the

acquisition being accounted for as a “reverse acquisition” under IFRS

 Full year net loss attributable to owners of the company amounted to RMB176.0

million due to the exceptional expense items above. Excluding such exceptional

items and other one-time costs, operating profit would have been more than RMB800

million

 Produced 7,454 MT of polysilicon and sold 5,675 MT of polysilicon and 46.4 MW of

wafers in 2009 (produced 1,850 MT and sold 1,530 MT and 39.2 MW in 2008)

 Average selling price was US$65.4 per kg for polysilicon and US$0.83/W for wafers in

2009 (versus US$272.4 per kg and US$2.33/W in 2008)

 Made significant improvements in reducing polysilicon production cost from US$66.0

per kg in 2008 to US$39.4 per kg in 2009

GCL-poly have successfully completed the construction of a 20MW solar farm in Xuzhou, Jiangsu province, this solar farm("Xuzhou Photovoltaic Power Station") is the largest one in China and Asia to date and has been successfully connected to the grid as of 28 December 2009. 

who are also in the process of setting up a joint venture with China Investment Corporation (“CIC”) to invest in solar farm opportunities globally